Malaysian developer Tan Kay Hock's representative "has not negotiated" with the West Indian Co. Ltd. over terms of a lease "and it appears he does not intend to do so," WICO's president and CEO has said.
Edward E. Thomas released excerpts Wednesday of correspondence with the Public Finance Authority over the status of Tan's negotiations to lease 7 acres at the Long Bay landfill for a $200 million hotel-condominium-marina complex.
Thomas' scathing letter makes it clear that WICO officials believe the developer expected to dictate terms of the lease — something WICO officials decisively rejected.
"The property will not be given away," Thomas wrote the PFA. "It is only fair and prudent for WICO to get a decent financial return for the use of this valuable property."
Thomas apparently released portions of his letter in response to a press release last week from the Public Finance Authority urging WICO to keep the door open for negotiations for the Long Bay project, planned for the site of the derelict Yacht Haven Hotel which Tan now owns.
In response to the authority's request that "this investor (be) adequately nurtured and encouraged to maintain his interest in the territory," Thomas wrote:
"WICO has not closed the door to negotiations but it takes two parties to negotiate. In the process, one party should not expect to dictate the terms and conditions of the negotiations.
"In fact, there has been one discussion between the WICO negotiating team and the representative of Johan Holdings Berhard, Mr. Ian Peacocke.
"Mr. Peacocke has not negotiated, and it appears he does not intend to do so, and has stated and reiterated, the conditions of a lease to which the WICO board must agree and the proposal was Johan Holdings Berhard's final offer.
"We are not sure of the basis for his adamant stance but the members of the negotiating team feel that position is unreasonable, not in the best interest of this territory, and recommended against approval of such a proposal."
Thomas went on to say that "the attention being given" to Peacocke and the development company "must give them a feeling of support not shared by the negotiating team. It may be that Johan Holdings Berhard is accustomed to dictate terms of leases that benefit them only. No financial data or business plan has been provided to us to help us analyze the project and, if they are encouraged to proceed as they wish, no one will ever be privy to those necessary documents."
Thomas said WICO officials have discussed the stalemate with Gov.-elect Charles W. Turnbull, who would have to approve any modification to the existing Coastal Zone Management permit for the landfill site before sending it to the Legislature for its OK.
Turnbull's views about the proposed project are "not as enthusiastic as presented" by the PFA, Thomas noted.
WICO first met with Peacocke in October 1997, Thomas said, but Peacocke didn't submit a proposal to WICO until August 1998.
"And notwithstanding the size of the project and the lack of information about it, he expected an expedited approval on his terms and conditions," Thomas told the PFA. "We do not know what was promised Johan Holdings Berhard but the WICO board members do not feel bound by any commitments that may have been made; we have made none.
Thomas said the WICO board had no objection to the PFA's suggestion that the board hire a reputable Realtor to advise members on the terms of the project but added, "We would not be bound by his/her views since we cannot transfer to him/her the fiduciary responsibility we have."
Editor's note: Please see earlier story on the PFA's recommendations. For a list of WICO board members, check out the Community/Data site.

