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FORMER real-estate developer Trevor Donegal struggled to hold back his tears yesterday as he recounted what he described as the unjust treatment meted out to him by the Financial Sector Adjustment Company Limited (Finsac), which resulted in the loss of his companies, properties and life insurance policy.
An emotional Donegal had to be consoled by his wife Andrea and daughter Marcel, prompting a early adjournment for lunch during yesterday morning's sitting of the Finsac Enquiry at the Pegasus in Kingston.
The witness, who had been in the construction field for 25 years and who along with his wife had operated Trevand Manufacturing Company Limited and Accurate Concrete Company Limited — which they later acquired — testified that his problems began when Finsac took over the Horizon Merchant Bank and Building Society and failed to settle the company's debt to the bank.
"Immediately that Finsac took over Horizon all of Trevand and Accurate's commercial activities were thrown into chaos. We were not able to receive drawdowns on the presentation of Quantity Surveyors Certificate. Accurate was no able to get funds for the repair and refurbishment of its premises, "Donegal testified.
When asked by Commission Charles Ross if he was aware of the window of opportunity, Donegal said, "I did not know it existed, I heard about it the first time when Campbell testified at the enquiry."
"All we asked was that they take Trevand along with the properties and leave us with Accurate so that we could move on from there," Donegal said on the verge of tears.
"What else could we have offered? Our bodies, our lives? This is our life we have here, our children's future," he said in an outburst before he began to cry.
The witness had earlier pointed out that his construction business was going along fine and had been making money.
But faced with increases in interest and mortgage rates by the banks and mortgage companies, Donegal testified that he was forced to borrow $118 million to consolidate the company indebtedness and to complete one of his project, Palermo, as units were not selling using as security debentures over the fixed and floating assets of the company, collateral of mortgages for three properties, assignment of his life insurance and the unlimited personal guarantees of himself and his wife.
He also testified that he applied successfully for a $60-million loan from the National Development Bank (NDB) of Jamaica to develop the concrete company and had got an interim loan of $45.5 million from Horizon, pending the NDB loan.
However, Donegal said the $60-million loan was cancelled because Finsac failed to provide the bank with the security and that Horizon had not paid out the entire consolidation loan to the company after the Finsac takeover.
Shortly after, he testified that Finsac informed him that his company owed it $205.9 million of which $349,784 represented a debt to Century National Bank, which he denied borrowing from.
"After Finsac took over, I tried desperately to make other banking arrangements for Trevand and Accurate but Finsac held all the assets of those companies plus the personal guarantee of me and my wife. Every proposal made to Finsac was rejected or simply ignored," Donegal said.
He testified that he then appraised his assets, which were valued at $192 million and offered to settle the debt, asking Finsac to write off the remaining $11 million. His request was denied.
The enquiry will resume on January 12 when Donegal's cross-examination will continue.
Read more: http://www.jamaicaobserver.com/news/...#ixzz173WINO6r
An emotional Donegal had to be consoled by his wife Andrea and daughter Marcel, prompting a early adjournment for lunch during yesterday morning's sitting of the Finsac Enquiry at the Pegasus in Kingston.
The witness, who had been in the construction field for 25 years and who along with his wife had operated Trevand Manufacturing Company Limited and Accurate Concrete Company Limited — which they later acquired — testified that his problems began when Finsac took over the Horizon Merchant Bank and Building Society and failed to settle the company's debt to the bank.
"Immediately that Finsac took over Horizon all of Trevand and Accurate's commercial activities were thrown into chaos. We were not able to receive drawdowns on the presentation of Quantity Surveyors Certificate. Accurate was no able to get funds for the repair and refurbishment of its premises, "Donegal testified.
When asked by Commission Charles Ross if he was aware of the window of opportunity, Donegal said, "I did not know it existed, I heard about it the first time when Campbell testified at the enquiry."
"All we asked was that they take Trevand along with the properties and leave us with Accurate so that we could move on from there," Donegal said on the verge of tears.
"What else could we have offered? Our bodies, our lives? This is our life we have here, our children's future," he said in an outburst before he began to cry.
The witness had earlier pointed out that his construction business was going along fine and had been making money.
But faced with increases in interest and mortgage rates by the banks and mortgage companies, Donegal testified that he was forced to borrow $118 million to consolidate the company indebtedness and to complete one of his project, Palermo, as units were not selling using as security debentures over the fixed and floating assets of the company, collateral of mortgages for three properties, assignment of his life insurance and the unlimited personal guarantees of himself and his wife.
He also testified that he applied successfully for a $60-million loan from the National Development Bank (NDB) of Jamaica to develop the concrete company and had got an interim loan of $45.5 million from Horizon, pending the NDB loan.
However, Donegal said the $60-million loan was cancelled because Finsac failed to provide the bank with the security and that Horizon had not paid out the entire consolidation loan to the company after the Finsac takeover.
Shortly after, he testified that Finsac informed him that his company owed it $205.9 million of which $349,784 represented a debt to Century National Bank, which he denied borrowing from.
"After Finsac took over, I tried desperately to make other banking arrangements for Trevand and Accurate but Finsac held all the assets of those companies plus the personal guarantee of me and my wife. Every proposal made to Finsac was rejected or simply ignored," Donegal said.
He testified that he then appraised his assets, which were valued at $192 million and offered to settle the debt, asking Finsac to write off the remaining $11 million. His request was denied.
The enquiry will resume on January 12 when Donegal's cross-examination will continue.
Read more: http://www.jamaicaobserver.com/news/...#ixzz173WINO6r
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