Tue | May 23, 2017

Investment ministry reportedly barred from releasing info on US$5b logistics hub initiative

Published:Monday | April 20, 2015 | 4:05 PMJovan Johnson, Gleaner Writer

The Investment Ministry has reportedly been barred from releasing information on the controversial Memorandum of Understanding (MOU) that Portfolio Minister, Anthony Hylton says will be signed with a company wanting to pump US$5 billion in Jamaica's logistics hub initiative.

Last week, Hylton said the Cabinet had approved the signing of the MOU scheduled for today.

So far there's no indication that the MOU has been signed and Hylton told members of the media this morning that representatives of Krauck Sytems are in Jamaica.

He would not say when the MOU would be signed.

The parliamentary Opposition has called for the MOU signing to be delayed until more details surrounding the deal have been made public.

Questions have been raised surrounding the credibility of the company and its proposed financiers, Anchor Finance Group.

However, speaking at a function this morning, Hylton declared that the MOU with Krouack is an unsolicited expression of interest by the company to utilise an integrated approach for the development of the Jamaica Logistics Hub.

He explained that the signing of the MOU is the Government’s response to this level of interest and a commitment to further dialogue with Krauck in a confidential environment.

Hylton says the MOU was deliberately designed to give Krauck and its financiers including Anchor Finance Group, a period of 30 days in which "to prove, to the satisfaction of the Government, both the legitimacy of the proposed funding and the fit and proper status of the persons involved in Krauck."

According to the Investment Minister, if the Government is not satisfied, the MOU will be automatically terminated.

Hylton further adds that either party may at anytime terminate the agreement by notice and without penalty.