Opposition demands full disclosure of Cinnamon Reef property documents

Opposition member Merrick Richardson has called on the government to produce a wide range of financial and ownership documents relating to Cinnamon Reef.

He presented a motion to the Anguilla House of Assembly on 27 October in a bid to establish a clearer picture of the property’s history and the government’s commitments.

The motion follows the assembly’s approval of EC$16 million in public funds to allow the government to acquire the former resort from the Anguilla Social Security Board.

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It was part of a $39.38m supplementary appropriation bill which included fuel relief, overseas medical treatment and the acquisition of a United Kingdom office.

“The expenditure and commitment of public funds of this magnitude necessitate transparency, accountability, fiscal prudence and proper parliamentary scrutiny,” the motion read.

History of Cinnamon Reef

Set on 11.57 acres in Little Harbour along Anguilla’s south coast, Cinnamon Reef was one of the island’s first resorts.

US hoteliers Richard and Carol Hauser built and ran the Mediterranean-style retreat from 1983 until the early 2000s before offering it for sale due to Richard’s ill health.

It was bought by Boutique Resorts and extensively refurbished before reopening in 2002 as ‘The Enclave at Cinnamon Reef’, but only had a brief period of operation before permanently closing.

In 2009, the Anguilla Social Security Investment and Development Corporation (ASSIDCO), a wholly-owned subsidiary of the Anguilla Social Security Board, purchased it.

According to Premier Cora Richardson Hodge during the supplementary appropriation debate on 9 October, ASSIDCO entered into a lease and purchase arrangement with the government the following year.

However, the arrangement did not proceed as originally anticipated following the global economic downturn, leaving financial and property matters unresolved for years.

Proposed purchase

The government is now working towards a negotiated settlement that would allow ASSIDCO to recover its verified net investment and bring the property into public ownership.

The premier said the $16m is a partial budgetary provision rather than a final settlement figure, with any agreement subject to verification, negotiation, legal advice and necessary approvals.

The opposition’s motion seeks to obtain the documents underpinning the transaction, including Executive Council approvals, Treasury payment instructions and valuations.

It also requests a breakdown of all amounts committed, paid or payable in connection with the property, along with details of any future financial obligations.

Richardson is also seeking the lease agreement between ASSIDCO and the government, evidence of legal title, assessments of the property’s financial viability and plans for its future use.

He originally requested that the documents be provided within 14 days, but the assembly agreed to amend the deadline to the end of November.

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