Grenada Today - June 19th, 2004

The leading private sector body in Grenada has finally broken its silence on the half-a-million dollar bribery allegation scandal involving Prime Minister Dr. Keith Mitchell.

The Grenada Chamber of Industry and Commerce (GCIC) has written to Dr. Mitchell asking him to do the right thing by facilitating "an independent enquiry" as well as an "impartial investigation" into the serious charges levelled against him.

The allegation which the Prime Minister has vehemently denied was first reported by the Miami-based Offshore Alert in May that German fraudster Eric Resteiner had given Dr. Mitchell US$500, 000 in Switzerland in June 2000 for a diplomatic appointment.

In a letter dated June 5, the private sector body told the Grenada Prime Minister that "there are a number of issues requiring further clarification in order for the entire matter to be put to rest".
Following is the full text of the letter:

Dr. The Rt. Honorable Keith Mitchell
Prime Minister
Prime Minister's Ministry
Botanical Gardens
St.George's

The Board of Directors of the Grenada Chamber of Industry and Commerce (GCIC) extends to you assurance of its highest regard.

The membership of the Chamber has directed the Board's attention to a serious allegation made against you by one Mr. Timothy Lee Bass reportedly in an affidavit and published in the April 30th 2004 issue of Offshore Alert.

The Board has also taken note of your address to the nation on Wednesday 19th May as well as your references to the allegation in the sitting of the House of Representatives on Friday 28th May 2004, in which you rejected this allegation and announced your intention to have this matter redressed through legal action.

In both instances you provided information related to your Investment and Promotion Mission to Europe in June 2000, during which you met with Mr. Eric Resteiner and received certain monies from him.

The Board commends you, sir for responding to the issue and is thankful for the information you provided. However, after giving careful consideration to your statements so far, the Board is of the view that there are a number of issues requiring further clarification in order for the entire matter to be put to rest.

The most critical of these issues has to do with the procedures to be followed by public officials when accepting financial support from international agencies and other sources to cover or assist in covering expenses related to official overseas travel.

Given the seriousness of the allegation and the importance of this matter from the standpoint of governance, the Board is of the persuasion that the interest of the nation and yourself will be best served by an impartial investigation, as has been Government's practice in other issues where serious allegations have been made against public officers.

The Board proposes that a panel of independent investigators be appointed to look into this matter and report on its findings within a time frame to be agreed upon.

The Board is willing to sit with you or you representatives and discuss the choice of investigators as well as their Terms of Reference.

Please be assured sir, that the Board's support for an independent enquiry in no way constitutes an acceptance of the veracity of the allegation or the presumption of guilt on your part.

The Board believes, however, that the failure to act with the greatest transparency and to bring quick closure to this issue can profoundly erode the fabric of governance as well as confidence in the good office of the Prime Minister, with the corresponding negative impact on the profile of our country as an investment centre.

The recent example of allegations of lack of good corporate governance in Grenada's offshore financial sector is a case in point. The resultant special negative rating of Grenada drove up the cost of international banking transactions and introduced administrative complications, which altogether contributed to increasing the overall cost of doing business in Grenada.

You would agree, sir, that any deterioration in the profile of our country as an investment centre would objectively work against Government's own declared intention to facilitate Private Sector growth and expand investment, all in the interest of national development.

Be further assured, Mr. Prime Minister, that the proposed investigation is not intended in any way to prejudice your right to pursue the matter legally in your own timing. The Board is, however, mindful of the fact that legal processes can be long and drawn out. In this matter our considered opinion is that time is of the essence.

Once again, accept our assurances of the highest regard. The Board looks forward to your response.