The business community's meeting Wednesday morning with telecommunications representatives provided no immediate solution to ongoing interruptions in local and long-distance telephone service, the chamber's president said.
"To say the meeting was disappointing is an understatement," said Thomas B. Brunt III.
"We called this meeting to solve problems — to discuss options and suggestions and say, ‘Yes, this will work – no, this won't work,' " Brunt said. "What Vitelco gave us was, 'We're looking into it and doing everything possible to solve the problems.' "
"We are very concerned that the measures being taken will not be adequate to take care of these ongoing problems," Brunt said.
Brunt said that Samuel Ebbeson, president of the V.I. Telephone Corp., admitted during the meeting that Vitelco's existing equipment was installed in the 1980s and said it is inadequate and in poor condition.
Brunt voiced disappointment that the new switch Vitelco is installing won't be ready until March or April. Vitelco also indicated that new T-1 lines would not be available for another 30 to 45 days, Brunt said.
Katrina White-Comissiong, Vitelco's public relations director, verified that the switch is due to be installed in St. Thomas the end of March. Brunt said chamber members are very concerned that they are going to have a repeat of last year's telephone problems that never got solved until January or February.
"The season is over by March or April," Brunt said.
Comissiong said the problem is not money. "We try to anticipate problems at peak times," Comissiong said. "Last year we ordered additional circuits in August. They didn't arrive until January."
She said additional circuits have been ordered and is hopeful that with the help of Puerto Rico Telephone Co. and AT&T Virgin Islands, the process will be expedited.
With the circuits currently available, 336 outbound 1-800 calls can be processed simultaneously, according to Comissiong. With the new two new T-1 lines, the capacity will increase to 378.
The chamber's other concern, Brunt said, is that the Puerto Rico phone company does not have the ability to service this community.
Brunt said Vitelco's tests indicate the company has had a 17 percent failure rate in a 24-hour period. Brunt said the Chamber wants Vitelco to calculate its failure rate between 9 a.m. and 4 p.m. — peak business hours.
Comissiong said the tests were done a few weeks ago when serious problems began to surface.
Brunt said the chamber has asked for another meeting next Tuesday, Jan. 5, to give Vitelco time to assess the situation and come up with some concrete solutions.
A representative of A.H. Riise who attended the meeting said the ongoing phone problems — especially the breakdown in 800 service — were a huge issue for retailers , especially in view of the bogus credit cards that may be circulating.
"It's not such a problem for us, because we sell perfume and liquor — small ticket items. But with the Rolex store, it's a different situation." The Riise representative, who asked not to be named, said the store's employees try to verify transactions by cellular phone on large purchases, but that doesn't always work either.
If you cannot verify a transaction, putting it through without electronic verification makes merchants susceptible to fraud.
Brunt said one retailer at the meeting lost a $40,000 sale due to lack of phone lines.
Editor's note: See earlier story for background on the island's recurring telephone problems.

Dates for the V.I. Health Department's division of emergency medical
services' emergency vehicle operators course for EMTs are set for January.
The program will be conducted in two sessions. Classroom-based training
will be held on Tuesdays and Thursdays, from 6:30 to 9:30 p.m., from Jan. 12 to 21.
The driving range courses are scheduled for Saturday, Jan. 23, and Sunday, Jan 24.
Emergency medical technicians planning to participate must register by calling the EMS office at the Roy L. Schneider Hospital at 776-8311.

Before you set in stone your plans for Old Year's Night, consider the island's newest Italian restaurant, Fagioli.
Opened only since Thanksgiving, Fagioli is still a young eatery with loads of potential. The staff is still getting the feel of the place, but they are friendly and eager to please.
Recently I stopped in to talk with Patricio Sagredo, the chef/owner. Allow me to introduce him to you.
Patricio Sagredo is not new to the restaurant business. He has been a chef for most of his life, most recently at Virgilio's, and has owned restaurants in California and Ecuador.
As to his culinary training, his only admittance was that he learned from his Italian mother and grandmother first hand. Now, that's Italian in any cook book. Yet his recipes have subtle flavorings from his Chilean homeland
In answer to the question "What are your favorite dishes?" I got the following answers. First, pasta. All the pasta is homemade, just like his mother taught him. He especially likes the Lasagna Alla Vegetariana. Then seafood — fresh seafood. So fresh that Patricio does not run it on his regular menu. He only offers it as the Pesce del Giorno (Fish of the Day).
According to Patricio, all portions for dinner are large.
"After working eight to nine hours, people want a big meal," he said. However his lunch portions are smaller because people are generally in a bit of a hurry to get back to work.
Check out a sampling of what he has on his special New Year's Eve menu: Grilled Scallops with Baby Greens and a Lemon Caper Dressing for one of the appetizers (priced at $10.95). A choice for entree is Chilean Sea Bass with Crab Meat in Tomato Ragu, served with Pureed Carrots and Sauteed Spinach (priced at $27.95). This latter dish is a personal favorite of this shy, gentle chef.
Along with music and dancing, there will be free champagne offered at the stroke of midnight.
In addition to the specials listed above, Chef Sagredo will be offering his regular menu as well.
He also has a medium priced wine list that carries wines from France, Italy, Chile, Australia and California. Among his champagnes he lists Dom Perignon. Fagioli is located on the waterfront, next door to Gold's Gym. The warm, Mediterranean ambiance of Italy is evident from the first step into this charming new restaurant. The view of our own harbor only serves to enhance the fantasy.
So, for the particulars. Fagioli is open Monday to Saturday for lunch, 11 a.m. to 4 p.m., and dinner, 5:30 to 10:30 p.m. Live musical entertainment is on hand during dinner hours on Friday and Saturday.
Price range for lunch is $7 – $14, and dinner is $12 – $20.
Reservations for parties of four or more are recommended. Telephone: 777-8116.

