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Home All News Caribbean News

St Kitts Corruption Probe Deepens: Terrance Drew Faces Backlash

Amid St Kitts Corruption Probe, PM Drew Faces Allegations of Mismanagement and Hypocrisy Over CBI Benefactor Appointment

Unitedpac by Unitedpac
November 25, 2024
in Politics, Caribbean News
Reading Time: 7 mins read
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Philippe Martinez and Prime Minister Dr Terrance Drew pictured amid the ongoing St Kitts corruption probe involving the CBI program.

Philippe Martinez and Prime Minister Dr Terrance Drew pictured amid the ongoing St Kitts corruption probe involving the CBI program.

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Table of Contents

  • 1. A Troubling Appointment
  • 2. Allegations of Corruption and Missing Millions
  • 3. Drew’s Disinformation Campaign
  • 4. Gross Hypocrisy on Display
  • 5. Public Outcry and Mounting Pressure
  • 6. A Crisis of Leadership

St Kitts Corruption Probe Raises Questions About CBI Program Integrity and Leadership

The St Kitts corruption probe into Prime Minister Dr. Terrance Drew’s administration has plunged the government into a political crisis, raising serious concerns about corruption, financial mismanagement, and disinformation within the Citizenship by Investment (CBI) program. At the center of the controversy is Drew’s handling of the CBI initiative, including the appointment of Philippe Martinez as the program’s inaugural Public Benefactor and allegations of missing millions tied to a failed jail project.

The unfolding St Kitts corruption probe has sparked widespread outrage among citizens and intensified scrutiny of Terrance Drew’s leadership. Critics accuse the Prime Minister of hypocrisy, mishandling public funds, and undermining the transparency promised during his tenure. As questions about accountability grow, Drew’s ability to navigate the scandal is under sharp focus, with many demanding answers to the missing $40 million earmarked for public projects.

01
of 06
A Troubling Appointment

The controversy surrounding Philippe Martinez’s appointment as the first-ever Public Benefactor of the revamped Citizenship by Investment (CBI) program began with an agreement signed on November 13, 2023, between his MSR Group of Companies and the Government of St Kitts and Nevis. This agreement granted Martinez and his companies significant authority, including the right to sell public benefit units (PBUs) valued at over $182 million. The PBUs were earmarked to fund a range of initiatives, including the renovation of the Ocean Terrace Inn (rebranded as MSR Hotel Saint Kitts), the construction of an LED Digital/VFX Film Studio, and film production projects.

Prime Minister Terrance Drew pictured with Philippe Martinez, highlighting Drew's past trust in Martinez amid the St Kitts corruption probe.
Prime Minister Terrance Drew pictured with Philippe Martinez, highlighting Drew’s past trust in Martinez amid the St Kitts corruption probe.

Under the agreement, Philippe Martinez committed to producing four movies and one eight-episode television series annually between 2024 and 2029, employing and training locals in filmmaking and production. Additionally, his company pledged to collaborate with Clarence Fitzroy Bryant College to establish a film production curriculum and develop long-term infrastructure, such as the state-of-the-art LED studio.

Despite these ambitious promises, concerns arose about the transparency of the deal and whether Martinez’s background had been adequately vetted before his designation as an Approved Public Benefactor. The agreement also outlined significant financial benefits for Martinez, allowing him to retain 25% of PBU sales as profit and 15% for agent commissions, raising eyebrows over the distribution of funds.

Critics argue that the Terrance Drew administration’s decision to entrust such substantial responsibilities and financial benefits to Philippe Martinez reflects a troubling lack of due diligence. As the agreement unfolded, it became clear that the deal placed significant trust in Martinez to deliver on these promises without sufficient oversight mechanisms to ensure compliance.

Executed Investment Agreement between the Government of St Kitts and Nevis and MSR Group of Companies, signed on November 13, 2023.Download

Adding to the controversy, the agreement explicitly stated that MSR Group had already been allocated 300 PBUs for hotel renovations and up to 45 PBUs per movie, totaling millions of dollars in capital. While these commitments were intended to bring economic benefits to St Kitts and Nevis, questions have since arisen about whether the promised projects were viable and why the administration proceeded despite red flags about Martinez’s past.

