The government has committed to making payments to the landlord of a building owned by the Ryan Group of Companies after workers from three government agencies were locked out of the premises last week.
Employees from the Bureau of Standards, the Ministry of Works Project Implementation Unit, and various Survey Departments had to return home after they were denied access to their workplace.
The landlord claims that the government owes over $8 million in outstanding rent, prompting the drastic action.
Chief of Staff in the Office of the Prime Minister, Lionel Hurst, addressed the situation, suggesting the landlord’s claims might be exaggerated as part of negotiation tactics.
“The landlord is asserting that the amount owed is eight million. I don’t know if you’ve ever had any conflict with a landlord, but certainly, that is how landlords behave. They usually make an outrageous claim and then a settlement is procured later on through negotiations,” Hurst stated.
Despite the conflict, Hurst assured that payment would eventually be made. “He knows that if the Government of Antigua and Barbuda owes him, he’s going to be paid,” he said.
According to media reports, the landlord is not formally evicting the tenants but has indicated that previous attempts to arrange payment plans with the government have been unsuccessful.
The landlord has expressed a desire for meetings to determine a path forward for resolving the situation.
Hurst highlighted that the government’s relationship with this particular landlord extends beyond the Old Parham Road property.
“We have an arrangement with that particular landlord that involves not only the property on Old Parham Road but also other properties that are his, and therefore there is an ongoing relationship,” he explained, adding, “If he wants to take the kind of action that he has taken, then under the law he is free to do so, but in our view, it’s not the wisest choice.”
The Chief of Staff also suggested that the situation might be more complex than portrayed, indicating potential tax obligations on the landlord’s part. “We also know that on the other side of the ledger — the balance sheet — taxes are owed to the government of Antigua and Barbuda. And so, while the landlord might announce to the rest of the world what amount is owed to him by his own estimates, the landlord did not in any way convey what he might owe to the Antigua and Barbuda government in the way of taxes,” Hurst said.
The Cabinet has reportedly used this incident as an impetus to review its policy on renting private properties. During its weekly meeting on Wednesday, March 19, the Cabinet agreed to accelerate the construction of the Government Headquarters building at the southwest corner of Factory and American Roads, with plans to construct sufficient government-owned buildings over time to reduce dependency on private rentals.
While expressing regret over the landlord’s actions, Hurst characterized the decision as harsh and unnecessary, particularly given the business relationship between the government and the entrepreneur.
“We are sorry that he took this extreme step,” he said.
“He’s not exactly a person who is experiencing difficult economic times. We do significant business with that particular entrepreneur, and we find that this is a harsh decision that he has made. But again, that’s how some people negotiate.”
