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Observer Reporter  
August 16, 2006

Whitehouse saga takes new turn

THE Sandals Whitehouse Hotel saga took a new turn yesterday, with the Contractor-General (C-G) now saying he had received information not previously made available to him, suggesting he could come to new conclusions on the controversial project.

In a press statement, Greg Christie, the contractor-general, said the documents he now had in his possession included minutes of project site meetings and original and revised cash-flow particulars which his office had requested from the Urban Development Corporation (UDC), but not previously received.

Christie also said that Gorstew provided information which “it claims, among other things, supports its contention that the change in the concept of the project from a ‘Beaches’ to a ‘Sandals’ brand, did not result in any project cost or time overrun”.

Gorstew is one of three partners with the UDC and the National Investment Bank of Jamaica (NIBJ) on the hotel project.

Cost and time overruns amounting to US$41 million are at the centre of the controversy triggered by a lawsuit from Gorstew to recover losses accrued when the hotel was not handed over on time and with serious defects that resulted in significant refunds to guests.

Sandals, which manages the hotel, also said its international brand and reputation had suffered serious damage.

Christie in his report to parliament on the hotel project, had accused the UDC of deliberately concealing key information that would have given a more accurate picture of what took place.

For its part, Gorstew maintained that the C-G did not seek to get the copious information it had before coming to his conclusion. That information was later voluntarily sent to the C-G by Gorstew’s attorneys.

In his statement yesterday, Christie said: “The Office of the Contractor-General is currently reviewing the documents and will issue a further statement upon the conclusion of its review.

“…We have written, in the interim, to both the UDC and to the attorneys for Gorstew Ltd to advise them to provide the Auditor-General with copies of the documentation which they have submitted to us,” the statement said.

See tomorrow’s Observer for the full text of the contractor-general’s statement.

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