Grenada's scandal-riddled New National Party (NNP) government is denying reports that Prime Minister, Dr. Keith Mitchell collected a cash payment of $50, 000 from a controversial offshore bank to help with his re-election in the 1999 general elections.

The allegation was made by party member, Michael Creft, who was appointed by Prime Minister Mitchell to serve as Chief Regulator of Offshore Banks in the country.

Creft was a key witness in a criminal trial in Oregon in the United States last year in which four officials of the collapsed First International Bank of Grenada were sentenced to jail for the fraudulent use of monies from depositors.

The offshore chief confessed that he personally collected $100, 000 from First Bank and gave half of it in cash to Prime Minister Mitchell to help fight his re-election.

Following is the full statement issued by the NNP on the Michael Creft issue:

The New National Party wishes to set the record straight regarding statements made by Mr. Michael Creft and monies that he allegedly gave to the Prime Minister the Hon. Dr. Keith Mitchell during the 1999 General Elections.

The records will show that Mr. Creft among several other persons was asked to help raise funds for the party. Mr. Creft gave the party approximately $100,000 E.C dollars, the party has no proof as to exactly how much monies he collected on its behalf. Mr. Creft at no time gave the Prime Minister any monies, the monies he collected he gave to the party's central office. His statements are totally unfounded, untrue and without merit.

The Prime Minster acting on a decision from the party's Executive sent letter of thanks to all persons and businesses who helped the party. The Prime Minister never personally solicited funds from the offshore banking sector.

It is amazing that Mr. Creft made those statement now since he personally gave and certified as true a statement to the Grenadian Police, claiming that he never gave the Prime Minister any monies that the collected from his fund raising activities among the offshore sector.

It must be remembered that the New National party did absolutely nothing wrong by raising funds to conduct its election campaign. In fact the opposition also raised funds from the same sources. Additionally, certain law firms made millions of dollars registering these banks, sometimes charging as much as $50,000 to write a single letter on behalf of these banks.

It must be remembered these law firms acting as agents of these entities had a fiduciary duty to ensure their compliance, but neglected their responsibilities and allowed the banks to engage in dubious activities involving consumers' deposits. Very notable is one firm by the name of Anslem B. Clouden and Associates.

The records show that particular firm registered many, many banks including First Bank International of Grenada and acted as their agents.

As of June 30th, 2007 the entities represented by that firm owes Government $1.4 Million E.C. Dollars.