Independent Senator Raises Concerns Over Lack of Repayment Plan for Kensington Oval Upgrade
Independent Senator Andrew Mallalieu raises concerns about the lack of a business plan for Kensington Oval Management Inc.'s (KOMI) repayment of a US$25 million loan guaranteed by the Government. He questions the ruling administration's priorities. Minister in the Prime Minister's Office, Senator Dr Shantal Munro-Knight, believes the upgraded facility will financially benefit Barbados in the long run.
Independent Senator Andrew Mallalieu is concerned the country is yet to see a business plan outlining how Kensington Oval Management Inc. (KOMI) intends to repay the US$25 million, which Government is guaranteeing for the upgrade of Kensington Oval.
Moreover, the businessman is questioning the priorities of the ruling administration, noting there were several other pressing projects, especially those immediately related to the country’s tourism industry, which he said demanded the urgent attention of Government.
However, in her piloting of the resolution in the Senate, Minister in the Prime Minister’s Office with responsibility for Culture, Senator Dr Shantal Munro-Knight maintained that the refurbished facility would not only pay for itself, but would also pay significant dividends to the people of Barbados in the long run.
Mallalieu said: “Generally, a guaranteed loan is used by a borrower with poor credit or does not have the financial means. It generally enables financially unattractive candidates to obtain a loan. I think we need to recognise that the only reason we would need a guarantee is that this is financially unattractive. KOMI can’t stand on its own based on its history and Government needs to stand behind it.” (CLM)
