Senator Michael Fahy moved to quiet the growing unease surrounding the Par-la-Ville car park fiasco with the release of a seven-page statement yesterday that laid bare the details of an $18 million loan deal gone bad.

The Minister of Home Affairs, who took over stewardship of the Corporation of Hamilton in January when confidence in its elected officials was lost, included in his missive the revelation that the $12.5 million that went directly or indirectly to Argyle UAE Ltd was in exchange for an open line of credit for as much as $125 million. He also admitted having had talks over the Par-la-Ville hotel project with Steven DaCosta, the business partner of former Premier Craig Cannonier, but, in dismissing concerns from the Progressive Labour Party that there was anything untoward, added that this had nothing to do with the loan or the car park ultimately falling into receivership.

“In fact, I and other members of Government were lobbied by a number of people, including Mr DaCosta and Mr [Michael] 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,” Sen Fahy said in his statement.

“I am at a loss to understand how we can be criticised for entertaining such discussions in circumstances where we were simply endeavouring to assist a developer realise an important project.”

David Burt, the Deputy Leader of the Opposition, had also posed a number of open questions to Sen Fahy — and also to Premier Michael Dunkley in advance of his national address on Monday. Prominent among them was a question to Mr Dunkley that said: “Let the people know what has happened to the money that you assured Parliament and the taxpayers there were appropriate checks and balances in place.”

Mr Burt also posed specific questions on the Par-la-Ville hotel project: “As part of your due diligence, did you seek assurances from the branded partner for the Par-la-Ville development Starwood?

“Did you have knowledge of the intent of the Corporation of Hamilton to release the funds in escrow to Argyle Ltd before they were released?

“Are you aware that no resolution was passed by the Corporation of Hamilton to release funds to Argyle Ltd? Given that is the case, why and how exactly were these funds released?

“What did the developer show to the Cabinet that satisfied the ministers that the developer was worthy of a change of legislation and gained government support for their plans to use the Par-la-Ville car park as collateral for a bridging loan?

“There must have been something that was shown to Government in order for them to change the law and say that you can use the Par-la-Ville car park to obtain financing for your project,” he said.

Sen Fahy’s statement chronicles the Par-la-Ville Hotel and Residences Ltd debacle from July 9, 2014, when the company entered into a Credit Agreement with Mexico Infrastructure Finance LLC to borrow $18 million, to his meeting with the Corporation on January 22, during which he said he learnt that the principal, which had been sitting in an escrow account in the Bank of New York Mellon, had been paid into the developer’s bank account.

He said certain members of the Corporation had “serious concerns” about the transaction and that there was no resolution that it had been authorised.

Sen Fahy, who also revealed that he referred the case to the Bermuda Police Service last month, said: “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 appear to have been ignored.”

• Additional reporting by Sarah Lagan