The head of the Central Labor Council has sharply criticized top Schneider administration officials for requesting lump-sum payments of their unused annual leave as they step down.
Luis "Tito" Morales said that while this practice is allowed by law, outgoing officials "shouldn't be bleeding the carcass" and exacerbating the islands' fiscal crisis, according to Wednesday's Daily News.
Morales named Gov. Roy L. Schneider, Dean Wallace, Maria Wallace, Amos Carty, Osbert Potter, Alain Lockhart-Mullah, Karen Blyden, Maureen Bryan, Dean Luke, Nellon Bowry, Joseph Aubain and Juan Centeno as officials who have requested pay for their unused annual leave.
Carty told the Daily News he was unaware of who will get lump-sum payments, and Centeno said he couldn't comment on individual cases. But both stressed that there is nothing illegal or improper about the requests.
Alternatively, government employees could extend their official resignation dates and continue to collect bi-weekly paychecks. Or they could credit their unused leave toward their retirement plan, Centeno said.
Morales said the request for costly lump-sum leave payments "is appalling in light of the fact that the Public Remployees Relations Board has been unable to hear cases on the island of St. Thomas because there has been no allotment for travel and other expenses for the past two quarters."

The Chamber of Commerce and telecommunications representatives plan to meet this morning after telephone communications came to a near-standstill again Tuesday.
"All circuits are busy now. Please try your call again later," became the next voice you heard when trying to make a phone call Tuesday. And that included calls to 911 and the hospital.
The meeting scheduled Tuesday afternoon between the telecommunications companies and St. Thomas-St.John Chamber of Commerce members was postponed at the V.I. Telephone Corp.'s request.
Katrina White -Comissiong, public relations director for Vitelco, said Tuesday's problems started Monday because of a malfuntioning piece of equipment, according to various media reports.
"We had to take that malfunctioning piece of equipment totally out of service," she told WVWI. "However, taking that faulty piece of equipment out of service has totally diminished Vitelco's trunk capacity."
As a result, Comissiong said, Vitelco customers might experience traffic congestion from time to time. Comissiong said if you are experiencing delays, you need to hang up and try your call again later.
She said Vitelco is working on the problem and realizes it has been a problem for its customers.
As of Tuesday afternoon, Comissiong said service had been mostly restored on St. Thomas. She said on St. Croix service was being restored gradually
She said Vitelco would be conducting diagnostic tests to try to solve the problem. She could not commit to a specific time frame when the problems would be solved.
She said the 1210 switch, an old and finicky piece of equipment that has caused problems in the past, is not the problem this time.
When asked if there were any alternative ways to handle calls to the hospital or 911, Comissiong said she believed Vitelco was going to fix the problem and would not need a fallback position.
In one incident Tuesday a tourist whose knapsack was stolen at Magens Bay was forced to call WSTA because he could not reach the police.
Though Vitelco said its problems began Monday, merchants are irate that a lack of phone lines and interrupted phone service have created headaches — and lost business — repeatedly in the last two weeks.
Problems were especially bad last Wednesday during the height of the Christmas rush.
The lack of consistent phone service for three to four hours that day cost some retailers significant amounts of money in sales.
People trying to dial local calls also experienced difficulties, including a repeated message saying all circuits were busy — a situation repeated two weeks ago and again this week.
The Chamber of Commerce had asked for a meeting Tuesday with the territory's communications firms to determine the cause of ongoing interruptions in telephone service and how to solve the problem.
"We just want to get to the bottom of the problem," Thomas B. Brunt III, chamber president, said Monday. "We're hoping the technical people will be forthcoming with what the problems really are and then we can work on solutions."
