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A director of the former investment banking firm Dehring, Bunting and Golding (DB&G) is denying an allegation by Finance Minister Audley Shaw that he was part of a "sweetheart deal", which could result in the country losing more than $1 billion.
During his closing budget presentation on Wednesday, Mr. Shaw claimed that while the Opposition People’s National Party (PNP) was in government a company involving Member of Parliament Peter Bunting and Opposition Senator Mark Golding received favourable treatment in the construction of a resort in St. Ann.
The property, formerly known as Hedonism III in Runaway Bay, is now on the auction block.
But in an interview with RJR News Wednesday night, Senator Golding gave his side on how the project came about and insisted that no concessions were received for financing from the public purse.
According to Senator Golding, DB&G, along with the National Investment Bank of Jamaica (NIBJ) and a consortium of investors were among 20 shareholders in Runaway Bay Development Company Limited.
That company was formed to carry out the development of Hedonism III.
Spurious claims
The Opposition Senator declared that there was no sweetheart deal and accused the finance minister of using Parliamentary immunity to make spurious claims.
"What happened was, the hotel never performed to the level that had been projected and the investors lost money, including DB&G that had to write off all of its equity in that project. NIBJ would have lost some money as well," Senator Golding said.
He further explained that loan financing for the project came from DB&G, the Caribbean Development Bank and local financial institutions.
The NIBJ was approached to provide the remainder of the financing, as it had invested in other locally-promoted hotel projects.
Senator Golding added that the interest rates and terms of the financing, including that provided by NIBJ, were in line with market conditions and could never be described as concessionary.
No retraction
In the meantime, Senator Golding said he is not holding any expectation that Mr. Shaw will withdraw the allegation he made in Parliament on Wednesday.
"He has this tendency to go into Parliament (and) in his wrap up leg of his budget presentations, he tries to embarrass and malign people who he perceives to be his political opponents. That’s his modus operandi. I don’t expect him to retract anything, (those are) the facts as I know them," the Opposition Senator also told RJR News.
During his closing budget presentation on Wednesday, Mr. Shaw claimed that while the Opposition People’s National Party (PNP) was in government a company involving Member of Parliament Peter Bunting and Opposition Senator Mark Golding received favourable treatment in the construction of a resort in St. Ann.
The property, formerly known as Hedonism III in Runaway Bay, is now on the auction block.
But in an interview with RJR News Wednesday night, Senator Golding gave his side on how the project came about and insisted that no concessions were received for financing from the public purse.
According to Senator Golding, DB&G, along with the National Investment Bank of Jamaica (NIBJ) and a consortium of investors were among 20 shareholders in Runaway Bay Development Company Limited.
That company was formed to carry out the development of Hedonism III.
Spurious claims
The Opposition Senator declared that there was no sweetheart deal and accused the finance minister of using Parliamentary immunity to make spurious claims.
"What happened was, the hotel never performed to the level that had been projected and the investors lost money, including DB&G that had to write off all of its equity in that project. NIBJ would have lost some money as well," Senator Golding said.
He further explained that loan financing for the project came from DB&G, the Caribbean Development Bank and local financial institutions.
The NIBJ was approached to provide the remainder of the financing, as it had invested in other locally-promoted hotel projects.
Senator Golding added that the interest rates and terms of the financing, including that provided by NIBJ, were in line with market conditions and could never be described as concessionary.
No retraction
In the meantime, Senator Golding said he is not holding any expectation that Mr. Shaw will withdraw the allegation he made in Parliament on Wednesday.
"He has this tendency to go into Parliament (and) in his wrap up leg of his budget presentations, he tries to embarrass and malign people who he perceives to be his political opponents. That’s his modus operandi. I don’t expect him to retract anything, (those are) the facts as I know them," the Opposition Senator also told RJR News.
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