{"id":115044,"date":"2020-08-12T15:08:47","date_gmt":"2020-08-12T19:08:47","guid":{"rendered":"https:\/\/antiguanewsroom.com\/?p=115044"},"modified":"2020-08-12T15:08:47","modified_gmt":"2020-08-12T19:08:47","slug":"jamaica-victory-for-butch-stewart-court-voids-2012-probe-of-sandals-whitehouse-sale-integrity-commission-considers-next-step","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/jamaica-victory-for-butch-stewart-court-voids-2012-probe-of-sandals-whitehouse-sale-integrity-commission-considers-next-step\/","title":{"rendered":"JAMAICA: Victory For \u2018Butch\u2019 Stewart – Court Voids 2012 Probe Of Sandals Whitehouse Sale , Integrity Commission Considers Next Step"},"content":{"rendered":"
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The Judicial Review Court has ruled that the contractor general lacked jurisdiction to probe the sale of the Sandals Whitehouse Hotel in Westmoreland, handing a victory to hotelier Gordon \u2018Butch\u2019 Stewart and his firm Gorstew Limited, nearly a decade after the deal went through.<\/p>

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The Government of Jamaica sold the hotel, including the land, building, fixtures, fittings, furniture and equipment to Gorstew\u2019s nominee, Sandals Whitehouse Management Limited, for approximately US$40 million. The deal was finalised in April 2011 and the assets transferred to Sandals Whitehouse Management Limited.<\/p>\n

The contractor general \u2013 an office that was merged with the Integrity Commission in early 2018 \u2013 launched an investigation of the transaction in early 2011, but was blocked from proceeding with the probe by the court pending a hearing of Gorstew\u2019s lawsuit that accused the contractor general of going beyond its remit.<\/p>

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The Judicial Review Court in its ruling of July 22 agreed with Gorstew\u2019s position, and declared that the investigation launched by the agency was illegal.<\/p>

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Stewart declined to comment on his victory \u201cat this time\u201d, his office said. Greg Christie, the former contractor general and current executive director of the Integrity Commission, told the\u00a0Financial Gleaner<\/b>\u00a0on Monday that the special investigation had never been completed because of the injunction.<\/p>\n

The dealings around the hotel date back to around 1990 when the Government struck a deal with Gorstew Limited, a lease and sale agreement, for lands located at Ackendown in Westmoreland for development of a 200-300 room hotel.<\/p>

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Gorstew was to construct the hotel between June 1991 and November 1992, at its own cost, but failed to meet the deadline.<\/p>\n

Around a decade later, in 2001, Gorstew and state agencies Urban Development Corporation, UDC, and National Investment Bank of Jamaica, NIBJ, struck a joint-venture agreement to construct a 360-room hotel on the said property at Ackendown.<\/p>

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The hotel, per the agreement, would be leased to Gorstew for 20 years and operated under the Sandals brand.<\/p>

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The land to be developed was held in a vehicle called Ackendown Newtown Development Company Limited, or ANDCo \u2013 the shareholding in which was split: UDC, 37.43 per cent; NIBJ, 29.96 per cent; Gorstew, 32.61 per cent.<\/p>\n

The initial costing for the construction of the hotel was projected at US$60 million and was financed largely by the Government of Jamaica.<\/p>\n

However, the final construction cost for the hotel was almost double, at approximately US$110 million.<\/p>\n

The court noted that the construction finalised in April 2011 was beset by several problems, including cost overruns, delayed completion and substandard construction; and that Gorstew sued its partners in the joint venture, alleging losses.<\/p>\n

Eventually, however, the parties opted to resolve the issues among themselves. As part of the resolution reached in early 2011, they agreed that Gorstew would purchase the hotel known as Sandals Whitehouse.<\/p>\n

By that time, the contractor general had launched an investigation into the divestment, invoking its statutory powers to do so in January 2011.<\/p>\n

The following year, in June 2012, the contractor general requisitioned documents about the hotel deal from Gorstew Limited. Stewart responded by filing a claim in court in February 2013 challenging the legality of the contractor general\u2019s investigation. Stewart and Gorstew contended the contractor general had no jurisdiction to investigate the divestment of state assets; that the probe was outside the scope of the Contractor General\u2019s Act, CGA, and therefore illegal.<\/p>\n

Stewart\u2019s lawyers \u2013 Hugh Small QC, Ransford Braham QC and Jerome Spencer \u2013 argued to the court that the contracts covered by the CGA relate to those that flow from a tender and award process, but that was not the mode by which the Sandals Whitehouse Hotel was divested. It was, they argued, based on a consensual agreement between the parties.<\/p>\n

