Borrowed money under the predecessor agreement to the PetroCaribe oil deal, the San José Accord, was used to fund the massive cost overruns at the Sandals Whitehouse project.
The funds received approval from Cabinet, but retroactively, according to Finance and Planning Minister, Dr. Omar Davies.
In an interview with host of Power 106's (Independent Talk), Ronnie Thwaites, Monday, the Finance Minister confirmed that the US$40 million cost overrun in the Sandals Whitehouse hotel project was financed by a loan from the Venezuela's San José Accord.
Dr. Davies pointed out that funds from this source were earmarked for developmental projects to enhance economic growth and foreign exchange capabilities.
Opposition Leader Bruce Golding had demanded answers to the source of funding for the cost overruns in the project, charging that the matter was not taken before Parliament for discussion.
