Audley Shaw oversaw the $80m write off of Outameni debt to the DBJ !

It now appears that shadow Minister of Finance Audley “loud mouth” Shaw, knew more than he was telling given, given the Observer detailed probe into the now Outameni scandal.

It appears that the $80m debt owed to the DBJ by Outameni, was approved under Audley Shaw’s watch as Minister of Finance but was not implemented until March 2012.  It therefore means that Audley Shaw has a few questions himself to answer.

  1. Was Mr Shaw at this time, knew of the right off
  2. Did Mr Shaw as head of the Finance Ministry under which the DBJ falls, approve of this write off
  3. Can Mr Shaw explain the basis of this write off and was he a party to the this decision.
  4. If Mr Shaw was not aware, why not given the fact that the DBJ fell under his responsibility.

Audley Shaw has been going around making a lot of noise and rightly so, but he needs to also explain his own role in this sordid affair.

What a mess


9 Responses

  1. Can Kavan Gayle continue as a senator, If Andrew Holness lose confidence in his decision making capacity as a part of the NHT board, can he still have confidence in him as a senator ?.

  2. Shaw says I never knew.

    Former Finance Minister Audley Shaw has sought to explain why he did not know that it was under his Government in 2011 that the Development Bank of Jamaica (DBJ) began making provision to write off $76 million in preference shares in the company that operated the Outmaneni Attraction

    Let’s cancel that question Mr Shaw.

    Hahahaha, these politicians are sick !

  3. Jay, being the hypocrite that he is, is riding the NHT Scandal and like his colleagues within the JLP, intend to milk the scandal for all its worth. Interesting enough, he was very supportive of the Scandal Whitehouse Deal, which saw one of the biggest giveaways in Jamaican history, making the NHT buyout of that failed Attraction appear insignificant, cost-wise. Just look at this quote from Jay as it relates to Sandals:

    If I were “Butch” I would balk at the sale price and try to get it below its intrinsic value of US$40 to provide a measure of safety for his investment, as at US$40M he is paying for the full value.

    The above statement clearly demonstrates that blind loyalty to one party can lead to flawed conclusions. You can read the entire hogwash that Jay went through to justify his conclusion, confusing NPV and FV, without fully understanding the basic concepts of NPV and what it means and how it is derived!

    The Labourites like Jay believe that they can use the NHT Scandal like the Trfigura Scandal to ride the way into office in 2016. Won’t happen my Labourite friend! In fact, as things unfold, the JLP might be the one at the wrong end of the stick. So far, there are two strikes against your guy, Loud Mouth Audley Shaw, as he is prone to speak without much forethought . Jay, why don’t you ask Audley Shaw about the sweetheart deal got regarding his FINSAC debt, which saw him paying back pennies on the dollar.

    • Here is another confused indivudal, attempting to justify something that is wrong, by point to what he/she beleives was a similar event.

      Boy comrades head hard, they never learn.

      Wrong is wrong no justification required.

      Had the government just stuck to its gun and said we bought the entire property for cultural heritage, there would have been noise but it would have gone away a long time ago.

      Instead they choose to lie and lie and the more lies the told, the more truth would emerge.

      Clearly this is an administration that cannot be trusted, which is sad indeed.

      • As could be predicted, you fail to address the issue identified in my post and chose to ignore totally what was said by me. Dollar for dollar, which has a more material effect on the people of Jamaica? Yes, wrong is wrong, yet you went out of your way to justify one wrong, to make it a “right”, with very faulty reasoning in an attempt at misdirection. I’m delighted that you have now acknowledged that a wrong was committed when that sale was consummated back then.

        Yes, Comrades are very adept at spotting such hypocrisy and make it so transparent to the reader. Would you agree?

        • I guess you missed the rest of the article, keep reading. You totally missed the point in the article, where is said US$80M vanished under the stewardship of two stalwarts comrades. That is the wrong. I guess you latched unto y use of wrong to justify your position without reading properly what was written.

          Just like Lammie and crew buying something and not reading the details and then trying to justify the purchase with lies after lies.

          I guess this a trait of comrades. 🙂

    • You may want to explore the Sandals White house deal again and ask some critical questions of the PNP under whose government the place was built.

      Total amount spent to build the property US$120M
      Valuation of the property US$40M

      Let’s go there

      The UDC, then under the chairmanship of Dr Vin Lawrence, was responsible for building the hotel and contracted Nevalco Consultants, owned by Alston Stewart, to be project manager. Gorstew, using its Sandals brand would operate the hotel on a 20-year lease. The joint venture was called Ackendown Newtown Development Limited and incorporated on July 18, 2001.

      (Note the two names above and their association)

      On October, 2001, the board of Ackendown Newtown held its first meeting, against the backdrop of a massive disaster in Jamaica’s primary tourist market. Terrorists had flown two commercial jets into the World Trade Center in New York and a third into the Pentagon in Washington, killing hundreds of people.

      By May 2002, the second sign of trouble emerged. The board was forced to revise the initial US$60 million cost for building the hotel by a substantial US$10 million.

      Up to the July 10, 2003 Quantity Surveyor’s Report, no increase in the development budget of US$70M was foreseen. But by October 2004 the ANDCO Board was advised to brace for cost overruns. They would be massive.

      The cost overruns, eventually estimated at US$43 million, had thrown everything out of whack and set the hotel on course for bankruptcy. The US$4 million annual rental could not carry the debt. Sandals Whitehouse hotel was bleeding red ink and the defects had forced Gorstew to continue to spend, in order to deliver the promised five-star hotel. It was Stewart’s worst nightmare

      Mr Anonomous, can you find out where the extra US$80 that was said to have been spent on the property went.

      At today’s currency that is over $9.04B, that simply vanished since the valuation on the property was only US$40 , after US$120 was spent on it.

      You are right, that was the biggest giveaway ever and it happened under the very same government that is at the heart of this scandal.

      $9b that was spent on the property never should up in the valuation .

      Thanks sir for bringing this one up for the public, to show how the PNP has operated over the years.

  4. @ Mr Anonomous , I notice you refer to it as a scandal, but why did you pull the whitehouse scandal into the article, when the whitehouse scandal was really the work of the inept PNP ?

    Seems like $9b evaporated during the construction phase, all which occurred under the PNP 🙂

    Better you had found a better example, may I point you to one ??

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