Justice David Fraser, who wrote the judgment on behalf of the three-member judicial review panel \u2013 the others being Justice Lloyd Hibbert and Justice Sarah Thompson-James \u2013 concluded as a result of that argument that the contractor general was not empowered to investigate the sale.<\/p>\n

Justice Fraser granted an order invalidating the probe that was initiated in 2012 with the document request to Gorstew.<\/p>\n

Attorney Jacqueline Samuels-Brown QC, who represented the contractor general in the case, said the next steps would be determined by instructions from the Integrity Commission. The commission, meanwhile, said it was still studying the Judicial Review Court\u2019s judgment.<\/p>\n

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The Judicial Review Court has ruled that the contractor general lacked jurisdiction to probe the sale of the Sandals Whitehouse Hotel in Westmoreland, handing a victory to hotelier Gordon \u2018Butch\u2019 Stewart and his firm Gorstew Limited, nearly a decade after the deal went through. The Government of Jamaica sold the hotel, including the land, building, […]<\/p>\n","protected":false},"author":3,"featured_media":1549,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-115044","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-regional"],"yoast_head":"\nJAMAICA: Victory For \u2018Butch\u2019 Stewart - Court Voids 2012 Probe Of Sandals Whitehouse Sale , Integrity Commission Considers Next Step - Antigua News Room<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/antiguanewsroom.com\/jamaica-victory-for-butch-stewart-court-voids-2012-probe-of-sandals-whitehouse-sale-integrity-commission-considers-next-step\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"JAMAICA: Victory For \u2018Butch\u2019 Stewart - Court Voids 2012 Probe Of Sandals Whitehouse Sale , Integrity Commission Considers Next Step\" \/>\n<meta property=\"og:description\" content=\"The Judicial Review Court has ruled that the contractor general lacked jurisdiction to probe the sale of the Sandals Whitehouse Hotel in Westmoreland, handing a victory to hotelier Gordon \u2018Butch\u2019 Stewart and his firm Gorstew Limited, nearly a decade after the deal went through. The Government of Jamaica sold the hotel, including the land, building, […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/antiguanewsroom.com\/jamaica-victory-for-butch-stewart-court-voids-2012-probe-of-sandals-whitehouse-sale-integrity-commission-considers-next-step\/\" \/>\n<meta property=\"og:site_name\" content=\"Antigua News Room\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/antiguanewsroom\" \/>\n<meta property=\"article:published_time\" content=\"2020-08-12T19:08:47+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/mlavawteztbj.i.optimole.com\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2017\/05\/CHRIS-Award-release-2-1.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"852\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Editor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@AntiguaNewsRoom\" \/>\n<meta name=\"twitter:site\" content=\"@AntiguaNewsRoom\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Editor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/antiguanewsroom.com\/jamaica-victory-for-butch-stewart-court-voids-2012-probe-of-sandals-whitehouse-sale-integrity-commission-considers-next-step\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/antiguanewsroom.com\/jamaica-victory-for-butch-stewart-court-voids-2012-probe-of-sandals-whitehouse-sale-integrity-commission-considers-next-step\/\"},\"author\":{\"name\":\"Editor\",\"@id\":\"https:\/\/antiguanewsroom.com\/#\/schema\/person\/36cac05ef6398fe56ae3e6317f8535c5\"},\"headline\":\"JAMAICA: Victory For \u2018Butch\u2019 Stewart – Court Voids 2012 Probe Of Sandals Whitehouse Sale , Integrity Commission Considers Next Step\",\"datePublished\":\"2020-08-12T19:08:47+00:00\",\"dateModified\":\"2020-08-12T19:08:47+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/antiguanewsroom.com\/jamaica-victory-for-butch-stewart-court-voids-2012-probe-of-sandals-whitehouse-sale-integrity-commission-considers-next-step\/\"},\"wordCount\":723,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/antiguanewsroom.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/antiguanewsroom.com\/jamaica-victory-for-butch-stewart-court-voids-2012-probe-of-sandals-whitehouse-sale-integrity-commission-considers-next-step\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/mlavawteztbj.i.optimole.com\/w:1280\/h:852\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2017\/05\/CHRIS-Award-release-2-1.jpeg\",\"articleSection\":[\"Regional\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/antiguanewsroom.com\/jamaica-victory-for-butch-stewart-court-voids-2012-probe-of-sandals-whitehouse-sale-integrity-commission-considers-next-step\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/antiguanewsroom.com\/jamaica-victory-for-butch-stewart-court-voids-2012-probe-of-sandals-whitehouse-sale-integrity-commission-considers-next-step\/\",\"url\":\"https:\/\/antiguanewsroom.com\/jamaica-victory-for-butch-stewart-court-voids-2012-probe-of-sandals-whitehouse-sale-integrity-commission-considers-next-step\/\",\"name\":\"JAMAICA: Victory For \u2018Butch\u2019 Stewart - 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