Click on headlines to listen to the reports (Real Audio Player files)
You may download a free real Player at

Appeal Overruled by Rochelle Baptiste
Monday May 24

Former Chairman of the National Commercial Bank Richard Joachim will testify before the Commission of Inquiry looking into the failed Ottley Hall project, but not if his legal team can prevent it. The way for the commission to question Joachim was cleared this morning after Justice Frederick Bruce-Lyle dismissed a case of leave for judicial review put forward by his legal team. Joachim’s legal team led by Nicole Sylvester put forward the case before the High Court recently based on a summons sent to her client on April 30 2004 to testify before the Commission of Inquiry into the Ottley Hall project. She stated that the contents of the summons were biased and prejudicial. Handing down his ruling Justice Bruce-Lyle said having gone over the summons himself he found no case of bias or prejudice against Joachim and therefore he must dismiss the application of leave. Speaking to svgbc.com minutes after the judge’s ruling Sylvester said they will be appealing the ruling. Meanwhile, lawyer for the defense team Joseph Delves said while they are happy with the outcome of the case they felt their position was vindicated. Delves asked for cost to be paid to his team having had the case thrown out. The judge however denied this request and said both the defense and complainant must bear their own costs. Attorney General Judith Jones Morgan commenting on the complaints lodged by Joachim’s legal team, described it as an attempt at delaying the process, she also noted that a another complaint filed by Joachim’s lawyers and served on her today is a further attempt by them to delay the process, and they will simply have to wait on the decision of the court.

Inquiry Adjourned by Rochelle Baptiste
Wednesday May 19

The Commission of Inquiry into the failed Ottley Hall Marina and Shipyard Project has adjourned again, this time until Monday June 28. Giving evidence today was former Director of Planning, Randolph Cato, who now serves as Director of the Economic Affairs Division at the OECS Secretariat in St. Lucia, shed some light on the planning phase of the Ottley Hall Marina and the Union Island Resort projects. Asked by Counsel to the Commission Anthony Astaphan whether he knew of any advertisement done on the Ottley Hall project to get the public views on it, Cato answered in the positive. He revealed to the commission that there were objections to it and added that these objections were passed onto the then Attorney general, Parnell Campbell, so that he could give his advice as to how to proceed. Cato read from a memorandum where the then Attorney General Parnell Campbell stated that no consent from a lesser authority was needed since parliament, the state’s highest authority, had already approved the project. He also revealed that as a result of that memorandum the Planning Board decided not to proceed with further approval consideration of the Ottley hall project. Asked by Astaphan if final planning permission to build the shipyard and marina was ever given, Cato said he could not recall. Turning to the Union Island Resort Project, the former Director of Planning agreed with the commission that not having a final environmental impact assessment submitted to the Planning Division was a substantial reason why an enforcement order was issued on the project to prevent construction works. Asked by Astaphan what they could have done at the time to stop the construction works on both projects, Cato simply said “take it to court”. When the inquiry resumes on June 28, Bertram Commissiong, Russell Martin and Stanley “Stalky” John would be among the persons to give evidence.

No Study by Rochelle Baptiste
Tuesday May 18

Former Managing Director of Union Island Resort David Russell is in agreement with the Commission of Inquiry that the resort and Valdetarro Construction felt justified in proceeding with its construction without an environmental impact study because they had the backing of then Prime Minister Sir James Mitchell. Asked by Counsel to the Commission Anthony Astaphan whether it will be fair to make that statement Russell who took the stand yesterday said that it is the reality of what happened. Russell also agreed with the commission that the National Commercial Bank (NCB) was used as a trigger to draw investors to invest in the Union Island project once it started, which at the time had no additional financing and no investment by a single investor. In his testimony Russell pointed out that he became connected with the project through a Saudi Arabian and a Libyan businessman who became acquaintances of Dr. Rolla when they conducted business with his shipyard in Italy.

Deferred Decision by Zhinga Greaves
Tuesday May 18

The lawyers have done their work and whether Richard Joachim will appear before the Commission of Inquiry into the Ottley Hall Marina and Shipyard Project is now entirely up to Justice Frederick Bruce-Lyle. After hearing lengthy submissions by Counsel to the Commission Anthony Astaphan and lawyer to Richard Joachim, Nicole Sylvester, this afternoon, Bruce-Lyle reserved judgment on the matter for next Monday May 24. The substantial application filed by Sylvester last week takes issue with the summons letters sent by the commission to her client ordering him to appear before the commission. In her arguments this afternoon, she stated that one of the letters sent to her client was inflammatory in nature and suggests that her client Richard Joachim has a case to answer. She argues that inquiries are investigative in nature and says that given the tone of the Salmon letter sent to her client she feels that the commission is incapable of being objective. She also questioned the legality of one of the letters sent to client, which was signed by the secretary to the commission Roslyn Harry and says it should instead have been signed by Commissioner Ephraim Georges. Astaphan in turn argued that commission was bending over backward to accommodate Joachim and had set several dates at his request. He also argued that they had made a number of documents available to Joachim. This he argues was an indication that the commission was not biased. In the other matters argued before the court today, Justice Bruce-Lyle dismissed the Attorney General’s application to strike out the application of Joachim and to remove the Attorney General as a party to the action. The application made by Sylvester asking for Georges and Harry be cross-examined by Joachim was withdrawn. Some of the words that Astaphan used to describe that application were extraordinary, unfounded and maliciously vague. Astaphan asked for costs to be paid to the respondent on that matter and was awarded costs in the sum of $1,500.

