Par-La-Ville Car Park Taken Over By Receivers
[Updated] Following the non-payment of an $18 million loan — which was backed by the Corporation of Hamilton — KPMG has been appointed as Joint Receivers over the Par-La-Ville car park.
In a statement today [April 10], KPMG said, “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.
“The mortgage was issued by the Corporation of Hamilton [CoH] to secure its guarantee of a debt incurred by Par-la-Ville Hotel and Residences Ltd.
“The Receivers and the Corporation of Hamilton would like to assure the users of the Car Park that they are working together with other stakeholders as appropriate to ensure that there will be no interference with the Car Park’s use. Car Park users should continue to utilise the usual payment option.”
In 2013, a motion was tabled in the House of Assembly to authorise the giving of a guarantee of up to a maximum of $18 million by the CoH, for the purpose of developing a hotel on the Par-la-Ville car park site.
The loan was provided by the Miami-based Mexico Infrastructure Finance LLC, and documents pertaining to the CoH guarantee of the $18 million loan can be viewed here [PDF] and here [PDF].
Earlier this year, Mexico Infrastructure Finance LLC initiated legal action in the Bermuda Supreme Court against both the CoH and Par-la-Ville Hotel and Residences Ltd, which Michael MacLean is involved in.
This legal action is over the $18 million loan provided by Mexico Infrastructure Finance LLC, which has not been repaid.
Home Affairs Minister Michael Fahy also announced this today, speaking at a press conference that has just concluded, and we will update with the Minister’s full statement and a video as able.
When answering questions today about the $18 million loan, Minister Fahy said, “In terms of the exact whereabouts of the $18 million, to be perfectly blunt, if we knew that, we wouldn’t be here. In terms of whether any criminal offenses have occured, I don’t know the answer to that.”
Update 5.24pm: Audio of Minister Fahy’s full press conference is below
Update 6.10pm: Minister Fahy said the $18 million bridging loan was to be repaid by Par-la-Ville Hotel and Residences Ltd. by end of December 2014, and as the loan has not been repaid Mexico Infrastructure Finance LLC has “exercised their rights under the various agreements to appoint Joint Receivers over the Par-la-Ville car park to begin recouping the $18million debt.”
Minister Fahy said, “It appears that a substantial sum of the bridging loan was at some point paid to a company registered in Gibraltar called Argyle Limited as a fee to get access to a large line of credit to develop the financing for the hotel and residences development.
“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.”
Speaking on the logistics, the Minister said, “In practice this means that the Corporation of Hamilton will still operate the Par-la-Ville car park, but income collected will be turned over to the Joint Receivers to pay down the debt owed by Par-la-Ville Hotel and Residences Ltd. In practice the public will notice no difference in respect of the operation of the car park.”
The Minister’s full statement follows below:
Good afternoon members of the media,
I am pleased to present on a Bill recently tabled in the Senate entitled the “Municipalities Amendment (No 2) Act 2015″. Before going into the details of the Bill, it is important that I lay out some very important background that lead the Government of Bermuda to take this consequential step.
Many of you will be aware of significant challenges posed by the municipal corporations in recent years under both the current and previous Governments. Reform of local governance has become acutely necessary in Bermuda as a result of failures of administration that have caused disarray in governance. However let me make absolutely clear – the failures are entirely because of actions of the Corporation of Hamilton and not St George’s.
This drive for reforms has seen extensive amendments to the Municipalities Act 1923 in 2010, the Municipalities Reform Act 2013, and various amendments approved during the previous and current Legislative Sessions.
