Edmond Campbell, Senior News Coordinator
The forensic audit into the US$41 million (J$2.7 billion) cost overrun at the controversial Sandals Whitehouse project in Westmore-land has concluded that the project delivered value for money.
Speaking yesterday at the weekly post-Cabinet press briefing at Jamaica House, Information Minister Colin Campbell told journalists that the auditors are of the view that Sandals Whitehouse was of the highest quality and that it was not only a valuable asset to the south coast development programme but also the wider tourist industry.
According to Mr. Campbell, the report made it clear that the original project cost of US$60 million was inadequate for the kind of hotel that was to be constructed.
The original budget for the hotel was about US$86 million based on the Beaches Negril concept.
"However, it was determined that that cost was too high and eventually it was reduced to US$60 million based upon a recom-mendation by a company called Capital Options Limited. The auditors conclude, however, that it is clear that this figure bore no relationship to the size or specification of the proposed hotel as was conceptualised and proposed by the architects in May 2000," Mr. Campbell explained.
The auditors noted that if the US$60 million budget had been adopted, the scope of the project would have had to be substantially reduced.
Another point highlighted by the auditors is that the project incurred some costs due to management deficits, including interest charges, additional fees due to the extended contract period and fluctuations in the cost of labour and material.
Record occupancy rates
Mr. Campbell said to date, the hotel has enjoyed record occupancy rates. The Information Minister said that if this performance continues, the company would be able to service its debts without having recourse to shareholders.
Meanwhile, the Urban Development Corporation (UDC) says it is ready to challenge in court any claim brought against it by the Gordon Butch Stewart-led Gorstew company.
"It is the contention of the UDC that the Gorstew construction of the contract is fallacious and that their version of the fact is incorrect. If Gorstew persists in their claim, the UDC will resist with every legal resource it can muster," Mr. Campbell reported. Gorstew and the UDC are both partners in the controversial development.
The forensic audit report will be tabled in the House of Representatives today and a copy submitted to the Audley Shaw-chaired Public Accounts Committee of Parliament for examination. Government spent $28 million to conduct the forensic audit.
