PLP: “Eerie Silence From OBA” On $18 Million

April 27, 2015

[Updated] “There has been an eerie silence from the OBA on this matter. More than 2 weeks after Minister Michael Fahy informed Bermudians that the $18 million dollars isn’t where it should be, and deflected blame to others, it is wholly unacceptable that there has been no move by Premier Dunkley or Minister Fahy to provide additional information,” Shadow Minister of Finance David Burt said today.

Mr Burt, along with Shadow Home Affairs Minister Walton Brown, held a press conference today  [April 27] to address the circumstances around the Par-La-Ville car park.

Last year, Mexico Infrastructure Finance LLC [MIF] extended an $18 million loan to Par-la-Ville Hotel and Residences Ltd [PLV], with the Corporation of Hamilton [CoH] signing on as the guarantors, with MPs having approved  a motion to authorise the CoH to extend the $18M  guarantee.

PLV is the company that has an agreement to develop a hotel on the Par-La-Ville car park, and the $18 million was a bridging loan which was supposed to be used to secure financing for the hotel development.

The loan was to be repaid by PLV by end of December 2014, however the loan was not paid back resulting in MIF initiating legal action in the Bermuda Supreme Court against both the CoH and PLV principal Michael MacLean in early 2015.

Following the non-payment of the $18 million loan, KPMG were appointed as Joint Receivers over the Par-La-Ville car park on March 31, 2015. In practice this means that the CoH will still operate the car park, but income collected will be turned over to the Joint Receivers to pay down the debt owed by PLV to MIF.

Par-La-Ville-car-park-pano-generic 33838

Mr Burt said, “We have called this press conference to express concern at the silence of the One Bermuda Alliance, regarding that fact that the Par-La-Ville car park is now under the control of a Mexican Company.

“In 2013, Minister Michael Fahy said the following when seeking the Senate’s approval for the OBA’s plan to allow the Corporation to use Bermuda’s Par-La-Ville Car Park as collateral for a private development loan.

“He said – “It is intended that the guarantee is subject to very specific criteria and the Corporation of Hamilton will be required to conduct thorough due diligence, to the satisfaction of the Bermuda Government, before execution of what is essentially a collateralized mortgage.”

“In 2013 Premier Michael Dunkley when confirming the OBA’s approval of the agreement which has resulted in Bermuda losing Par-La-Ville Car Park stated, “There are appropriate checks and balances in place that will be used to protect the assets and protect the land in the best interest of the people of Bermuda.”

“I would like to repeat two important quotes – “appropriate checks and balances” and, “required to conduct thorough due diligence, to the satisfaction of the Bermuda Government,” – What that statement means is that the OBA approved and authorised the arrangement which led us to the place where Bermuda’s Par-La-Ville Car Park is now the Property of a Mexican company.

“No matter how much the OBA would like to blame others, the fact remains that the OBA through legislation laid the groundwork for this regrettable situation. The PLP warned the OBA about this action and we did not support it in Parliament, and now the risk that we warned about has now manifested itself.

“There has been an eerie silence from the OBA on this matter. More than 2 weeks after Minister Michael Fahy informed Bermudians that the $18 million dollars isn’t where it should be, and deflected blame to others, it is wholly unacceptable that there has been no move by Premier Dunkley or Minister Fahy to provide additional information about this situation to the people of Bermuda.

“Given we have heard little from the OBA on this $18 million after two weeks, we have decided to share with the people of Bermuda what we have learned and also pose a number of questions to the OBA on this serious issue on behalf of the people of Bermuda.”

Walton Brown then addressed the media saying, “This is the timeline of events surrounding the missing $18 million dollars.

“In October 2013 the OBA amended section 37 of the Municipalities Act 1923 to grant statutory provision for the Corporation of Hamilton to provide collateralised third-party guarantee on its property. This amendment required that the Corporation of Hamilton receive Legislature approval first before using public assets as collateral.

November 29th, 2013 – In accordance with section 37[1] of the Municipalities Act 1923, the then MP Michael Dunkley tabled a motion in the House of Assembly to authorize the Corporation of Hamilton to guarantee up to a maximum of $18M for Par-la-Ville Hotel project . Minister Fahy:, “It is intended that the guarantee is subject to very specific criteria and the Corporation of Hamilton will be required to conduct thorough due diligence, to the satisfaction of the Bermuda Government, before execution of what is essentially a collateralized mortgage.”

December 11th, 2013 – Motion is debated in the House of Assembly with MP Michael Dunkley assuring the public: “Therefore, Mr. Speaker, there are appropriate checks and balances in place that will be used to protect the assets and protect the land in the best interest of the people of Bermuda.”

December 19th, 2013 to March 13th, 2014 – Minister Fahy takes temporary stewardship over the treasury functions of the Corporation of Hamilton.