Further governance reform is now acutely necessary as a result of:
- failures of accountability in awarding of the contract for the Hamilton waterfront development, resulting in a highly critical report by the Bermuda Ombudsman, legislative intervention by the Government of Bermuda, the assumption of temporary stewardship, and an arbitration that may cost many millions to the public purse;
- concerns about the viability of a cooperative relationship between the two levels of Government during the America’s Cup;
- a multiplicity of legal actions, such as the ‘clamping litigation’ and a myriad of constitutional actions;
- disorder and dissention at the Council level that have been reported in the media which lead to the implementation of the current stewardship order ;
- inadequate resources to undertake important public infrastructure projects such as the needed upgrade to the sewage system; and
- recent media reports of a Corporation-backed loan of $18 million that had potentially gone sour and which has led to legal difficulties – which I will deal with in due course.
Many of these failures and concerns, amongst others, led to action by the Ministry, with the approval of Cabinet, in late 2013 to temporarily assume stewardship of the Corporation of Hamilton’s financial administration and treasury function. During this period, a new set of Financial Instructions and a meeting guide was prepared for each Corporation and stewardship for the Corporation of Hamilton was returned in March of 2014.
After the financial and treasury functions were returned to the Corporation of Hamilton, the Government, the Mayor and other members of the Corporation set about to try and cultivate a relationship marked by dialogue and collaboration and to turn a page on past acrimony and recriminations. I was quite pleased with the progress made throughout the latter part of 2014 and the constructive dialogue we engaged in. This calm was shattered in December last year when the Ministry received news that, yet again, it would be the target of court action by the Corporation. The background to this action was recently described by the Chief Justice as “somewhat murky” and arose in circumstances leading to the Government to challenge the authorization of attorneys purporting to act for the Corporation. I am pleased that our position was subsequently vindicated by courts.
There then appeared in January 2015 an irreparable rupture between members of the Corporation leading to a vacuum of leadership. This, together with Government’s concern with what appeared to be a disregard for taxpayers’ dollars in pursuing litigation, and concerns over the Council’s decisions in regards to the exposure of Corporation property in respect of the potential development at the Par-la-Ville car park led to the issuing of a second Stewardship Notice relating to Governance functions on 26 January 2015. I then took over the affairs of the Corporation as Steward so as to fill the vacuum left by a bitterly divided Council.
I am pleased to say that the Chief Justice ruled in favour of the Minister being able to assume stewardship of the governance functions of the Corporation in circumstances where those functions have broken down.
The people of Bermuda need to be made aware that the Corporation has spent many hundreds of thousands of dollars on litigation in what Chief Justice Kawaley has termed the Corporation’s “…ultimately futile impasse between itself and the central government …”. Such realities cannot be ignored. Despite all this I can advise that I recently had a meeting with some members of the Council so that a common understanding can be found between all as the current administration’s term comes to a close. I believe we can find some common ground over the remaining weeks.
Despite the improvements to governance made in the Municipalities Reform Act 2013 and recent amendments in this legislation session and the last, it is obvious that we are only part way through the reform process. There are a number of major items which still need to be addressed. The tabled Municipalities Amendment Act is an important part of this.
The Bill in summary strengthens oversight by Government of the affairs of the Corporations.
The first important reform would be to allow the Minister to provide binding directions to the Corporations. These are similar to those provided for in legislation relating to the West End Development Corporation and the Bermuda Land Development Companies permitting general and special directions from their respective Ministers.
The Bill would further permit the Minister to appoint a public officer as his delegated representative to, among other things, attend meetings of a Corporation. The appointment would facilitate communications between the Corporations and the Ministry. The Bill would also allow the Minister to delegate functions to any employee or officer of a Corporation which is under the Minister’s control or stewardship in order to oversee the efficient execution of its day to day affairs.
The Minister would be required to support any resolution or ordinance passed by a Corporation either personally or by way of his ex officio appointment.
Finally, the Bill would improve the current law on temporary stewardship in order to bring greater clarity and to immunize them from future legal attack. While we are pleased with the Chief Justice’s recent ruling clarifying the extent of the Stewardship provisions already presently within the Municipalities Act, the legislation seeks to make clear that the Minister can take over the financial and/or full governance functions of a Corporation where it is being mismanaged or where its financial or general functions are otherwise in a poor state.
