The Four Seasons Project – Story of Failure continues to be an example of how the public continues is short changed by public officials elected and recruited to serve us. The inability of taxpayers to solicit answers to legitimate questions regarding the quality of decisions made by successive governments is an embarrassment to the type of democracy we should be aspire. This has to be a significant contributing factor to the social dysfunction we have been reminded by the Trojan Riddims video affair – see How De Yutes Get So?. Officialdom expresses righteous indignation at a group of artistes for violating public morals of the country, however, successive governments and public servants have been unable to defend malfeasance, financial indiscipline highlighted in years of Auditor General (AG) reports. It is surprising local calypsonians hasvenever penned a title ‘politicians laughing at we’. The Paradise 88, Four Seasons, Clearwater Bay issue suggest there is opportunity for another title, ‘public servants also laughing at we’.

Some took umbrage to the call by BU that some public servants should be fired for unresolved issues highlighted in years of AG reporting- see 2020 Auditor General Report – Time to Fire Senior Public Servants. Yesterday AG Leigh Trotman was quoted in the press calling for tougher legislation to force public servants to comply with requests for information to complete audits. A decade of AG reports and not one person handed over to the justice system for processing. Not a single public servant sacked. As we prepare to convert to a Republic meant to solidify people power, it begs the question – why are senior public servants betraying the trust of the PEOPLE?

The Four Seasons matter is a classic case of the cloak of secrecy zealously guarded by politicians AND public servants. How on earth can a government incorporate Clearwater Bay Limited, appoint directors who are public servants with a fiduciary responsibility to citizens of Barbados, yet, feel comfortable guarding the interest of politicians and the money class? These public servants must be held accountable.

 

Although the AG is constrained to audit public sector business, it should not be forgotten the other signature on public agreements is often times a private sector player. The company Clearwater Bay Ltd had oversight over the transaction which led to the following comment by the AG:-

The treatment of the investment in Clearwater Bay needs to be further explained. The investment in this government-owned company was recorded at a value of $124 million investment in prior years. It represented an investment by Clearwater in the Four Seasons Hotel project. The value of this investment remained unchanged on the books of government for several years even though the property on which the investment was based was significantly impaired.

Leigh Trotman, Auditor General

The part of the AG’s comment (highlighted) taxpayers should be concerned about is that public servants who sat on the Board of Clearwater Bay as directors have been complicit in the ‘cover-up’. Many, if not all of the directors are considered respectable citizens of Barbados and competent public servants. The meetings of Clearwater are recorded in board books and should be available to the public. Unfortunately the public does not have the avenue of Freedom of Information legislation to activate an important check and balance in our system of government, this should not be necessary if the public servants serving as directors of Clearwater protected the public’s interest they are ethically required to do.

It is never too late to right a wrong Directors.

William Decoursey Layne

Adrian Maurice King

Louis St. Elmo Wooddroff

Margaret E Sivers

Sonia Carol-Ann Foster

Junita Thorington-Powlett

Nancy L Headley

 

Enter Clearwater to see Clearwater directors listed in the ICIJ – Offshore Leaks Database.

Related Documents:

  1. Paradise 88 and Clearwater Sold to PHARLICIPLE INC
  2. Request for Offers to Purchase and Develop ‘Paradise Property’

 

174 responses to “Four Seasons Project: Public Servants Must Serve Taxpayers NOT Politicians”


  1. Artax

    Using the SAME project construction TIME LINE, she has NOW CHANGED her ARGUMENT from “not one completed in 2 years” TO, “Took three years to complete thirty three out of forty four stalls

    Xxxxxxcc
    So I have regurgitated what the minister said
    But the proof of any stall being completed has not been shown
    That proof lies when evidence is shown where vendors are allowed entry until then the jury remains out or in BU case deadlock as to completion or not completed
    I will stand my ground until I see proof


  2. NorthernObserver August 16, 2021 9:38 AM #: “However, based on the information laid before the House, they were SEVERAL tranches of loans for varying amounts and reasons.”

    @ NorthernObserver

    Recall in my August 15, 2021 9:35 AM contribution, I suggested “For further information on the loan, read the ‘Clearwater Bay Limited (Guarantee of Loan) Bill, 2011.’

    Obviously you read it.

    I found the information therein to be quite interesting. Read the ‘First Schedule,’ for example.

    [Quote]

    TERMS AND CONDITIONS OF THE FACILITY

    The Lenders agree to make available to the Borrowers pursuant to the Agreement, a term loan facility in a maximum aggregate amount not exceeding US$60,000,000, which shall be made available for drawing in the following tranches:

    “Tranche A”

    Authorised Limit: $36,000,000

    Purpose: To be applied as follows:

    (a): the amount of US$34,140,000 to be applied in discharge in full of the existing secured indebtedness due and owing by the Parent Company to Bank of Scotland; and

    (b): the amount of US$1,860,000 to be applied:

    (i): to the payment into the FSD Debt Service Account of US$100,000; and

    (ii): toward the general business and operational expenses of the Borrower Group.

    Utilization: The Borrowers may utilize Tranche A by way of direct advances evidenced by one or more promissory notes, provided that all terms and conditions are met.

    “Tranche B”

    Authorised Limit: $2,000,000

    Purpose: To be applied as follows:

    (a): the amount of US$1,050,000 to be applied in discharge in full of the existing unsecured indebtedness due and owing by the Parent Company and other members of the Borrower Group to Maybach Corporation et al; and

    (b): the amount of US$950,000 to be applied toward the general business and operational expenses of the Borrower Group.

