MAGIL Construction Limited, the Canadian-based development company that began constructing houses here in 1997, has pulled out of Jamaica, citing wanton corruption from government officers, parish council members and community extortion that has cost them in excess of $130 million.

After completing the 468-unit Magil Palms, its latest housing project, Magil president Joseph Gutstadt said his company has decided to discontinue any further operations in Jamaica indefinitely.

Gutstadt, in a press statement, said he was no longer willing to put up with blatant demands for bribes and an abuse of power by arrogant, corrupt government officials.

According to Gutstadt, these individuals have terrorised his company with their demands for bribes and when these are not met permits and certifications to which Magil is entitled have been refused, costing the company millions of dollars.

“The company can no longer accept the losses that we are suffering as a result of the unjustified and malicious actions of bribe-seeking government officials,” said Gutstadt, adding that he has been driven out of business by corrupt officials.

In the meantime, the Jamaica Mortgage Bank (JMB) on Thursday refuted claims that it had placed Magil in receivership, saying instead that the company had failed to satisfy the repayment agreement on the Magil Palms housing development.

Although all of the houses in the development have been sold, 53 are yet to be handed over, the JMB said. The mortgage bank added that the loan amount was less than $100 million and the amount that will be received would pay off Magil’s indebtedness with interest.

“The JMB has put in a receiver, not a receiver manager, so that we may specifically complete these sales. We have no intention of dealing with Magil’s other creditors. Our main priority is delivering the houses to the purchasers along with all the relevant documents and titles,” the JMB said in its statement.

Magil first came to Jamaica as building contractors in the construction of West Cumberland scheme, developed by Gore in Portmore, St Catherine. Since then the company has operated as developers of the Whitewater housing scheme in St Catherine, in partnership with local company, CanCara Limited, before doing the 468-house Magil Palms development.