‘Who Is Accountable In Missing $18M Situation?’

March 12, 2016

“The tabling of the loan facility of $26.5 million for the Corporation of Hamilton to repay the ‘missing $18 million‘ raises a number of questions,” Shadow Minister of Home Affairs Walter Roban said, asking “will the truth be told as to who is accountable in this situation?”

$18 Million Loan Not Paid Back

MIF, an overseas company, extended an $18 million loan to Par-la-Ville Hotel and Residences Ltd [PLV], with the Corporation of Hamilton signing on as the guarantor.

PLV was supposed 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 supposed to be be repaid in December 2014, however it was not paid back resulting in MIF initiating legal action against PLV principal Michael MacLean and the Corporation.

The police previously confirmed they are conducting a “criminal investigation into an allegation of misappropriation of funds amounting to approximately $18 million,” and, in January 2016, confirmed that a 41-year-old man “has been arrested on suspicion of theft.”

Since this occurred, the CoH has been through an election and is now being run by a new administration, however since the CoH signed on as the guarantor, they are liable for the missing $18 million, and a Bill was tabled in the House seeking to permit the CoH to increase its borrowing limit in their effort to secure financing to pay off the $18 million debt.

Mr Roban’s Comments

Mr Roban said, “The tabling of the loan facility of $26.5 million for the Corporation of Hamilton to repay the ‘missing $18 million’ raises a number of questions. One of which is what has happened to this ‘missing $18 million’?

“Will the truth be told as to who is accountable in this situation? Why, after several months, have we not had some sort of explanation of the situation by the Minister of Home Affairs Michael Fahy? These questions remain unanswered and for the OBA to continue to remain silent on this matter is unacceptable.

“The facts are clear, the OBA Government granted the authority for the Corp of Hamilton to provide the guarantee. With this said, and the $18 million still unaccounted for, the only serious action we’ve seen the OBA do up until this point is increase the borrowing facility.

“With the acknowledgement from the Government that this situation risks the financial welfare of the Corporation of Hamilton, even risking the loss of valued assets, this matter must be addressed as a matter of urgency.

“With the news of an arrest in regards to this ‘missing $18 million’, will we get an explanation from either Premier Dunkley or Senator Fahy as to what is going to be done to return the ‘missing $18 million’, or how it ended up going ‘missing’?

“The OBA, as a Government that campaigned on openness and transparency, have an obligation to provide the Bermudian taxpayer answers,” concluded Mr Roban.

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Comments (9)

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  1. Kiskadee says:

    absolutely right. can’t wait to hear who is at the bottom of this….. i doubt mr roban will be too excited when the truth comes out, speaking of lack of transparency…..

    • Build a Better Bermuda says:

      I very much would like answers, however, with an arrest, that means there is a criminal investigation, which means that any information pertaining to what has happened will not be released until the case has commenced unfortunately.

  2. Onion says:

    So the Shadow Minister wants a comment on an ongoing criminal investigation? Sounds like a great way to ruin it.

  3. Terry says:

    Walter Roban.
    The first paragraph of this topic speaks for itself.

    My question is will the truth be told re the missing $800 Million during the PLP reign and the monies paid by the PLP to contractors ‘twice’.

    Shalom.

  4. Edmund Spenser says:

    You know full well that in an on-going criminal investigation the government is obliged to be silent least they prejudice the case.

  5. average Bermudian says:

    Whether the immigration proposals go through or NOT –
    It is without any uncertainty that Dunkley and Fahy amateur political careers’ are over – finished.

    • Build a Better Bermuda says:

      Actually, Mr. Roban has shown some amateur politricks in demanding answers when he also acknowledges there has been an arrest. If there is a criminal case, then any information on the case cannot be released before trial.

  6. Charlly X says:

    Yup !!! Whos Responsible for this ? ?? Miss Leaders! Its time for more accoutability ! Honesty ! Collectivity! Stop the dividing up the assets amongst the few ! Stop !!