    [Unquote]


  3. angela cox August 16, 2021 10:25 AM

    RE: “So I have regurgitated what the minister said.”

    You were ADAMANT that “not one stall has been complete doors missing no electricity no running water.”

    However, please indicate to BU, when during his site visit the Minister said 33 or 37 stalls were completed?

    RE: “But the proof of any stall being completed has not been shown.”

    NOT TRUE.

    RE: “That proof lies when evidence is shown where vendors are allowed entry until then the jury remains out or in BU case deadlock as to completion or not completed.”

    Now, you’re ‘shifting the goal post’ to ‘say’ stalls are only deemed to be completed when the vendors occupy them.

    You are basically suggesting, because the stalls are presently unoccupied, means they are uncompleted.

    There are unoccupied houses at “The Villages at Coverley” being advertised for sale. Based on your argument, until someone purchases a house and is “allowed entry,” it remains uncompleted.

    Another example of your INABILITY to THINK REASONABLY and RATIONALLY, preferring instead to view every issue through a ‘tunnel vision’ guided by your political agenda.


  4. Simply put, a tranche loan is one that’s provided and disbursed to the ‘borrower’ in different portions. For example, a $50,000 loan disbursed in 3 tranches, A = $25,000, B + $15,000 and C = $10,000.


  5. @Artax and NO

    It seems obvious this loan was destined to default.


  6. My evidence lies in the fact that not one stall is presently occupied
    As with Coverly there is evidence that houses are completed as they are occupants living there
    When I see vendors plying there businesses in any of those stalls then I would be fully satisfied that stalls have been completed
    In any case a project that takes three years to completed thirty three stalls makes for question what if they were one hundred
    Lol


  7. @ David

    I believe, given Four Seasons’ history, the former administration made an unwise decision to guarantee the loan.

    From a US$60M loan, $55M was used to payoff debt incurred by the ‘Parent Company,’ while $5M was supposed “to be
    applied toward certain costs related to the resumption of construction of certain villa units and hotel re-design costs.”

    Sometime between 2014 and 2016, Pharliciple Inc., a locally registered company, purchased the property for US$32,150,000. I haven’t read anything indicating there would have been an ongoing business relationship relative to the Four Seasons project.

    Paradise 88 L.P, a company registered as an external company under the Companies Act, was listed on sale documents.


  8. Artax,

    What reason was given for guaranteeing the loan in the first place?


  9. @ Donna

    According to the Clearwater Bay Limited (Guarantee of Loan) Act, 2011, the loan was to facilitate the recommencement of the Four Seasons Development project.


  10. Local bank facilitates US$60 million loan for Four Seasons Barbados – ANSA McAL

    https://ansamcal.com/news/local-bank-facilitates-us60-million-loan-for-four-seasons-barbados/


  11. @ David

    You should read Clearwater Bay Limited (Guarantee of Loan) Act, 2011.

    The information in that ANSA McAL news report is limited.

  12. NorthernObserver Avatar
    NorthernObserver

    @TheO
    Either of dem two words would wuk well.

  13. NorthernObserver Avatar
    NorthernObserver

    @david
    Destined to default? I think you are being generous. Guaranteed to default is more accurate.


  14. @Artax

    The article was posted for those who are intimidated by the agreement. A summary in simple form.


  15. @NO

    And both sides of the political fence are fully aware.

  16. NorthernObserver Avatar
    NorthernObserver

    @TheO
    The GoB incorporated a company. In 10 RH years it NEVER files, not one, annual report. Despite having the most senior of senior swivel servants as it’s Diwrekkers. Next we hear, despite multiple promises of “updates” from the pols, is it LOST (written off) $BDD124M.
    So the Barbadian taxpayers spent $124M with not one RH to show for it. Sweet fah daze!!!

  17. NorthernObserver Avatar
    NorthernObserver

    @david
    Of course. They both benefitted. A deal made in Bajan heaven.
    Beg SS to sing Both ah Dem fah yah.


  18. @ NorthernObserver

    What about the US$32,150,000/BD$64,300,000 received from the property’s sale to Pharliciple Inc.?

  19. NorthernObserver Avatar
    NorthernObserver

    @Artax
    No annual reports?
    No clue as to what asset(s) were received or what they did with them.
    Business Bajan style.


  20. Is Verla DePeiza willing to make Four Seasons/Clearwater Bay a campaign issue? A good guess is no!

  21. NorthernObserver Avatar
    NorthernObserver

    @David
    At it basic level, this is the NIS all over again. The system checks and balances (mandatory reporting) have been wilfully ignored since day one. There are seemingly no consequences for this failure to account for public funds. They even stymie the AudG with frequency.
    Every now and then the public if floated “a number”, usually not a good one, and without the required reports one is left to guess how it happened.
    The same Min Straughan is on record (2+ years ago now?) acknowledging the disastrous state of reporting for public entities, but apart from the Caves (which was needed due to the Chukka deal) little has been updated.
    This suggests they can if they want to, rather they don’t want to. It is a most unsavory situation.


  22. Minister Ryan Straughn blames Covid 19 for the delay in implementing the Internal Audit promised.

    Just saying!

  23. NorthernObserver Avatar
    NorthernObserver

    We will see Covid be the cause of much.
    Story from Miami is Sir Kyffs wife has passed. But from an unreliable (age) source


  24. The sad news was reported locally. RIP

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