The Seychelles Column - By Christopher Gill

Eden Island Seychelles -The New Johannesburg

If you fly into the Seychelles International Airport on a clear day, you will be fortunate enough to get a peak of the landscape of Mahe Island from the air and you will see Eden Island. As your pilot takes your plane down for a landing, if you are coming in from the north, from St. Anne Island, you will see the 56 hectare plus coral man made artificial island below you just before you land at the Seychelles International airport.

The artificial island is named “Eden Island” is home to 450 house units and a marina, partially completed, but not quite and it will be a while, before the completion ribbon is cut. The project is now well behind schedule by years, not days. Parts of Phase one are complete.

Over the years, I have made this flight into Mahe countless of times, and I am always anxious to see the work progressing at Eden Island. The project concept is ambitious in itself in the best of times. It is now obvious to even a lay man that the World financial crisis has taken its toll on Eden Island as delays take on a compounded effect on the project.

Eight weeks ago, I received a call from Eden Island executive secretary to the CEO and was advised that an imminent press conference was to be held and I had been particularly invited to attend. The morning of the press conference, I received another call from the same person and was advised the press conference was cancelled, as the CEO had to fly back to South Africa immediately for urgent matters. No further reason was given and no press conference ever took place.

Behind the scenes it was being discussed by business players in Victoria that Eden Island had been seeking a loan to finance Phase Two of the project, which is made up of larger executive villas mostly. Apparently Barclays offshore has not been forthcoming for Phase Two financing.

It has been awfully quiet and the developers have not said a peep publically. But when I flew over last week, all construction in the Phase Two section of the island seemed to be on halt from my view of things, though they had been announced earlier in the year that Phase Two had started.

Phase one has been advertised as sold but I am unsure of that. Many Beachfront villas remain incomplete after a decade of conception to attempted realization.

When I did visit the Island a month ago, I was met a robust heavy Dutch accent middle aged lady in a safari suit in the coral-sand car park opposite the main office. I asked her where the restaurant was so I could enjoy a lunch with a view of Mahe with my wife. She told me it’s too far to walk. I said I could take a buggy there. She replied to me, “Look, let’s get this straight my boy, here, it is Johannesburg, across the bridge over there, is Seychelles”.

I was shocked by the assertion and tone of the loaded statement. In my mind, I thought , I have never been subjected to this level of arrogance from anyone in my life, through all my travels, now I am a “boy” in my own country, in spite of being a signatory to the Constitution of the same country. Without blinking an eye, she calls me her “boy”, I reflected? It was all astonishing and disturbing at the same time. However, inside my heart, I knew it was coming, sooner or later, knowing fully what the PP policy is.

In any case, her abrupt very un- Seychellois tone spoilt my wife’s curiosity to dine at the new restaurant and we decide to make our way to Sam’s Pizza, where you can still get the best pizza in Seychelles with a friendly smile and simple but very special Seychellois hospitality. It took me another month to convince her that we should go back and face the music on Eden and dine at the new restaurant, Bravo.

Predictably, the incident disturbed me for many nights, not because I was brushed the wrong way by someone I did not even know, but because in my mind, it became clear, that the incident was a small sample of how our island society is changing dramatically for the worse with leaders that tolerate this type of slighting of Seychellois. I am not the first, and similar incidents grow in number each day.

If our leadership in both camps sleep on this issue, I will not sleep. For the human head is not meant to lie on a pillow 24 hours in a day. If one chooses to lay to rest 24 hours a day, then they do not merit the salary of a CEO to look after our affairs as a people. Seychellois must open their eyes.

Freehold granted to investors
Although I do not have the documents before me, I understand that Eden Island is under a lease arrangement with the Government of Seychelles. However, on their website, they say that Freehold is granted to investors. How can you sell in freehold interest when you only have a lease? I ask Government to make the lease public in order that we may know what exactly are the conditions to the Eden Island lease.

The Opposition papers have remained quiet over this issue for many years now, enjoying the patronage of regular Eden Island advertisements. It is time to stand up to defend the interest of the Seselwa Rasin, Opposition.
We are servants of the people, not servants of foreign masters for a little advert here and there.Be forewarned, the stakes today are worth much more than an occasional advertisement subvention. If you have a conflict of interest in defending Seychellois-Rasin interests foremost, give back the advertisement money, come clean and get to work. Stop taking us on a joyride to just secure your salaries and perks.

Wake up! For to sleep now will result in dire consequences for Seselwa Rasin for generations to come.