July 9th, 2014 – Credit Agreement and the Guarantee agreement was signed between Mexico Infrastructure Finance LLC, Par-la-Ville Hotel and Residences Ltd and the Corporation of Hamilton for the purpose of securing $18 million in financing. The Par-la-Ville car park was used as collateral for this bridging loan which was to facilitate access to additional financing for the hotel and residences development. This loan was to be repaid by Par-la-Ville Hotel and Residences Ltd. by end of December 2014. The funds were to be held in escrow in Bank of New York Mellon.

November 2014 – Authorization was given to allow funds to be released by Bank of New York Mellon to Argyle Ltd.

January 2015 – According to the Royal Gazette: “The draft agreement between Mexico Infrastructure Finance LLC, Par-la-Ville Hotel and Residences Ltd and the Corporation of Hamilton dated January 2015, states that “the Borrower and the Guarantor are in default under the terms of the Credit Agreement and the Guarantee dated 9 July 2014 [respectively] having failed to pay upon demand the entire loan of US$18 million made by the Lender, together with interest and costs to the Lender…” Mexico Infrastructure gave both the borrower and the guarantor until January 31st, 2015 to address this otherwise it would action. Draft documents show that the default interest was $243,715.99.

February 9th, 2015 – Allied Trust and Allied Development Partners Limited filed a suit in the Supreme Court against the Attorney General and the Minister of Home Affairs for damages of $90 million over their loss of the Waterfront lease.

February 10th, 2015 – Mexico Infrastructure Finance LLC initiated legal action against the Corporation of Hamilton, Mr. MacLean and the Par-la-Ville Hotel and Residences Ltd.

March 25th, 2015 – The Carlton Group filed a lawsuit against Par-la-Ville Hotel & Residences, Mr. MacLean, Johann Oosthuizen, Wakefield Quin Ltd and Theodore Adams III for “relief for fraud against defendant Michael MacLean… Further, the defendant avers [alleges as fact], that at all the material times, he was legally advised by Wakefield Quin Limited and through its counsel Johann Oosthuizen and throughout relied on their legal advice.”

April 10th, 2015 – KPMG announced: “Pursuant to a mortgage over the property known as the Par-La-Ville Car Park, Mike Morrison and Charles Thresh were appointed on March 31, 2015 as Joint Receivers.”

“Minister Fahy releases a press statement to tell the public that “both the Corporation of Hamilton, me as steward and the mortgage holder are doing everything possible to obtain further details as to the whereabouts of the bridging loan money.”

“Minister Fahy also informs the public that the initial loan for $18m was to gain access to additional financing through Argyle Limited, a Gibraltar company

April 18th, 2015 – Bermuda learns that the Carlton Group will file a lawsuit in the United States District Court for the Southern District of New York against the Corporation of Hamilton and its leaders for commission and fees totaling approximately $900,000. The Carlton Group is the real estate private equity banker who was the broker for the deal between Mexico Infrastructure Finance LLC and developer Par-la-Ville Hotel & Residences Ltd.

Mr Brown added that “if the chain of events isn’t troubling enough, it has been stated publicly by Bermudian developer Michael McLean that he has tapes of conversations with OBA officials” allegedly engaged in unethical conduct.

“When you combine that with the chain of events leading up to the $18 million dollars going missing, and Bermudian real estate lost to Mexican financiers, it clearly shows the need for a thorough police investigation,” Mr Brown added.

Update: Q&A at today’s press conference

Mr Brown alleged that Minister Fahy “masterminded the OBA scheme to gain back the Waterfront Contract from developer Mike McLean, exposing the Bermuda government and the taxpayer to potentially over $100 million in legal penalties.”

“It was under Minister Fahy’s oversight that McLean’s opportunity to bring Bermuda a new hotel in the heart of the city has been snatched away and more millions lost,” Mr Brown said, adding that “there seems to be a pattern here.”

“In light of the potential Government liability associated with the waterfront lease, the question must be asked if this Parlaville debacle is an attempt by Minister Fahy and others to economically destroy Michael McLean?” added Mr. Brown.

Mr Burt then added, “Under Minister Fahy’s watch, the Par-La-Ville Car Park has been lost to a Mexican company. It has been lost under an arrangement the OBA authorized. Minister Fahy assured the taxpayers that there was due diligence taking place to prevent the very thing that happened from happening.

“Yet despite this obvious lack of judgment and embarrassing loss of prime Bermudian real estate, Premier Dunkley retains full confidence in Minister Fahy.

“Premier Dunkley has failed to hold Minister Fahy accountable for this blunder, failed to provide answers to the people of this country, and given the Premier’s statements about transparency one must wonder why he and Minister Fahy are so silent.

“To Premier Dunkley I say: step up, be a leader, and instead of posing for photo-ops, tell the people of Bermuda exactly what is going on with the $18 million. Let the people know what has happened to the money when you assured Parliament and the taxpayers that there were appropriate checks and balances in place?

“We pose the following questions to the Premier Dunkley & Minister Fahy.