What I’ve detailed already clearly demonstrates that these reforms are essential to ensure we have properly functioning municipalities in Bermuda.
Let me be absolutely clear – I do not want to play an active role in the affairs of the Corporation. I am plenty busy given the other responsibilities I have as the Minister of Home Affairs and as part of a Government elected to turn around the economy and the myriad of problems we inherited in December 2012. However, the events of recent years and months have forced the Government’s hand.
We did not go down the path of abolishing the Corporations which was something considered by the previous administration. We consider that Hamilton and St George’s have played an important role in the history of Bermuda. In fact we have given more funding to both by returning wharfage, and in the case of St. George’s establishing a Heritage Fund. Furthermore, it is my hope and expectation the forthcoming elections will usher in an era of mutual cooperation for the benefit of residents and businesses in the Town and City and the wider community – no matter who is elected.
The Bill is not aimed at any one group, or individual, despite efforts to paint it as such. In an ideal situation, these powers will fall away and become largely pro forma. We may even be able to contemplate future legislation where these restrictions are removed and an entirely new Act is drafted that reflects the separation of powers in a modern age.
However, we would be remiss if in response to recent challenges, Government chose not to act. In fact it is important that the national agenda and the agenda of any Council are aligned in some way to ensure that there is harmony in Bermuda’s governmental functions – especially given that the City and the Town are major parts of Bermuda’s economic life blood. Co-operation is key and the Government of Bermuda is committed to that – no matter who ends up as the Mayors and Councillors of the City and the Town.
Now allow me to turn to a very recent event in respect of the Par-la-ville car park.
In summary you will recall that under the Municipalities Act 1923, the Corporation of Hamilton has the power to utilize its property to secure loans up to the amount of $20million.
In accordance with this power the Council of the Corporation of Hamilton passed a resolution in July 2014 and issued a mortgage to Mexico Infrastructure Finance LLC over the Par-la-ville car park to secure the Corporation of Hamilton’s guarantee of a debt to Mexico Infrastructure Finance LLC of $18million incurred by Par-la-Ville Hotel and Residences Ltd – the company that entered into a ground lease and development agreement with the Corporation of Hamilton over the Par-la-ville car park to develop a hotel and residences.
The intent as far as I can gather, is that the debt of $18million, which was in fact a bridging loan given by Mexico Infrastructure Finance LLC to Par-la-Ville Hotel and Residences Ltd. was to secure financing for the hotel development. The bridging loan was to be repaid by Par-la-Ville Hotel and Residences Ltd. by end of December 2014.
Sadly, that loan has not been repaid by Par-la-Ville Hotel and Residences Ltd. to Mexico Infrastructure Finance LLC in accordance with the terms of the various agreements and as such Mexico Infrastructure Finance LLC has exercised their rights under the various agreements to appoint Joint Receivers over the Par-la-Ville car park to begin recouping the $18million debt.
It appears that a substantial sum of the bridging loan was at some point paid to a company registered in Gibraltar called Argyle Limited as a fee to get access to a large line of credit to develop the financing for the hotel and residences development. 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.
Today, I, my Acting Permanent Secretary, the Secretary & Treasurer of the Corporation of Hamilton and our legal adviser met with representatives from KPMG and lawyers representing the holder of the mortgage interest over the Par-la-ville car park.
At that meeting we were advised that Mr. Mike Morrison and Mr. Charles Thresh of KPMG were accordingly appointed by the mortgage holder on 31 March 2015 as Joint Receivers.
In practice this means that the Corporation of Hamilton will still operate the Par-la-Ville car park, but income collected will be turned over to the Joint Receivers to pay down the debt owed by Par-la-Ville Hotel and Residences Ltd.
In practice the public will notice no difference in respect of the operation of the car park. The Receivers and the Corporation of Hamilton are working with EasyPark and other stakeholders as appropriate to ensure that there will be no interference with the use of the Car Park. Users of the Car Park should continue to utilize the usual payment options including the EasyPark device.