Permanent Residency Granted
The Eden Island developers offer permanent residency status to the purchasers of houses or apartments on the island. On the Eden Island website, they say,” every owner and his family or immediate family can qualify for permanent residency of the Seychelles”.
The initial project conceptualization was to offer retirement homes to the world. But now the retirement homes have become hotel rooms.

Eden Island offers time share schemes. In practice that could mean one unit is owned by 4 or 6 families. This can translate into possibly 50 residency permits for one apartment. Compounded over 450 units, Eden Island can possibly produce 20,000 residents over the next Five (5) years. Eventually this figure will work its way to 20,000 new citizens, since the PP are known to sell passports for side money as a corrupt business practice.

20,000 New Residents cum Citizens A Political Time Bomb!
These 20,000 residents under the current laws can apply for citizenship, then like Dr. Ramadoss, they will be able to run for the Presidency or participate in the political affairs of our Country under a PP government.
In a phrase, Eden Island is a political time bomb to Seselwa Rasin interests in our country. The timer has been set, only political mobilization can stop it and reverse its imminent impact on all our lives.
Only Mouvman Seselwa Rasin (MSR) has the will to stop the timer. MSR’s
Creed sets out our clear, no fuss, objectives and intentions. The rest of the Opposition is silent or ambiguous on the issue because they are afraid to offend foreign interests that they take money from, even advertisements. How low can we go on like this?

The PP pulls in every hobo or vagabond for citizenship. They even pull in Ambassadors. For example, Michel Tretout former French Ambassador and cum PP deal maker, acquired Seychellois Citizenship last year. Ambassador Tretout can now become our President. He can run in an election side by side with Dr. Ramadoss or as his opponent.

PP is proud of this and defends the move, while Paris is ashamed of it and wants to act as if it never happened. This is a reality we face under the mismanagement of the SPPF/PP. Because PP fears losing power, it allows and encourages sympathetic, opportunist foreigners to our shores, to become citizens to improve the vote tally in its favour. The balance of power rests in this tally of foreign voters that we call “Fabrikes” (Fake Citizens).

As Seselwa Rasin, it is our right to decide who owns and who runs our country. It is also our right to limit who becomes a citizen and who participates in the political affairs of our country. This right to define a people, and who participates in the political life of the country is the right of all people under the United Nations Charter. We will exercise our right.

Let me be clear, we welcome investors, but we want them to pay their fair share on the way in, and pay their fair share while here. We will not tolerate schemes to avoid taxes when due. While in Seychelles, foreigners are to stay out of our politics and respect the integrity of our citizenship. If you do not want to pay taxes, and you do not intend on respecting Seselwa-Rasin, then we will encourage you to leave Seychelles. Our people are not your doormat to be used to clean the soles of your soiled shoes. The stupidity of PP is not a license to evade taxes or offend our people.

Eden Island Offers Schemes to Avoid Taxes
The Eden Island scheme offers the best options to not pay taxes as advertised on the company website. We will have to put an end to this scheme. Money for house sales has to be banked in Seychelles, not in South Africa or Mauritius or elsewhere.

I call on the Government of Seychelles to audit the Eden Island apartment and house sales. Let us see how much money came into Seychelles. How much money has been paid into Seychelles accounts. Cause to be conducted an independent audit that will clear our minds of the doubts of viability and direct benefit to the People of Seychelles of these types of projects.

Eden Island Says Use International Business Company (IBC) To Buy
To avoid local taxes the Eden Island developers say on their website, that International Business Company’s (IBC) are the most popular and versatile type of offshore company for all forms of International Business, with no reporting (income), minimal record keeping.
The Promoters say that IBC are not subject to tax, or duty on income, profits. Shareholders are not subject to income tax on profits derived from an IBC. The inference reasonably drawn from this jargon is to encourage a buyer to buy property on Eden Island using an IBC to avoid taxes.
Additionally, it says, “income from long term residential income is not taxed, but short term rentals will be taxed”. How convenient an arrangement. Who monitors all that? Ministry of Finance does not have enough staff to implement its second generation tax reforms. How will it monitor Eden Island taxes? Well, it does not seem to be monitoring Eden Island. If it is, then the Ministry of Finance, should advise the public how Seychelles benefitted from the Eden Island project in terms of revenue over the last Five (5) years.

Eden Competes With Hotels
Most recently buyers on Eden Island have entered the hotel business by renting their units to tourists. You can find comments on Trip Advisor regularly. Under STB Policy, no hotel project can operate and receive guests unless the entire project is completed. Eden Island is far from completed, but these rentals are ongoing. They do not even have a license to operate as a hotel concern!