  • 1. As part of your due diligence did you seek assurances from the branded partner for the development, Starwood?
  • 2. Did you have knowledge of the intent of the Corporation of Hamilton to release the funds in escrow to Argyle before they were released?
  • 3. Are you aware that no resolution was passed by the corporation to release funds to Argyle? Given that is the case, how exactly were the funds released?
  • 4. What did the developer show to the Cabinet that satisfied Ministers that the developer was worthy of a change of legislation and gained Government support for their plans to use Par-La-Ville Car Park as collateral for a bridging loan?

“The public is rightly concerned with this debacle, however in the interest of transparency and good governance, I would like to ask Minister Fahy one final question, which requires a simple yes or no response.

“Before you allow Minister Fahy to deflect from the issues, and attack the Opposition for doing our job, make sure he answers this question:

“Minister Fahy, have you had any discussions involving a guarantee for the Par-La-Ville hotel project with Mr. Stephen DeCosta – The business partner of the former Premier – who accompanied members of the OBA Cabinet on the Jetgate Flight?”

“I repeat – “Minister Fahy, have you had any discussions involving a guarantee for the Par-La-Ville hotel project with Mr. Stephen DeCosta”

“It is our expectation that the OBA will come clean and I expect Premier Dunkley to use tonight’s national address to be truthful about this situation to the people of Bermuda. I would also hope that the media will ask the questions that should be asked, especially when we are talking about $18 million,” concluded Mr. Burt.

Update 4.37pm: The Minister of Home Affairs Michael Fahy advised that “he has taken note of today’s PLP press conference in relation to Par-La-Ville. A response will be forthcoming tomorrow at which point a comprehensive account of events will be provided and all misinformation corrected.”

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  1. Jeremy Deacon says:

    eerie silence from PLP on Port Royal overspend, TCD overspend, cruise terminal overspend, unaccounted for millions …. they may actually have a point here, but like I said before until or if they start to address their own eerie silences I for one cannot take them seriously

    • watching says:

      That’s not exactly true deacon. There were comments on all of those.
      What I want to know is why you as a member of the ‘neutral’ media are so anti PLP and pro OBA?
      If you want the PLP to answer questions, then shouldn’t the OBA answer questions of a similar nature?
      Why are you playing goalkeeper for the OBA?

      • hmmm says:

        Problem here is that rather than answer the questions the public wants answers on, the PLP are ignoring us, treating us like they are better than us all whilst playing politics in order to win votes…that means they are looking after themseklves, not Bermuda, and not us Bermudians.

        The PLP need to learn they answer to the Bermudian public…We voted them out and have so far seen no reason to vote them back in.

        • Jonah says:

          Yes all true, however the OBA need to learn that they answer to the Bermudian public as well and if they continue to act in the same manner they too will be voted out. The margins are not that wide…

          • Mockingjay says:

            No, you voted them out and now they’re Flogging de breath out off you.

            • BETTTYTRUMP says:

              Just tune in and I must say Excellent Press Conference Opposition. Well done Burt & Brown. Great Questions I Await the Answers from OBA. ACCOUNTABILITY.

              • hmmm says:

                It says in the article above that OBA stewardship of COH ended on March 13th…………..THEN……………in July nearly 4 months with COH running themselves the credit agreement was signed.

                I want to know who has the money what due diligence the COH did.

          • Mockingjay says:

            The margin is wide, its just the masses got DUPED and now they’re kicking themselves in the @**.

          • hmmm says:

            from the article above OBA stewardship of COH ended on March 13th…………..THEN……………in July (nearly 4 months after COH had been running themselves A the credit agreement was signed.

            The whole above article seems to want to blame the OBA, but the facts presented in it clearly show it was nearly 4 months after the COH were managing themselves. The OBA were nothing to do with it.

            “December 19th, 2013 to March 13th, 2014 – Minister Fahy takes temporary stewardship over the treasury functions of the Corporation of Hamilton.

            “July 9th, 2014 – Credit Agreement and the Guarantee agreement was signed between Mexico Infrastructure Finance LLC, Par-la-Ville Hotel and Residences Ltd and the Corporation of Hamilton

            • hmmm says:

              From the above (right at the bottom…..)

              Update 4.37pm: The Minister of Home Affairs Michael Fahy advised that “he has taken note of today’s PLP press conference in relation to Par-La-Ville. A response will be forthcoming tomorrow at which point a comprehensive account of events will be provided and all misinformation corrected.”

          • Onion says:

            As a general rule the OBA have been forthright and frank but boring in their delivery. Especially Mike Fahy.

            My guess is he’ll give a sober and honest press conference tomorrow and it will be ignored by the PLP in favour of misinformation and hysterics.

            • Ringmaster says:

              Surely the eerie sound of silence has been from the Corporation of Hamilton itself? Where is the Board especially the Mayor and Deputy Mayor? They are very quiet and seem to have disappeared. Odd that this missing money is shortly before the Municipal Elections, and only one person of the present Board has surfaced to seek reelection. The timeline shown by the PLP actually shows the OBA were not in control of the CoH at the time. Clearly the PLP should be seeking confirmation from the police that an investigation has commenced – this is a potential criminal matter. Diverting attention away from the CoH against the OBA is at best misguided, but seems to follow the usual PLP pattern of distortion of the truth.

