Bahraini Spirit
May 17th, 2005, 07:18 PM
Hi, well stupid investor all I can say, enjoy:
A BD27.8 million ($72.6 million) deal to sell the Marina Club in Manama to a foreign investor has collapsed. The General Organisation for Social Insurance (Gosi) was supposed to have signed a contract with the buyer yesterday before handing over ownership of the club.
However, Labour Minister and Gosi chairman Dr Majeed Al Alawi announced the deal was off at a Press conference in his office in Isa Town.
In another development, he also revealed that some individuals connected to the deal could be prosecuted depending on the results of an investigation.
Officials have learnt that the brother of a Gosi employee, who knew of the deal from his manager, tried to blackmail the broker into paying him half of his one per cent (BD278,000) cut because he didn't have a licence.
An investigation committee was formed over concerns raised last Thursday by MP Isa Abu Al Fateh, who claimed the deal was being conducted through a non-official broker who had a relationship with a Gosi employee.
He had already urged Dr Al Alawi to halt the deal because of suspicions surrounding it.
"We formed an investigation committee on the issue which discovered that a brother of an employee at Gosi, who learnt about the deal from his manager, approached the broker and asked for a 50pc cut from his earnings," said Dr Al Alawi.
"The broker does not have a licence, therefore he's not getting anything from us. However, if the Gosi employee is found to have anything to do with his brother's actions, the case will be handed over to the Public Prosecution.
"The investigation committee is expected to hand us a report on its findings by the end of next week."
Meanwhile, Dr Al Alawi explained the sale of the club fell through because the Gulf buyer did not stick to the deal.
He added that the ministry was keeping the 10 per cent deposit, which Dr Al Alawi said it was entitled to under the terms of the contract.
"Regrettably, there was a new development on Sunday afternoon," said Dr Al Alawi. "Officials from the company that was buying the club told us they wouldn't be able to pay the full amount upon signing the contract like we agreed.
"They proposed to pay half in certified cheques and the rest in normal cheques as installments.
"This violates article five of the contract we had with them, which stated that the money should be paid in full upon signing the contract."
However, that wasn't the only snag as the company also tried to change the name of the buyer on the contract. "They wanted to change the name of the buyer on the contract from the name of the company's board chairman to that of the company," said Dr Al Alawi.
"We also found out on Sunday that the buyer was affiliated with a local bank, which previously presented an offer for the club but was rejected.
"This was unacceptable for us and we therefore decided to stop the deal right there and keep the 10pc deposit, which is our right since they are the ones who violated the agreement.
"This problem should not affect our policy towards foreign investors. I would like to emphasise that we welcome foreign investments in Bahrain."-
A BD27.8 million ($72.6 million) deal to sell the Marina Club in Manama to a foreign investor has collapsed. The General Organisation for Social Insurance (Gosi) was supposed to have signed a contract with the buyer yesterday before handing over ownership of the club.
However, Labour Minister and Gosi chairman Dr Majeed Al Alawi announced the deal was off at a Press conference in his office in Isa Town.
In another development, he also revealed that some individuals connected to the deal could be prosecuted depending on the results of an investigation.
Officials have learnt that the brother of a Gosi employee, who knew of the deal from his manager, tried to blackmail the broker into paying him half of his one per cent (BD278,000) cut because he didn't have a licence.
An investigation committee was formed over concerns raised last Thursday by MP Isa Abu Al Fateh, who claimed the deal was being conducted through a non-official broker who had a relationship with a Gosi employee.
He had already urged Dr Al Alawi to halt the deal because of suspicions surrounding it.
"We formed an investigation committee on the issue which discovered that a brother of an employee at Gosi, who learnt about the deal from his manager, approached the broker and asked for a 50pc cut from his earnings," said Dr Al Alawi.
"The broker does not have a licence, therefore he's not getting anything from us. However, if the Gosi employee is found to have anything to do with his brother's actions, the case will be handed over to the Public Prosecution.
"The investigation committee is expected to hand us a report on its findings by the end of next week."
Meanwhile, Dr Al Alawi explained the sale of the club fell through because the Gulf buyer did not stick to the deal.
He added that the ministry was keeping the 10 per cent deposit, which Dr Al Alawi said it was entitled to under the terms of the contract.
"Regrettably, there was a new development on Sunday afternoon," said Dr Al Alawi. "Officials from the company that was buying the club told us they wouldn't be able to pay the full amount upon signing the contract like we agreed.
"They proposed to pay half in certified cheques and the rest in normal cheques as installments.
"This violates article five of the contract we had with them, which stated that the money should be paid in full upon signing the contract."
However, that wasn't the only snag as the company also tried to change the name of the buyer on the contract. "They wanted to change the name of the buyer on the contract from the name of the company's board chairman to that of the company," said Dr Al Alawi.
"We also found out on Sunday that the buyer was affiliated with a local bank, which previously presented an offer for the club but was rejected.
"This was unacceptable for us and we therefore decided to stop the deal right there and keep the 10pc deposit, which is our right since they are the ones who violated the agreement.
"This problem should not affect our policy towards foreign investors. I would like to emphasise that we welcome foreign investments in Bahrain."-