Minister of Youth, Sports and Culture, Hon. Marcel Cardona, today fired off a press release challenging the legality of an agreement between the National Institute of Culture and History (NICH) and tourism investor, David Gegg, for a half-a-million dollar restaurant and shopping facility at a major cave tubing destination for cruise tourists – the Nohoch Che’en Caves Branch Archaeological Reserve in Cayo, adjacent to the popular Jaguar Paw Jungle Resort.
Strangely, attached to the press release was the resignation letter of NICH administrator, Victor Espat – implying that Espat’s resignation had something to do with the Gegg transaction. When we called Victor Espat at his office today, we were told that he would not take our call. Sources tell us, however, that he is angry over the public release of his resignation letter.
In today’s press release, Minister Cardona takes direct aim at NICH president, Diane Haylock, who, he said, unilaterally issued the concession to Gegg, without even consulting with her board and without consulting the Ministry or Cabinet on what he describes as a major policy decision.
Cardona accuses Haylock of acting “ultra vires” her powers as chief executive officer and president of NICH, and further declares that, “…any purported contract allegedly entered into between Ms. Diane Haylock and Mr. David Gegg of Cruise Solutions Ltd. is completely null and void.”
The challenge to the agreement between NICH and David Gegg comes at a time when Ms. Haylock is away on vacation visiting her relatives in the U.S., and our attempts to solicit a response from her via e-mail proved futile.
Amandala was able to speak to David Gegg, however, who told us that the Minister’s release caught him by complete surprise. The Minister did not contact him prior to the release, Gegg indicated.
The agreement with NICH, he said, was signed after several months of negotiations in which he met not just with Haylock, but with other officials in NICH, including Espat, and officials of the Institute of Archaeology, which oversees the Nohoch Che’en site.
“Everything was handled completely above board,” Gegg insisted. “It’s not a sweetheart deal.”
The contract, which Gegg said was finalized four months ago, is a 10-year concession arrangement through which Gegg would build a restaurant (and shopping facilities) on the premises of the reserve, and pay NICH $60,000 every year. After the concession expires, the building should become NICH’s property. He claims that he has already spent $350,000 on the project, and the construction has already begun on the ground, as he hopes to have the restaurant open by next month. The project would create 45 new jobs, Gegg added.
Amandala is reliably informed that the Nohoch Che’en Caves Branch Archaeological Reserve spans 4.5 acres, and the Gegg development would take up the size of a lot, an area of about 50 feet by 50 feet. A high ranking NICH official told us that the concession would not negatively impact any of NICH’s operations on the site, including the collection of revenues for parking and other facilities provided for other tour operators.
For his part, Gegg contends that the agreement would “greatly enhance and improve NICH’s operations,” increase traffic to the site, and would be open to everyone. He claims that the funds NICH earns from the arrangement could offset expenses in not-so-profitable areas of NICH’s operations.
While we could not get to speak with Ms. Haylock about the Minister’s contentions with respect to the David Gegg concession, a key NICH official confirmed that there were several meetings involving technical staff, Haylock, and Gegg, to discuss the project well before its approval. The concession, said the official, does not give exclusive rights to Gegg, and instead would fill a lacuna in food services for cruise tourists. The official said that the president agreed only because the project is perceived as one that would benefit NICH, providing revenues for 10 years and allowing NICH to inherit the facility. This is not the only concession NICH has issued, the official said, citing storage agreements at the same site, as well as other concessions at Xunantunich and Altun Ha.
Asked if he would put his project on hold until the dispute between Cardona and Haylock is sorted out, Gegg responded, “Absolutely not!”
Amandala sources say that Ms. Haylock and Mr. Cardona have not enjoyed the sweetest of relationships, and industry sources surmise that the Ministry may have some other investor in mind for the development at Caves Branch.
Despite several attempts to call the Minister today, we were unable to speak with him. Of note is that his release ends with the statement that the Ministry’s decision to not honor the David Gegg concession is in keeping with his party’s manifesto, “which promised equal or fair treatment for all, and proper accountability and transparency in all public transactions.”
Gegg’s main competitors are the Novelos, who run a tour operation under Bel-Cruise.
Amandala sources say that Haylock had come under repeated pressure from party insiders to fire Vic Espat – which, we are told, she refused to do, because it would involve a huge pay-off to rescind his contract, renewed just prior to the general elections. Inside sources we spoke with tell us that while Victor Espat was hired by the last administration, under his relative, former Culture Minister Mark Espat, he is respected for his professionalism.
Espat’s letter, dated December 17 and addressed to Haylock, did not cite a reason for his resignation, which is to take effect January 16, fulfilling the required one-month notice.
“In an effort to preserve the integrity of the institution, I will refrain, at this time, from documenting the circumstances that have caused me to resign,” he wrote.
As announced in the August 16, 2008, Government Gazette, Cardona appointed a new NICH board in June, headed by Haylock as chair. Other members are Dr. Herman Byrd, Osiris Rodriguez, Judy Collier, Cannita Ruiz, Tony Wright, Mamie Martinez, and Vic Espat, as ex-officio secretary.
We are informed that the Gegg contract was sealed before the first business session of the NICH board, reportedly held in early September. At the December meeting of the board, the members were advised of Espat’s resignation, though our sources say they did not approve the David Gegg 10-year concession at Caves Branch.
It is our understanding from the text of the NICH Act that it does not explicitly require board approval for such concessions, and the only section of the Act cited in the Minister’s release says, “For the purposes of directing the affairs of NICH, there shall be constituted a board of directors, which shall consist of the president as chairperson and SIX OTHER MEMBERS.” [Emphasis supplied by the Minister.] We are told that Minister Cardona did do some checking with board members before sending off his press release.
Many question the timing of the controversy. A close friend of Ms. Haylock told us that she left for her vacation last Tuesday – the day before Channel 7 reported on the agreement, and is not due to return until after the New Year.
Several of the sources we spoke with today suggest that there is “something” behind the press release, and some went further to claim that the Minister recently went cave tubing with other industry interests. Despite our attempts to reach the Minister by phone today, we were unable to speak with him about those allegations.