NIS Owed 13 million by ‘Paradise’ NOT 60 Million

The derelict Paradise property

The following exchanges took place between Chairman of the NIS Dr. Justin Robinson and BU Blogmaster on Facebook Group FB Senate, a group administered by Senator John Watson. What was debunked by Chairman Robinson is that the NIS approved a USD60 million dollar facility that was utilized for the Paradise (Four Seasons project). The Chairman further confirmed that the NIS is exposed to the Paradise (Four Seasons project) the amount of 13 million dollars owed by government. The expectation is that the NIS will be paid from the proceeds of the sale of Paradise to JADA for USD60 million dollars

BU blogmaster

 

David King is with Justin Robinson.

2 hrs

Chairman Justin Robinson for the sake of transparency where does the NIS sit in this latest revelation? “Barbadians need answers on this Four Season sale.

How was the sale brokered? Was it done through the former executive chairmen of Paradise Limited Professor Avinash Persaud who was head hunted specifically for the task by the late Prime Minister David Thompson? Was the sale brokered after Professor Persaud left the Paradise organisation? Was the sale brokered before or after the IADB withdrew their funding for the restart of the Four Seasons project? Was the sale of the property advertised publicly, far and wide, locally and internationally as is the case with the Harlequin property at Merricks? Were bids for the property invited by open tender or was it put only to a select group of potential investors/buyers? Are there any finders’ fees involved for the party/parties who brokered the deal with Jada?

These are questions that Barbadians need to have answered. Clearwater Bay is a government owned and taxpayer funded company which is party to the sale. Recall that a US$60 million guarantee was provided by Clearwater Bay through resolution of Parliament which was eventually called by Ansa Merchant Bank.

What is the final cost to taxpayers for this? The net proceeds of the sale will be less than the US$60 million due to attorneys’ fees, duties etc.

Is the Barbadian taxpayer burdened with a loss as a result of government having getting involved in a private sector project????”

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David King

David King I should caution that any clarification statement offered may or may not be reported to BU.

Manage

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· Reply · 2h

Justin Robinson

Justin Robinson NIS is in no way involved. the NIS is owed approxiMately 13ml by the project and expects to be paid from.any cash flows to the government.

1

Manage

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· Reply · 2h

Philip F. Corbin

Philip F. Corbin Didn’t Govt use NIS funds in the amount of US$60M to pay the Ansa Loan which was guaranteed by the govt and on which Clearwater defaulted ?

Manage

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· Reply · 2h

Justin Robinson

Justin Robinson the NIS has made a 60 million facility available on certain conditions. The conditions were never met so the funds were withdrawn.

Manage

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· Reply · 2h

Justin Robinson

Justin Robinson the NIS is on the hook for 13ml. One of the more controversial decisions in my time. I am still.of the view that if all that could be done had been done to get that project restarted at the time we could have avoided years of economic decline.

Manage

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· Reply · 2h

Philip F. Corbin

Philip F. Corbin ‘NIS on the hook for $13M’ …..is that the balance of a loan given to Govt or Is it a shortfall in NIS contributions ? US$60M flowed into Govt in 2016 so why has NIS not been paid up to the year 2018 ?

Manage

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· Reply · 2h

Justin Robinson

Justin Robinson I don’t know if 60ml was paid or has been paid and property handed over. an agreement was concluded. the 13ml is an investment in the project.

Manage

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· Reply · 2h

Philip F. Corbin

Philip F. Corbin Thank you

Manage

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· Reply · 1h

Justin Robinson

Justin Robinson thats not really clear from the story in the paper today

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· Reply · 1h

David King

Reply to this…

David King

David King Dr. Robinson to be clear, you are saying that NIS is only exposed for 13 million that was invested in the project. And that the 60 million facility was never drawn down. Are you also saying that with the sale no arrangement to formally address the NIS was made a condition of the sale?

Manage

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· Reply · 1h · Edited

Justin Robinson

Justin Robinson 13ml. the 60ml facility was never drawn down. NIS was not a party to the sale or negotiations. the 13ml is due from the government.

