Minister Fahy: Par-La-Ville Car Park & $18 Million

April 28, 2015

Today the Minister of Home Affairs Michael Fahy issued a statement about the circumstances surrounding the $18 million loan and the Par-La-Ville car park, providing a breakdown of the situation, including information about some of the financial transactions.

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. 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 against both the CoH and PLV principal Michael MacLean, and KPMG being appointed as Joint Receivers over the Par-La-Ville car park on March 31, 2015.

The Minister’s full statement follows below

“Over two weeks ago I gave a press conference where I advised the public that the Par-La-Ville car park was in receivership. At that press conference I also laid out a number of issues that were a cause of grave concern to me and the Government of Bermuda in connection with issues surrounding the governance of the Corporation of Hamilton, the placing of the Par-la-Ville car park into receivership and the use of funds that were secured by way of a loan from Mexico Infrastructure Finance, LLC. I undertook at that press conference to update the public when I deemed it appropriate given the sensitivity of the issues involved.

“To be absolutely clear, I was first made aware of these issues during a meeting with the Corporation on January 22nd, 2015 and since that time I have been diligently making enquiries into the issues in the hope that I could ascertain all of the facts and, more importantly, rectify the situation by identifying the whereabouts of the funds with the obvious aim of retrieving them.

“As a result of my enquiries, which are ongoing, in all the circumstances I thought it prudent on 12th March 2015 to advise the Bermuda Police Service of my immediate findings. Whilst I do not wish to in any way impede or prejudice the work of the Bermuda Police Service in the light of the way in which some have sought to characterize matters generally, I think it important that the public be aware of the following facts so as to put matters in perspective.

“As stated above, it was not until January 22nd, 2015 that I was made aware of serious concerns that existed on the part of certain members of the Corporation’s Council that the proceeds of the loan by Mexico Infrastructure Finance, LLC to Par-la-Ville Hotel & Residences, Ltd. had been withdrawn from an escrow account and paid over to the principal of Par-la-Ville Hotel & Residences, Ltd., Mr. Michael MacLean. I was also informed that many of the Corporation’s Council members were unaware of the transactions at the time that they were entered into and concerns were raised that there was no resolution of the Corporation that authorized the transactions.

“As a result of receiving this very concerning information, and for other reasons that I have previously articulated, on January 26th 2015, I again assumed Stewardship of the Corporation’s affairs. I then embarked upon a series of meetings with both the Corporation’s attorneys and the attorneys for Mexico Infrastructure Finance, LLC to obtain a better understanding of the facts. The first meeting took place on February 5th, 2015 and there have been a number of subsequent meetings between myself, the Ministry’s attorney, Mexico Infrastructure Finance, LLC and their attorneys, the Receivers, the attorneys for Par-la-Ville Hotel & Residences, Ltd., Mr. MacLean and the Corporation’s Mayor and Secretary.

I am thus now able to confirm the following facts:

  • [1] On July 9th, 2014 Par-la-Ville Hotel & Residences, Ltd. entered into a Credit Agreement with Mexico Infrastructure Finance, LLC whereby it borrowed the sum of US$18 million. The loan was described as a “discount loan” with the result that all interest that was to accrue during the term of the loan would be paid when the loan proceeds were dispersed by deduction from the proceeds of the loan. The same was true with respect to the negotiation fees relating to the loan. The purpose of the loan was to provide funds for the payment of expenses associated with a permanent loan which was to be negotiated for the funding of the future hotel development. The loan was to be repaid on December 30th, 2014.
  • [2] On the same date, the Corporation entered into a guarantee of the loan and, as security for that guarantee, it provided Mexico Infrastructure Finance, LLC with a first mortgage over the land comprising the Par-la-Ville parking lot. At the same time, Par-la-Ville Hotel & Residences, Ltd. executed a Deed of Surrender of the lease that it had over the Par-la-Ville parking lot. This Deed of Surrender was to be held in escrow and would be triggered into effect in circumstances where Par-la-Ville and Residences Ltd. defaulted on the loan.
  • [3] Also on July 9th, 2014 an Escrow Agreement was entered into between the Bank of New York Mellon, Mexico Infrastructure Finance, LLC, Par-la-Ville Hotel & Residences, Ltd. and the Corporation whereby the net proceeds of the loan after deduction of fees and interest, being an amount of $15,449,858.00, was deposited into an escrow account with the Bank of New York Mellon pursuant to a detailed escrow agreement. These funds were to remain in escrow until such time as Par-la-Ville Hotel & Residences, Ltd. could deliver documentation verifying that it had secured funding for the development of the intended hotel, that funding to comprise a loan of $225 million and an equity investment of $100 million. The funds in escrow were not to be released until copies of the permanent loan funding documents were delivered to the Bank of New York Mellon, as escrow agent, as well as Mexico Infrastructure Finance, LLC. It was an express term of the escrow agreement that the $15.5 million held in the escrow account was to be used only “for the purpose of paying expenses associated with the Permanent Loan”.
  • [4] On or about October 16th, 2014 a meeting was held in London between Mr. Michael MacLean, the Mayor and the Corporation’s Secretary with Mr. Robert McKellar, the principal of a Gibraltar company known as Argyle Limited.
  • [5] As a result of that meeting, on October 20th, 2014 Argyle Limited entered into a Co-Venture Trade and Profit Share Agreement with Messrs. Shane Mora and Matthew Hollis in their capacity as trustees of a Bermuda trust known as the Skyline Trust in Devonshire, Bermuda. Under the terms of that agreement, Argyle was to be paid a onetime irrevocable payment, referred to as a “fee payment”, in exchange for which Argyle extended a line of credit to the Skyline Trust. The beneficiaries of the Skyline Trust are understand are Michael and Yasmin MacLean. The fee payment was to be not less than US$12,500,000 and the line of credit was to a maximum amount of US$125 million. The line of credit was to be used by Argyle to operate a co-venture business arrangement between the parties whereby Argyle would arrange for the purchase and re-sale of “instruments” for profit. The line of credit was for a period of one year.
  • [6] On the same day, Par-la-Ville Hotel & Residences, Ltd. wrote a letter to the Corporation certifying that the conditions for the release of the escrow funds held by the Bank of New York Mellon had been fulfilled by virtue of entering into the Argyle agreement and, as a consequence, Par-la-Ville Hotel & Residences, Ltd. requested that the Corporation execute and forward a release notice to the Bank of New York Mellon authorizing the release of the escrow funds. This letter was signed by Mr. Michael MacLean. Par-la-Ville Hotel & Residences, Ltd. provided the Corporation with the requested form of letter to be sent to the Bank of New York Mellon and this letter, signed by the Mayor and the Secretary, was sent on October 24th, 2014. Also on that date, Par-la-Ville Hotel & Residences, Ltd. similarly wrote authorizing the disbursement of the escrow funds to the personal bank account of Michael and Yasmin MacLean maintained at Clarien Bank Limited. It remains unclear as to the basis upon which it could be said that the Argyle agreement fulfilled the necessary conditions of the Escrow Agreement. Certainly, I have seen nothing that could support any contention that there now exists a Permanent Loan Funding Agreement and that a Permanent Lender has been secured for the Par-la-Ville Hotel project.
  • [7] As a result of receiving these letters, on October 31st, 2014 the Bank of New York Mellon deposited into the account of Michael and Yasmin MacLean the sum of $13,749,858, this being the amount of the escrow funds net of a $500,000 retention and the payment of agreed expenses already incurred in relation to the Par-la-Ville project in a total amount of $1,173,684. Again, I have seen no documents nor received any evidence that support the view that the Bank of New York Mellon was in a position to comply with the request to release the escrow funds. However, it did so.
  • [8] On the same day, October 31st, 2014 the sum of $499,999.99 was wired transferred out of the MacLeans’ account to an entity called Rational Foreign Exchange Ltd. This was followed by a wire transfer to Argyle UAE Limited in an amount of $11,500,000 on November 5th, 2014 and a further wire transfer of $500,000 to Rational Foreign Exchange Ltd. on November 7th, 2014.
  • [9] Subsequently, on December 31st, 2014 an amount of $869,748.00 was transferred to Par-la-Ville Hotel & Residences, Ltd.

