Golding gets letter confirming Whitehouse lawsuit quashed

THE GORDON 'Butch' Stewart-led Gorstew Limited has indicated in writing that it will withdraw its multimillion-US-dollar lawsuit against the Government in the Sandals Whitehouse legal debacle.

Last week, Dr Omar Davies, opposition spokesman on finance, had questioned Prime Minister Bruce Golding's claims that he had been given a commitment from Stewart that the lawsuit would be withdrawn. Davies wanted to know if the prime minister had the commitment in writing.

However, in a letter to the prime minister yesterday, Stewart said: "Gorstew Limited now wishes to discontinue and relinquish all claims against the entities that are the subject of the arbitration."

Stewart had said that his company regarded the claims in relation to Sandals Whitehouse as strong, including the brand-damage claim and claim for special damages of US$28.9 million, as well as a claim for the cost overruns, which the contract addresses.

According to Stewart, the company was withdrawing the claims for the benefit of taxpayers and the national interest.

In a brief statement on the issue, the prime minister suggested he had no problem in accepting the word of the Sandals Whitehouse chairman.

"We now have the commitment in writing. It's on its way to me and I will make a copy available to the Opposition," Golding said.