            • Redman says:

              @ Onion,

              Yup.

              I am disappointed with the OBA for even thinking of giving the COH jokers a penny, especially as it appears they simply trusted things would be handled correctly. Come on OBA FGS it was Team Hamilton!! With their PLP connections surely this was only ever gonna end badly for the taxpayers.

              Having said that we must find out what happened to the $$$ and prosecute all responsible… not holding my breath on that though.

              However it is rich that the PLP who have shown little to no regard for the unaccounted hundreds of Millions from their time in Govt want the OBA to have all the answers for this ‘yesterday’ & failing that hourly updates.

      • Jeremy Deacon says:

        You are not reading what I have been posting. I have been commenting on what I see as hypocrisy: the PLP calls for transparency (rightly so) on things like this, but is not prepared to tell us what went on with projects under their watch. And by the way, I have not been involved in local media for almost two years.
        The OBA should be transparent but the PLP should not be hypocritcal

        • Onion says:

          Well, the OBA have implemented PATI… and also have generally been transparent and forthright. Unfortunately that frankness has been overshadowed by the PLP’s hyperbole, spin, and misinformation.

        • Johnny says:

          What do you tell OBA supporters that are calling for the OBA to come clean on issues? Go ask the PLP to come clean? People want answers for what is happening now and the best you can say is ask the PLP to tell us what went on a few years ago. We all know what happened – the PLP bubbled, thats why you are in!! Each time you guys use the old “well PLP did this line” you lose credibility.
          If you cant run the country to the standards of the masses you will be out too!!!

        • Truth Teller says:

          Deacon your response is so weak as to beggar belief. “Watching” thanks for giving us Deacon’s new nickname Jeremy “The goalkeeper” Deacon.

          He has always played for the Anglo team.

        • Me! says:

          So then Jeremy, what do you suggest? Should the Opposition not oppose because of their own errors? Should the merits of questioning this current and urgent issue be ignored because of the prior actions of the PLP?

          Irrespective whether it’s the PLP or OBA at the helm, suggestions and indicators of malfeasance must be questioned and persons held to account.

          Your opinion can be misinterpreted as the OBA Do not have to answer to any matters of public interest if posed by the Opposition due to their own track record, and that is both a dangerous and ignorant point of view.

      • Jeremy Deacon says:

        comments on those is not the same as disclosing what actually happened.

    • Chris Famous says:

      Jeremy can you show us anywhere you have taken the OBA to task over Jetgate or this COH scandal

      Thanks in advance.

      • Politricks says:

        Can you show us anywhere where you took the PLP to task when one of their former premiers took a private jet ride to DC from a Company who somehow received over $40mn in tourism contracts from the tax payer which resulted in a whole DoT department being made redundant?

        Can you show us anywhere where you have taken Maclean and the CoH to task for allowing the funds to disappear?

        • Jonah says:

          Yeah but you both seemingly believe that this is a checkers game. Bad behaviour, no matter who is committing it, is bad behaviour and both sides have lots to answer for.

          • hmmm says:

            Didn’t the premier step down as a result…..

            what have the PLP done …..IGNORED US.

          • Onion says:

            The OBA had a sitting Premier resign while the PLP allowed him to stay in office as he jumped private jets and did things 100x worse.

            There is no comparison.

            • Danny says:

              HAD A SITTING PREMIERE RESIGN!!! But they gladly welcomed him back a few months later and placed him in a TOP Ministry. WTF

              • Very Nice says:

                Samething in PLP/UPB camp just not a premiere…

        • campervan says:

          Eerie silence from CTF:0)

      • serengeti says:

        Chris, how much public money went missing in what you call ‘jetgate’? And what crime was committed, exactly?
        Because I’m wondering what your fascination with it is.

        • Jonah says:

          Unethical ( alledged ) behaviour may not be a crime but it is the polar opposite to what the OBA ran on. Further, if it wasn’t unearthed, who knows what crimes could have been committed.

        • Mockingjay says:

          So Connonaire resigned because……….
          Tic Toc

          • serengeti says:

            Connonaire? There is nobody by that name who resigned from anything.

            But let me humour you for a minute, however dumb you are. When Roban resigned as a Minister, why was that? Can you list the issues that you think Roban committed? Because he did resign as a result of his own actions.

          • Well then says:

            Public pressure…
            Not saying he didn’t do anything wrong…
            But it was a private investment to support his campaign, not the public’s money.
            Which to you is worse? Public money disappearing, cough cough $800m or $350k.

            • Onion says:

              Pressure from within the OBA as well.

              Nobody was more upset by their shenanigans than the membership – many of whom joined because they were sick of the PLP’s constant self-serving gravy train.