Russell Testifies by Zhinga Greaves
Monday May 17

After a break on Thursday the inquiry into the failed Ottley Hall Shipyard and Marina Project continued today with evidence from the former Managing Director of Union Island Resorts Ltd. David Russell. Russell made some interesting points while giving evidence today, one of which was that there were never any investors in the Union Island project. He pointed out that he became connected with the project through a Saudi Arabian and a Libyan businessman who became acquaintances of Dr. Rolla when they conducted business with his shipyard in Italy. Russell said it was his role to find investors for the project, which was the brainchild of Dr. Rolla from his base in Britain, but essentially no one ever invested in the project, not even the Saudi and Libyan potential investors who had hired him to find other investors for the project. Russell also stated that a number of European banks were approached for funding for the project, as was a number of other local commercial banks but none of them were comfortable enough to extend loans to fund the project. Unable to find funding elsewhere he said they turned to the National Commercial Bank (NCB) as the first resort. Russell admitted that they realized that NCB would not be able to fund the US$102 Million project and said if the money was not forthcoming to get the project off the ground it likely would never have. Russell also said at the time when the agreement was signed to officially begin construction on the project just months prior to general elections here, Union Island Resorts Limited was a shell company that still hadn’t attracted a single investor. Like Ottley Hall, Russell testified that the Union Island project as presented by Dr. Rolla had serious conceptual flaws but he felt it would be altered as they went along. He said months into the construction of the project, which was done by Valdetarro Construction, he also realized that there were serious construction flaws and that Valdetarro construction had to be removed from the project. The inquiry takes a twist tomorrow afternoon when the high court is expected decide on whether former chairman of the national commercial bank Richard Joachim will testify at the inquiry.

Inquiry Suspended by Rochelle Baptiste
Tuesday May 11

After an eventful day today hearing in the Commissioner of Inquiry into the failed Ottley Hall Marina Project stands suspended until Thursday at 10:00am at the Sunset Shores Hotel. The commission resumed this morning but not with the expected testimony by former Chairman of the National Commercial Bank Richard Joachim, who it is alleged was responsible for approving the loan to Dr. Aldo Rolla for the Ottley Hall Marina Project. Just before Joachim was about to be sworn in to testify before the Commissioner this morning, his legal team led by Nicole Sylvester asked to make preliminary objections on two issues. Sylvester objected to Joachim testifying on the grounds that a summons issued to her client dated April 30 2004 was not signed by the Commissioner or his counsel but by his secretary Rosalind Harry. Commissioner Ephraim Georges overruled the objection and told Sylvester he will submit his reasons for the ruling in writing. Sylvester made a second submission to persuade the Commissioner not to put Joachim on the stand on the basis of biasness in the summons issued to her client. Sylvester said the summons was not what it ought to have been as it was prejudicial, unfair and steeped in bias. Rounding up her submission Sylvester said it is her opinion that if Joachim is allowed to testify it is more than likely he will be denied any impartiality and fairness. Responding to Sylvester’s claim of biasness Counsel to the Commission Anthony Astaphan said after reading the summons several times he did not think the Commissioner treated Joachim unfairly or was biased in any way. Overruling Sylvester’s second objection, Commissioner Georges said the submission was misconceived. He said the summons was merely a vehicle to facilitate Joachim’s contribution to the Inquiry, and that the content was a reasonable warning to Joachim to expect to answer questions relating to particular allegations. After a third attempt not to allow Joachim to take the stand failed his legal team withdrew their representation and told the commission they will be taking the issue to the High Court, a step, which may result in Joachim not having to take the stand. When the Inquiry adjourned today the commission was still not sure exactly what Joachim’s legal team was filing in the High Court, but junior to Sylvester, Rochelle Forde told the Commissioner they will know before the day is over. The hearing has been suspended until Thursday by which time the council is expected to be clear on exactly what was being filed in the High Court.

