Crocombe's response to PERCA report

The new owner of the Rarotongan Hotel has rebutted the Public Expenditure Review Committee report on the sale of the

property, accusing key committee

members of “extensive conflicts of interest.” In a press statement Crocombe said he’s not surprised at PERCA’s criticism of the deal he was given by the Government.

He points to PERCA Chairman Mike Mitchell having represented the Hotel’s landowners, “a competing purchaser and others with an interest in the transaction.”

“It just goes to prove that in a small community it is unrealistic to expect any sort of objectivity in reviewing an emo tionally charged issue which threatens entrenched interest groups,” said Crocombe.

He described the PERCA report as “a “clumsy manipulation of the facts to fit a clear agenda.”

But in an explanatory letter to the Speaker of Parliament, the Committee itself admits that in a “small community such as ours, it is inevitable that conflicts of interest will arise particularly where pro gessionals are involved in the sale of state assets.” One member of the Committee, Tina Browne who is a partner in the law firm which represented Tata Crocombe dis qualified herself from the inquiry.

Chairman Mike Mitchell took no part in inquiries relating to land leases. His repre sentation of a “competing purchaser” dated back to 1993 when he had an “unrelated business connection” with the Australian bidder referred to in the report.

The sale of the Hotel was discussed on the telephone on two occasions. Mitchell stated in the letter that he was “never briefed to represent that Bidder in his nego tiations, had no knowledge of the nature of his bid, his funding arrangements or how his bid was received.”

“A third member of the Committee was a Director and shareholder of the company

that was contracted to carry out the upgrade of the hotel. The contract was ter minated before the Hotel’s upgrade was completed. The terms of that contract and the reason for its termination were not issues that concerned the Committee.”

“The Committee is satisfied that none of the foregoing matters influenced the preparation of the report or the conclusions reached,” wrote Mitchell.

Meanwhile, speculation that ’ the Rarotongan Beach Resort was sold to over seas concerns early last month has been discounted.

Contrary to popular belief, a spokesper son from the Rarotongan Beach Resort said the Hotel isn’t for sale.

The spokesperson said owner Tata Crocombe’s “dearest wish is to see this resort, which has lost millions and millions of the taxpayers money over the years, be turned around so that it becomes a strong part of the new Cook Islands economy, providing stable jobs and bringing in for eign exchange earnings.” ■