          • Zevon says:

            And Roban resigned because…..

          • C James says:

            MG – you are Boooring!

      • Yahoo says:

        That’s rich coming from the PLP’s biggest cheerleader.

      • Jeremy Deacon says:

        As usual you miss the point. I am taking the PLP to task for what I see as hypocrisy. They call the OBA out (quite rightly for an opposition party) but they do not reveal what went on under their watch. It is the hypocrisy, Chris.

        • Jeremy Deacon says:

          Maybe just maybe, if both political parties ‘came clean’ we could then move on. As it is, there is too much secrecy from both sides – that is stopping the country moving on IMO.

          • My Silence Prayers says:

            Stop it your sinking deeper into an OBA hole of Hypocrisy. Sad only those already diehards of the OBA believe you but that’s expected. You need to come clean in regards to your bias agenda as well. The PLP have outlined their errors,they are not the GOVT as a result Now do your investigation on the OBA only if your able to drop your political bias for real…..what a joke you are…

            • My Silence Prayers says:

              Jeremy why are you not pushing for answers from OBA on the Sandals over the pass two years. …blindfaithfulness killing you on that too

              • Mockingjay says:

                He don’t want to get kicked out off the Undeserved Privilege Club.

              • arthur conan doyle says:

                You are missing the point – I am highlighting what I think is hypocrisy on the part of the PLP

      • Ty says:

        To Chris Famous…. Good afternoon to you.

        Are you going to answer Politricks question below?

        I notice that you and that Betty person have absolutely NO ANSWERS to anything that is put your way. I repeat ABSOLUTELY NO ANSWERS.

        I ask again…. are you going to answer Politricks question below.

        Have a great day.

        Ty.

      • Jeremy Deacon says:

        usual plp tactic, shoot the messenger try and deflect and ignore the message. you must also read more widely

        • My Silence Prayers says:

          Look carefully in the mirror your the biggest Deflector of them all. WHY ARE YOU NOT SEEKING ANSWERS OF THE OBA…look again you might just see yourself for real

        • Pot calling the kettle black here.

      • Jeremy Deacon says:

        i also at last count have 84 upvotes on my original comment. how many do you have?

        • watching says:

          well we know the OBA paid people to blog and like certain comments.
          Deacon, you sound like a petulant child.
          “I got more likes than youuuuu”.
          Give it a rest.

          • My Silence Prayers says:

            JERMEY…..This votes your bragging about Jeremy are from the faithful blindfaithfulness OBA bloggers. FEW IF ANY PLP SUPPORTERS FOLLOW THE BLOGS, and you know this. The same way few if any PLP supporters answer surveys. Your votes come from a onesided OBA bloggers dome paid others come on daily to vote….part of the OBA political statergy since the election and it continues……so do not get excited over those votes they are bias in one direction…….really you know that. …or you should as a so called journalist. …really

            • Mockingjay says:

              That’s why I don’t watch American Idol no more.
              The biasness of those who have access and are savvy doesn’t mean S!@# !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

      • Sickofantz says:

        Actually I remember mr Deacon taking the OBA to ask over a number things and specifically the Lamb Foggo. YOU on the other hand?

        Are you neutral media?

        • Jeremy Deacon says:

          Thank you sickofantz for saving me time …..

      • Jeremy Deacon says:

        Again, you miss the point. I am talking about the PLP’s hypocrisy not whether I have taken anyone at any time to task …. PLP tactics, deflect, shoot the messenger and ignore the message. it is about time you got some new tactics

    • Mockingjay says:

      So when are the U.B.P/oba diehards gonna mention CORRUPTION?
      Or is that just for the other party.

    • ahem says:

      whats eerie is that you didn’t dig when you had the chance to get some answers….Obviously its not on the top of the oba’s agenda if it was a problem.

  2. Wait, and he will tell everyone the latest…I like how the Progressive Labour Party claim they opposed this “deal” when in reality, they had also voted for it :-(

    • Also this: Tell us who benefited from one of the construction projects that went way over budget that no-one was able to bid fairly on. I.e. The Berkley, DLBE Bldg. Bermuda Emissions/TCD let’s not forget Port Royal Golf Course. Or, did you benefit from the taking of the Bermuda Cement Company from one person, only to be handed to others? Or did you benefit from the Coco Reef, Whites Island or City of Hamilton deal? Or, are you related to someone that holds a key position within the Progressive Labor Party?
      Please answer them questions, inquisitive minds want to know?

    • Chris Famous says:

      The PLP abstained from voting

      • hmmm says:

        Chris, they were not against the leases, but abstained because the OBA tabled them…

        Chris, the PLP didn’t even ask any questions…it’s there in the Hansard Dec 11th 2013.

        • Sickofantz says:

          What’s more it is clear that once the OBA had learned more about the COH and PLV they moved quickly and effectively to halt the Waterfront Contract (in the hand of the same shameful bunch). When they moved quickly to void this even more suspect contract the PLP came out in strong defence of PLV and the COH. As did the predictable Mr Famous.

