LOCAL BUSINESSES THREATHEN LEGAL ACTION IN BUCCAMA RESORT PROJECT

Over fifty suppliers, the majority of them local, are said to be owed almost EC$6 million by the stalled Buccament Bay Beach Resort Project, with the project being indebted to a couple of these businesses by approximately EC$1 million.{{more}}

Recent developments with the project, including the firing of the Ridgeview Construction firm, now have the affected businessmen sweating over who will be paying them and when they will begin to see their money.

While not wishing to be identified, one businessman, who is owed $962,000 told SEARCHLIGHT that since Ridgeview Construction was fired from the US$200 million project by developers, Harlequin Hotel and Resort, there has been uneasiness among local businessmen about their money. He said that when calls were made to Ridgeview officials, they were told that all debts have been taken over by the developers as part of the termination agreement.

East Caribbean Metal/Plastics Industries Limited is one of the businesses owed, and Managing Director of the company Michael Persad told SEARCHLIGHT that despite repeatedly sending monthly statements to Ridgeview Construction over the last four months, there has been “no positive response.”

Another company, which is owed some $240,000 for work done on the project, told SEARCHLIGHT that even worse than being owed, is the frustration experienced because of the lack of information coming forward.

“We are not getting any clarity on the issue,” the irate businessman said.

Several enquires made by concerned businessmen were brushed aside, and when a meeting was finally held on July 19 at the Buccament Bay Beach Resort offices, they were promised by Harlequin officials that they would have started receiving payments by July 24.

At press time, according to our investigations, not a single payment has been made.

Another local businessman who is owed some EC$1.25 million told SEARCHLIGHT that the deafening silence has him worried about his money.

“I need to hear something, it has been months,” he told SEARCHLIGHT.

The situation as it stands, SEARCHLIGHT understands from a source intimately connected to the project, is that when Ridgeview Construction and Harlequin officially agreed to end Ridgeview’s work on the project, one of the key areas of agreement was that Harlequin will begin to pay the local creditors within four weeks.

“It is surprising that no one has received a dollar,” our source said.

In the midst of this, rumours continue to swirl suggesting that the delay in payments and full resumption of work is connected to a cash drought being experienced by the developers.

Meanwhile Harlequin has entered into a partnership with the St Lucia based International Construction & Engineering (ICE) group.

SEARCHLIGHT spoke to Mark Coggill of the ICE group who confirmed that Harlequin is responsible for the payment of the money owed to the local businesses.

He told SEARCHLIGHT that the delay in payment has nothing to do with a cash shortage but said that an audit was being conducted to determine the validity of the statements and to make sure that all that was billed to the project was used for the project.

When SEARCHLIGHT spoke to Dave Ames, the head of Harlequin, about a month ago, he rubbished suggestions that there was any misappropriation of funds on the project, saying that the move to remove the contractors was to give his group “more control to ensure who was getting paid and what they were getting paid for.”

Coggill told SEARCHLIGHT that following the audit, which should be completed in a couple weeks time, payments would begin to be disbursed in September.

A meeting is planned with the local suppliers this coming Monday to relay this information to them.

Some of the local businessmen, who were planning to write a strongly worded letter, with a threat of legal action against Harlequin, held back when they got word of the meeting being planned for Monday, August 18 at the Bucament Bay Resort offices.

“All we want (is) to see our money, so we will wait again and hear what they have to say,” one businessman said.