UBP presses for answers to hotel lease agreement
Shadow Works and Engineering Minister Patricia Gordon-Pamplin has vowed to continue pressing Government on how Coco Reef Resort was given the opportunity to renegotiate its lease during the original bidding process ? to the disadvantage of other bidders who could have made an offer equal, or even better than that of Coco Reef.
Ms Gordon-Pamplin said in a statement yesterday that the issues she?s tried to raise for discussion since November last year included:
Why the lease was extended from 21 years to 50 years;
Why Government made a commitment to Coco Reef that it would ensure that all of its consultants who were brought in for Government business would be housed at Coco Reef, notwithstanding that other hotels on the Island were tax-paying entities, thus giving an unfair advantage to Coco Reef;
Why additional property (four acres) was granted to Coco Reef and why it was given the ability to build and sell condominium units;
Why there was a five-year initial rent-free period offered to Coco Reef;
Why the teaching element that was part of the conditions is not occurring and the fact that no other bidders were given the opportunity to assess or bid.
Since then Ms Gordon-Pamplin has raised the issue numerous times in the House, each time in vain.
However last week the Premier rose in the House and confirmed that a small committee had been established to review the Government procedures that were in place for the award of the lease to the Coco Reef Resort for the management of the Stonington Beach Property.
Alex Scott told the House that the committee consists of Assistant Cabinet Secretary (Civil Service) Judith Hall-Bean, Permanent Secretary, Ministry of Education, Michele Khaldun and civil servants in the two ministries that were involved in the award of the lease. The firm KPMG will also form part of the committee.
?The Premier said the decision to appoint a committee for these purposes was made in August 2004 following the receipt of the Auditor-General?s report dated April 2004 on the award of the lease,? she said.
She said the Premier stated that committee members were embodied to discuss the procedures surrounding the granting of the lease, and not the terms of the lease and also indicated that it is anticipated that a full report, which would include recommendations on procedures for future awards, would be tabled in the House in the third term of the Session.
?The Premier, responding to a question I asked, also indicated that the terms of reference of this committee did not include the ability to either overturn or vary the terms of the lease.? she said.
Ms Gordon-Pamplin said that, based on the Premier?s responses, the favourable terms of the Coco Reef lease will stand, and the ability of others to bid on fair and equitable terms has been lost.
?The Premier still hasn?t answered my question as to when the committee started investigating the terms of the lease,? she said.
Adding that the matter was ?far from over? and she would continue to pursue it once the House resumes.