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The Voice

Developers deny underhand deal in hotel contract
published: Friday | December 3, 2004

By Omar Anderson, Gleaner Writer

THE DIRECTORS of Acken-down Newtown Development Company Limited (ANDCo.), developers of the 360-room Sandals Whitehouse Hotel in Westmoreland, yesterday dismissed suggestions that a US$15 million (J$900 million) contract awarded to a Miami-based company was not put out to public tender.

The ANDCo. directors said only two bids were invited, but they did not say whether they were publicly or privately requested.

Audley Shaw, the Opposition spokesman on finance, who made the disclosure in Parliament on Tuesday, yesterday said he was not impressed with the Urban Development Corporation's (UDC) explanation of the contract award.

CONTRACTS TO BE PROBED

He also called on the contractor general to conduct a detailed probe of all contracts related to the property.

In a press release issued yesterday by the UDC, which has overall responsibility for the development of the Whitehouse project, ANDCo Limited said last year July, it awarded the contract to Charles Wood, principal of Charsal Marketing Incorporated.

Mr. Wood is the brother of Industry and Tourism Minister Aloun Assamba.

The release added however that Charsal Marketing was selected based on merit.

"Charsal Marketing Inc. was selected on the basis of its proposed fees and its proven experience," it said, stating that the company has in the past supplied a number of major local and regional hotels.

DISPELLING SUGGESTIONS

The release added that Charsal Marketing won the bid over Hospitality Purveyors Inc. to supply furniture, fixtures and equipment to Sandals Whitehouse.

It also sought to dispel suggestions that the US$15 million contract was awarded to Charsal Marketing because of Mr. Wood's connection to Mrs. Assamba.

"ANDCo. has no interest in the family relationships of the principals of Charsal Marketing, nor any of its contractors, suppliers or employees," the release said.

"ANDCo. Limited is only concerned with competence and ensuring a high level of performance within time frame and budget of those it employs, and rejects any assertion of improper conduct in this matter."

But to Mr. Shaw, the UDC's explanation "raised more questions than it answered."

"I'm not impressed by this explanation," he said, "because the country is not assured it has received the best value for money."

Speaking with The Gleaner on Wednesday, Contractor General Derrick McKoy said his office would be investigating Mr. Shaw's claims that the contract to Charsal Marketing was not put to public tender. Yesterday, the Opposition finance spokesman also invited the contractor general to broaden his investigation of the award of contracts in the project.

"On the basis of the inadequate response from the UDC, I urge Mr. McKoy to carry out a detailed review of not only this contract, but all other sub-contracts related to this project," he told The Gleaner.

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