The government has been directed to revise its payment plan to ensure it compensates Half Moon Bay (HMB) Holdings Limited in full within 10 years.  High Court judge, Justice Renee Williams, rejected the government’s initial plan, saying it was too long and unconstitutional.

The case dates back to 2007 when the government took over 108 acres of land at Half Moon Bay. A 2010 assessment set the compensation at US$26.6 million. Since then, the government has struggled to pay due to financial challenges, including national debt and declining revenue. It sold the property for US$23 million, which helped reduce the amount owed, but US$15.6 million, mostly interest, is still outstanding.

In 2022, the government requested court approval for a 12-year installment plan, citing economic difficulties. Financial Secretary Rasona Davis-Crump warned that a lump-sum payment would compromise essential services such as wages and pensions.

The proposed plan involved annual payments of US$735,000 starting in April 2023, but the accumulating interest could extend the repayment period to 2046. HMB Holdings rejected this offer, instead demanding an immediate US$10 million payment followed by smaller installments. The government maintained that such terms are unaffordable.

However, Justice Williams said that any liquidation must be made in a significantly shorter period than proposed. The court referred to previous cases, including one from Belize, where a long payment period was found unconstitutional. Since more than 10 years have passed since the compensation amount was determined, the court dismissed the application for the payment schedule, finding it to be in violation of the Constitution.

Additionally, the court declined to approve an alternative schedule submitted by former HMB owner Natalia Querard in January 2023. It found that her plan would require reallocating funds from the government’s approved budget, potentially disrupting essential services.

Justice Williams ordered the government to submit a revised schedule ensuring the debt is cleared within 10 years. The outcome of the legal proceedings is pending, with the key issue being whether an order for installment payments is justified given the government’s financial difficulties and the schedule for the proposed payments.