From Private to Public – Cinnamon 88 to CLEARWATER BAY, a concern for taxpayers
It started as a private project in 2006 under the name Cinnamon 88 Ltd and through the years morphed to Clearwater Bay Ltd a company registered to do business in 2010. The project has straddled both administrations starting with the late David Thompson and now rest uneasily with the incumbent Mottley who was a legal advisor to the failed project while in opposition. An interesting side note – Avinash Persaud also played a role and would have assisted in him being able to drive the luxury sports car he zips .
We fast forward to the recent 2021 Auditor General report with the following note on Clearwater Bay Ltd can be found.
In my 2018 and 2020 Reports, I indicated that there were some concerns surrounding the accounting treatment of a loan guarantee made by the Government of Barbados through its’ company, Clearwater Bay Limited in the sum of $120 million. This guarantee was in relation to the construction of the proposed Four Seasons managed hotels and villas. The sum of $120 million had appeared in the books of the Government as a receivable for a number of years but was completely written off in 2018. I had previously indicated that enough information was not provided to my Office as to the nature of the arrangement between Clearwater Bay Limited and the developers. I also stated that, in any event, the entire $120 million should not be written off since the lands on which the project was being built were valuable; instead the value in the accounts should be written down rather than to be completely written off.
Based on information made available to my Office, Clearwater Bay held a mortgage over the real property and after the loan was called, Government was required to honor its guarantee and a payment of $124.3 million was paid to the bank. Action was then taken by the Government company to recover the monies expended through a sale of the property.
In respect of the sale of the property, a review of the records at the Land Registry Department indicates that the property has been conveyed to a private company. However, there is no evidence of consideration being paid. Matters surrounding the sale and ownership of this property are complicated and is currently the subject of litigation which is ongoing.2021 Auditor General Report
See relevant BU blog on CLEARWATER BAY MATTER –