As you will note this debacle, when it came to my attention in January was one of the reasons why the current Stewardship Order was put in place. In short the Cabinet and I have serious concerns about the way in which the Corporation finalized the arrangements that has led to this occurrence.
As Steward I will endeavor to keep the public updated if and when circumstances change. The public can be assured that the Corporation of Hamilton are exploring all legal avenues to find a solution to this matter and will continue to work with the Joint Receivers.
Thank you.
-
Update 10.06pm: Video of Minister Fahy delivering his statement followed by Q&A.
Simply put, this is a disaster for the Corporation and Bermuda.
Can anyone explain how the $18m was used without violating and legal constraints? I am sure there is a rational explanation – I just do not know what it is.
OnN a practical note, what happens to the parking fees as of today? They used to go to the Corporation.
How does the CoH guarantee an $18MM loan and the govt was not informed and monitoring the loan’s performance?? This is going to be BIG. Hold tight and load up on the popcorn. Remember folks, the taxpayers hold the bag.
Soon Bermuda taken over by receivership.
Like everything else.
Follow the money.
Shalom.
@ Terry: I totally agree. What’s that ole saying, “throw do-do in the air and see who it falls on.”
Sounds like the O.B.A/ubp
I’m not going to point any fingers at all but I feel like this is could be a pretty big game changer.
No it won’t. There is no suggestion the current Govt had anything to do with this.
@far fly, you are wrong!!! Min Fahy and the OBA government are responsible for backing this bunch of plp hand picked clowns at the COH guaranteeing this loan with out checking out McLeans credentials properly??? Heck, they only had to ask me
am i correct by saying that par-la-ville property was collateral for an 18million$ loan for…?? what??
doesn’t the Corp of Ham. collect rent or fees of some sort for every square inch occupied..? i wanna know who borrowed that amount AND why?
It’s all in the family part of the Friends and Family plan.
As I understand it, the developers of what was supposed to be the Par-La-Ville hotel asked the CoH to help them garauntee a loan from a Mexican company. The CoH sought approval from Government to put up the parking lot as collateral, and was given approval in the HoA. The developer then paid a substantial portion of that loan to a Gibraltor company as a fee to secure a line of credit for financing for the hotel project, and the question that now lingers is what happened to that fee and the line of credit it was supposed to buy. Since then, the developer has failed to pay back the loan by the due date of this past December, and now the Mexican company has put a lean on the collateral (that being the car park) and will now receive the revenues from the parking fees to pay off the loan. It doesn’t appear they will take the deed, just the revenue stream.
So the outstanding questions seem to be; who at CoH arranged this garauntee, what happened to the monies for services that went to the Gibraltor company, what did the developer do with the rest of the monies, why were they unable to pay the loan back and what is the CoH/government going to do to the developer to recover the monies?
Whole bloody mess stinks of the Team Hamilton failure that has been the last several years.
The answers are in the article. They borrowed 18M (a bridging loan) to use to get further financing to develop the hotel. We don’t know the exact whereabouts of the $18M except that it went to a company in Gibraltar.
The parking lot fees with now go to the provider of the 18M loan for repayment.
This has got to stop! The House of Assembly should not be in the business of picking winners and losers. Heads – you win, tails – the taxpayer lose.
Quo Fata Ferunt
KPMG would’ve been taking over the waterfront, too!
What are you talking about? The waterfront wasn’t mortgaged, it was leased.
Which would have meant that the same development team that is responsible for this mess would have been able to put it up as collateral without having to go to the CoH or government for approval. Seems we dodged a bullet on that one.
Again.
You can dislike all you want.
Follow the money.
STINKS TO HIGH HEAVEN…SOMEONE SHOULD BE PUT IN JAIL FOR THIS!!!!
So does this bring the total missing money to $818 million?
Fahy makes it sound like this is all the Corporation’s fault. Not so fast.