“It remains unclear as to how the remaining balance of the escrow funds has been dealt with. Neither the OBA, the Government, nor myself as Minister were aware of any of these transactions until after January 22nd, 2015. The Corporation did not seek or obtain my approval or consent to the entering into or the execution of the documentation that resulted in the escrow funds being released. Neither did the Corporation inform me at any time of the intended arrangement to be entered into with Argyle Limited. It is clear that notwithstanding the Financial Instructions and the good governance procedures that I caused to be put in place in March 2014, the instructions and procedures were not followed by the Corporation and the Government of Bermuda was kept uninformed.

“It is highly regrettable that having afforded the Corporation the opportunity to enter into guarantees in order to facilitate a much needed, approved hotel project in the City of Hamilton, the Government was then kept in the dark as to these unfortunate arrangements which, on their face, appear to be very unwise. However, the Government was entitled to assume that the elected and unelected officials of the Corporation would have conducted the Corporation’s affairs properly and in the best interests of the Corporation. Clearly this has not happened here.

“In the meantime, Mexico Infrastructure Finance, LLC has commenced proceedings in the Commercial Court against Par-la-Ville Hotel & Residences, Ltd., together with Michael and Yasmin MacLean, and those proceedings are ongoing with a summary judgment application scheduled to be heard on May 26th, 2015. As part of those proceedings, the Commercial Court has issued an injunction freezing the assets of Par-la-Ville Hotel & Residences, Ltd. and the MacLeans up to an amount of $15,449,858.

“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.

“Finally, whilst the issue is of no relevance whatsoever to the $18 million loan arrangements and the Par-la-Ville parking lot, in response to questions from the press as to whether I have had any discussions involving a guarantee for the Par-la-Ville Hotel project with Mr. Steven DaCosta, the answer is yes. In fact I and other members of Government were lobbied by a number of people, including Mr. DaCosta and Mr. MacLean to try and find a way to get the project up and running, including the provision of either a Bermuda Government guarantee or a guarantee by the Corporation of Hamilton.

This was all in the context of the Government and myself endeavouring to ascertain the then current state of play insofar as both the Par-la-Ville and Hamilton waterfront projects were concerned, bearing in mind these were issues left over from the previous Government. I am at a loss to understand how we can be criticized for entertaining such discussions in circumstances where we were simply endeavoring to assist a developer realize an important project.

“Finally, let me make it clear again so there is no doubt in anyone’s mind. I had stewardship of the Corporation of Hamilton from December 2013 to mid-March 2014. The Corporation of Hamilton was responsible for its own affairs from mid-March 2014 until I assumed stewardship again in late January 2015.

“The most recent Stewardship Order was confirmed by the Bermuda Supreme Court in March 2015 as valid. The funds were removed from escrow and various agreements were signed relating to the Mexico Infrastructure Finance LLC loan when the Corporation of Hamilton managed its own affairs. Checks and balances were put in place by the Government in March 2014 which appears to have been ignored. This is partly why a bill was laid in the last sitting of the Senate to further strengthen the Government’s oversight abilities and to ensure something like this does not occur again.

“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.”

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Comments (89)

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  1. Mr. JiF says:

    O, what a tangled web we weave …

    Indeed, the Ministers irritation on this matter seems warranted.

    • Caution Ahead, More to Come says:

      All the facts have not fully been put on the table. This is a huge Mess that OBA allowed to happen. It does not look good for Bermuda. If is unfortunate. The government were knowledgable in regards to this matter and should have continued to monitored COH as a result. Instead they moved ahead with approval of funds for this loan, without ensuring that the proper safeguards were in place, if so we would not be in this mess today. It is a great loss for the people of Bermuda, as we may have just lost one of great land- mark property. I hope all is sorted out in the near future and a full investigation is conducted to ensure such does not happen again.

      • Come Correct says:

        Lay off the pipe. Team plp took the votes from the businesses so team Ham(f*** s*** right up)Ilton could continue to bring the island to its knees. If you believe the oba did this you’re on harder drugs than I’ve ever considered consuming.

      • No longer a member says:

        Can you read the facts. The OBA had nothing to do with this mess! What don’t you understand with the time line presented above????? That is why I can’t handle what happened in the past with all the PLP boards and this same COH group. Bunch of self centered people and ones that want to do what is right are forced out or leave because they don’t want any parts of it. That is why I don’t want no part of the former government until the old mentality is gone!!!

