Christie: PNP deals with DB&G clean

Contractor General Greg Christie has found nothing illegal in the so-called "sweetheart deals" between the former People's National Party (PNP) government and the former investment banking firm Dehring, Bunting and Golding (DB&G).

However, the Office of the Contractor General (OCG) has concluded that aspects of the deals were "irregular and highly improper".

But former DB&G executive Peter Bunting yesterday argued that the areas described by the OCG as irregular and improper were normal transactions.

"I have not yet received the report but, having seen the conclusion, I understand the contractor general's concerns, but it is not unusual for companies to start building a book (seeking buyers) even before a deal is com-pleted," Bunting told The Gleaner.

"I was always sure that there was nothing illegal about the deal ... ," added Bunting.

The OCG launched an investigation into the two deals after Shaw raised concerns about the deals during his Budget presentation in 2008.

At that time, Shaw questioned an agreement, signed in March 2004, for the sale to DB&G of certain government-owned receivables which were due from AIC Limited, consequent upon the sale by the Government of its shares in National Commercial Bank; and the resale of a portion of these receivables, by DB&G, to two public entities - the National Insurance Fund and the National Housing Trust.

The finance minister also questioned an agreement, signed on March 31, 2005, which is alleged to have involved the provision of a US$29.6-million short-term bridge financing facility, by DB&G, to the Ministry of Finance then headed by Dr Omar Davies.

In its report released yesterday, the OCG said the terms and conditions of the two transactions were favourable to DB&G.

But the OCG said it was unable to conclusively determine that the transaction for the sale of the NCB shares to DB&G was "fair, transparent and/or indicative of the most beneficial terms and conditions which could have been derived by the GOJ (Government of Jamaica) given the lack of competition".