Thursday, 16 February 2012

OEM companies claim £7 million

Rosia Bay development project
Government has initiated a forensic audit of OEM dealings
GIBRALTAR (GibChronicle) Government revealed yesterday that the liquidators of OEM and the GSD Government appear to have agreed that the taxpayer would pay nearly £7 million to OEM as full and final settlement of all claims. In a statement from No 6, which has already initiated a forensic audit of the OEM dealings with the previous GSD government, said that even though this position was arrived at before the general election, nothing has been said in public until now. In their probe, No 6 says the Audit will look at payments made to both OEM and Haymills. No 6 says that the claim against the Government was made by several companies in the OEM group, OEM Rosia Developments Ltd, OEM Cumberland Developments Ltd and The Tower Building Ltd, in respect of the various low cost housing projects for which they acted as developer. It is in respect of the work done on the sites before the previous Government took them over.>>>

“The new Government has been told that the decision to pay was arrived at over a period of time and prior to the elections in December when a position was arrived at which was agreeable to both parties. The previous Government was proposing to make a payment of £6,977,738,” said a Government spokesman.

This, said No 6, is the latest development in the “OEM saga which started way back with the decision taken by the GSD Government to award the company the tender for the construction of the so-called affordable homes in the south district in the first place.” 

(See also: on the old JimenaPulse)

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