Inquiry Resumes by Rochelle Baptiste
Monday May 10

After a break of almost two weeks the Commission of Inquiry into the failed Ottley Hall Marina Project resumed today. Taking the stand for the second time was chartered accountant Gordon Moreau. His testimony was followed by a video showing of a statement by then Attorney General Parnell Campbell on the New Democratic party government’s views about the project during its embryonic stage. This statement made by Campbell on a Government Information Service television program broadcast on SVGTV on the November 22 1992, regarding the Ottley Hall project, served as a pertinent piece of information in the Inquiry and somewhat contradicts what Campbell said during his time on the stand. Campbell first testified before the Inquiry on December 10 last year and disassociated himself from the negotiations and decisions on the project placing the responsibility squarely on the shoulders of former Prime Minister Sir James Mitchell and Dr. Aldo Rolla. The video presentation, which dates back to the inception of the project, heard Campbell praising the initiative noting that he was excited about it and was satisfied that the people of St. Vincent and the Grenadines will come to appreciate it. Campbell stated that he was integrally involved in other project negotiations with government and investors, but the Ottley Hall Marina project was the one that gave him the greatest sense of satisfaction both in its viability and promise in developing St. Vincent and the Grenadines. In the recording Campbell says the then government was perfectly satisfied with the legal arrangement for the companies structure involved in the project. He stated that of the much talked-about issue, persons failed to take note of an important factor that the Government of SVG was the second Guarantor and the Italian government, through its credit institution Sache was the first guarantor. The former Attorney General explained that he saw no reason why the government would not have wanted to share the burdens. Noting that the various banks involved in the project carried out investigations into the project before committing themselves, Campbell said they were satisfied that St. Vincent and the Grenadines had a good reputation and the Ottley Hall project was a sound financial business venture. Campbell said the risk of being the guarantor of the project by Government was well within the limits of financial prudence. He noted as with all investments there are always risk but noted the Ottley Hall Marina Project was well assessed and within feasibility. Campbell said the government was satisfied that the investment was a sound one since they were dealing with reputable people referring to Dr. Aldo Rolla and the consortium of banks. A video recording of then Prime Minister Sir James Mitchell explaining the project was also shown. The Inquiry continues tomorrow morning when former Chairman of the National Commercial Bank Richard Joachim is expected to testify.

Debt Avoidable by Rochelle Baptiste
Monday April 19

Testimony in the Ottley Hall hearing today revealed that the Ottley Hall debt now burdening this country could have been avoided, had the government of the day pay attention to the advice it was getting on the project. Today marked day three of the hearings since its resumption last Thursday and heard a very revealing testimony from Chartered Accountant Marcus Wyde. This man is one of several persons who might have been instrumental in saving this country millions of dollars invested in the failed Ottley Hall Marina project if only his advice was heeded. Marcus Wyde, a Qualified Chartered Accountant in Canada who in June 1996 signed on to be the provisional liquidator for the defunct project, in his testimony admitted that his appointment was met with some opposition from West LB and a consortium of banks. He says as a consequence he had limitations placed on him by the court and the information to do his job was not forthcoming. As a provisional liquidator Wyde had to assess the company’s business affairs and decide on its viability. Asked about his findings upon completing his assessment of the project Wyde described it as insolvent noting there was no cash and no source for day to day funding; as a matter of fact he says the project was planned to fail. According to him a feasibility study carried out by Valdetarro on the project, which lacked certain pertinent documents including a balance sheet, projected income and proper cost allocation, did not justify the government’s decision to be the guarantor of US$51 Million for the project. Pointing out Dr. Aldo Rolla as the driving force behind the project Wyde says it lacked proper managerial structure. The chartered accountant says it was his findings and those of Coopers and Lybrand, his employer at the time, that the physical structure of the shipyard was costing more than it was worth. Questioned about his thoughts of the prices for the equipment used at the facility Wyde responded “Surprising!” He however says what was most alarming to him was that there was no insurance for the operations at the shipyard and the facilities there. As for the future of CCYY, Wyde states clearly there is no future and advised government to maximize the value of the assets and have a properly orchestrated sale of the property. The hearing has been adjourned for the second time until May 10.

Inquiry Continues by Rochelle Baptiste
Friday April 16

Former manager of the National Commercial Bank (NCB) Beverly Brisbane took the stand for the second time yesterday in the Commission of Inquiry into the failed Ottley Hall Shipyard and Marina project. This time though, Brisbane’s testimony focused more on the Union Island Resort project, which was controlled by Dr Aldo Rolla, the man behind the failed Ottley Hall project. In his testimony Brisbane claimed that he was a scapegoat in the business affairs of the Union Island Resort project. Testifying before the commission, Brisbane said he was the third person in the rank of the NCB and was mostly unaware of the financial affairs taking place between the parties involved in the project. He told the commission that he was not made aware or saw any documents at the NCB that Dr Rolla, through a series of companies in Ireland, was seeking to raise finances for the Union Island Resort project. He also said he was not aware that Barclays Bank had already turned down the financial proposal for that project by Dr Rolla. The agreement of the loan with Dr Rolla and the NCB was signed on June 7 1994. Brisbane told the commission he was given directives on certain things while he was bypassed on other things. Asked if he was aware that then Chairman of the NCB Richard Joachim was requested by Dr Rolla to write an opinion on the status of the project on Ottley Hall and Union Island Resort to the Director of International Division of City Bank Calvin Smart, Brisbane said no. The former NCB General Manager testified that if normal procedures and banking commercial practices were being followed the chances of the loans being advanced to Dr Rolla would have been nil. Brisbane also said he had recommended that the NCB be sold to the private sector where the first preference of the shares would have been given to the employees and the others to the general public. At the end of his testimony, Brisbane said if he knew he had to stand before a commission some eight years after he was fired  from the bank, he would never have join the NCB staff. Not easily let off the hook, Brisbane will have to endure another day of questioning as lawyer Nicole Sylvester, who is representing former NCB Chairman Richard Joachim and former NCB Director Pamela Veira, requested his return so that she can cross question him sometime next week.

