Manning asked to explain Broadgate report

Ramlogan said yesterday said that TCU owned a parcel of land that was indebted to the Unit Trust Corporation (UTC) costing US$20 million.

“The state had approached Transcorp to purchase this land directly from them, Transcorp entered into an arrangement with the government whereby a new company, Broadgate was formed,” Ramlogan said.

He said they approached First Caribbean International Bank and took a loan of US$20 million, they then paid off the loan that Transcorp was owing UTC.

“They entered into an arrangement where government guaranteed repayment of that loan and further, in the long term and guaranteed the repayment of the cost of constructing a multi storey building on the land owned by Broadgate part of which the government would rent,” he said. He said the exposure to the state because of the deal would possibly cost over $1 billion as the cost of the construction was never precisely quantified in the agreement.

“The rental was tied to the loan and debt servicing obligation of Broadgate so that in effect guaranteeing a loan for a private developer, all he had was the land, the land was financially burdened, a piece of land, the state has agreed to finance the construction of the building, the state has agreed to rent it, the state has agreed to pay back the loan,” he said.

He has referred the matter to British Queen’s Counsel Allen Newman for his advice as to whether or not there was any fraud in the matter. He assured if there was fraud, they will be taking action against those responsible.