Conflict of Interest with Panamian Company that loan Harbor Monies to purchase crane
PHILIPSBURG:--- The financial statements for government owned company St. Maarten Harbor Group of Companies shows that the Harbor Group of Companies has a debt of $208M. The statements which are published under this article shows that the cash reserves have already been depleted by $2.5 million from the last $22 million tranche from the bond loan earmarked for the Pier 2 extension. Given an extraordinary $7 million was spent on the FCCA conference this year, this then leaves one to question where would the monies come from knowing that they are facing a one million dollar suit. Another question these statements raised is the real cost of the Causeway Bridge, is it $50M or $40M? The statements also show that some $5.3 million was spent on the unfinished Ring Road.
Employees of the Harbor Holding Companies received advances amounting to $158,307 which was then written off in large bad debt provisions. A big eye opener in all the documents SMN News got our hands on is the loan to a Panamanian registered Company "Octavio Holding INC" who gave the Harbor Holding Company a private loan at an 8% interest rate. The director of the Panamanian Company is the brother of Michel Soons. This loan attracts the highest borrowing rate of all the Harbour's debt obligations. While global rates have been dropping, this loan was committed to an 8% rate while 2 years earlier Carnival Cruise advanced a loan at 5.99%.
As per the statements the last $22M of the bond loan has been advanced. Principal payments began in 2014. Based on what the statements show, the Harbor Holding Companies has a strapped cash flow, even the concession fees to government who has huge problems with its budgets are not being paid.
Windward Roads provided financing for the purchase of six windmills inside the Harbor facility only five of those windmills have been installed. The sixth can be found at a private residence in Guana Bay. The windmills in the Harbor have not been operational in over a year. Perhaps the private (public) citizen in Guana Bay has had better luck with his $90K gift from the Harbor.
The accrued concessions fees not paid of $1.4 million represent fees due for September to December 2013 and 2012. Indications are that the fees for 2014 are not being paid so maybe Minister Ted Richardson waived these too?
Another highlight based on the financial statements is that the Harbor Holding Company did not pay their Profit Tax, although they are subject to profit tax as any other private business enterprise, the financial statements show that the Harbor Holding Companies has not paid its share for the past two years.
Board remuneration amounts to $135,084 although based on the five members, splits better 3 ways even though five are mandated by the Harbour's articles of incorporation. This of course excludes all the first class travel and 5-star hotels, plus the daily allowance that is allotted while the Harbour picks up the tab for meals and entertainment as documented in the PWC Integrity Report.
The entire 2013 financial statements for the Harbor Holding Companies along with the registration for Octavio Holding can be viewed beneath this article.
