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Disgrace - Jamaica's NHT wastes $Billions
From the Auditor General's report
During 2004-2009 Jamaica's NHT invested $2.07 billion in three ventures, namely;
Except for the CWTC investment, we saw no evidence that NHT contemplated:
In June 2010, Cabinetgave approval for the transfer of NHT’s shareholding in CWTC to the National WaterCommission (NWC) for the nominal sum of $1. While the Jamaica Lifestyle Village investmenthas suffered full impairment, which suggests that NHT is unlikely to recover the sum invested.In relation to Harmonisation Limited, NHT has indicated that there is no other asset owned byNHT which has shown comparable significant capital gain based on market value. However, itshould be noted that the land was not acquired for resale, but to facilitate the construction ofa resort colony with 4,500 hotel rooms and 500 residential property, which would providedirect employment opportunities to approximately 16,500 individuals; however to date, thedevelopment has not materialised. All three investments were approved by Cabinet.
Gleaner article
During 2004-2009 Jamaica's NHT invested $2.07 billion in three ventures, namely;
- Jamaica Lifestyle Village,
- CentralWastewater Treatment Company (CWTC), and
- Harmonisation Limited.
Except for the CWTC investment, we saw no evidence that NHT contemplated:
- the cash flow impact;
- the expected rate of return on the investments;
- the assessed benefit, and
- whether the investment decisions were in line with existing strategy of the Trust.
In June 2010, Cabinetgave approval for the transfer of NHT’s shareholding in CWTC to the National WaterCommission (NWC) for the nominal sum of $1. While the Jamaica Lifestyle Village investmenthas suffered full impairment, which suggests that NHT is unlikely to recover the sum invested.In relation to Harmonisation Limited, NHT has indicated that there is no other asset owned byNHT which has shown comparable significant capital gain based on market value. However, itshould be noted that the land was not acquired for resale, but to facilitate the construction ofa resort colony with 4,500 hotel rooms and 500 residential property, which would providedirect employment opportunities to approximately 16,500 individuals; however to date, thedevelopment has not materialised. All three investments were approved by Cabinet.
Gleaner article
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