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Home Press Releases

Saint Lucia CIP Mismanagement: Opposition Warns of Security and Economic Fallout

Opposition Alleges Mismanagement and Security Lapses in St. Lucia's Citizenship by Investment Program

Unitedpac by Unitedpac
April 17, 2024 - Updated on November 14, 2024
in Politics, Press Releases, Travel
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Saint Lucia Prime Minister Philip J Pierre discusses Saint Lucia CIP mismanagement amid controversy surrounding the island's passport program.
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Saint Lucia CIP Mismanagement Sparks Opposition Concerns Over Security and Economic Threats

Castries Saint Lucia — Saint Lucia’s Citizenship by Investment Program (CIP) is under intense scrutiny following allegations by the Office of the Leader of the Opposition concerning mismanagement and potential security risks. The controversy centers on changes to the program’s administration and recent government decisions that opposition leaders argue could undermine regional security and economic stability.

The Leader of the Opposition has accused the current government of engaging in practices that could jeopardize the island’s international standing and the benefits afforded to its citizens. Central to these concerns are the amendments made to the CIP’s Economic Fund, which allow the Cabinet more discretionary powers over the use of funds. These changes, according to the opposition, pose serious security and transparency issues.

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In a particularly damning assertion, the opposition claims that the government has continued to accept CIP applications from Russian and Iranian nationals despite the ongoing conflict in Ukraine and international apprehensions. This move, combined with a refusal to adhere to the Organization of Eastern Caribbean States (OECS) joint protocols, and the introduction of an infrastructure investment option, could potentially affect St. Lucia’s visa-free access to the United Kingdom and Europe, including French territories like Martinique and Guadeloupe.

Further complicating the issue, the opposition points to the Real Estate option within the CIP, which has reportedly been sold unlawfully at discounted prices—a claim the government has neither confirmed nor denied. This situation is said to have severely impacted the projected revenue from the Donation Option of the program.

Moreover, the government has introduced a new scheme allowing approved developers to undertake infrastructure projects, compensated by the sale of Saint Lucian citizenships at significantly reduced prices. This arrangement has not been formally disclosed to the public, raising additional concerns about governance and transparency.

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The opposition’s press statement concludes with a stern warning to the government, urging a cessation of what it describes as “reckless” and “corrupt” management of the CIP. The potential repercussions, they warn, include increased difficulty for St. Lucians in obtaining visas for travel—especially for crucial activities such as health-related visits, education, shopping, and family reunions—due to possible changes in visa arrangements with the United States and Canada.

As this political saga unfolds, the citizens of St. Lucia wait anxiously for the government’s response to these serious accusations, which touch upon the very integrity of the nation’s governance and its international relationships.


The iconic Saint Lucia Pitons, as the island faces growing concerns over Saint Lucia CIP mismanagement and its potential impact on tourism.
The iconic Saint Lucia Pitons

Full Press Statement from the Office of the Leader of the Opposition:

Citizenship by Investment Programme (CIP)
9th April, 2024

Yesterday, the Prime Minister’s Office issued a press release stating that the Prime Minister has gone to Brussels to meet with the European Union to discuss the Citizenship By Investment Program. The Opposition has been reliably informed that Mr. Pierre was summoned due to serious concerns about the operation of this Programme. As a party, we have been sounding the alarm for almost two years since the Government and the Prime Minister, in particular, changed the Economic Fund rules to allow the Cabinet to use the CIP monies freely. This change, along with their damning decision to continue accepting Russian and Iranian applications at the commencement of the Ukraine war despite international concerns, has raised serious red flags. Additionally, the Government’s refusal to commit to the OECS joint protocols and the recent addition of an infrastructural option have collectively undermined confidence in our program. This raises serious security and transparency concerns and threatens to impact our current visa-free access to the United Kingdom and Europe, which will necessarily include Martinique and Guadeloupe. There is also a very real risk that the US and Canada could reverse their recently granted concessions to allow us to apply and renew our visas online.

The Government recently announced during the Budget Estimates that the Donation Option within the CIP Program only achieved 50% of its projected revenue as it was negatively affected by the Real Estate option. Whilst no further explanation was offered, it has been reported that the Real Estate option is being sold unlawfully at a discounted price, which the Government has, to date, not denied or confirmed. The Government has also launched a new option which will allow certain approved developers to undertake infrastructure projects for the Government and to reimburse themselves by selling our citizenships for US$100,000 and receiving the funds directly. The Government has not informed the people of St. Lucia about this new option, but there is already evidence that a particular developer has begun selling this option. Even more concerning is the sub-par selling price of US$80,000.

The OECS Countries with CIP programs have recently agreed to a common standard as recommended by the European Union, including a minimum price of US$200,000. St Lucia, under my administration, spearheaded this joint approach which was critical for regional security and to avoid each island undermining the others. It is not only disappointing but extremely alarming that the Government seems incapable of understanding the far-reaching implications of its refusal to join this initiative, using a pathetic excuse of a conflict with existing contractual commitments. The recommended and traditional practice that CIP applications are forwarded to the Regional Security institutions for independent vetting is now being disregarded.

The consequent risks to our Program’s reputation and local and regional security are obvious to everyone but the Prime Minister and his Cabinet. The United Workers Party is warning this Government to stop their mismanagement and corrupt actions of the CIP program because the risks to our security and reputation are serious. Many St. Lucians struggle to get visas to travel for health, education, shopping, and visiting friends and family. The online process for the US and Canada has made things much easier, but this could now be at risk, as well as the visa-free access to other countries that we currently enjoy. The fallout will likely result in further hardship to St Lucians by increasing the burden and cost of visa applications. It is time that the Government stops the reckless decision-making by irresponsible people seemingly incapable of understanding or indifferent to the devastating consequences we as a people will face.

End.

“Stay updated on this developing story with Unitedpac St. Lucia News, your trusted source for the latest news.”

Tags: Caribbean Economic SecurityCIP infrastructure option controversyCIP program mismanagementCitizenship by Investment MismanagementEU-Caribbean RelationsInvestment Risks in St. LuciaOpposition CIP concernsSt. Lucia EU DiplomacySt. Lucia Political OppositionSt. Lucia visa concerns

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