      • Spectator says:

        They could have voted against it and they didn’t.

        • watching says:

          It still would have passed because of OBA support.

          • hmmm says:

            they abstained because it was brought to the house by the OBA…..

            They did not vote no.

            They said, they were not against the leases.

          • Onion says:

            They clearly said they were in support.

      • serengeti says:

        So they went along with it, with no problem, and without voting against it.

      • Mockingjay says:

        So then a no vote is a vote for……………

      • Terry says:

        Right on que Chris.
        Still not an answer because you have none.

    • Mockingjay says:

      @ Raymond Ray, and when he starts talking um gonna make sure um on high ground.

    • “Hot off the press”, (4/28/15)
      In quoting Minister Fahy: “We will continue to work on a resolution of this matter, but “trial by press” is not the way to handle this delicate situation. When my discussions and enquiries are fully exhausted, I will give the public a further update. I remain hopeful that this matter can be resolved satisfactorily to all concerned parties.”
      Read on: “ I have been assured by Mr. MacLean that the full amount of $18 million exists and is available to be paid over to the rightful parties. Whilst I have seen no tangible evidence of this, I am in ongoing discussions with Mr. MacLean with a view to the Government’s concerns in this regard being alleviated. I have been made aware that both Argyle Limited and Mr. MacLean have sought assistance from local lawyers to have the monies moved to a local escrow account and I believe progress can be made here. I am also in discussions with Mexico Infrastructure Finance, LLC and KPMG in relation to achieving re-payment of the $18 million loan and the release of the Par-la-Ville parking lot from receivership”
      Yes, all the dirt will surface in due time…

  3. Sandgrownan says:

    For christ’s sake…are they concerned too!?

  4. Truth is killin' me... says:

    Yo…silence is golden. Haste can lead to waste if yah not careful in your decisions!

  5. watching says:

    WOW! the political temperature has risen!
    Will Dunkley and Fahy respond and answer the questions?

  6. Huh says:

    If only Mr. Burt & Brown had asked these sort of questions during the PLP 14 year reign of economic terror. Also is Marc Bean no longer leader of the PLP? Why is PLP giving Mayor Outerbridge and his “gang” and the owners of Par-la-Ville Hotel and Residences Ltd. a free ride here? Seems to me that they are the ones who should be coming clean

  7. Mockingjay says:

    Um, why is this name Stephen Decosta popping up again? Oh I forgot, his boss is getting paid by us for doing nothing, AGAIN.
    Cant wait to hear the spin on this one.

    • serengeti says:

      Burt brought up his name because he was on an irrelevant flight at an irrelevant time doing something completely unconnected to this issue. Why Burt brought it up is a mystery to everyone. Perhaps Burt can’t follow the story. Perhaps he just can’t work out what is relevant and what isn’t. Perhaps he’s diverting attention away from the people who got us into this, the PLP Dreamer Team who were running COH when the contracts were signed.

  8. Truth (Original) says:

    …why do we even entertain these lot? I guess we have to, they are the official opposition. Anyone with half a memory couldn’t possibly take them serious.

    • Yahoo says:

      Unfortunately, half the people on this island are dumb enough to vote for them. A few more dummies in 2012 and they would still be running this ship into the rocks…

      • impressive. says:

        A mature way to describe persons who don’t see the world the way you do.. In other words your saying, If They don’t get in line and do what I do, they lack intelligence… Interesting Principle..

        • impressive. says:

          What you guys don’t understand is that; with comments such as these you are actually doing more to put the PLP back in power than any wrong the OBA have done, is doing, or will do in the future.. The constant insults to thousands of people is certainly not going to keep them home in the next election.. Just something to think about. Now carry on, Yes the OBA are wonderful, fantastic, best government ever, yada yada, the PLP are a group of arrogant, self serving, corrupt, not-so-smart individuals.. yada yada,, Rewind and come again.

    • Jonah says:

      If the Original Truth really seeks the truth than why can’t he/ she continue to view the PLP suspiciously and at the same time seriously question the goings on in the OBA, as in JetGAte, etc?

      If you truly seek the truth than there should be no self imposed barriers that prevent you from finding it.

  9. Suggestion Box says:

    Clearly there needs to be an investigation into this matter before casting blame. Granting a power and how that power is used are two completely seperate things. On one hand the PLP blamed the OBA for not supporting Mr. Mclean and when the Government gave it’s support look what has happened. Let’s not forget that it was under the PLP Government that Mr. Mclean recieved the lease to develop on the Par-La-Ville car park in the first instance. What is most curious is that David Burt led this press conference. Where was Marc Bean? Looks like a change in leadership is brewing at the PLP.

    • Oh how soon they, (P.L.P.) choose to forget the truth of this particular matter :-(

    • Jonah says:

      The idea that there could be a change of leadership in the PLP is hopefully more than rumour. Until Marc steps down or is pushed aside the PLP will never be taken serious by the voters they require to unseat a rather clumsy, high handed and increasingly questionable OBA.

