BRIDGETOWN, Barbados – An open, bitter row has erupted between Antigua and Barbuda’s Prime Minister Baldwin Spencer and Texan financial tycoon Allen Stanford that could hold serious political and economic consequences for that Leeward Island state.

The simmering feud that led to media leaks and rumours from within the ranks of Spencer’s ruling United Progressive Party (UPP) and the Opposition Antigua Labour Party (ALP) of ex-prime minister Lester Bird, reached explosion point last week when Stanford, on a tour of Spencer’s St John’s Rural West constituency, made disparaging remarks about the prime minister.

According to media reports, Stanford, during the tour, expressed deep disappointment with what he viewed as the state of neglect of the constituency and pledged to launch socio-economic programmes for that and other constituencies within the framework of a US$2.7 billion fund that had earlier been discussed with the Government.

The comment angered Spencer, who claimed that ever since Stanford was honoured with a local knighthood last year by the Government, he had grown increasingly arrogant and obnoxious, and was now “strutting around the countryside” causing public concern with his “utterances”.

This proved too much for the Texan billionaire, who has contributed heavily to both the governing and opposition parties. Consequently, last weekend, the local media reported that Stanford angrily accused Spencer of engaging in “outright lies” by claiming that though the Government had done its best to work with him, the administration had “experienced nothing but threats, innuendoes, and now, downright political interference in our national affairs from Allen Stanford for our efforts…”

Expressing “shock and dismay”, Stanford, whose image across Caricom became more fixed with his US$28-million 20/20 cricket tournament, blasted Spencer for what he described as a “personal and un-statesmanlike” attack.

Both men were once close allies, and following his election victory in March 2004, Spencer robustly defended Stanford and his high-profile role in the financial and economic sectors of Antigua and Barbuda.

Stanford has investments in Antigua and Barbuda of well over US$250 million and is a significant employer of labour.

The specific reason for the breakdown in their relationship is quite clear. However, according to Government and UPP insiders, including two Cabinet ministers, Stanford has been extending his influence among party and Government officials, much to the “dismay” of the prime minister.

Spencer, the Government insiders said, figured he had had “more than enough” of the Texan tycoon whom he accused of going into his constituency to openly “bad mouth him”.

The dispute coincides with increasing reports of serious disaffection within Spencer’s party.

Stanford is reported to have said he was “appalled and sickened to the core of my soul” to learn of Spencer’s “attempt to paint a picture of myself as a new colonial master and that all of those in the Stanford organisation were subservient to me…”