The lack of transparency in finalizing the agreement and Drew’s apparent confidence in Martinez have only fueled suspicions about the administration’s priorities. As the St Kitts corruption probe unfolds, critics point to this agreement as emblematic of the wider issues plaguing the CBI program under Drew’s leadership.

02
of 06
Allegations of Corruption and Missing Millions

The scandal escalated in November 2023 when Martinez accused the Drew administration of approving discounted CBI applications linked to the contentious Galaxy Caribbean jail project. These passports, allegedly sold below the government’s official price, were intended to fund the project. Yet, $40 million allocated for construction is now unaccounted for.

Martinez’s revelations raised serious concerns about the program’s integrity. In a bombshell podcast, he posed the damning question, “Where is the Galaxy money?” Martinez claimed to have submitted evidence, including bank statements, to both the U.S. Department of Justice and local courts, implicating multiple parties in money laundering, fraud, and offshore payments.

Inside the CBI Corruption: Philippe Martinez Speaks

Adding to the scandal, Martinez revealed that Attorney General Garth Wilkin had refused his suggestion to meet with U.S. federal investigators to discuss the evidence. This refusal, along with Drew’s silence on the missing funds, has fueled speculation of a cover-up within the government.

03
of 06
Drew’s Disinformation Campaign

Rather than confront these allegations, Dr. Drew opted to deflect attention. In a media interview, he claimed a representative of Martinez had attempted to extort $100 million from the government to settle the RICO lawsuit, alleging that the demand included public funds. Martinez categorically denied these claims, calling them fabrications designed to create public anger against him.

Prime Minister Dr Terrance Drew addressing the parliament of St Kitts and Nevis amid the ongoing St Kitts corruption probe involving the MSR Media RICO lawsuit.
Prime Minister Dr Terrance Drew addressing the parliament of St Kitts and Nevis

Attorney Damian Kelsick, representing Martinez, confirmed that Drew had never met with any authorized representative of MSR Media to discuss the lawsuit. Emails obtained by journalists corroborate this, undermining Drew’s narrative. Critics argue that the Prime Minister’s disinformation campaign aimed to distract from the administration’s failure to address corruption allegations and missing funds tied to Galaxy Caribbean.

04
of 06
Gross Hypocrisy on Display

Drew’s handling of the Martinez scandal has exposed glaring inconsistencies. While he now condemns Martinez as untrustworthy, leaked documents confirm that Drew’s administration officially appointed him as the Public Benefactor despite warnings of his controversial history.

Moreover, Drew’s claims of prioritizing due diligence are contradicted by his administration’s continued processing of CBI applications linked to the Galaxy Caribbean jail project. This raises uncomfortable questions: Who benefited from the illegal passport sales? Why were these applications allowed to proceed? And why hasn’t the government provided clear answers about the missing $40 million?

The Prime Minister’s belated denouncement of Martinez has done little to quell public outrage. Instead, it has fueled accusations of gross hypocrisy, with many questioning why Drew championed Martinez for months before abruptly turning against him.

05
of 06
Public Outcry and Mounting Pressure

The scandal has ignited widespread outrage among the citizens of St Kitts and Nevis. Critics are demanding answers to several pressing questions:

  • Where is the $40 million allocated for the jail project?
  • Why was Martinez appointed despite his checkered past?
  • Why has the Attorney General refused to investigate the allegations?
  • Who is Drew protecting, and why?

The Citizenship by Investment program, once a cornerstone of the federation’s economy, now faces an uncertain future. International stakeholders are watching closely, and the fallout could jeopardize the program’s credibility and global reputation.

06
of 06
A Crisis of Leadership

Dr. Terrance Drew’s credibility is at an all-time low. The allegations of corruption, financial mismanagement, and hypocrisy have plunged his administration into chaos, leaving many questioning his ability to lead. The mishandling of the Martinez scandal has not only eroded public trust but also cast a long shadow over the government’s integrity.

As the scandal deepens, Drew’s leadership faces a critical test. His administration must address the missing funds, restore transparency, and rebuild confidence in the CBI program. Without decisive action, the damage to his political legacy—and the nation’s reputation—may be irreparable.

Follow Unitedpac St Lucia News for ongoing updates on this critical story.

Source: Times Caribbean Online
Tags: Caribbean corruption newsCBI program controversyCitizenship by investment scandalMSR Media CaseMSR Media lawsuitPhilippe Martinez allegationsSt Kitts corruption probeTerrance Drew scandal

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