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Due diligence on Krauck Group inadequate, says Logistics Initiative Council

Published:Wednesday | June 24, 2015 | 6:11 AM
The National Logistics Initiative Council is headed by Professor Gordon Shirley, Chairman and Chief Executive Officer of the Port Authority of Jamaica.

The National Logistics Initiative Council (NLIC) has informed Cabinet that insufficient information on a due diligence has been presented by the proposed bidders Krauck Group to enable the Council to recommend that negotiations for the development of an integrated logistics hub should proceed at this time.

Cabinet has accepted the Council’s conclusion on the matter, Jamaica House said in a release.

However, representatives from the Ministry of Industry, Investment and Commerce who are members of the Council were of a different view about the due diligence process.

READ: Logistic hub crucial to growth

The Ministry representatives have, among other things, considered that more weight should have been attached to various banking instruments provided by the Krauck Group.

In light of that Cabinet has authorised the Ministry, if it so wishes, to continue discussions with Krauck to determine whether additional, credible due diligence information is forthcoming.

READ: Krauck to clarify info on proposed investment

The Council was appointed by Cabinet in May to oversee the memorandum of understanding signed with Krauck to potentially develop and fund infrastructure for the planned logistics hub.

It comprises officials from the ministries of Transport, Works and Housing; Industry, Investment and Commerce, and Finance and Planning along with the Attorney General's Chambers and JAMPRO.

The Council is headed by Professor Gordon Shirley, Chairman and Chief Executive Officer of the Port Authority of Jamaica.