        • Mockingjay says:

          @ No Longer a Member, you mean the old mentality like the U.B.P.

          • 3rd Downgrade under OBA says:

            FAHY HAD MUCH TO DO WITH THIS MATTER. The government should have kept on top of the COH after they expressed concern. Why approve monies for the deal without the proper safeguards? If a government approved funds in the huge amount of 18 Million they beyter know whats going on. Please a government that is accountable knows what is going on. This is merely an attempt to wipe their hands clean now that the matter has been exposed, and to make their hands appear clean. This is an attempt of the OBA to play innocent.

            • Hmmm says:

              You are wrong and didn’t read the investigation to date.

            • Ringmaster says:

              Earlier this week you were using this computer and posting under the name of Silences my Prayers and berating the OBA for lack of transparency and accountability. Minister Fahy has set out in detail what happened, more facts and detail that the spin you (in the many names you use) and the PLP MPs put out. Facts and reality are something that is not understood by the PLP which is why in your own words, there are not many PLP supporters reading the blogs.

              • 3rd Downgrade under OBA says says:

                Earlier this week you were using this computer and posting under the name of Kangoocar and Westpalm my Prayers and berating the OBA for lack of transparency and accountability. Minister \. Stop it RingMaster your known for using many many names. Paid OBA Blogger you are??? OBA has failed to be TRANSPARENCY….the pressure set by the OPPOSITION pushed this press release…aha

        • johnny says:

          Where in the time line presented above does it say anything about the PLP. According to the time line above everything happens on the OBA’s watch. As a matter of fact, there is no mention of the PLP in the article.
          How long will u blame the PLP for the OBA’s inefficiencies?

          • Jus' Wonderin' says:

            Because your party voted for the $18 million as well ya dummy!

            • Johnny says:

              voting for something and being in control of something are 2 different things, ya dummy.

      • Tommy says:

        Caution ahead.
        What column are you reading.
        Try reading it again and again if you have to.
        By the ministers pen CoH are at fault. By this I mean individuals who did not advise Government of thier moves on this as so directed to do.

    • Rhonda says:

      the OBA totally exonerated themselves on the grounds of ignorance… .the real question is not did you know…. but should you have known….Was Min Fah, by extension the OBA govt derelict in their duty to protect, what I consider crown land… yes I know many consider it assets belonging to the oligarchy… after all the OBA made it possible to for the loan to exists…

      • Unbelievable says:

        The guy just explained he wasn’t the steward of the City when that happened. Read!

        • 3rd Downgrade under OBA says:

          Fahy knew more than he is now willing to admit. Of course he will write words to ensure he is excused. He does not want to be held accountable for the Mess. Why would he say anything else. You do not expect him to be honest do you now? But you guys fall for anything real fast and Fahy knows it. Just another Politican spinning his way out of a Mess. Come on he was involved with the corporation for sometime now and was provided with info from the inside. It is no way he did not know. But as expected he will spin his way out.

          The government Fahy did not know well its suggest poor governance by the OBA. But guess it’s best to pledge the 5th easy way out of it.

          • Hmmm says:

            Wasn’t this hotel deal concieve under PLP rule along with the waterfront.

      • Tolerate says:

        While most of us were seeking clarity on these matters, and have been provided with a pretty clear understanding; others seek to gain political points (sic).
        Some of these comments are only being made for the weak minded who can’t think for themselves and need the constant BS to keep them riled up.
        SMDH

        “Make the lie big, make it simple, keep saying it, and eventually they will believe it.”

        It is not truth that matters, but victory.

      • Build a Better Bermuda says:

        What’s funny is that the PLP criticize the OBA for taking over the CoH and meddling in CoH affairs, but when they allowed the CoH to handle themselves, they then criticize the OBA for not meddling in the CoH’s affairs… The government put in place certain criteria for the CoH to follow, the lenders and the bank holding the money put in place criteria for fund releases, but the CoH ignore these. Some what easier to keep the government in the dark as they had resolved to give the CoH the space and chance to handle their own affairs, but why was it that the bank released the funds in the first place if there wasn’t supporting documentation??

        • johnny says:

          It’s funny how in the time line above, Fahy gives up control of the COH for a few months and 12m goes missing during that time. He takes back control right after the money goes missing, then he takes 4 months to tell us about it.