AT&T and Sprint have confirmed that they will send representatives to the meeting, Brunt said. He said he could not reach V.I. Telephone Corp. officials Monday because it was a holiday, and had not heard back from Cellular One.
White-Comissiong, Vitelco's public relations director, said last week that she was unaware of any problems with local or long-distance calls on Wednesday.
Merchants across the island were painfully aware of them.
"Wednesday was my Christmas eve," said Janelle Zachman, owner of Going Seanile on the waterfront. "It was a nightmare. We were already extremely busy and then with no phone lines on top of it, people had to wait 15 or 20 minutes just to check out."
Zachman said some people didn't wait and she lost sales.
Zachman handled transactions manually and then put them through later that night.
"Thank goodness they all went through," she said.
Credit card verification lines are 800-numbers that are automatically dialed up when a credit card is run through the machine. When the phone lines are inoperable, there is no way to verify the credit card and make the transaction, said Stu Thompson, manager of Tommy Hilfiger on the waterfront.
"Everyone loses money — the sales associates, the store — because people don't want to wait, so they leave," he said.
The transaction should take a couple of seconds.
Thompson did not want to put a dollar amount on how much money was lost in sales Wednesday.
"Let's just say it was a significant amount," he said.
The problems were not limited to downtown. Phyllis George, owner of Phil's Paradise in Havensight, had the same difficulty with her phones.
"I couldn't get charges to go through," George said. "Fortunately, I didn't lose any money though," because tourists gave her travelers checks and she held the transactions for her regular customers until later that night when she was able to put them through.
Mulo Alwani, owner of Artistic Jewelers on Main Street, said he also didn't lose any sales. It took a long time, he said, but he got his transactions to go through.
But Alwani said that as of Friday, his store still was experiencing phone problems.
Shelly de Chabert, strategic planning and public affairs director for AT&T of the Virgin Islands, said Wednesday's phone problems had nothing to do with AT&T.
"AT&T does not switch 800 service. That is done by the local exchange carrier," she said.
Spokespeople from Sprint and TLD, who also provide 800 service to the territory, could not be reached for comment over the holiday weekend.
Joe Aubain, executive director of the Chamber of Commerce, said the problems Wednesday were extremely disruptive, especially two days before Christmas.
Brunt agreed, noting reports from the states indicate that Internet commerce was expected to double this holiday season; it tripled. Reliability of communications is vital to that commerce, Brunt said.
"The rest of the world is going at the speed of light while we're just plodding along," he said.
Additionally, "We've got bogus credit cards circulating on the island and if merchants can't verify the transaction by telephone, they run a huge risk by accepting credit cards and running the transactions later. That is exactly what we are telling people not to do."
De Chabert said she would attend the planned meeting as AT&T's representative to address the chamber's concerns.
Brunt said the meeting will be closed to the press to allow people to talk candidly.

Electric angel tree-top ornaments sold by Kmart have been recalled, according to the Licensing and Consumer Affairs Department.
The angels are about 10 inches tall, have white, gold and silver gowns and have lights attached to their wrists. They have a bale attached with a code #0-377728-118.
If you have one of these angels, do not use them. They are flammable and pose a serious fire hazard.
For more information call the U.S. Consumer Product Safety Commission hotline at 800-638- 2772 or DLCA's consumer protection division at 774-3130.

Gov. Roy L. Schneider has returned the Governor's Chain of Office to the president of the 22nd Legislature, as required by V.I. law.
The chain, made of ribbon and metal and worn over the shoulder, is a symbol of the office of the V.I. governor. It is presented to the governor at inauguration to be worn on ceremonial occasions.
By law the chain must be returned to the president of the Legislature at least 48 hours prior to the inauguration of a new governor. The Senate president traditionally gives the outgoing governor a memento of his time in office — a gold shield with his name and dates of service as governor.

