Home  News Regional News Gov’t to probe land deal
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Sunday, 12 October 2008 |
ST GEORGE’S – The Grenada government has called for an investigation into a land deal struck by the former Keith Mitchell administration and involving Formula One racing star Lewis Hamilton.
Prime Minister Tillman Thomas told reporters Friday that his near three-month-old administration will ask government’s newly established Advisory Committee to look into sale of State lands, currently occupied by the Grenada Grand Beach Resort.
He said the red flag was raised when it was discovered that no money for the transaction, which took place the day before the July 8 general elections, ended up in the Treasury.
The deal, according to Advisory Committee member Lloyd Noel, called for a group, involving Hamilton ( who has Grenadian roots), to take possession of the 20-acre property in exchange for the use of Hamilton’s name and photographs in Grenada’s tourism promotions over the next four years.
“The deed which I have in my possession says that Government of Grenada agrees to transfer the freehold of the land to Hamilton, free from encumbrances, subject to the said lease for the value of US$15 million, which the said value would be realised by Hamilton giving government the right to use and reproduce approved photographs and recordings to promote Grenada for a period of four years,” said Noel.
Noel argued that the transaction with the company, registered as Time Bourke Holdings (Grenada) Limited, should be declared “null and void”.
He disclosed that the deed had not been recorded in the Deeds and Land Registry, because he said some concerned civil servants in the Ministry of Finance could not decide how many stamps were required to cover the value or the Hamilton’s name and photograph. He said they were unsure whether the racing star’s autograph and car needed to be included in the value.
However, in defense of the action, former Prime Minister Keith Mitchell told the parliament on Thursday that the exposure Grenada will get from Hamilton’s presence will be worth millions of dollars.
“The exposure Lewis Hamilton will give Grenada in one year will be worth 10 years of our annual tourism budget,” he said, adding that more than EC$100 million (US$37.4 million) would be invested in developing the property that includes the island’s largest hotel.
Under the deal, Time Bourke Holdings (Grenada) Limited is also expected to get concessions and tax breaks for a number of years.
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