      • aceboy says:

        Team Hamilton tried to hand a 262 year lease over the entire Hamilton waterfront to Mr. MacLean. Do you think that was/is a good idea based on what has happened to this $18 million? Personal accounts? Signing letters purporting that conditions for escrow release to the personal account were met when they weren’t?

  2. O'Brien says:

    The only person we have yet to hear from is the most important of all: Michael McLean. After these disclosures, he has a LOT to answer.

    For example: why was he using his personal bank account while conducting the business of PLV Hotel & Residences Ltd?

  3. 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…

    • Caution Ahead, More to Come says:

      I hope that a full investigation is conducted to clear up this big Mess. It is really not good, as we have now lost a major piece of Bermuda’s landmass. I hope Fahy does get moving on an investigation by a neutral party to ensure there is no repeat of this in the near future.

      One good step forward is to get rid of the COH altogether, it is not needed in such a small country. Have a Mayor for ceremonies purposes only, that is all we need in the future. Looks like Dr. Brown was right on this one, despite the protest from a certain group. Maybe if he had followed thur on this, we would not be in this place today. His idea of getting rid of the COH is something Fahy is also attempting to do. It must be done now!!

      • Build a Better Bermuda says:

        In the greater area, the car park is not a large piece of land mass, and prior to it being used as collateral, it sounds like it had been leased to Mr. MacLean already… thank Reason that the waterfront lease had been negated, think of the damage that would have ben done if that was allowed to have been put up as collateral in what is proving to be a botched financing scheme.

        • 3rd Downgrade under OBA says says:

          Due to Bermuda size, and land in the city of Hamilton is consider very significant. This happen under the watch of the OBA Minister Fahy.

  4. Huh says:

    And the Olympic Gold Medal for the “Worst City of Hamilton government in Bermudas history” goes to…Team Hamilton coached by Mike MacLean and the PeeeLPeeee

  5. On de Hill says:

    This is a lot to digest but it is clear that Minister Fahy nor the Government had any knowledge or involvement in this unfortunate mess. The PLP spin machine needs to stop with their propaganda. I truly hope the Minister can find a resolution. There is a saying that if things start wrong they will end wrong. That certainly applies to this project!

    • Caution Ahead, More to Come says:

      The OBA did have knowledge. They signed off in the HOA for this loan to take place, despite MP Burt warning them to be sure that the proper safeguards were in place. Did you also forget Fahy had Stewardship over the COH during this time as well? This is poor governance and it should have never happen. The OBA holds huge responsibility in this matter, no matter how they attempt to push it off.

      • hmmm says:

        No he didn’t you are making things up ….can’t you read????

        • Come Correct says:

          Can you read while spinning like a top? Right, then don’t expect “Betty” to either.

      • Truthhertz says:

        Not true as stewardship of the Corporation ended March 2014 with all the subsequent events regarding these monies occurring after control was handed back to the mayor and the corporation.

        If anything Fahy is guilty of being naive enough to trust this crew with such monies.

      • O'Brien says:

        “Did you also forget Fahy had Stewardship over the COH during this time as well?”

        Wrong. Read again: all material events took place between July-December 2014.

        Stewardship dates: December 2013-March 2014; January 2015-Present

        Get your facts straight.

      • Kangoocar says:

        @caution ahead, you plper’s/Alaskan hall, never quit do you??? You have now been presented with the facts and it is clearly obvious it was ALL your plp hand picked clowns that caused this fiasco!!! This is just more fallout from the 14 yrs of INCOMPETENCE that you all presided over!!! The plp fiscal carnage is going to be felt long after I am gone am I am 53 yrs old!!! Anyone that ever casts a vote for that incompetent plp in the future deserves all that the pain they are feeling and more!!! It is plain to see that the hand picked plp clowns at COH kept the OBA in the dark while they were carrying out their malfeasance??? No surprise on that, the plp did it for the last 8 yrs of their reign of terror!!!!
        All I can say is this, Min Fahy, do not fall for anymore nonsense from McLean, take away his travel documents and all those involved in this mess and be sure to NOT let this just become another police investigation that we the TAX payers never hear about again!!!!