Calling the V.I. government technically bankrupt, Gov.-elect Charles W. Turnbull said the territory faces a deficit of at least $60 million for fiscal 1999, plus another $23 million in proposed appropriations without a source of funding.
Newspaper and radio reports Tuesday quoted Turnbull as saying the fiscal situation constitutes a crisis, and "we have to come up with contingency plans to meet crises that come up."
Juel Molloy, transition team co-chair, said that once the new administration takes office next week, it probably will find that the government is in even worse fiscal shape than has been uncovered to date.
One immediate concern is the Y2K issue. Funds must be found to upgrade the government's computer system before the year 2000. Turnbull said Banco Popular will be approached about extending its loan offer.
According to media reports, Turnbull identified various recommendations made by his transition team to cut spending and increase revenues:
— Eliminate unnecessary positions. For instance, he will name only one administrator for St. Croix; Gov. Roy L. Schneider had three.
— Consolidate some government agencies, including the Personnel Division and Office of Collective Bargaining and the V.I. Housing Authority, the Housing Finance Authority and the Housing, Parks and Recreation Department.
– Abolish some of the 100-plus boards and commissions.
— Stop the abuse of government vehicles, an area he said has long been a trouble spot.
— Reduce the number of offices the government rents from private parties, and develop plans for a government center. The V.I. government now pays about $13 million a year to rent offices.
— Renegotiate a sale of tax liens to collect more real property taxes.
— Lobby Congress to raise the rum-excise tax from $10.50 per barrel to at least $11.30 where it was and hopefully to the full $13.50. Turnbull said he'll also lobby for a partial return of gasoline-excise taxes.
— Use 100 percent of hotel-occupancy taxes to promote the territory as a tourist destination.
— Improve and standardize the government's hiring process.
— Develop a marketing unit in the Agriculture Department to help sell V.I. produce abroad.
Turnbull also named areas of government where more spending is needed: more lawyers in the Justice Department as well as personnel in health, education and public safety.
Molloy said reports from Schneider's top financial managers indicated there will be some difficulties meeting payroll. They recommended seeking a line of credit at the banks to make sure payroll is met.

St. Thomas merchants should be on the lookout for Visa and MasterCard credit cards stolen from a processing center in Argentina.
Thomas B. Brunt III, president of the St. Thomas-St. John Chamber of Commerce, said V.I. Justice Department officials expect the stolen blanks to begin appearing in the Virgin Islands immediately.
Brunt warned that:
— The cards are genuine and will have the correct name embossed on them.
— The first sign that a card may be one of the stolen blanks is if it does not register approval when swiped for electronic verification.
— Ongoing problems with 800 numbers may prevent some merchants from running the electronic test, but running the test is important.
— Merchants should not hand-write charge slips and file them electronically later.
— Require double and triple identification such as passports, drivers' licenses and Social Security cards. Do not accept other forms of ID that aren't usually recognized and be especially careful when accepting credit cards from Argentinians since the cards were stolen in that country.
— Be aware of each customer and look for suspicious patterns. Ask questions about previous and future travel and require an address as an additional check.
— Be especially vigilant on days when many visitors are shopping. People using fraudulent cards "will take advantage of you at the moment when you are most distracted or have the least amount of time to check them out."
— Be wary of people who make large purchases of big-ticket items late in the day, typically between 4:30 and 5 p.m., and especially without any discussion of the purchase or the price. Example: Rolex watches.
— Be wary of anyone making purchases on multiple credit cards.
— Do not erase the tapes from surveillance cameras for at least 30 days.
— If you sell merchandise to someone using a fraudulent card, immediately report all information about the sale to:
Douglas Sprotte, V.I. Department of Justice, 774-5666 (ext. 157), work; 775-3599, home; or 513-7534, pager.
Richard Valesquez, V.I. Justice Department, 513-7529, pager.
Richard Espinosa, MasterCard Services, 1-305-539-2340.