$8.5 MILLION GUARANTEE FOR GCEPC

Opposition Leader Michael Baptiste has again expressed concern about government guaranteeing loans for private companies operating in the country.

He urged the Minister of Finance to lay before the House of Parliament copies of guarantees involving financial institutions and private companies after negotiations have been completed on the loans.

Baptiste was speaking during a meeting of the Lower House last Friday on a Motion tabled by Finance Minister Anthony Boatswain. It seeks approval from the House of Representatives to guarantee EC $8.5 million for Gravel Concrete and Emulsion Production Corporation (GCEPC).

The Opposition Leader noted that from time to time several guarantees have come before Parliament, monies were approved and no one knows how the funds were utilised afterwards.

Baptiste believes that if those agreements were laid before Parliament then every one will know exactly how the funds were spent. He pointed out that Parliament had guaranteed a loan for the Grenada Cultural Foundation (GCF) for the purchase of Regal Cinema which has now ended up in the hands of a private individual.

According to Baptiste, there is no information available on the lease arrangement, if the loan is being serviced or whether or not tax payers are subsidising the loan. The Opposition Leader also spoke of guarantees that were made to the Call Center at Seamoon, the developers of Mt. Hartman Hotel,  and other institutions saying that nothing has been brought to Parliament to indicate if those agreements were canceled.

Baptiste believes that the public has a right to know how these funds are being utilised especially now, since limited resources are available. He appealed to the Speaker to urge the government side, to lay before the House conditions of the GCEPC guarantee, along with all other guarantees made in recent times.

However the Finance Minister stated that the guarantee is important in light of what has been taking place in the construction industry on the island. Boatswain disclosed it has become evident that the aggregate produced by the Corporation is not of a high quality.

The Finance Minister spoke of the GCEPC wanting to move to a new location which has been identified at Mon Rush some meters away from its current location at Darbeau, St. George's. According to the Finance Minister, in order for the company to access the site a road has to be constructed. He also pointed out that the property and equipment has to be  purchased and that some residents of Darbeau must be relocated before any major work can begin.

Boatswain pointed out that recognising the contribution the company  is making towards national development, the government has agreed to the guarantee. The $8.5 million will come from Finance and Merchant Bank (FINCOR) on terms and conditions agreed upon by the Finance Minister.