        • 3rd Downgrade under OBA says:

          Stop it kangaroocar your one of the biggest supporters in the OBA camp. I do not come on the blogs much but most tell me you live at blogging for the OBA. Guess you benefited from that Jetgate monies.

          Based upon your comments it is clear you will believe whatever the OBA say or write. You will never hold them Accountable right or wrong. Most folks know this of you. After all your willing to give the government a free pass on all wrong doings.

          You really believe Fahy going say anything different now? Do you really believe he wants to be caught out? Of course he will spin this to free himself and look good. Most Politicans with his approach often do. He has a record of not owning up to anything.

          But you would not get that after all the OBA in your book can do no wrong, even if it stares you in the face.

          This matter lies in the feet of the government. Bad management. Bermuda has lost major crown land because of the lack of effective management by Fahy. There were no checks and balances in place to safe guard this land by the OBA. Disappointing, YES

          • Kangoocar says:

            @3rd downgrade, nice try Betty/Alaska hall, no matter what name you post under, it is plainly obvious that you are one of the Bettie’s!!!!! Can you answer a question for me?? Do you guys pick your names that you post under before or after you start indulging in the special plp tea????

        • johnny says:

          Kangoocar, all of this could have been avoided if your beloved Fahy would have just taken the advice of Mr. Burt. Just admit it ya boy lost 12m on his watch. If your accountant told you that he lost $12m but it’s not his fault and he doesn’t know where it is, would you trust him and have confidence in him to continue to manage your money?
          Normally the person held responsible for a mistake is the person who erred. But as we know the OBA really likes curry scapegoat.

          • Born Free says:

            Taking business advise from Burt…..Bwahhhhhhhhhhhhh hahahahahahaha thanks for the laugh

      • stunned... says:

        at caution – you know this how? please provide irrefutable evidence to support your specious claims. thank you…for nothing

      • Build a Better Bermuda says:

        They put in safeguards, the lenders put in safeguards, the problem is, the CoH ignored them and the bank holding the money didn’t seem to verify them. And since Minister Fahy had relinquished control of the CoH affairs (something the PLP lobbied them to do after criticizing them for assuming control in the first place), the worst criticism that can be levelled at the OBA in this is that had decided to let the CoH handle their own affairs with the belief that the would follow the safeguards they were supposed to follow.

        • johnny says:

          So why did Fahy take control for so long anyway. It seems absurd that you take control because of the COH being inept and making poor business decisions, but then you have faith in them to handle their biggest financial decision ever? It just doesn’t add up.

      • Sickofantz says:

        I have checked back through the Hansard and cannot find where Burt said this?? You are making it up

    • hmmm says:

      The PLP folks really need to climb out of the gutter and apologize to Fahy for their accusations and insults.

      They have been trying to score points of someone who is clearly working hard for all us Bermudians.
      Fahy isn’t a politician playing politics, he is someone who gets things done. We need that in Bermuda, especially today.

      • Tolerate says:

        @hmmm, this will never happen. Without getting political, racist or
        xenophobic; I’ll leave it to your imagination why.
        Sad really, but I hear the comments about Minister Fahy EVERY day.
        He was NEVER given a chance by certain individuals in our community.

        • Johnny says:

          Maybe he was never given a chance because he was never elected by the people of Bermuda, yet he is the second (maybe most) powerful person in government.

    • What went wrong says:

      You really believe that?

  6. Truthhertz says:

    Assuming that means no hotel then?

    Someone needs to answer as to how that $18mn didn’t translate into the $325mn funding.

    • O'Brien says:

      Don’t be silly, there never was going to be a hotel in that parking lot.

      • Caution Ahead, More to Come says:

        I think the OBA had great hopes for a hotel, after all there was a push for it. That is why they quickly signed off on the loan in the HOA. I think this rush, was the big error in the long-run. The OBA was aware of all goings on. Believe it.

        • Come Correct says:

          Who was rushing? Flip flop Furbert said she was 99% there a few years ago. A wise man once told me, always keep an ace in the hole, not always look like an ace hole.

  7. bermy onion says:

    Oh dear, oh dear, oh dear . . . Time for Scotland Yard’s Fraud Squad!

  8. Terry says:

    Forget the hotel Truthhertz.
    18 million.
    Get it ?

  9. Unbelievable says:

    See? The PLP have to stop 100% this spin and getting the facts wrong.

