By Admin. Updated 4:41 p.m., Sunday, August 30, 2026, Atlantic Standard Time (GMT-4).
Opposition Leader Dr Ralph Gonsalves has dismissed the New Democratic Party’s defence of the controversial sale of approximately 100 acres of State-owned land at Chatham Bay, Union Island, arguing that the Government disposed of one of the country’s most valuable assets for far less than it was worth.
Speaking during a live interview on his official Facebook page on Sunday, Gonsalves rejected the NDP’s claim that the transaction represented a major financial gain because the Unity Labour Party (ULP) administration had previously regained ownership of the property after paying less than EC$700,000 in compensation.
He described that argument as “laughable”, saying it ignored the legal history behind the acquisition and the property’s true market value.
“The land is valued more now,” Gonsalves said. “I was shocked to hear that the sale was for less than half of what it had been valued at over 15 years ago.”
His comments came a day after the NDP issued a statement supporting the sale, saying the land was sold for approximately EC$54 million for conservation purposes and that the proceeds would help reduce the country’s debt burden while protecting the area’s biodiversity.
The party also stated that the land had been returned to State ownership under the previous ULP administration at a compensation value of less than EC$700,000, describing the latest transaction as “a substantial capital gain to the people of Saint Vincent and the Grenadines.”
‘It wasn’t bought for $700,000’
Gonsalves said the figure being highlighted by the NDP had nothing to do with the land’s value.
Instead, he explained that it reflected the amount paid to former American owners after the Government successfully pursued forfeiture proceedings because they had failed to meet the conditions of their Alien Landholding Licence.
According to Gonsalves, the investors had purchased the property during the former New Democratic Party administration for less than US$200,000 but never carried out the tourism development required under the licence.
The ULP Government subsequently took legal action in 2006, winning at both the High Court and the Eastern Caribbean Court of Appeal. He said the investors later abandoned their final appeal to the Privy Council.
Although the Government had already secured two court victories, Gonsalves said he instructed that the investors be repaid the amount shown on the deed, together with five per cent interest calculated up to the time legal proceedings began.
“I didn’t want to appear as though we were confiscating any property,” he said.
He added that the investors had previously sought a settlement of US$20 million in 2006, an offer he said was immediately rejected.
Earlier valuation exceeded EC$110 million
The former Prime Minister also challenged the sale price by revealing that the property had been professionally valued at more than EC$110 million over 15 years ago during discussions with a French-Belgian investment group interested in developing a major resort.
That proposed investment never materialised after some of the investors withdrew from the project.
Gonsalves said another prospective purchaser later expressed interest in buying the land solely to preserve it as a national park.
He said that proposal was also rejected.
“I told him we couldn’t sell him the land to keep it as a park,” Gonsalves said. “It’s 100 acres of prime land. It’s our crown jewel.”
He maintained that successive offers during his administration were considered only if they involved serious tourism investment capable of creating employment and generating long-term economic benefits for Union Island and the southern Grenadines.
“We never had any arrangement to sell to anybody for conservation or for any other purpose other than genuine resort development,” he said.
Questions over conservation sale
The NDP has defended the current transaction, saying the lands will be held by a company for conservation purposes under legally binding covenants designed to protect the area’s biodiversity.
The party also said the Government has retained the right to repurchase the property within two years at the same price.
However, no details have been released identifying the purchaser, the company that will own the land, or the specific terms of the agreement.
Prime Minister Dr Godwin Friday first confirmed in Parliament last week that EC$52.7 million had been received from the Chatham Bay land sale during the first four months of the 2026 fiscal year.
According to the NDP, the proceeds are expected to support the capitalisation of the National Development Bank, establish the new Ministry of Fisheries, Land and Sea Conservation and Climate Resilience, and assist with debt reduction and public sector reform.
‘Absolute misbehaviour’
Gonsalves argued that the Government had sold one of the country’s most valuable coastal properties too cheaply.
He pointed to a recent Government purchase of land at Chester Cottage, where he said the State paid approximately EC$8 per square foot, and contrasted that with what he described as the significantly lower effective price received for Chatham Bay.
He also compared the transaction with the sale of land at Mount Wynne during his administration.
“We sold 30-something acres of land at Mount Wynne for a little over EC$40 million,” he said. “And they sell 100 acres of prime beachfront land for less than half of that and celebrate.”
Calling the transaction “absolute misbehaviour”, Gonsalves said the State should not have disposed of what he repeatedly described as one of the nation’s “crown jewels” at the reported price.
The Chatham Bay sale continues to generate widespread public debate, with questions remaining over the identity of the purchaser, the valuation process, the full terms of the agreement and the long-term implications for one of St Vincent and the Grenadines’ most environmentally significant coastal areas.
The Government has not yet released the sale agreement or identified the purchaser. It also remains unclear whether the transaction was conducted through an open bidding process, how the EC$54 million valuation was determined, and what legal mechanisms will govern the conservation covenants.
One News SVG will continue to follow developments and seek responses from the Government on these outstanding questions.
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