(Jamaica Observer) – Cabinet is to be asked to write off US$3 million in loans to Jamaica Cricket 2007 as Jamaica and the region continue to count huge losses from their controversial decision to host Cricket World Cup 2007, the quadrennial tournament that determines supremacy in the limited-overs form of the game.
The size of the debt and the inability of Jamaica Cricket 2007 to repay were disclosed at Tuesday’s sitting of Parliament’s Public Accounts Committee (PAC), which heard responses to Auditor General Pamela Munroe Ellis’ annual report for 2007/2008.
Deputy Financial Secretary Rolda Gray told the PAC that in 2006 Jamaica Cricket 2007 Ltd was granted two loans – one for US$6 million and the other for US$2 million. Both should have been repaid on January 31, 2007 and July 31, 2007 respectively.
“In February 2007, Jamaica Cricket 2007 paid US$3.785 million which is the only instalment paid on the loan to date, and the company is no longer operational,” said Gray.
But it was her next statement that raised eyebrows and caused some committee members to fume.
“By correspondence dated February 15, the company indicated that it would not be able to pay the outstanding balance of US$3 million of the US$6 million,” said Gray, reading from a prepared text. “The Ministry of Finance and the Public Service has been trying to obtain audited financial statements from the company to establish its true status. This would have assisted in determining Jamaica Cricket 2007 Limited’s ability or inability to service the loans.”
Gray said that the company ceased operation without completion of its final accounts. “I understand the final reports have been completed but they have not been signed and I need to follow up on this one,” she said. “In discussion with the public expenditure policy co-ordination division within the ministry, arrangements are to be made to finalise the accounts and get them signed and to prepare a Cabinet submission to outline the circumstances why the balances cannot be paid, and to request a write-off in order that the company can be wound up.”
Jamaica Cricket 2007 was established in 2004 with the mandate to provide a cricket stadium, as well as related facilities and services for the successful staging of the International Cricket Council tournament.
One of the structures erected for the competition was a stadium in Trelawny where the Cricket World Cup opening ceremony and one of the semi-final matches were staged. But since then, the stadium’s ability as a revenue earner has been hampered by a lack of lighting there.