  10. Family Man says:

    Wondering why no red flags were raised at Clarien Bank when a sudden huge deposit of >$12 million arrived in a personal bank account. And really have to wonder why no red flags were raised when those same funds were sent out to an unknown company in Gibraltar.

    • Come Correct says:

      I make a $5 purchase on ebay through paypal and all my acounts get frozen…go figure.

    • Damn says:

      my guess is the account holder at Clarien is either a signatory or in some way beneficially owns the Gibraltar company. therefore not unusual.

  11. Stuntman says:

    The Secretary needs to resign, if not then the Minister must remove him from his position.

    He is a civil servant at the very highest pay scale and has, at best, demonstrated reckless incompetence in following precise Ministerial instructions in managing the City.

    It will be interesting to hear what inquiring minds have to say about this?

    • M. T. Pockets says:

      How about the Mayor? He’s the top dog in the COH. It could be that the Secretary was following orders from the Mayor. The buck has to rest at the top and that would not be the Secretary.

    • stunned... says:

      i would hate to be either the Mayor or Secretary at this time or Bank of New York, or Clarien for that matter…reeks of maladministration. did the Ombudsman say the same thing?

  12. Truthhertz says:

    “It remains unclear as to how the remaining balance of the escrow funds has been dealt with. Neither the OBA, the Government, nor myself as Minister were aware of any of these transactions until after January 22nd, 2015. The Corporation did not seek or obtain my approval or consent to the entering into or the execution of the documentation that resulted in the escrow funds being released. Neither did the Corporation inform me at any time of the intended arrangement to be entered into with Argyle Limited. It is clear that notwithstanding the Financial Instructions and the good governance procedures that I caused to be put in place in March 2014, the instructions and procedures were not followed by the Corporation and the Government of Bermuda was kept uninformed.”

    So if certain corporation members breached the March 2014 financial instructions then are they criminally liable?

    And what about the developer?

    The connections between the corporation, Par-La-Ville Ltd and the proposed waterfront development. Maybe we dodged a bullet with the rescinding of that questionable contract. Either way looks like that particular developer going to ultimately control huge swathes of the City.

    More to come I imagine.

  13. Trulytruly says:

    Interesting that Maclean assures min fahy that the money is still held somewhere and can be paid back in full. The question is, why hasn’t that happened to prevent this escalating to this point? I hope what he says is true and the money is paid back and PLV is returned to the city.

  14. kangoocar says:

    Thank you Min Fahy’s for presenting the real facts but!!! We the tax payers are getting fed up with police investigations that seem to never happen??? You need to confiscate all travel documents for ALL those involved in this yet another plp involved mess!!! These hand picked by the plp COH clowns need to be held accountable along with McLean!!! If this becomes just another police investigation that all of sudden becomes silent, you will be allowing it to happen at the OBA governments peril!!! I am sick and tired of police investigations that nothing happens??? Why have we NOT heard anything from the marc bean voting station debacle and his gambling establishment along with rum swizzle Burts online sales of rum swizzle and let’s not forget the unaudited financial statements for all those yrs under the plp reign of terror that we the tax payers have NO CLUE were $800 million went???

    • Kangoocar says:

      Oh here we go again by the Alaska hall and their tea sipping sheeple working the night shift and hitting the dislike buttons??? You bunch have hit the dislike button 11 times in 5 minutes and have not come up with one constructive thing to defend your miserable selves???

    • Come Correct says:

      Between you and Ray Ray I don’t know who suckles off the oba entity louder. Between you both you do the oba no justice.

      • Zevon says:

        When Fahy took over COH you lot whined about that.
        When he stopped the 200 year waterfront lease tp Maclean you whined about that.
        Now you wish he had taken more control?
        Why, so you could have whined about that too?

    • Johnny says:

      Kangoocar, and if Fahy told you that ya momma is not ya momma you would believe that too!

  15. Trulytruly says:

    That was quite a read, especially on an iPhone with no glasses! Talk about information overload. The eerie silence mentioned yesterday has been broken by a mighty cacophony of sound.

  16. Daytime High-Beamer says:

    Is that all he’s got? Tell the people about that missing $800 mil and then lets work out the $18. The only thing worse than bad politics is bad blood wishing to bring down an opposing administration for the sake of the entire populace after a bad election year. Hmm, sounds familiar.

