By Shermain Bique-Charles
Former Barbuda MP for the Labour Party Arthur Nibbs has shared his opinion on the legal dispute surrounding the superyacht Alfa Nero, saying that the government had no choice but to seize the vessel.
However, Nibbs said he is concerned about the potential negative impacts of a lengthy litigation process.
“This matter could go on for a very long time, and there is nothing we can do with the court. It is just a pity those coming forward claiming the Alfa Nero did not do so when it was under sanctions.
“They would have had to do all the clearing of the sanctions and clearing the debt associated with the vessel,” Nibbs told Observer yesterday.
The Alfa Nero has been under government control since April when it was seized amid concerns that it had been abandoned, was deteriorating and posed a risk to Falmouth Harbour where it has been docked for more than 18 months.
The vast vessel was previously said to have been owned by sanctioned Russian businessman Andrey Guryev. His daughter has since claimed she is the rightful owner and is fighting the government through the courts to get it back.
The court had its first hearing between Russian and government representatives last week.
The government says that the 267-foot vessel could potentially harm the marina and nearby vessels if left unattended, particularly during hurricane season.
Nibbs agrees, saying that the boat poses a major environmental risk.
“We are currently in a hurricane season, and damages could be done to the said boat, and also the environment can be damaged. By the government seizing the boat … it provides an avenue to those who rendered services to be paid their monies once the sale is complete,” he said, referring to the colossal debts the boat has racked up in the meantime.
Government is currently forking out more than US$100,000 a month on expenses associated with the yacht.
At an auction in June, two bids topped the government’s minimum sale price of US$60 million.
The highest bidder, former Google boss Eric Schmidt, has since withdrawn his US$67 million bid, blaming the protracted legal process.
Second highest bidder, US realty mogul Warren Halle, is suing the government for more than US$5 million, alleging breach of contract because the boat was not immediately transferred to him after the seven-day timeframe for Schmidt to pay up had expired, in line with the auction’s terms of agreement.