Now, to be sure, Outerbridge and Co. were clueless and way out of their depths. But that was obvious from the beginning. Yet the OBA Government supported this project. They passed a law allowing the Corporation to guarantee Mike MacClean’s loan and then approved the guarantee in the House. Essentially they gave a group of people with no significant commercial experience between them a blank cheque backed by the City’s assets. Anyone could tell that this would end in tears.
Now, twelve months later, the money is somewhere in Gibraltar (in other words: forget about it) and the creditor has come to collect. The car park is gone and with it who knows how many millions in revenue. All this for a hotel that never had a snowball’s chance in hell of being built.
This country really is another world…
I guess we have to be thankful that the OBA got the waterfront out of those PLP supported folks hands.
Remember the stink PLP and that guy kicked up….. wow thankfully that OBA move saved us.
Yes, the car park episode suggests the country might have dodged a bullet by taking back the waterfront from this particular developer.
However, my point remains: the OBA is not blameless here. Why did they allow the Corporation to mortgage one of its most valuable assets, when it was clear that these people had no idea what they were doing? What level of supervision / due diligence did they impose? Did the Minister investigate the possibility that not every member of Team Hamilton was disinterested in this transaction, and that the decision of the Corporation to guarantee the loan might not have been made at arm’s length?
Now let’s be clear: this is principally the fault of the developer, the Corporation and whoever else advised them. But the OBA Government should have taken a more active supervisory role. Instead they were the passive enabler of Outerbridge and his crew and thus deserve some of the blame.
It is true the government has some fault in this in passing the bill allowing the CoH to put up the collateral, bug before we lay it all on the OBA, it would be good to know how the vote went on that bill, was it passed by just the OBA or did both sides support it. It is also important to note that the bill required the CoH to carry out full due dillegence on the loan proposition before putting up the collateral.
So now you’re admitting PLP’s Team Hamilton were a bunch of clueless idiots?
Bit late now isn’t it?
I hope all the plp supporters are proud of their plps hand picked COH team that has NOW GIVEN AWAY $20 MILLIONS of our real estate??? When will you plpers ever learn???? It seems like the carnage the plp has caused will never end??? Saying that, I will NOT stay silent on Min Fahy’s naivety either!!! How on earth did you not check out Mcleans credentials before you allowed the plp hand picked clowns at the COH to guarantee this loan with COH land??? I could have told you this was never going to fly!!! At least now do the right thing and do not let him leave this Island until you investigate fully!!! All I can say is ALL those responsible for this latest carnage of Bermudas assets should be made to pay FULL restitution!!!!?
Oh ok, Alaska hall is working tonight!!! 20 dislikes once again in 5 mins?? My God you bunch have no scruples do you??? Who made the special plp tea tonight??? You bunch of losers!!! Hope you all are proud of yourselves giving away another $20 million of OUR money!!! Why don’t you explain to those that are hungry, why you did the things you did???.
@Kangoocar
There would have to be someone like you. Amidst all the positive things are taking place in Bermuda…there must be someone like you to inject the negative on Bernews every single day. Take a look around Bda we live in Paradise.
He speaks the harsh blunt truth.
Thank you Drew, nothing stings them more than the truth??
@ Karen,
Talk about out to lunch. Nearly 20 Million of taxpayers money is gone and you feel the need to chastise Kangoocar about being negative? Earth calling Karen, Earth calling Karen, are you out there? SMDH
This is just more fallout from the PLP’s reign of terror on Bermuda with much of their Cadre at the center of this. It is also further evidence, not that more was needed that they should not be given control of the Govt for quite some time.
Thankfully the Clueless and untrustworthy PLP went out at last election as well, just imagine how bad things would be if those Imbeciles still formed the Govt.
Unfortunately you can already see the fingerprints of Alaska Hall starting to work on the hate pieces.
I remember when the CoH was first put into stewardship and the PLP went into full on frenzy about “Real” Bermudians and Fahy was a “Paper” Bermudian and should leave the CoH alone.
