Prime Minister Philip J. Pierre has confirmed that the RockHall Housing Development will continue despite the government’s decision to sever ties with its principal investor, BEMAX LLC. The announcement, made during Pierre’s end-of-year press conference on December 18, follows revelations that the Montenegrin-based company is entangled in a cigarette smuggling controversy in its home country. Pierre cited the ongoing legal issues as the rationale for suspending the contract.
“The contract has been suspended… the government decided that because of the discussion happening, we should stop the contract,” Pierre explained.
The housing initiative, financed through Saint Lucia’s Citizenship by Investment Programme (CIP) Infrastructure Programme, was structured to place financial responsibility on the developer.
Businessman Aleksandar Mijajlovic was reportedly arrested on January 19, 2024, and is suspected of creating a criminal organization that was engaged in cigarette smuggling.
At a pre-cabinet press briefing in early October 2024, Investment Minister Dr Ernest Hilaire assured the public that the Citizenship by Investment Programme adheres to all international due diligence standards. “Let me assure you…that our CIP programme is anchored by robust due diligence processes at every stage and complemented by robust due diligence processes by the financial institutions involved in facilitating the CIP. There has not been one issue with our CIP programme,” the Minister said.
Hilaire noted that international partners have maintained confidence in Saint Lucia’s CIP. “No one has raised any negatives regarding the due diligence of our programme. Our programme is now well poised to deliver infrastructure in the form of roads, community centres, and hotels to our people without increasing the national debt,” he said.
