The Rooms on the Beach property in Ocho Rios
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Howard Mitchell, President of the PSOJ and Senator Aubyn Hill, CEO of the Economic Growth Council
There's growing debate in the business community over the comments by Chairman of the Economic Growth Council (EGC) Michael Lee Chin, regarding the former Contractor General's controversial report on the Government's sale of the Rooms on the Beach property.
Howard Mitchell, President of the Private Sector Organisation of Jamaica (PSOJ), has responded strongly to the statements.
Mr. Lee Chin earlier this week said he was not pleased with the turn of events following the former Contractor General's report.
He stated that the country could lose significant sums in investment should Puerto Caribe Properties decide to back out of the deal because of the controversy.
Mr. Mitchell is arguing that the position taken by Mr Lee Chin is problematic and inappropriate.
"I don't think that the particular investors were subjected any pressure. Nothing I have seen publicly has intimated that they have done anything irregular or been involved in anything inappropriate. I think that the chairman, to make that kind of statement, is a little over the top," he argued.
He further contended that Mr. Lee Chin's comments could be perceived as "attempts to set up a difference between a local investor and a foreign investor and... it attempts to restrict the rights of a sovereign country ton investigate its transactions."
Mr. Mitchell has acknowledged that there is a need to attract overseas investments, however he believes some level of due diligence should be placed on them, rather than "saying that a country should go easy on investigating a transaction if it involves a foreign national."
Surprised
Government Senator Aubyn Hill, who is also CEO of the Economic Growth Council, has in his personal capacity expressed surprise at Mr. Mitchell's position.
He believes the issue is that Jamaica should treat its potential investors carefully.
"There are 50 states in the United States that encourage you to invest in them and 190-odd countries. Investors do have choices," he said, pointing out that Mr. Lee Chin would perhaps have been highlighting the issue of "a willing seller versus a willing buyer."
He added that this controversy may send the wrong signal to foreign investors because it "it tends to lay all its claim on a valuation."
"In the private sector, when you're buying and selling something, the banks will ask you to get a valuation or whatever, but it's what the willing seller is gonna pay to a willing buyer. The valuation may or may not be a guide; it may or may not have anything to do with anything," he reasoned.
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