I remember the threats because a sovereign guarantee was given for Morgan’s Point and how dare the government not allow the CoH to do the same for Par-La-Ville Hotel with the same references to “Real” and “Paper” Bermudians.
And now the project has blown-up and all those things will be conveniently ignored and Fahy will be blamed for not taking over the CoH sooner and the only thing that will ultimately be accomplished is that all the hate and venom will chase investors out of Bermuda.
Which, of course will be the subject of the following weeks hate pieces. “Where did the hotel investments go, and the jobs that were supposed to come with them?”
This sums it up very well.
“In 2013, a motion was tabled in the House of Assembly to authorise the giving of a guarantee of up to a maximum of $18 million by the CoH, for the purpose of developing a hotel on the Par-la-Ville car park site.”
So who tabled this motion?
@not so famous, I already stated Min Fahy’ was naive to ever support anything the plp put in place, example being, Team Hamilton!!! Who hand picked team Hamilton??????
There is nothing true about you
Who voted for it?
Chris, do you think for a minute they were told the WHOLE truth? Why would they, it had never been, before. Even you, one of the PLP flag wavers, must admit that you were even deceived,but at that time he had to I gues.
@ Chris Famous,
Give it a rest m*r*n, the path of this latest issue of taxpayer money leads right to Alaska Hall!
I believe it came from Fahy, the more important point is who voted it through, just the OBA or was it voted in with support from both sides. I think I recall the later. Also, the bill required the CoH to complete a full and thorough due diligence before sign over the collateral.
Who was kicking up wanting the guarantee?
Donal has some splainin to do.
why are all the people from the green party quiet? I am bored can anybody interview outerbridge and smith and can’t their supporters have a sit in at the park or march to scare the new owners away LOL!!!!
Also interview McLean
or is this just away to force mexico infrastructure to invest in Bermuda by turning a blind eye from the ruling party. if the hotel gets built the owners would have probably got the land for free just to have some one build something anyway. concessions. 14 million example
Hopefully the money can be recovered from the bank in Gibraltar if in fact it was put there in the first place.Very suspicious.
@O’Brien, totally agree, you nailed it.
Fahy MUST GO.
We look to our Government for smart decisions.
Granted this CoH was a total disaster made up of a bunch of stupid, arrogant, moronic, childish, out-of-their depth idiots with complete disdain for public money, but HOW could FAHY approve this half assed crazy plan AS WELL AS the ill fated Black Mayors conference???
That he thought they were worthy of support and signing off on does not say much about him.
Where is everyone who rants on about the OBA and use of taxpayer money now…fine to criticise the airport deal, AMCUP and all, but the silence is deafening now, when HELLO, we have just lost our main city car park and its 100 revenue to an American company.
Gibralter…ha ha ha ha ha. Oh Fahy…what were you thinking???
How these weapon grade cretins were allowed to administer the City’s affairs is a question to be put direct to the PLP. This is their doing.
We should extend our gratitude to the America’s Cup for offering an opportunity to everyone…The Island’s Tourism Industry could reap benefits that will extend far beyond the 2017 races. With all the international media exposure Bermuda can now see $ as a result of the America’s Cup being held here. The Island is better positioned than it has been in decades to re-establish itself as a high-end luxury resort. Yet such long-lasting recovery is obviously predicated on Bermuda retaining the trust of foreign investors.
ok…just who are parlaville hotel and residences exactly?
but this could well be a way to move money without taxes….in a round about way…I would follow the paper…if you can endure the convolution ,then the facts are there somewhere….it only takes a few words…when you hear or read a lot of them….
Next election….36-0. If the PLP get one seat Bermudians should be embarrassed
Heh, wishful thinking indeed to imagine the pendulum would ever swing that far in one direction
I have a dream….
Martin had a dream and your people shot him.
@ North rock,
Exactly, they shouldn’t get a single seat based on this and some of their past practices, however there are plenty of Sheeple out there with their head buried deep in… the sand!!!
