$6M Hilton loan outstanding, says Auditor General

Before Government proceeds with its plans to sell the Hilton Barbados Resort, there is some unfinished financial business which this country’s Auditor General Leigh Trotman would like to have urgently settled.

In his just-released 2016 report, Trotman revealed that over $6 million was owed by Needham’s Point Holdings Limited to Government, following an agreement signed back in June 2005 to facilitate reconstruction of the luxury hotel.

The loans carried an interest rate of 2.5 per cent on the reducing balance.

As at March 31, 2016, a total of $6,023,083 inclusive of interest due was owed by Needham’s Point Holdings to Government, the Auditor General said, while pointing out that so far the company had failed to make a payment towards the outstanding principal.

Trotman also reported that no evidence was submitted for audit inspection to indicate that efforts were made by the Freundel Stuart administration to recover the outstanding debt, which was one of several outstanding loans totalling $983.9 million, flagged in the latest Auditor General report.

Also of concern is the sum of $141.5 million owed by the Barbados Tourism Investment Inc (BTI) with accrued interest of $19.3 million.

As in the case of Hilton, the Auditor General said as at March 31, 2016, no formal contract existed between Government and BTI for the loans made to that institution. Equally, no repayments were received on the amount which has owed since 2009.

The Auditor General also highlighted a loan of $28 million to the Small Hotel Investment Fund dating back to 2010, $120 million to the Four Seasons Development Project dating back to financial year 2011/2012; $6 million to the Rural Development Commission
dating back to 2012 and $4.2 million to the Sanitation Service Authority dating back
to 2013.

With these financial matters still outstanding, Minister of Finance Chris Sinckler Tuesday announced in Parliament within the context of a $537.6 million deficit, that Government would be embarking on a number of measures with a view to pulling the country out of the red, including the immediate sale of the Hilton, in which the Government of Barbados is majority shareholder, for at least $100 million.

Sinckler also announced several new taxes and levies in his austerity Budget, which aims to raise $542 million in revenues and to put Government back on a sound economic footing.

8 Responses to $6M Hilton loan outstanding, says Auditor General

  1. SBajan Chandler
    SBajan Chandler June 1, 2017 at 12:56 am

    Lovey Donna P

    Reply
  2. Tony Webster June 1, 2017 at 2:39 am

    I would gladly take out a bank loan to buy some shares in the Hilton, or anything else as significant, as sound, as well-run, and as clearly, a Jewel in our Crown.

    However, with this administration gasping for breath of fresh, clean “USD air”, it is pellucidly, and painfully, very clear that anyone unable to buy all , or any shares in this, must do so in USD.

    Like most Bajans I know, I have none of such, yet It is In God We Trust, to get us out of this accursed Rocky Gully, which just got much, much “rockier”… and with some ” flood warnings” now circulating.
    I jes’ cyan get dis thing onderstan’….and will try to discuss the situation, either with Ninja Man, or with Senator The Honourable Jepter Ince, at the earliest opportunity.

    Reply
  3. Rawle Spooner
    Rawle Spooner June 1, 2017 at 7:20 am

    Looks like Auditor General should be running Barbados not these idiot useless politicians.All that money owed to government could definitely put country on good track but let’s be real that money gone ain’t coming back and wonder how many more millions are owed from way back when because this have been happening for many years.

    Reply
  4. Helicopter(8P) June 1, 2017 at 11:01 am

    Just pray for somebody like Ossie Moore to keep you smiling causing things just too real to be real. Lord mek peace!!

    Reply
  5. Haskell Murray June 1, 2017 at 1:10 pm

    These loans are what we call in accounting jargon ” inter company loans and in this case they are inter government loans and will not show up on the government balance sheet because on consolidation they are eliminated, however they should be collected and when collect will improve the government cash flow

    Reply
  6. Milli Watt June 1, 2017 at 1:13 pm

    ohhhhhhhhhhhhhhhhhh I see where de taxes going now. this Audito General should be the lead on dis BUDGET!!!!!!!!! LEIGH TROTMAN FOR PM, FINANCE MINISTER, ATTORNEY GENERAL and de place clean up.

    Reply
  7. Donild Trimp June 1, 2017 at 2:39 pm

    @Haskell Murray – are you intimating that the $983.9 million owed to the Government is all inter Government loans and that this amount will be eliminated on consolidation?

    Wheel and come again if you are really an accountant.

    As an accountant what will you do or what can you do (if you had the ability to do something) about the $650 million owed to the Government by businesses in Barbados?

    Reply
  8. Sylvie June 2, 2017 at 1:22 am

    It seems that the present mess we are in was created years ago by the opposition so called economists​!!!!

    Reply

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