Sandals Whitehouse sale needs fresh start - OCG

Citing serious irregularities and impropriety in the proposed deal, the Office of the Contractor General (OCG) yesterday strongly recommended that Prime Minister Bruce Golding halt the sale of Sandals Whitehouse Hotel to Gordon 'Butch' Stewart's Gorstew Limited.

In a 22-page letter to Golding and Onika Miller, permanent secretary and accounting officer in the Office of the Prime Minister, the OCG said after carefully examining the proposed deal, it was led to launch a special statutory investigation into the circumstances of the negotiations.

The OCG's recommendations come on the heels of the completion of its evaluation of documentation regarding the proposed sale, which was submitted to it on January 7 by the Cabinet secretary, as well as its evaluation of the statement on the matter which was made in Parliament by Golding on January 11.

Unexplained circumstances

Among the issues raised by the OCG were "unexplained circumstances regarding the valuation of the hotel; specified conditions precedent for the consummation of the proposed deal which were not satisfied although they were reported to have been dictated by the prime minister; as well as apparent opportunities which were presented to the Government to pursue alternative options for the sale or valuation of the hotel which were not acted upon".

The OCG also raised a number of issues and questions regarding the justifications that were given by the prime minister for the Government's decision to proceed with the sale of the hotel to Gorstew.

In light of its concerns, the contractor general has recommended that Golding restart the divestment process with greater transparency and structured scrutiny under the supervision of the OCG.

In the meantime, the People's National Party (PNP) said it welcomed the move by the contractor general.

Stance vindicated

In a statement to the media, Opposition Spokesman on Tourism Dr Wykeham McNeill said: "The action of the contractor general vindicates the stance taken by the Opposition on this issue, specifically as it relates to the lack of transparency and openness which have characterised this deal."

In Parliament on Tuesday, the PNP raised several questions to Golding regarding circumstances surrounding the deal.

Among the questions the Opposition tabled were a request for an accounting of the financial contribution (in cash or kind/other asset) by specific shareholders (in ANDCO) to the development and construction of the Sandals Whitehouse project; and, if the proposed sale is completed, what would be the remaining debt to be carried by the Government and its entities?

The PNP also wanted to know the rationale for providing the proposed purchaser with a vendor's mortgage, given the ample availability of funds in the banking system.

McNeill added: "The Opposition will continue to watch the developments in this deal closely and will act to ensure that all standards of good governance are observed."