Auditor General to Investigate Mac’s Port Deals

Hon Minister Charles Clifford	McKeeva Bush, Leader of the Opposition

Friday,  July 15, 2005

Cayman Net News has learnt that the Auditor General will be undertaking an investigation into alleged irregularities that took place at the Port Authority during the term of the previous UDP political administration, which was led by the now Leader of the Opposition, McKeeva Bush, who was also Chairman of the Port Authority during this period.

Net News understands that the alleged irregularities relate to at least two Port development projects; the Royal Watler Cruise Terminal facility and the development of a marina on property belonging to the Port Authority, which is adjacent to the Ritz-Carlton development on the West Bay Road.
Additionally, it is reported that certain activities relating to the proposed development of a cruise ship facility in West Bay are also to be looked into.

As previously reported by Cayman Net News, in April 2004 the Port Authority, at the urging of Mr Bush, paid twice the fair market value for a parcel of land required for the proposed West Bay cruise terminal, one of the joint owners of the land in question being the Director of Tourism.

Hard on the heels of this disclosure came news of another questionable situation involving a letter signed by Mr Bush as then Chairman of the Port Authority giving Misener Marine an exclusive right to design, build and finance a cruise ship berthing facility in George Town, without the knowledge of the other members of the Port Authority Board.

The letter in question, as subsequently supplied by Misener Marine to the Port Authority, appeared to have been originally faxed to Misener from the offices of Quarry Products Ltd in Grand Cayman and not from either the Cayman Islands Government or the Port Authority.

Questions have also been raised locally over the terms of an agreement with the Ritz-Carlton developers for the construction of a marina on land owned by the Port Authority, especially as to the value and use of fill material excavated as part of this project.

Florida Caribbean Cruise Association (FCCA) is providing US$26M in funding for the development of the Port Projects in George Town and West Bay but included a caveat in the funding agreement for the withdrawal of the funding for the West Bay project if their concerns about that project could not be satisfactorily addressed.

Misener Marine is the marine contractor on the Royal Watler Cruise Ship facility, a contract reportedly worth over $10M. Net News also understand that before leaving office Mr. Bush, as Chairman of the Port Authority, signed another $2M contract with Misener Marine for the West Bay facility although no work has commenced on that project.

Hurlstone Limited is the contractor for the land-based work on the Royal Watler Cruise facility and we understand that this contract is worth $7M. Questions have also been raised locally as to the award of these contracts and the corresponding tendering process.

Misener Marine was also involved with the installation of sheet pilings on the Boggy Sands Road Boardwalk project in West Bay during Mr. Bush’s administration and although this project has made little progress, we understand that approximately $1M has been spent on the project by the previous UDP Government.

Minister with responsibility for the Port Authority, the Hon Charles Clifford, was contacted about this matter and said: “I can confirm that I have written to His Excellency the Governor about certain irregularities which occurred at the Port Authority during the last political administration and that the matter is now with the Auditor General’s office for their review. I consider that I have done my duty in reporting these matters to His Excellency the Governor and we must now allow the enquiry to take its course. It would not be appropriate for me to comment beyond that except to say that I have every confidence in our Port Director, Paul Hurlstone and his staff and I know that together they will ensure that all of the checks and balances are employed to prevent even the appearance of irregularities in the future.”

Minister Clifford was asked whether the current Royal Watler Cruise facility will continue as is and he said, “Of course we will continue with this project using the current contractors. We will see this project through to completion and officially open the new facility at the end of the year.”

A decision on the proposed West Bay Cruise facility is expected at the end of the month.

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