Newco gives their side in Lufthansa controversy
It is becoming a real case of he-says, he-says, as today the entity seeking millions of dollars in damages from G.O.B. for its termination of an airport management contract in 2003, weighed in with its own press release via email from Boston. Chairman of Newco, Carl R. Vercollone, refutes government’s claim that Lufthansa is not affiliated with Newco and that they did not meet the necessary requirements to carry out the project. The release reads in part: “Lufthansa Consulting has an interest in the ownership of Newco and would have been responsible for airport management and operations as provided in the Concession Agreement. Shortly before the termination action by the G.O.B., Lufthansa Consulting again assured the G.O.B. of its strong commitment to provide management for the Airport as agreed in its Concession Agreement. The termination action was contrary to the requirements of the Concession Agreement and, indeed, came after a detailed financing plan had been presented to the G.O.B. by Newco, including the identities and due diligence requirements of prospective debt and equity investors that would have modernized and expanded the airport.”
Newco reiterates that: “Arbitration is now proceeding according to United Nations Uncitral Rules and both sides have appointed arbitrators who will appoint a third presiding arbitrator. Following the establishment of the third arbitrator, further proceedings will be scheduled leading to an arbitration decision as soon as possible.”
Although the release did not specify the damages being sought, according to the Amandala, the German-based company is seeking an arbitrated award from G.O.B. for an estimated thirty-three million U.S. dollars for alleged breaches of the contract signed in 2000.
Earlier this week in its own press release, G.O.B. claimed Newco is a Belizean company without any directors or shareholders from Lufthansa. G.O.B. further stated that it terminated the relationship with Newco on October twenty-seventh, 2003 because the company was unable to, “raise the capital to develop the project despite several extensions granted to it by G.O.B. and the Belize Airport Authority.”
Since severing ties with Newco, the government has entered into a management contract with the Belize Airport Concession Company Limited, a consortium of local and foreign investors, to expand and develop the facilities and infrastructure at the P.G.I.A. News Five faxed a copy of the Newco press release to the Attorney General, Francis Fonseca today, but was unable to get his comment as he was in meetings.