The initial project conception did not mention that the units would be converted to hotels. The project was pitched as a retirement colony and second home for the well heeled. Will Government of Seychelles allow Eden Island to operate as a hotel, even when not completed and when it goes beyond the project conceptualization and intended use?

When I built my hotel, I was subjected to very strict measures, rules and regulations. On Eden Island however, construction works go on daily in Phase One, many units are unfinished, but tourists are arriving daily as well. The place is a fully fledged construction site with a car park carved out of rubble and dust filling the air... It is unclear to me at this time who holds a license for hotel operations - the individual owners, or the Eden Group? How does the Government of Seychelles monitor the new Johannesburg, or does it, or can it? Or have they been paid off to ignore it?

The Hotel Industry in Seychelles is all onshore, run by companies registered locally – except perhaps some of those new arrivals that have been given carte blanche to import everything they wish and answer to no one. Apart from those chosen few, each legitimate hotel has a tax number. They are subjected to record keeping and audits. My company has been audited every single year since 2000, something unheard of in the civilized world. At one point a group of Australians came to visit me and they counted 150 lights at night from across the Bay. Even my lights have been audited.
Most of the individual interests on Eden Island are held by offshore companies, or IBC companies. They do not operate on the same field condition as the hotel industry of Seychelles, but they compete for the same clients. It is a great disservice by the P.P. to the industry, to allow Eden Island to enter into an onshore business, when most of its owners are IBC or offshore companies. The very nature of these businesses are designed to avoid taxes, not to pay their fair share as they prod along milking the infrastructure, and overburdening our roads, electricity grids, water catchments, environment and so forth.

Wake up PP you inbred Communists
I cannot believe the lack of grey matter between the ears of these SPPF, now turned P.P. You implement a project that taxes our infrastructure, the developers do not pay for it, then you let them operate businesses not approved, then they devise schemes to avoid taxes, publish it on the web, and you let it go on as if it is in the ordinary scheme of business.

Speculate No More
Eden Island is a highly speculative market investment product. Developers such as Eden can be here today, and gone tomorrow to the next boom town. When market economic bubbles are in expansion mode, Eden style developers turn up to the door. When market economic bubbles burst, they are on the next flight with one way tickets.
How can the Government of Seychelles forsake the Seychelles hotel industry and allow IBC offshore companies to compete with onshore, long term investments found in the Hotel Industry. This is simply beyond me.

Bubble Trouble
The bubble has now burst, so we will see what happens. With property values 60% less then what they were in 2008, today, the mush will all be surfacing soon enough. Buyers that are already in the trap have lost as much as 60% of their investments. Buyers coming in, may as well hold out and wait for the market to bottom out. The downturn will last Ten (10) years according to the experts. But that is for the United States and Europe, perhaps. How long will it last for Eden Island?

Eden Island a Source for Future Fabrike Voters
With this situation simmering today across the bridge to new Johannesburg, the Seselwa Rasins of this country have no time to waste. We must secure what is ours and what belongs to us only. We must draw a line.
We categorically advise all buyers of houses and apartments, villas at Eden Island, while this government may give you residency permits, do not expect Seychellois Citizenship and a passport in the future. Our Citizenship is not for sale.
A new Rasin government will cancel all passports that are purchased for hard cash. We will cancel all fraudulent transactions involving citizenship as the basis of purchase of property in Seychelles.
To the developers of Eden Island. I advise you to amend your terms and conditions with the Government of Seychelles and your Purchasers as follows: negotiate an “Investor-Residency Permit”, which categorically restricts citizenship for your purchasers in the future.
Our citizenship is not for sale. Do this voluntarily while you still can. If you have been given a Seychellois passport, give it back, and renounce your citizenship. Because if you do not we will cancel it . Again, our citizenship is not for sale.

I would not want your entire development to be jeopardized in the future, over the slight mishap of promising or inferring that your purchasers can obtain citizenship after permanent residency status. Come clean, and clean up the dark areas left open by SPPF-PP. You have too much to lose, and we have too much to lose to ignore this issue any longer.

Now if you have trouble finding tenants, you can always create what they did outside Johannesburg with vacant land space: a township in Phase Two (2) and give residency rights to the 400 residents across the street from your entrance that are doubling up in flats in a government public housing project built by Communist China.
A Final word to all, recall well the golden rule in real estate: “Location, Location, Location”.

Sesel Pou Seselwa!


May God Bless All Freedom Loving Seychellois and Our Beloved Seychelles!