Ottley Hall Back by Zhinga Greaves
Thursday April 15

After a break of four months, the Commission of Inquiry into the Ottley Hall Shipyard Marina and Union Island Resorts projects resumed this morning at the Sunset Shores Hotel. This morning’s session did not hear the evidence from any witnesses, but featured a hot debate between the Counsel to the commission Anthony Astaphan and lawyer to two of the witnesses called by the commission, Nicole Sylvester. The inquiry resumed with a bang so to speak, as Sylvester, representing former Chairman of the National Commercial Bank (NCB) Richard Joachim and former NCB Director o Pamela Veira took issue with the method of questioning used by Astaphan. Sylvester expressed displeasure with the way in which Joachim, whose testimony in December created quite a stir among Vincentians, was questioned and that this type of questioning was allowed by Commissioner retired Justice Ephraim Georges. Sylvester also indicated that Astaphan was trying to usurp Justice Georges’ role as commissioner. Justice Georges disagreed with Sylvester’s allegations, while Astaphan emphatically stated that he differed with Sylvester on her interpretation of his style, one which he was not going to alter. Joachim, whose testimony was postponed to allow his lawyer time to prepare for his questioning, will give evidence instead on Saturday. Following the near 30 minute long spate, Astaphan gave a summary of the evidence that the commission has heard so far. He also outlined the direction in which the commission will be heading in now that it has resumed. He says in the coming days the commission will be focusing on how the Union Island project, which according to indications is also the brainchild of Dr Aldo Rolla, was financed as well as former Prime Minister Sir James Mitchell’s involvement in it.

No Analysis by Rochelle Baptiste
Tuesday December 16

Dominican chartered accountant Gordon Moreau believes that no sensitivity analysis was done on the failed Ottley Hall Marina project. Giving evidence yesterday, Moreau said if that measure was taken those directly involved in the project would have known that, based on the revenue that was projected, they would have been able to cut down the revenue by half and still perform satisfactorily without running into cash flow problems. Continuing with his evidence, Moreau, who gave an insight of several pertinent documents relating to the project, said that it was also clear that no one was willing to question the man behind the project, Dr Aldo Rolla, on the projections, noting that justifications should have been made prior to and not subsequently after signing as guarantor.

Day 11 by Rochelle Baptiste Monday December 15 After a few breaks, the Commission of Inquiry into the failed Ottley Hall Marina project ended its first round of hearings today with chartered accountant Gordon Moreau of Dominica taking the stand. Moreau spoke for over one hour on the aspects and impact of the guarantee of the loan on the project, which the former New Democratic Party (NDP)

Gordon Moreau

government entered into in 1992 with West LB. In his evidence, Moreau said he came to this country occasionally and looked at several pertinent documents of the project and sought assistance from local and regional experts to examine certain financial aspects of the project. He said after such they made a conclusion in the early stage that although the quest by anyone to create investment and jobs could cause them to make unwise decisions, the principles of control and of prudence in the present case, in their opinion, were violated beyond the limits of pardonable error. The qualified accountant said a feasibility study on the project showed a number of deficiencies and anyone with some intellect could have known this. Moreau noted that even with the feasibility study this could not have justified the investment, which cost some US$60 Million. When asked whether or not the feasibility study showed that the project could have generated enough money to repay the loan, he said this was impossible. Asked by Senior Counsel Anthony Astaphan whether government could have seen a red flag when the bank was unwilling to grant the loan without a sovereign guarantee, Moreau answered in the affirmative. Going into further details of the project, he said no serious action was taken to justify the investment. Asked by Astaphan to give his view about the impact the loan would have had on the economy of this country, Moreau said it was his view that it would have been massive unless there was total debt forgiveness, noting that the economic growth of St Vincent and the Grenadines would have been seriously hampered. The inquiry into the project is expected to re-commence early in the New Year and is expected to hear evidence from several other key players, including persons in Europe, most specifically the man behind the establishment of the shell company St Vincent Yachting and Shipping Co. Ltd., Italian Dr Aldo Rolla.

Day 10 by Zhinga Greaves Friday December 12 Today’s hearing into the Commission of Inquiry into the Ottley Hall Shipyard and Marina Project gave insight into the involvement of the Central Planning Division in the failed million-dollar project. “Flawed, very conceptual and with major deficiencies” are some of the terms, which former Town Planner in the planning division of the Ministry of Finance and Planning, Bentley Browne, used to describe plans

Bentley Browne

submitted by CCYY for the construction of the project. Today Browne testified that his division was never asked for its views or input in the project. He admitted approval in principle was given to CCYY by his division with regard to the Ottley Hall project, but said CCYY was given a number of specifications to comply with before final approval could be given. He said the vast majority of these specifications were never complied with. Browne said an evaluation of the Caribbean Environmental Health Institute and others were sought on the project, and they agreed that the plans were indeed flawed and made other recommendations. He testified that the report was brought to the attention of the developers, and Chairman of CCYY, Bertram Commissiong. Browne also testified the developers were blasting in Ottley Hall, which was classified as mining and as such the approval of the planning division should have been sought first. He said a similar situation existed in the case of Union Island whereby permission was not granted for construction to begin on that project. The Inquiry continues on Monday. Following that session it will break for the Christmas season, before resuming again in the New Year.

