OPPOSITION spokesman on industry and commerce, Peter Bunting, yesterday withdrew his claim that the finance and public service minister, Audley Shaw, had misled the House of Representatives on the "sweetheart deals" issue.

Bunting admitted in the House of Representatives that he had misinterpreted Shaw to be referring to an outright sale of FINSAC's residual share of collections from its bad loan portfolio, and not the 120-day bridge financing facility his former company, Dehring, Bunting and Golding (DB&G) provided to fill the US$29.6-million finance gap, after the original deal fell through.

"It was known that DB&G had access to US dollar liquidity because the company had prepared itself to be in a position to fund the purchase of the FINSAC share of the bad loan portfolio. DB&G was, therefore, approached by the Ministry of Finance to provide a 120-day short-term bridge financing facility to the Ministry of Finance, pending either the anticipated flows or other financing coming into place," Bunting said.

The Opposition spokesman was responding to charges made by Shaw, in closing the budget debate last month, that DB&G benefited to the tune of some $100 million from two "sweetheart deals" with the former Government while Bunting was chairman and CEO between 2004 and 2006.

Bunting won the Central Manchester seat in last year's general election for the People's National Party (PNP), which was then Government. He has since been elevated to the post of general secretary of the party and spokesman on industry and commerce.

DB&G has since been bought by Scotiabank.
Bunting admitted, in a statement to the House last week Tuesday, to one of the deals. This involved receivables from the sale of National Commercial Bank to AIC, which he said was fair and above board and actually helped the previous Government meet its fiscal budget target.

But he denied that the second deal involving the sale of the FINSAC bad debts, administered by the Jamaica Redevelopment Foundation (JRF). He said that while DB&G discussed the deal with the Ministry of Finance and Planning, it did not materialise. He accused Shaw of misleading the House.

Last Wednesday Shaw produced seven documents in Parliament supporting his claim that a deal involving DB&G, the ministry and the bad debts was done and accused Bunting of doing the misleading.

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