Economic Development Minister Guy Joseph continues to do damage control after a comfort letter bearing his signature to Pajoah Ltd, and committing the government to repaying a loan of US$62 million at 3.59% over 15 years began being circulated online.
The Labor Party has called on the government to verify the authenticity fo the document and to make a statement on the matter. The Party says if the document is in fact genuine then Joseph was out of place to tie the government down to such a commitment.
The Castries South East Parliamentary Representative has accused the opposition of being hypocrites.
The letter addressed from the Ministry of Economic Development has been making rounds on social media, leaving many questioning whether Minister Guy Joseph was within his authority to sign and agree to such a commitment.
Speaking to reporters last week, Infrastructure Minister Stephenson King said only the Prime Minister who is also the Minister for Finance has the authority to make the sort of commitment contained in the letter.
However, the Economic Development Minister had this to day during this week’s budget debate.
Minister Joseph went on to accuse the opposition SLP of signing comfort letters to investors when they were in government.
The letter in circulation is for the L.E.D street lighting project which was already financed by the Caribbean Development Bank and the St Jude Hospital Project.
Prime Minister Allen Chastanet has since denied having seen the letter or authorizing such a commitment.
The SLP has accused the government of being shady and corrupt as a result while minister Joseph has accused the opposition of using scare tactics to drive away investors.