October 28th 2010: During the last sitting of the Senate, it was confirmed by the Leader of Government Business that the Minister for Finance Hon. Nazim Burke signed the loan agreements without Parliamentary approval for Phase II of the Farm Roads Project during his recent visit to Washington three weeks ago. This now explains why the Government rushed a sitting of the House of Representatives without notice on October 15th 2010 the same day as the ceremonial opening of Parliament, the first time this has ever happened. The Minister knows that he has broken the law and wanted to cover his wrongdoing.

It is also important to note that the Minister deliberately misled the public into believing that monies borrowed for phase II of the farm road project will go to payoff the outstanding amount of $19.7million owed to CCC thus reducing the amount available for the Project. The Minister said this knowing that the loan agreement prohibits such use and that he had signed a totally separate agreement with that company to pay off this amount over a period. This speaks volumes about the character of the Minister and what he would do.

According to Opposition Senator Gregory Bowen, all Grenadians should take note that the Government who purports to champion transparency, integrity, and good governance would be condoning and perpetuating illegality if this act is not openly and transparently rectified with the total sanctioning of the Minister.

Senator Bowen explained that before the Minister could sign any loan agreement, the Parliament must approve the agreement in the form of an Act or on limited occasions a resolution, both of which necessitate debate and passage in both Houses of Parliament. “A Permanent Secretary would have been hauled before the Public Service Commission by this government for dismissal if he or she were to sign any agreement without the necessary Cabinet Conclusion,” Bowen added.

In the interest of hundreds of workers who lost their jobs the Official Opposition has consistently called on the Government to reverse the decision which got rid of CCC in the most unceremonious way. As a result the Opposition is pleased that the company has decided to resume operations in Grenada despite the many large projects it is now undertaking elsewhere. However he noted that it was illegal and sets a bad precedence for the Minister for Finance to sign the loan agreements with the Kuwait Fund for Arab Economic Development and the OPEC Fund for a total amount equivalent to US$17.3 million for the Farm Roads Project before receiving approval from Parliament.


From the Office of
The Leader of the Opposition