Day 9 by Zhinga Greaves Thursday December 11 Lawyer Bertram Commissiong QC and former Chairman of CCYY, a company established by Dr Aldo Rolla to facilitate the borrowing of a loan of US$51 Million from West LB, a consortium of Italian banks has described his position at CCYY as that of a figurehead. Giving evidence today at the Commission of Inquiry into the Ottley Hall and Union Island Resort projects,  Commissiong said with regard to Ottley Hall and Dr Rolla, he followed and acted on instruction. He also denied having knowledge at the time that

Bertram Commissiong, QC

government was providing Dr Rolla with a primary prior guarantee. He also denied having any knowledge of Sache’s policy of not insuring loans to which an Italian was at the receiving end and adamantly stated that he was not the one that deliberately kept that information from West LB. Meanwhile, Commissioner Justice Ephraim Georges says it’s remarkable that such confidence was placed in Dr Rolla when no due diligence was hitherto done on him, nor was a feasibility study conducted before beginning the project.

Day 8 by Zhinga Greaves Wednesday December 10 The responsibility for the planning and the execution of the Ottley Hall project continues to be placed on the shoulders of former Prime Minister Sir James Mitchell and Dr Aldo Rolla as yet another member of the New Democratic Party disassociated himself from those areas of the project. Former Attorney General and Minister of Justice, the lone witness in today’s proceedings testified that negotiations and decisions on the project were done mainly by the former prime minister. He testified that the prime minister

Parnell R Campbell, QC

had hitherto demonstrated such expertise and ran the country so well that in Campbell’s opinion, he had the stamp of approval of Vincentians with regard to executing the project as well as that of his Cabinet. The testimony of former Senior Economist Laura Anthony-Browne at the inquiry said that Campbell traveled to Italy to meet with West LB to negotiate the terms of the loan and the sovereign guarantee. Campbell however stated that the terms of the loan and sovereign guarantee were already negotiated and decided on by Sir James Mitchell, before he went to Italy. Campbell said Dr Rolla was introduced to the prime minister by High Commissioner to the United Kingdom Richard Gunn, and as a result no due diligence was done since it was assumed that the proper checks on Dr Rolla were carried out by Gunn. He admitted that if the proper due diligence was carried out the catastrophe would have been averted. The question of fraud was raised by counsel to the commission Senior Counsel Anthony Astaphan who pointed out that though the decrepit Estranka ship was used in the package to secure the loan from West LB to which the government gave a sovereign guarantee, it was again used to as security for loans from the National Commercial Bank. Highlighting another apparent case of fraud Astaphan also pointed out that the Italian company Sache would not have insured the loan if they knew that an Italian in that case Dr Rolla, was to be the receiving end, and thus Dr Rolla’s decision to establish the shell company St Vincent Yachting and Shipping Co. Ltd. Tomorrow the commission will hear testimony from lawyer Bertram Commissiong.

Inquiry Postponed by Zhinga Greaves
Tuesday December 9

Public hearings in the Commission of Inquiry into the Ottley Hall project were halted today after counsel to the commission Senior Counsel Anthony Astaphan fell ill. Those scheduled to give testimonies today, Brian Huggins, Glenford Stewart and Bentley Browne were instructed to return on Friday when they appeared before the commission this morning. The commission is however scheduled to resume tomorrow, and will hear further testimonies from former National Commercial Bank (NCB) chairman Richard Joachim, former Attorney General Parnell Campbell and lawyer Bertram Commissiong. Testimonies heard in the inquiry yesterday suggest that like the Ottley Hall project there were also serious breeches of proper procedure in the Union Island Marina project. Morrison Baisden former vice chairman of the St. Vincent National Trust testified that Frigate Island situated just off Union Island, which was in the custody of the trust was leased by the then government to the Union Island Resorts Ltd., a company believed to have been owned by Dr Aldo Rolla, but was never in the first place legally conveyed back to government by the trust. Baisden said the trust refused to convey the lands to government because they disapproved of it being used for the construction of a marina by Union Island Resorts Ltd. Baisden also testified that no environmental assessment was done prior to construction. He pointed out that the trust had asked that Frigate Island be protected and had proposed to Caricom that it become a special protected area in the Caribbean. Two species of lizards never before found anywhere else in the world were discovered on the island. He said that they were told that construction would not interfere with the island, but that turned out not to be the case. He said solid piers were put across the channel so that the currents could no longer flow causing the water to become stagnant and posing a health and eco system threat.

