UDC said property was not for sale - Mahfood

Debbie-Ann Wright, Assistant News Editor - Radio

Businessman Michael Mahfood is claiming the Urban Development Corporation (UDC) maintained that the building housing his company at 35 West Parade in downtown Kingston was not up for sale, even while in negotiations to sell it to Bashco Trading Company.

The sale came to public attention this week after the Office of the Contractor General (OCG) said it was launching a probe into the transaction.

The probe was launched after Mahfood outlined his concern to the OCG that the building, which he has occupied for about 30 years, was being sold to another entity, though he has repeatedly offered to buy it.

Yesterday, Mahfood told the Gleaner/Power 106 News centre that he figured "something was wrong" when contractors came to measure the building. He said the contractors could not say why they were doing the measurements.

Mahfood said he suspected the UDC was in the process of selling the building and that his suspicion led him to visit the UDC's office in late July to find out about the corporation's plans for the facility.

He said when he made inquiries, he was told the building was not up for sale. However, Mahfood claimed that about six weeks later the UDC wrote informing him he would soon meet the new owners.

That was when he wrote to the contractor general who recommended that the UDC terminate the contract with Bashco and advertise the property.

Yesterday, the UDC indicated it was taking the necessary steps to terminate the sale in order to comply with the divestment process.

Legal measures

However, the chairman of the company to which the property is being sold has disclosed that Bashco has instructed its lawyers to take all legal measures to protect its interest.

Gassan Azan said he was deeply concerned about the controversy which has placed his company's $31.4 million investment in jeopardy.

Azan argued out that, in making the proposal to the UDC for the acquisition of the property, his company scrupulously followed the steps outlined by the authorities.

He said the investment in the property was to facilitate a major redevelopment project which would expand the company's operations and create significant economic opportunity for the community.

Up to last night, senior representatives of the UDC were reportedly in a meeting to discuss issues surrounding the sale of the downtown Kingston property and other UDC assets.

debbie.wright@gleanerjm.com