I remember Wayne Furbert saying the hotel project was 99% there.
Just 1% to go…
Jeez, in that case I’m 98% of the way toward dating Emma Watson. THIS IS GREAT NEWS!
makes you wonder what was in for Furbie to flip over to the PLP, doesn’t it?
Will someone please explain to me HOW a new hotel will bring in more tourists when we can’t fill the hotels we already have?
In my opinion, the only thing that building a new hotel at Parliaville car park will do is take away much needed parking space in town. Which will cause people like me to give up on shopping in town altogether because we can never find a place to park. Goodbye to ‘buy Bermuda’ and hello to online shopping for everything!
But I could be wrong ….
actually, we could use another small boutique hotel in the City that caters to BUSINESS people. When Ham Princess and Rosedon is full there’s really no place for business people to stay in town. Remember these business people require 5* service and need to actually be in town…. it wasn’t a completey bad idea, just badly executed.
How can CofH hand over the money from the car park? They can hand over cash from the machines but most people use the easy park thing and they don’t know who is using them to park there. That money is paid up front. There is no record of where you have parked.
They should have just done a tier parking lot like they did with Bullshead and not ever thought about going into the hotel business
Red flags should have beeb going up long before this disgraceful set of affairs. An $18 million dollar mistake who is getting fired.
Argyle Ltd…Gibralta…some PLP folks were very interested in Gibralta recently… where is the MCClean guy, what is his role
Are any of the COH beneficiaries of the Parlaville business that didn’t repay the loan.
Argyle Ltd website no workey !!!!!! Hmmmmmmmmmmmmmmm
@ hey: Do you really believe we’ll get to the truth ?
“Argyle Ltd. Gibralta, some P.L.P. folks were very interested in Gibralta recently. Where is the Mc’Clean guy, what is his role? Are any of the C.o H. beneficiaries of the Parlaville business that didn’t repay the loan?”
They’re just a few of the questions the Tax payer demand hearing more about…But it’s “weekend” and the Oppositions trolls will / are out in full force as we seem to see each weekend
This situation and missing 18 million dollars stinks to high heaven . All I can say is the OBA Gov needs to find this money and if there is criminal activity send the people involved to prison . Bermudians should be enraged at the amount of millions of dollars that has gone missing through miss management or criminal activity by C of H or Gov. M. P.’s past or present.
I have to agree with that last sentence: “Bermudians should be enraged at the amount of millions of dollars that has gone missing through miss management or criminal activity by C of H or Gov. M. P.’s past or present.”
Novices. Naïve. The private developers who proposed this, CoH who supported this, the PLP who were prepared to back this and the OBA who backed this. All share responsibility for this deal.
In what world do you need to pay someone to advance you a line of credit? We need to know who the legal advisors and financial advisors were. If there were none, then we need to know what the Cabinet position was on this transaction and the advice they received from the Civil Service.
Without a shadow of a doubt this warrants an investigation by the media and the Ombudsman. This is where PATI will be put to the real test.
I don’t think we will be surprised when we learn who actually got paid to advance the “line of credit”, just sayin’.
I really do love conspiracies:
(1) 18m deal gets approved legally by our elected officials
(2) 18m promptly shifted overseas to an un-vetted company owned by god knows who
(3) The Mexicans are pissed and Take procession of the car park
(4) The waterfront legal issues quietly go away & 18m is ‘written off’
Mac and Fahy knock the dust off and walk away clean….Taxpayers loose again
Fahy and the OBA are not connected to the $18 million that has gone missing. Both the OBA and the PLP gave approval to the COH to guarantee the $18 million loan to developer Michael MacLean by voting for it in the HOA. It was the COH, not the government, that surreptitiously released the $18 million from escrow and handed it to MacLean. Everyone should be more concerned about where the money went from there. With luck, some restitution can be made to the lender so that the land–the parking lot–can return to Bermudian hands.