Tue | Sep 25, 2018

Media block on controversial MoU with logistics hub proposed investor

Published:Monday | April 20, 2015 | 7:01 PM

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

The MoU should have been signed today but this did not happen and no reason was offered.

This morning, Hylton told reporters that representatives of the investors, Krauck Systems are in Jamaica. 

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

Speaking at a function this morning, Hylton declared that the idea for an MOU with Krauck was unsolicited.

He said the company wants to use an integrated approach for the development of the Jamaica Logistics Hub.

According to Hylton, the signing of the MoU will be the Government’s response to this level of interest and a commitment to further dialogue with Krauck in a confidential environment.

He 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.

He says either party may at anytime immediately terminate the agreement by notice and without penalty.