by Reynold Benjamin

This series was first published on spiceislander.com over 13 years ago

In part one of this article, I sought to convey the passion of my love for Levera Beach and surrounding areas and the anguish which swells in my bosom as I witness the wanton destruction of its pristine beauty. I counseled that we should all get to know and appreciate our beautiful country so that we would be motivated to protect and defend it with passion and vigour. I drew attention to the callous disrespect and disregard shown by the Keith Mitchell administration for the rights of owners and occupiers of the lands in the area of Levera Lake. The plight of Henry Crawford Williams alias “Little”, deceased, was highlighted. His life’s investment was grabbed by the Keith Mitchell administration to build a hotel and golf course by, as it has turned out, “fly by night investors’. I alleged that those so called investors came to Grenada with no money and, after the damage was done, left us, the taxpayers, holding a debt of EC $15.93 million (it has been brought, since, to my attention that the lash is no less than Twenty-four million dollars (EC $24,000,000.00), according to the Minister of Finance, Anthony Boatswain, and as shown in the Estimates of Revenue and Expenditure presented in the 2005 Budget).

 I have promised a senior citizen who called me after reading part one of this article that I will highlight his concern about the blockage of the entrance to the beach from Levera Village. He pointed out that the road was blocked off by large boulders and tree trunks which make it impossible to enter the beach by what is the public road leading from Levera Village to the beach. He is extremely annoyed.   

As is my practice, I give you the facts, which no one can deny. LET THEM DENY THEM, IF THEY CAN. I have the right to express my opinion on those facts and I do so. You are free to accept or reject my opinion and form, as intelligent people in a democracy, your own opinion. But facts are facts. You are the jury.

 THE FACTS 

The Memorandum of Understanding

On March 27^th, 1998, under the hand of Dr. Keith Claudius Mitchell, Prime Minister of Grenada and Minister of Finance, the Government of Grenada signed a Memorandum of Understanding (MOU) with a company incorporated in Grenada called Grenada Development Company Inc (GDCI). There are two persons signing on behalf of the Grenada Development Company Inc. One signature is written “D. Campbell”. The other is written “Lisa Charles”. I am aware that the Prime Minister has two first cousins who carry the signature D. Campbell. They are Denis Campbell and Denise Campbell. In the light of what has transpired and what is transpiring  with the Levera Project it seems to be in the public interest, right and just that the public be informed, as early as possible, if any one of those individuals is the person signing the MOU. The public should also be informed of the circumstances leading up to that person’s involvement with the GDCI. No aspersions are being cast but facts are facts and facts must not be misleading through erroneous interpretation. People reading the document must not be encouraged to conclude that this is a family affair, if that is not the case.

But, for the moment, let us not be distracted.

The MOU recited that in September 1996, an American business official (name not given in the MOU) met with the Grenadian Ambassador to the United States of America (name not given in MOU but I think Denis Antoine was ambassador at that time) at the Grenadian Embassy in Washington, DC, to discuss investment opportunities on the island of Grenada, West Indies. The MOU states that the discussions were encouraging to the point that an American delegation was invited to return later that month to see first-hand investment opportunities.

It states that a visit (to Grenada) was made and at the conclusion thereof a group of American executives (names not given) entertained a delegation of Grenadian Government officials (names not given) to discuss a basis for moving forward toward possible developments. The MOU states that in October, 1996 the American group formally presented a concept paper for the development of a luxury hotel, with golf course, tennis courts and land and water recreational facilities which concept the government accepted. In August 1997, Levera was selected as the site to be developed and in December it was announced that a US $150 million luxury- oriented recreational resort would be built at Levera. According to the agreement in the MOU, ground breaking was to take place in spring (dry season) 1998 and the project completed in two to three years.

The most significant undertaking given by government in the MOU was; to assist GDCI in the identification for purchase of land in and around the building site at LeveraBeach. Land owned by government (Levera Estate acquired by Uncle for the people) will be sold to GDCI at a price to be negotiated. Another significant item which appears under joint responsibilities states; each party will bear the full cost of discharging its respective responsibilities.

Fellow Grenadian, I have set out as facts what appear under the signatures of the persons mentioned above, one of whom is the Prime Minister of Grenada.

Before moving on to another important document in this sad affair, which is a letter dated July31^st, 2001 written to Minister Boatswain by one Andrew R. Oliver on behalf of GDCI, let me make some pertinent observations and analyses of the MOU. First, an investor is expected to have some money to put into an investment. While an investor, be it an individual or a company, is not expected to have in cash, or other assets, all that is required for an investment, an investor is expected to have some money to apply towards the investment. Secondly, a government seeking to attract investors is obligated to see that the investor has some money or other economic asset to bring into the country. That is why such a person is called “an investor” in the first place. Thirdly, GDCI was expected to purchase government land and, also, private land in and around the hotel site at Levera. And fourthly, the company was expected, naturally, to fund itself i.e. to get money to carry out the development without help from government. There is no mention in the MOU of any undertaking by government of Grenada to provide guarantee, as eventually given, to enable the company to borrow money to carry out the development.

   Letter to Anthony Boatswain 

You will recall that the MOU set the spring (dry season) of 1998 to start the project.

Well, three years after the project should have started, July 31^st, 2001, one Andrew R. Oliver, describing himself as “Project Manager”, wrote a letter to “The Honorable Anthony Boatswain, Minister of State Responsible for finance”. The letter bears the heading “The Resort at Levera Beach”. It contained four enclosures identified as A, B, C, & D. My examination of the letter and enclosures discloses the following astonishing facts:-

1. As late as the date of that letter 31/7/01, GDCI had no money of its own to start the project.
2. GDCI had no money of its own to purchase government lands and private owners lands surrounding the building site, which the company promised to do in the MOU.
3. GDCI had no money to pay its lawyers legal fees and expenses.
4. GDCI had no money to pay procurement commission to the firm hired to raise the loan to develop the project.
5. GDCI was seeking to borrow US $5.9 million from the International Bank of Miami to cover expenses for the things set out in 1-4 above and to “construct the golf course, clubhouse and model villas, to maintain its local staff and to employ minor local contractors who would be working on the initial phase of the project”.

And would you believe, fellow Grenadian, that for GDCI to get this money from the International Bank of Miami the Keith Mitchell administration were called upon to sign a guarantee, which they did. That guarantee stated that if GDCI failed to pay back the International Bank of Miami then the people of Grenada, all of us, will have to pay. (Check your five percent donation towards hurricane Ivan redevelopment)

To pile insult on injury, listen to this. You will recall that in the MOU the company agreed to buy government land i.e. Levera Estate (the land Uncle acquired) and surrounding private owners lands. Would you believe that in this letter it turns out that government agreed to make a contribution of Levera Estate to GDCI “to allow the project to move forward”. In other words, GDCI got not only free money (US $5.9 million to start) but free land too, over 200 acres.

What happened to the free US $5.9 million!

GDCI paid Kent Estates Limited US $1.5 million for 125 acres of Chambord Estate. It paid US $300,000.00 as commission to Ridge Partners Financial Group for funding procurement. It paid legal fees of US $100,000.00 to US and Grenadian Attorneys. It is supposed to have spent US $3,000,000.00 on the golf course, clubhouse and model villas.

In Part Three we will discuss the fate of the other land owners including Henry Crawford Williams alias Little whose lands were taken without compensation and the abandonment of the Levera Beach Resort Project by the “investors”.