Inquiry Resumes by Zhinga Greaves Monday December 8 Day 6 of the Commission of Inquiry into the Ottley Hall Shipyard and Marina and Union Island Marina projects got going at the Peace Memorial Hall earlier today. The role of the National Commercial Bank in the financing of the two projects was among the focus of today’s proceeding. But getting a clear picture from Richard Joachim, the man at the helm of the board at the National Commercial Bank (NCB) at the time when monies were advanced to the projects proved a difficult task. Joachim admitted to having no banking experience prior to being appointed to the board of the NCB as a director and then chairman; but admitted to little else, including sending out a handwritten letter advising that loans be advanced to Valditaro and the Union Island Resort Ltd., both companies apparently owned by Dr Aldo Rolla. Former NCB General Manager Beverly Brisbane, during his testimony given weeks ago, said he was told by Joachim that then Prime Minister Sir James Mitchell instructed that he release monies to Dr Rolla. Asked by counsel to the commission, Senior Counsel Anthony Astaphan, about this and whether it was normal procedure, this is what he had to say. Given his apparent lack of knowledge, the commissioner decided to refresh Joachim’s knowledge by presenting him with documents bearing his signature. Joachim stopped short of admitting that the documents were penned by him. Joachim then replied that he felt it wise to have his lawyer present when next he appeared before the commission of inquiry. Joachim returns to the Commission of Inquiry on Wednesday, at which time he will report to them what action he intends to take with regard to procuring legal council to represent him in the matter. Morrison Baisden, former Deputy Chairman of the St Vincent National Trust, also gave evidence today. He testified that Frigate Island, a Grenadine island and the surrounding lands, which were in the possession of the trust, were taken by the government at the time,  without the permission of the trust and used for development by Union Island Resorts Ltd. Baisden stated

Richard Joachim     Morrison Baisden     Ada Johnson

that the trust was concerned about the negative impact the Union Island Marina project would have on the island’s ecosystem. The commission also heard testimony from Registrar of the High Court Ada Johnson and pharmacist Matthew Thomas. It will hear testimonies this week from former Attorney General Parnell Campbell and lawyer Bertram Commissiong, both of whom appeared to give evidence today, but were instructed to return on Wednesday.

Construction Flaws by Zhinga Greaves Friday November 21 How much knowledge did the builders of the Ottley Hall Shipyard and Marina actually have in the construction of such projects? That’s just another of the numerous questions raised during the public inquiry into the Ottley Hall project yesterday. Paul Cyrus, General Manager of the shipyard, who has worked there since 1993 while it was being constructed,

testified yesterday that there were a number of serious flaws in the construction of the Ottley Hall project. One such flaw included the insufficient compacting of the reclaimed land to facilitate the sustained support of the shipyard. He also pointed out that in another case one of the buildings that formed part of the project was constructed without internal steps. Cyrus said he became concerned about these flaws and complained about the breaches to the Chairman of Caribbean Charter and Yacht Yard Holdings (CCYY) Bertram Commissiong, but his concerns were never addressed. Instead, Cyrus testified that he was “hauled over the coals” by Dr Rolla of Valdetarro for making the complaints, and that he should remember that it was Valdetarro who was his employer, not the government of St. Vincent and the Grenadines. The inquiry has been adjourned and will continue on December 8 at the Peace Memorial Hall.

Dumping Ground by Zhinga Greaves Thursday November 20 It proved to be yet another day of disturbing testimonies when General Manager of the Ottley Hall Marina and Shipyard Paul Cyrus, who has worked there since 1993, took the stand this morning. Based on Cyrus’ testimony, Anthony Astafan, Senior Counsel to the commission presented to the commission the theory of the Ottley Hall project being a dumping ground for inferior equipment. Cyrus testified that some 3,471 pieces of equipment were to be bought from US$20 Million drawn down from the St. Vincent and the Grenadines-guaranteed loan from West LB, but only1,047 pieces were ever received. As a result Caribbean Charter and Yacht Yard Holdings (CCYY) ended up getting only about US$4 Million worth of equipment. Even more disturbing in his testimony was the grossly exaggerated prices given by Valditaro for the cost of equipment. For example, 20 computers were listed to be purchased at a cost of US$7,000, a potato peeler was also to be purchased at a cost of US$2,000. He also testified that of the US$4 Million worth of equipment that were received, a large number of them were second-hand and actually came from the Valditaro Shipyard owned by Dr. Rolla, in Italy. Accountant Kenneth Young also testified during the morning session of the inquiry. He testified that Dr Rolla was very secretive, and mostly whispered  while on the phone in Young's presence at the company's offices.

Paul Cyrus     Ken Young

Matadial Speaks by Zhinga Greaves
Thursday November 20

Day four of the public hearings into the Ottley Hall development project began yesterday with testimonies from Attorney at Law, Hans Matadial. Matadial was retained by the National Commercial Bank (NCB) in relation to a mortgage on the Estranka, the boat which was St. Vincent Yachting and Shipping Company’s investment in Caribbean Charter and Yacht Yard Holdings (CCYY), the recipient of the US$51 Million guaranteed by this country. Matadial testified that he personally visited Italy and observed the Estranka on dry dock in a state of disrepair. He also testified that he had difficulty securing a buyer for the ship on behalf of the bank, as the purchasers seemed not interested in the asking price. Matadial dealt with the lease of Crown lands to the Union Island Resort Ltd., testifying that he was advised to draw up a lease agreement for lands in the Grenadines to be conveyed from government to Union Island Resorts Ltd. It was however established that these lands were vested in the National Trust of St. Vincent and the Grenadines and some of the members of the trust were not in agreement with this conveyance. Despite this, however, Matadial was told to go ahead and prepare the lease agreement. Matadial, who drew up this lease to Union Island, said he never saw any conveyance from the National Trust vesting the lands back to the government.

