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Stabroek News

Bruce Golding queries Whitehouse funds - Demands explanation on Sandals extra payment
published: Monday | July 24, 2006

Mark Beckford, Gleaner Writer

LEADER OF the Opposition, Bruce Golding, is again demanding answers to the source of funding for cost overruns, associated with the Sandals Whitehouse construction project.

In an interview with The Gleaner yesterday, Mr. Golding said that he has already tabled these questions in Parliament, but has not received any answers from the Government.

"Part of the series of questions that I have on the table of the House, awaiting answers from the Prime Minister is precisely how were the payments made in respect of Sandals Whitehouse financed," he said.

Responding to media reports that the overruns may have been funded by the Venezuela PetroCaribe oil deal, Mr. Golding says that this may have grave implications, as the move was not brought before Parliament.

"Certainly any arrangements we have with Venezuela is not a fund that is available for the Government to spend as it likes. It has to be spent under scrutiny, with transparency and with Parliamentary knowledge and approval." He added that if these payments from the fund were made, it should be revealed if they were made under provisions of the oil deal and under whose authority.

Mr. Golding has also taken the Government to task on the manner and timing of its response to the Contractor General's report. The Contractor General's findings were delivered to Parliament over a week ago.

"There has not been a single comment from the Government on the report and therefore one doesn't get the impression that either the Prime Minister or her Cabinet is particularly anxious to address or confront this matter," he said.

Mr. Golding is also supporting the Contractor General's recommendation that those involved in the cost-overruns should be held accountable.

Meanwhile, Gorstew Limited, one of the parties involved in the construction of the Whitehouse Sandals construction project, has again denied any wrongdoing in the cost-overruns in the project.

In a release issued yesterday, the company said the concept that change the project from Beaches to Sandals saved money, instead of being responsible for the reported US$22 million of the US$39 million cost overruns.

The company has also accused the Urban Development Corporation (UDC), of poor conduct in its capacity as project manager, saying that the hotel does not represent value for money, as the final cost of the hotel exceeded normal costs of hotels of similar standard.

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