Manage

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· Reply · 1h

David King

David King The 13 million was advanced to government in what form?

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· Reply · 12m · Edited

David King

167 comments

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    IFIAR members reported findings from inspections of three categories of audit firm activities – audits of listed public interest entities (PIEs); audits of systemically important financial institutions (SIFIs), including global systemically financial institutions (G-SIFIs); and internal systems for firm-wide quality control.
    We continue to see high levels of inspection deficiencies in vital areas of public company audits
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  • Here is a story t hat tells why auditors carry out a public function:

    Theranos and its founder settle U.S. fraud charges: SEC

    Pete Schroeder
    4 Min Read

    Embattled blood-testing company Theranos Inc and its Chief Executive Elizabeth Holmes agreed to settle “massive fraud” charges in a deal that strips her of majority control among other penalties, U.S. regulators said on Wednesday.
    Theranos was once hailed as a Silicon Valley star, with a $9 billion valuation based on its promise to disrupt the staid laboratory testing business with new technology the company.
    As part of the settlement, the Securities and Exchange Commission said company founder Holmes must also return millions of shares to the privately held company, pay a $500,000 fine and cannot serve as an officer or director of a public company for 10 years.
    The SEC’s complaint alleged that the company, Holmes and Theranos’ former president, Ramesh “Sunny” Balwani, “made numerous false and misleading statements in investor presentations, product demonstrations, and media articles” about its key product.
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    Theranos raised more than $750 million from investors including well-known venture capital firm DFJ, Walgreens, media mogul Rupert Murdoch and Oracle co-founder Larry Ellison. Many investors have already sold their stakes.
    The SEC, describing the case as involving “massive fraud,” said Theranos, Holmes and Balwani were charged “with raising more than $700 million from investors through an elaborate, years-long fraud in which they exaggerated or made false statements about the company’s technology, business and financial performance.”
    The SEC’s co-director of enforcement, Steven Peikin, said on a conference call with reporters that the move to remove control of the company from Holmes was very rare for the agency.
    “It’s a pretty unique set of remedies,” he said. “And I think it’s a particularly meaningful one … particularly in Silicon Valley where the founders of startup companies like this obviously value the concept of control.”
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  • NorthernObserver

    More fraud convictions, and this guy is an a**hole, best remembered for smugly “taking the 5th” in testimony before Congress. Maybe he gets Max security, in which he will get the 5th, 6th, and 7th, maybe all at one time.
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    ………….yet, with all the superior regulatory systems in place in these “big countries,” we hear about MORE fraudulent activities and breaches of these systems.

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    FRC Ethical and Auditing Standards 2018
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    Like

  • An update on auditing by the body responsible for the discipline of the profession in the UK.

    They set the UK Corporate Governance and Stewardship Codes as well as UK standards for ACCOUNTING, AUDITING AND ACTUARIAL WORK.

    Would you mind telling us what does this have to do with Barbados.

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  • KPMG was banned from auditing public institutions in South Africa, compounding a crisis for the auditor in the country over its role in a high-profile bank failure and ties to the controversial Gupta family.

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  • Here is another titbit about the regulation of accountants in the UK, which should add further clarity to a much misunderstood subject. Today’s Times reports:
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    Like

  • “……which should add further clarity to a much misunderstood subject?????”

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  • I recall a journalist writing that reading several financial statements qualifies him to comment on accounting issues.

    Like

  • Artax May 16, 2018 7:38 AM

    What a terrible journalist. Some journalists also learn to read financial reports at some of the best business schools in the world who run top of the class financial courses. That is why we have financial analysts.
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  • Hmmmm, thanks for the information.

    I hope you’re proud of your friend and congratulated him/her on his/her achievements.

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  • If the “old copy of UK GAAP” “still has historical value,” perhaps you should keep it for sentimental reasons.

    And since you’re “always here to help,” you could probably enlighten us “about the acknowledged pubic responsibility of external auditors and not the formal but fictional responsibility to the remuneration committee.”

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    Like

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