      As for Jeremy taking the PLP serious, surely he can remain suspicious about the PLP while asking rather probing questions about the many issues that are attached to the OBA. JetGate is a potential monster and I am a tad shocked that he and other journalist haven’t pounded the OBA on this matter. It’s full of smoke..

      • hmmm says:

        Looks like Burt is in walton’s camp, who is in Beans?

    • Sickofantz says:

      I heard on the radio that Mr David Burt was the only one who questioned the lease being given to Par La Ville and for this he was called “Ignorant” by Mr Richards.

      I have searched in Hansard and the press but cannot find any reference to this. So maybe more spin?

      On the other hand not even you OBA diehards can possibly think that the OBA’s continued silence on this is a good thing.

  10. Navin Johnson says:

    For some reason I do not think I have heard any PLP spokesperson mention the PLP lead COH team most of whom are ardent PLP supporters in relation to Mr Mcllean who they gave the contract to….another laughable press conference…

  11. Jus' Wonderin' says:

    YOU LOT (THE PLP/UBP) SIGNED OFF ON THE $18 MILLION TOO! DON’T FORGET THAT!!

    • Richard says:

      Yes, the PLP should have been and were flogged at the polls for this and many other indiscretions mentioned throughout this thread. The fact that the PLP did it as you say, does not give the OBA a free ride when they make similar indiscretions. It just doesn’t folks. It is simply the most stupid argument one could make.

  12. Terry says:

    Did not even read 98% of the PLP statement.

    Follow the money.

    They have their nickers in a twist and it is biting them in the ***.

    Thus all their propaganda.

    They want to know how close the Foreign Office and the DPP are from indictments.

    Fools.
    They are running scared.

    Shalom.

  13. Double D says:

    In the above timeline presented it is noted that Minister Fahy retained stewardship of the CoH finances up until March 2014.

    The credit agreement was subsequently signed in July 2014.

    Therefore, the Minister was not in control of the finances at the time of the signing of the agreement.

    The only think I can say is that the Minister was naïve to think that this motley crew of an organization was fit and proper enough to be entrusted with that amount of monies (much like their parent political organization).

    Strange that the PLP won’t call out Maclean, Smith or Outerbridge in this whole scenario or even query as to where the $18mn disappeared. And despite all this mess the PLP still go on about the OBA cancelling the waterfront contract by this failed developer with no assets to his name. But yet they were all gung-ho about giving our waterfront away for 262 years and apparently are still.

    But some of us know exactly why and such press conferences are simply cover for the upcoming revelations.

    Much like why the Opposition leader has had a criminal complaint filed against him by the Speaker.

    Sit back and enjoy Bermuda:)

  14. San George says:

    None of these MP’s have any skin in the game – they will continue to give away the taxpayers’ money. Their paychecks remain the same.

    The Westminster system is inherently flawed – it creats kings and tyrants.

    People who care for the long-term viability of this country must enact checks and balances on these people.

    Quo Fata Ferunt

  15. Truth is killin' me... says:

    When the volume gets turned up its’s gonna get HOT INNA DE DANCEHALL!

  16. Rhonnie aka Blue Familiar says:

    While I look forward to hearing out what the heck the CoH did and what happened subsequently, I don’t quite understand why this is being placed on the doorstep of the OBA, sure they get to hand over the news, but it’s long been believed that at least part of the CoH Team Hamilton were PLP people.

    So… maybe we’re looking to the wrong people for the answers.

  17. Silence Do Good says:

    There should be an investigation of this as well as the last 15 years of government contracts and deals that have cost the tax payers more than planned. Due diligence is an oxymoron with politicians who serve different masters than the public who elect them.

    Canceling the Waterfront lease does not seem like such a bad idea now or we could have lost that prime real estate as well.

    Heck most of Bermuda lands are owned by foreign interest anyways when the 60/40 rule was done away with for banks. Be careful what you ask for and know who your politicians serve.

    I love to see political parties bashing each other like they live in glass houses. The circus at city hall was finally shut down but the one on hill is still the big top full of side shows.

  18. Stumped says:

    You Know people are right to want to have answers and people are right that the PLP could have done better themselves. The concern I have is the OBA was elected to do damn better not the same that is why PLP was voted out. my point is com clean and you may stay in power. We don’t want much of the same

  19. big lad says:

    PATI – Public Access To Information

    “So why is $18 million of taxpayer funds unaccounted for?”

    Seems like it should be pretty simple to figure all of this out no? And, if PATI is not the answer, then the question becomes, “what happened to that $18 million + the money spent on developing PATI?”

  20. shirley Richardson says:

    THERE NEEDS TO BE AN INDEPENDENT INVESTIGATION INTO THIS WHOLE MATTER.
    ISN’T THE ROLE OF THE OPPOSITION IS TO ASK QUESTIONS? EVEN THOSE WHO
    SUPPORT THE GOV’T , SHOULD WANT TO KNOW WHAT IS THE REAL TRUTH ?

