Nov 03 - GSD Reveals Credit Finance Loan To Risso Bakery Developers Was For Purchase Of Government Land
Investigations carried out by the GSD have established that the loan, confirmed by the Chief Minister, made to the developer of the Risso Bakery site by Credit Finance Company Limited was intended to finance the purchase of an adjacent plot of land is in fact owned by the Government.
A spokesman for the GSD said: “The first indication of this indirect connection between the Government and the developer (Threepwood Limited) was at a Development and Planning Commission meeting on 25 September 2015 when the developer was seeking outline planning permission for an extension of the hotel by 25 rooms to 75 rooms onto the adjacent site.
"At this meeting the disclosure of the Government’s interest both indirectly in respect of the loan from Credit Finance, and directly by ownership of the adjacent plot was made, which plot the Developer stated was “key to the operation of the Hotel”.
“The fact that Government is indirectly financing the purchase of land from itself is a matter of concern. Two conflicts of interest need to be explained, firstly that of the Ministers sitting on the DPC, did they declare an interest? Secondly, in the process by which Credit Finance takes lending decisions? It is a company controlled by Government lending to a developer (who destroys our heritage) to purchase land from the Government which inflates Government revenues. How many other projects may have been financed in this way?
“At a time when mortgages to buy affordable homes are hard to come by, should not the Government through its ownership of Credit Finance be open and transparent about how to obtain a loan from Credit Finance ….for now this is the best kept secret.”
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