An amount of US$1 million will be made available immediately by the
government for a housing development in Barbuda as a sort-term measure to deal
with a similar amount donated by a benefactor following the passage of Hurricane
Irma.
Prime Minister Gaston Browne, who is also the Minister of Finance, said the
government is taking this action in an effort to jump-start the project earmarked for
Luis Hill on Barbuda.
In a media post, PM Browne explained that the benefactor, Steve Morgan of the
UK had made a donation of US1 Million to help with the rehabilitation work on
Barbuda following the hurricane. But according to the prime minister, the money
was never received by the government due to regulatory and other issues
associated with Global Bank of Commerce, where the funds were deposited.
“Kindly note that the government never received the US$1M that was deposited in
the Morgan Trust account with GBC, the proceeds of which were intended to assist
with the recovery in Barbuda.
This was due to financial difficulties the bank was experiencing. The information
was communicated to Morgan and his team,” the prime minister’s posting
disclosed.
Consequently, the government has advised Morgan that it would seek to make
arrangements for the transfer US$1M to Global Bank of Commerce to assist with
that institution’s liquidity, to settle the transfer from Morgan’s account to fund the
Barbuda Luis Hill Housing project.
“The US$1M was remitted and credited to the government’s account with GBC as
agreed.
“However, we were subsequently advised by the management of GBC that they
could not make the Morgan transfer as agreed, because GBC’s corresponding bank
was placed into receivership and therefore could not make the Morgan transfer,” he
explained.
PM Browne further explained that whereas the government bears no liability for
the Morgan deposit, the proceeds of which were never paid to the government; the
Cabinet has instructed the Financial Secretary to make US$1M available to
construct homes at Luis Hill in Barbuda; the credit of which should be extended to
the Morgan Trust.
“Evidently, the government cannot be held accountable for monies that were held
in escrow at GBC, monies that it never received,” the prime minister concluded.
PM Browne was responding to questions that were raised by the Member of
Parliament for Barbuda, Trevor Walker, who inquired publicly about what has
happened to the funds from Morgan Trust.
Luis Hill is that area that is located east of the Sir McChesney George Secondary
School in Barbuda.