Brisbane Regrets by Zhinga Greaves
Wednesday November 19

Day four of the public hearings into the Ottley Hall Development Project began today with testimony from Winston Beverly Brisbane the former manager of the National Commercial Bank (NCB) who also gave a keen insight into financing of the project. He testified that in a number of cases loans were released to Valdettaro Company owned by Dr. Aldo Rolla through round robin procedure by the bank’s Board of Directors. He however explained that this was not the usual way of doing business and was only usually done for existing customers who had something exceptional and wanted the money advanced on short notice. He explained that round robin is where board application papers for an advance are sent to the directors’ homes or offices. They would then look at it and call the bank with their approval or disapproval. He said this was done in the case of Valdettaro since Dr Rolla seemed always to be in a hurry. Brisbane said that this procedure did not properly allow for directors to discuss the applications and arrive at a consensus decision. Brisbane testified that on one occasion he received a call from the then NCB Board chairman Richard Joachim telling him that the then Prime Minister Sir James Mitchell wanted him to advance over $1 Million in further funds to Valdettaro Construction through round robin. He says he told the chairman that this was “giving away the money of the bank”, that this loan would drain the resources of the bank, that the instructions to release the loan must be in writing, and that his resignation was an option he may consider, as he was against the granting of the loan. Brisbane further testified that Joachim called him back shortly after that exchange and said that he would get the written instructions and that he may resign if he wished. He told the inquiry that this was the first time that the prime minister ever gave directives on the granting of loans. At the time when these monies were being advanced, Valdettaro was experiencing serious financial problems and was having difficulty accessing funds from West LB for the construction of the Union Island Marina Project. The Union Island project was estimated to cost somewhere in the region of $100 Million. According to Brisbane NCB was only to fund the project in its latter stage but it was being asked to fund it at the beginning. Brisbane wrote a number of memos to the Board of Directors of the bank, which was appointed by the government, advising them that granting these loans would have a serious impact on the bank, but he was continually ignored. Brisbane also responded to the inquiry’s counsel, Dominican lawyer Anthony Astaphan, that none of the directors had any banking experience. Brisbane also stated that his regret was that he “should have resigned when the first letter was written”.

Sutherland Accounts by Rochelle Baptiste
Wednesday November 19

Chartered Accountant and former partner with the accounting firm Parnell Kerr Foster, Sylvia Sutherland, who was charged with the accounting examination of the Ottley Hall Marina Project on behalf of government spoke out yesterday at the inquiry. Sutherland revealed that the then New Democratic Party government was not aware of four agreements or their intentions signed by West LB and Valdettaro. Sutherland, who visited Ireland to deal with matters of the project, said she could vouch that the government had no knowledge, but could not do the same for Caribbean Charter and Yacht Yard Holdings (CCYY). Asked by the Inquiry officer, lawyer Anthony Astaphan whether she found the four agreements unusual, Sutherland answered in the positive. Sutherland was asked whether she received any explanation from West LB as to the reasons for signing the four agreements to which she answered no, except for one occasion when she inquired and was told that one of the agreements was to cover certain professional expenses. Another question posed to the accountant was whether or not she found something fishy about the intentions of West LB and Valdettaro upon signing the agreements. Sutherland said not really, but when pushed admitted that something was indeed wrong.

No Knowledge by Zhinga Greaves Tuesday November 18 Vincentians were given some insight into the personality of Dr. Aldo Rolla, the primary investor in the Ottley Hall Marina Project and the Valditaro Group of Companies for the first time today. Testifying in the Commission of Inquiry into the project this morning, lawyer Samuel Commissiong said that after meeting with Dr. Rolla on several occasions he concluded that he was clever and had extensive business experience. But he said he had no evidence to conclude whether Dr Rolla was honest or dishonest. Commissiong testified that his brother and partner Bert had a closer collaboration with Dr. Rolla, and that his short meeting with Dr. Rolla and Bert in 1990 ended when he left for court. He said he later found out what Dr. Rolla had wanted to discuss from his brother. Commissiong further testified that he was concerned about the effect bad weather pattern could have on the project, since he had seen “the sea surge into that place with devastating effect.” Commissiong confirmed that Claude Leache, former Manager of the Development Corporation, had asked Dr. Rolla about a feasibility study at a meeting in June 1994, and that Dr. Rolla responded that the Royal Navy and the US Coast Guard had given him good information. Former New Democratic Party government ministers Louis Jones, Jeremiah Scott and Alpian Allen also gave evidence today.

Samuel Commissiong     Jerry Scott

Allen testified that he was on the “second 11 team” and could not attend Cabinet meetings, since he was just a Parliamentary Secretary in the Ministry of Health when the project was conceived and implemented. Jones said although he was at a Cabinet meeting when Dr. Rolla addressed Cabinet, he never saw loan agreement that was signed in 1991. He also testified that he had never seen a feasibility study for the project.  Scott, who was Minister of Works, said that he too witnessed Dr. Rolla’s presentation, but his ministry was never asked to participate in the any manner in the project. He said, “Not even an engineer was assigned to the project.” Scott further stated that no documents relating to the project were made available to Cabinet members. The only information he had was that this country and Italy would co-sign as guarantors for the US$50 Million loan.

