Stakeholder

Conflict in the Paseo-Caribe

Project
 Summarize Lesson
Madero…:
According to the Jones Act of 1917, the sea through landfills and these lands belonged to the people of Puerto Rico. Even before the law was proclaimed, the federal laws that
regulated navigable water bodies stipulated that immersed land was of public domain and could not be sold nor alienated. However, from the Madero POV claimed that two previous
government administrations (of different political parties) and that both administrations had supported the project and each of additional permission has been granted by ARPE. The
project was paralyzed temporarily by Secretary of Justice, until Madero’s Lawyers, argued that the Jones Act gave the Government of Puerto Rico the control but not the title of the
land. On February 8, 2008, the court decide that the land was not of public domain and that Madero was a third-line buyer in good faith to Hilton International. Therefore, February
25, 2008, ARPE lifted its stoppage order on the project and the secretary of justice appealed the decision. Unexpectedly, the appeal was denied by the Supreme Court of Puerto Rico
because it considered that there had been insufficient evidence of the alleged irregularities, and they has to collect more evidence and presented in a new lawsuit. Critics of the Court’s
decision argued that there had been serious conflicts of interests in the Supreme Court; for example, they alleged that the Court administration had accepted a US$165,000 donation
from Madero for improvements to the court’s physical infrastructure. The groups also pointed out that Isabel Picó, wife of the presiding Judge Federico Hernández Denton, had been a
lawyer at Doral Bank, whose president and COO was Madero’s wife Zoila Levis.

2008-2009:
There were still many unresolved issues, even though Madero was a third-line good faith buyer to Hilton International. Initially sued by the opposed group as the one had allegedly
violated the law, it turns about 30 out of 46 luxury apartments had been sold, with an initial price of US$900,000, had been sold for between US$1.5 million and US$4 million.

The architect:
Paseo Caribe is built as another architectural-geopolitical project, however, the glamour concept mismatch with Puerto Rican culture/politics/economy/banking sector, that lead to a
land dispute that assumed to be already lost into hands of international capital.

Regulation 23 had lacked basic and indispensable components to guarantee proper implementation. Moreover, the permit- granting process in Puerto Rico was so cumbersome and
long that it lent itself to all sorts of mistakes and misbehavior. The Legislature should perform an internal investigation of the project’s permits, and if needed, issue a statement. The
government should hire more architects as urban planning experts on the island’s economic development committees. In solving the land disputes, the government should determine
the necessary infrastructure and general land division, and only later offered the parcelled land for development within a regulated framework. Lastly, a community outreach program
should be established since they are a genuine stakeholder in developing better communication amongst them.

From the passage above, we could see that the government as a regulator can't make a transparent bureaucracy, moreover, it seems that there were political interests and corruption
issues. It also has no compactness in each level of court. At the end of the case story, there is an improvement in government policy that makes the bureaucracy process run smoothly.
Moreover, it is important to align the implementation of work based on the plan and how regulation is fair enough for each stakeholder. As a regulator, it should investigate what it
should be done, and hire a capable one to be placed as a person in charge to handle the problems. Besides that, as a company, Madero and friends can't justify any means but have
considered the entire stakeholder that may be related. Communication is important since we've to be involved with other parties.
 10 UN Global which are
relevant
From page 9 Madero….until page 12
• Principle 10: Anti Corruption - Businesses should work against corruption in all its forms, including extortion and bribery.
Although it is not proven, irregularities arising from the government's actions have resulted suspicion and conflict of interest. In example is the critics of the
Court’s decision argued that there had been serious conflicts of interests in the Supreme Court; for example, they alleged that the Court administration had
accepted a US$165,000 donation from Madero for improvements to the court’s physical infrastructure. The groups also pointed out that Isabel Picó, wife of
the presiding Judge Federico Hernández Denton, had been a lawyer at Doral Bank, whose president and COO was Madero’s wife Zoila Levis. It’s indicated
that corruption may happened in the project and it’s also shows that there is still no openness between the business and the government that in opposite with
10 UN Global Compact.
• Key objective 2 of Puerto Rica’s economic development plans i.e. clearly delineate the land maritime zone wasn’t considered while granting access to build on maritime
zone

• Despite ZMT zones being public property, it had been sold to Madero

• A number of studies and permits were still pending even though the Land Use Consultation had been authorized

• Water & Sewage Authority’s request to delay permit till major water supply was built was not accepted

• Despite ARPE granting the project, a stoppage order was later give and not lifted till Madero provided evidence

• Secretary of Justice’s appeal after the decision to lift stoppage order was declined due to insufficient evidence and he wasn’t allowed to present new evidence

• Conflicts of interests in the Supreme Court had led to decision to lift stoppage order; Court had accepted bribe from Madero

• No internal investigation of the project’s permits was carried out despite the permit having been wrongly given

• Many architects were not included in the island’s development committees