    IT IS FOOLISH FOR PEOPLE TO ATTACK ANYONE WHO WANTS TO KNOW HOW OUR
    MONEY IS BEING SPENT. “AS THE SAYING GOES, “THE TRUTH WILL SET YOU FREE”.

    • Edmund S. says:

      I think everyone wants to get to the bottom of this. The problem I have is the PLP lists a large number of information points (given not complete) and makes a political show of saying how silent the OBA is knowing full well an address has been scheduled that will, or should cover this.

      • Edmund Spenser says:

        Thought I’d put the follow-up here.
        I’ll admit to being disappointed that the CoH and Par-La-Ville wasn’t at least acknowledged in the Premiers address.

  21. Edmund says:

    Seems to be a fairly complete timeline, with a good amount of information coming out so far for being eerily quiet.
    I do think the question that needs to be answered is, Given the track record of the PLP for going over budget on projects and the lack on any progress on the PLP managed hotel projects why did you (OBA) feel that collaborating with the PLP on the Par-la-Ville hotel was a good idea at this time?

  22. Alvin Williams says:

    If the original water front developer wins his court case we could be talking about more than $ 18 million and the lost of a city parking lot and who is going to pay? The Bermudian tax payer. But of course OBA political supporters lost in their herd mentality are unable to see this picture as they rush over the cliff to political obscurity.

    • Derek A. G. Jones says:

      Alvin, are you aware that the key person involved in the Waterfront development and the Par-La-Ville hotel development are one and the same? If he cannot ascertain as to the whereabouts of the current $18 million I seriously doubt he’d be in a position to sue anyone for anything else.

      There are still too many questions that need to be answered from all sorts of people, not just Minister Fahy. It is presumptuous at best for Mr Burt or Mr Walton to be laying blame on Fahy for any failings until all parties involved have explained their roles.
      Furthermore the PLP is being highly hypocritical in not demanding further information from the members of the COH over the land leases given they were instrumental in getting them elected.

      This is a very important issue and the Opposition is correct in raising questions however their political mud slinging helps no one resolve the issue.

  23. MB says:

    WELL you lot can all argue over semantics and what the PLP did or didn’t do, but fact is OBA is in power now and $18 mil is missing.
    I for one want to know where it is
    I commend Burt for speaking out.
    Fahy needs to answer for this mess NOT the PLP. Why is there no investigation?

    Yes PLP had a role in the circus who was in charge but OBA could have and from what we know did step in…so howcome the money is gone.

  24. Bermuda Jake says:

    The OBA and the COH are responsible for the missing $18mm along with the Developers. The PLP should be calling for answers, but pretending that the OBA have been trying to undermine the developer is ridiculous. If anything, the OBA were too supportive of a poorly conceived plan. PLP – the public deserves the truth from the Opposition when the Government fails. If there is no truth from you who do the people turn to?

  25. swing voter says:

    Burt! um finished wit u bie! LOL some nerve but then again thats politics!

  26. aceboy says:

    Who signed the instruction to pay the funds to the developer’s personal account?

    For information as to where the funds went thereafter, please ask the developer. The same developer who was awarded the huge waterfront lease for 262 years.

    This is all the result of the PLP removing the ratepayer right to vote which ushered in Team Hamilton.

  27. Very Nice says:

    ““I would like to repeat two important quotes – “appropriate checks and balances” and, “required to conduct thorough due diligence, to the satisfaction of the Bermuda Government,” – What that statement means is that the OBA approved and authorised the arrangement which led us to the place where Bermuda’s Par-La-Ville Car Park is now the Property of a Mexican company.

    “No matter how much the OBA would like to blame others, the fact remains that the OBA through legislation laid the groundwork for this regrettable situation. The PLP warned the OBA about this action and we did not support it in Parliament, and now the risk that we warned about has now manifested itself.

    THIS IS THE BIGGEST LIE….YOU LOT (plp/ubp) SIGNED OFF ON IT AS WELL! YOU’RE DEFLECTING FROM YOURSELF!!

  28. Very Nice says:

    Why don’t you ask Mike McLean where the $18 million is?!?! HE IS THE ONLY ONE THAT KNOWS ANYWAYS!

  29. Common Sense says:

    As someone who is a supporter of neither political party; only loyal to Bermuda, I would like to know the truth about this $18 million. I would also like to know the truth about the missing $800 million and Port Royal overspend.

  30. bluebird says:

    $18Million dollars my goodness me,that is LUNCH CHANGE for the PLP/BIU.
    They PLP/BIU certainly get there knickers in a twist over an $18Million

  31. Not again !!! says:

    Who’s signatures are on the loan????

  32. bagheera says:

    significance of tommorrow being?….oh nevermind….however….just a suggestion…if i were you….i would try and hire Jay Lenos’writer…his scripts were worth every penny….seriously.