Officers Excluded by Zhinga Greaves Monday November 17 The Ottley Hall Commission of Inquiry continued today at the Sunset Shores Hotel with testimonies from a number of persons. Director General of Finance and Planning, Maurice Edwards was the first called to give evidence to the Ottley Hall Marina and Shipyard Inquiry. Edwards has been Director General since 1990. Consistent with the commission's Senior Counsel Anthony Astaphan’s report on Friday, that it appeared that relevant senior public officers were excluded from the planning and execution of project, Edwards said that he only became aware of the project just before it went to Cabinet for approval. A point also highlighted by Astaphan was that it appeared that no Due Diligence report had been done before the government embarked on the project. Edwards said he never saw any such report done on Dr. Aldo Rolla or any of his companies, otherwise known as the Valditaro Group of Companies. He also testified that he never saw the loan agreement between West LB, the consortium of European banks that loaned the US$51 Million to Caribbean Charter and Yacht Yard Holdings (CCYY) until 1995, 3 years after it had been signed.  Edwards testified to having expressed concern about the project and its ability to repay the loan taken out to build it, and said he requested of the then prime minister and Minister of Finance James Mitchell that a meeting be held to discuss the details, but this was not done.

Laura Anthony-Browne     Brendon Browne

He also testified that he could not recall the World Bank, the International Monetary Fund, the Eastern Caribbean Central Bank or any other regional financial institutions ever being consulted on the project. He also testified that the National Commercial Bank loaned money to Valditaro companies in 1995/96 even after that company went into liquidation. Laura Anthony-Browne, who at the time was a Senior Economist in the Ministry of Finance and Planning, also took to the stand today. She testified that she was present at a meeting in Italy where the US$51 Million loan, which this country guaranteed was being negotiated. She however testified that despite the fact that she was responsible for preparing Debt Sensitivity reports in such situations, she was not allowed to study any of the draft agreements of the loan and never had any detailed discussion with anyone about the loans. This supports Astaphan’s statements Friday that the project was shrouded in mystery. It was also unusual given the fact that it was the single largest loan on the nation’s Debt Portfolio at that time. Other persons who took the stand today were Cabinet Secretary Brendon Browne, Registrar of the High Court Ada Johnson, Registrar of Companies Kaywanah Springer-Martin, Assistant Corporate Secretary in the National Commercial Bank Sharon DaSantos, and Giddeon Quow, Registrar of Shipping. The inquiry continues tomorrow and will hear testimonies from former government ministers Alpian Allen, Jerry Scott and Louis Jones, among others.

Inquiry Opens by Zhinga Greaves Friday November 14 Public hearings of the Commission of Inquiry into the Ottley Hall Development Project got going this morning at the Sunset Shores Hotel with opening statements by Commissioner Ephraim Georges. Georges reiterated his comments made at the opening of the commission earlier this year noting “that the inquiry is not a political witch hunt but is intended to enquire into the reasons for the failure of the Ottley Hall project, which is responsible for its failure and to what degree.” Evidence to this end were presented by counsel to the commission Senior Counsel Anthony Astaphan who pointed out that the results of their investigations show that Dr Aldo Rolla, a key player in the Ottley Hall project was introduced to the then Prime Minister Sir James Mitchell through the law chambers of Commissiong and Commissiong, following which a deep friendship developed between Dr Rolla and Sir James. Dr Rolla, owner of Valdettaro Construction, which was responsible for the construction of the marina and shipyard, according to Astaphan was vested with enormous trust and confidence by the then government. However, evidence shows breaches of proper procedures and cases of political interference. Astaphan also pointed out that the facts suggest that no in-depth fiscal examination or due diligence was done by the New Democratic Party government before they decided to be part of the project. This he pointed out is evident by the fact that although Valdettaro Construction Company was in fiscal and financial problems since the early 90’s, the same time when plans to build the marina and shipyard were in motion, government went ahead and guaranteed the loan. Astaphan pointed out that the facts surrounding the planning and execution of the Ottley Hall project showed it to be shrouded in secrecy with details kept from the then Director of Finance and other senior relevant public officers.

Justice Ephraim Georges       Anthony Astaphan

He went on to add that their investigations showed that given the fiscal and financial state of the country at the time an enormous obligation of trust was placed in then Sir James, Attorney General Parnell Campbell, officers of the St Vincent Yachting Shipping and Company Ltd., Caribbean Charter and Yacht Yard Holdings (CCYY), Chairman and the Board of the National Commercial Bank to act in a manner to protect the interest of the people of St Vincent and the Grenadines, not the project nor Dr Rolla’s interests. CCYY, a company of which 49% is owned by the government and 51% by the St Vincent Yachting and Shipping Company borrowed over US$50 Million from a consortium of Italian banks known as West LB for the construction of the marina. That loan was guaranteed by government. However, he noted that the project appeared to have been structured, so that this country would bear the entire risk in the event it failed. Astaphan says the investigations also raised questions as to the conduct and due diligence of the consortium of banks, West LB that made the loan to CCYY, which was guaranteed by the government. Hearings are expected to continue at the Sunset Shores Hotel until the November 28, following which they will continue at the Peace Memorial Hall from December 1.