  17. Coffee says:

    Reads like a textbook sting operation ; kinda reminds me of a major jetgate hit ! Steven DaCosta is on the leaderboard AGAIN ….. This dude seems to embody everything that the UBP/OBA STANDS FOR . Coffee recognizes that Fayhe and DaCosta may just be the two most powerful ,unelected men in the UBP/OBA !

  18. Pastor Syl says:

    Thank you, Min. Fahy, for a step-by-step explanation of what has happened.There were two very important points noted, (a) not only were the Government not made aware of what was going on, despite clear instructions that were NOT followed, not even all of the Corporation council members were aware (this has a peculiar echo to another incident where only one man and his henchman were aware of a move that impacted the whole of Bermuda); and (b) the Bermuda Police are now involved, for which I am very glad. As someone posted earlier, I am tired of people skating the borders of criminality (and in some cases, stepping WAY over) with no consequences. Time to send a clear message that contempt for the law and for due process will no longer be tolerated.

  19. MB says:

    Where the hell did Skyline Trust come from ??
    And why does business related money keep ending up in people’s private bank accounts ??
    If it’s not missing then where is it ?? Should be simple enogh answer, bt then again….

  20. MB says:

    Keeps getting better

    The Corporation of Hamilton v. The Conference of Black Mayors Inc.

    April 23, 2015 – The Corporation of Hamilton v. The Conference of Black Mayors Inc. at Bermuda Supreme Court.

  21. swing voter says:

    If I was a current green party supporter, I would sit down and shut up! Same goes for the govt. supporters. There are no winners here, Bermuda looses another couple of rating point just because of pure ignorance and 2B stacks of cash down the toilet

  22. Cassie says:

    …What happens in the dark always comes out in the light…

    What a bunch of morons.

  23. Cassie says:

    And by the way, did anyone “really” believe a hotel was ever going to be built in that parking lot? Let’s be honest…

    This was all wrong from jump. Don’t think anyone in Bermuda is shocked by this.

    This is an embarrassment to our island on so many levels.

  24. Jus' Askin' says:

    So are we getting a hotel or not? ;-)

  25. Damn says:

    the PLP HAND PICKED the CoH JUST so they could get away with all this nonsense and the TAXPAYING public wouldn’t know a THING! and now we also know why the CoH kept going to court trying to throw up road blocks so Min Fahy couldn’t get access to information. THANK GOD FOR THE OBA! Now we need to uncover all the other malfecense that has been going on under the table. I am SO ANGRY! How could any right thinking Bermudian EVER vote PLP again.

  26. Starting Point says:

    Well at least the PLP are consistent, their Team Hamilton certainly performed to PLP levels of performance and expectation…

    SMH

  27. Balanced Facts says:

    Thanks Fahy. Could we now have similar statements from Derek Burgess about the Court House? From Zane Desilva about Port Royal? The previous Governments answer to ever valid question asked? JET GATE! REally?
    Please PLP give us a detailed explanation on your activity as Government? Or are you reserving your defense ???

  28. Forethebest says:

    Fraud was never acknowledged as a crime in Bermuda until about 2005. The Bermuda Police Service does not have a capable “Crime Unit.” Senator Fahy must get Scotland Yard in on this one before more time slips by and memories fade.

  29. Vote for Me says:

    I am not sure why there is a constant comment about Team Hamilton being hand picked by PLP.

    The facts from Min. Fahy indicate that at least the Mayor and Secretary Benevides ignored direct instructions from the Minister and overrode the controls established by the bank for release of the funds.

    One point of interest. Minister Fahy has effectively given administrative control of the Corporation to Secretary Benevides. In light of what Fahy has revealed, is that practical…

  30. Silence Do Good says:

    Interesting read. Name and shame. If there are criminal charges to be laid please proceed.

    Enough is enough with any politician whether in municipal or national government who believe they can manipulate the system to rape and pillage Bermuda tax dollars. Private businesses who engage with politician or civil servants to facilitate less than ethical not quite criminal proceeds from public funds, should be stripped and flogged as well. Where is the Auditor General to hold government officials accountable? Does, the CoH fall in their remit?