CANADIAN OWNERS of the Hilton Kingston Hotel property in New Kingston, Propco, has been losing heavily on its Caribbean investments.
In an 82-page report published earlier this year, the Financial Services Commission of Ontario (FSCO) said the pension plan has been making annual losses on its Caribbean properties since taking control of them from RHK capital when that company defaulted on loans and mortgages in 2000.
Pension Officer at the FSCO Linda Ellis, assured Wednesday Business of the validity of the report which was has been circulated in the Canadian news media.
Propco was established by the Canadian Commercial Workers' Industry Pension Plan (CCWIPP) investment committee. The pension plan owns the Wyndham and Comfort Suite Hotel properties in the island and the British Colonial and South Ocean Golf and Beach Resort in the Bahamas.
The organisation established several companies to oversee individual investments and Propco 100 oversees the Wyndham property.
The Gleaner attempted to contact executive vice-president, Eugene Fraser, at Propco 100 , but the call terminated as questions were asked about the company's investments in the Caribbean. Attempts to contact the director proved futile, as he was said to be out of office and not expected to return soon.
NO RESPONSE
Attempts were also made to contact other directors from other Propco companies by e-mail, but no response has been received to date.
The FSCO revealed that the pension plan was making losses on its investments in the Caribbean after it reorganised in 2000.
The commission says the pension plan continued to invest in properties despite the continued losses.
The commission also accused CCWIPP of not fulfilling its obligations to workers and members under the pension plan. It says not enough steps were taken, in respect of the Caribbean development, to meet fiduciary obligations under Canada's Pension Benefits Act.
