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The Golding administration says the multi-million US dollar plan to off load the government's stake in Sandals Whitehouse Hotel, in Westmoreland, will withstand the scrutiny of the Office of the Contractor General.
Prime Minister, Bruce Golding, told parliament on Tuesday afternoon, that the government's involvement in the problematic project has been disastrous for Jamaican tax payers.
The proposed deal to off load the government’s stake in Sandals Whitehouse for US$40 million is now under intense investigation by the Office of the Contractor General.
Prime Minister Golding on Tuesday afternoon welcomed the OCG’s investigation but instructed all relevant government agencies to cooperate with the OCG.
The deal when completed will see the government’s 67% stake in Sandals Whitehouse being taken over by Gorstew Limited, a company owned by hotelier Gordon ‘Butch’ Stewart.
R. Danny Williams was brought in to facilitate the transaction and following month of negotiations he submitted a proposal to the Cabinet last month.
Under the terms of the proposed sale Gorstew will deposit US$7.5 million on the property and the balance of US$32.5 million paid over seven and a half years. Prime Minister Golding announced in Parliament that the proposed deal will eliminate massive operational losses incurred by Ackendown Development, the government vehicle in the Sandals investment.
Mr. Golding says the Jamaican taxpayers will have a significant burden to bear even as the government opts out of the Sandals project.
“Make no bones about it, in the final analysis the taxpayers of Jamaica will bear a substantial portion of the more than US$120 million that has been spent on a project that was not properly conceived and very sadly executed,”
“Even in procurement and divestment there are peculiar situations for which the established procedures are not appropriate and will result in greater losses to the country. The Sandals Whitehouse is one such case,”
“The decision and actions we have taken are in the best interest of the country and have been taken to cauterize and minimize the losses that the Jamaican people will have to bear,” Mr. Golding said.
The Opposition did not comment on the Prime Minister’s presentation.
Prime Minister, Bruce Golding, told parliament on Tuesday afternoon, that the government's involvement in the problematic project has been disastrous for Jamaican tax payers.
The proposed deal to off load the government’s stake in Sandals Whitehouse for US$40 million is now under intense investigation by the Office of the Contractor General.
Prime Minister Golding on Tuesday afternoon welcomed the OCG’s investigation but instructed all relevant government agencies to cooperate with the OCG.
The deal when completed will see the government’s 67% stake in Sandals Whitehouse being taken over by Gorstew Limited, a company owned by hotelier Gordon ‘Butch’ Stewart.
R. Danny Williams was brought in to facilitate the transaction and following month of negotiations he submitted a proposal to the Cabinet last month.
Under the terms of the proposed sale Gorstew will deposit US$7.5 million on the property and the balance of US$32.5 million paid over seven and a half years. Prime Minister Golding announced in Parliament that the proposed deal will eliminate massive operational losses incurred by Ackendown Development, the government vehicle in the Sandals investment.
Mr. Golding says the Jamaican taxpayers will have a significant burden to bear even as the government opts out of the Sandals project.
“Make no bones about it, in the final analysis the taxpayers of Jamaica will bear a substantial portion of the more than US$120 million that has been spent on a project that was not properly conceived and very sadly executed,”
“Even in procurement and divestment there are peculiar situations for which the established procedures are not appropriate and will result in greater losses to the country. The Sandals Whitehouse is one such case,”
“The decision and actions we have taken are in the best interest of the country and have been taken to cauterize and minimize the losses that the Jamaican people will have to bear,” Mr. Golding said.
The Opposition did not comment on the Prime Minister’s presentation.
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