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Mark A G Brantley |
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The Nevis Island Administration (NIA) has negotiated an arrangement with United Trading Investment Company (UTICO) of Lebanon in the Middle East to privatise the operation of its International Companies registry.
This is according to information distributed by the Opposition Concerned Citizens Movement during a press conference at the Red Cross conference room on Wednesday July 28.
The press packet which the CCM handed out contained a copy of the agreement, comments from the CCM and certified copies of entries of the Commercial registry.
Under the Agreement UTICO will replace the current International Company registry, all its functions and its staff.
The agreement allows UTICO to set up a subsidiary in the name of CHN Trust Limited to operate as a registered agent of international entities in Nevis. That subsidiary was incorporated on April 23, 2010 with the Premier’s daughter Sonya Parry as sole director.
The agreement mandates that UTICO will promote Nevis as a financial centre but the company has no obligation to do so until the beginning of the third year, while collecting up to 3 million dollars per year during this period.
The Nevis Island Administration gave an undertaking in the Agreement to provide work permits for UTICO personnel and to appoint UTICO as deputy registrar and pass legislation to delegate the function of the registrar to UTICO.
For its services UTICO will receive 20% of all fees collected. In addition it will be reimbursed for all expenses associated with operating the registry.
Vance Amory is the former Premier and leader of the CCM. He puts the yearly revenue that the offshore registry brings into the Nevis treasury at about ten million East Caribbean dollars EC$10,000,000.00). Therefore between the effective date of the UTICO contract which according to the documents at hand is May 5, 2010 and May 5, 2011, UTICO may be paid two million east Caribbean dollars in addition to expenses. For years two to four UTICO will collect 25% of all fees received.
The agreement mandates that UTICO develop software and own that software at the end of the contract. The contract is for 20 years and renewable for ten years thereafter. The company will offer online international business company registration
The contract allows UTICO to place the computer servers anywhere in the world, and named the place to resolve disputes as New York, using New York law.
Mark A G Brantley, Federal Opposition Leader and Deputy Leader of the CCM is an international lawyer who worked on many cases to do with international business companies. Mr. Brantley feels that jurisdiction is very important. He said that the NIA having to go to New York to settle disputes with UTICO is a financial drawback to the Administration.
“Having to travel there or to retain counsel there will cost a significant amount,” he said. He also feels that placing the server with all the information on Nevis offshore companies in another country is a risk. He said that the court of which ever country the server sits will have jurisdiction over the information.
Amory feels that many of the local offshore jobs will dry up with this arrangement. He thinks that there are over 200 persons employed in the industry in Nevis including the offshore registry.
Brantley complained that the local offshore industry was not properly consulted. He said that Premier Parry invited the service provider to a meeting on April 21st where 35 persons attended. He said that the Premier mentioned at that meeting that the NIA was thinking of privatizing the registry and implementing online registration. But Brantley said by that time the deal was already done.
The May 5th agreement made reference to a memorandum of understanding dated November 18, 2009, a non-disclosure agreement dated January 7, 2010 and a term sheet dated February 25, 2010.
Up to press time Premier Parry did not return calls to The Observer, neither did he answer questions sent to him by email. |
