The Director of the Grey Investment Group has disputed allegations it has not been making repayments to a $50million tala loan from the Development Bank of Samoa.
Speaking to Samoa Observer Lupesina Frederick Grey said the group has nothing to hide.
“The statement that we have made no repayments is false.We have made substantial repayments having particular regard to the term of the loan,” he said.
The Grey Group provided an email from local accounting firm, Lesa ma Penn, to confirm the amount they have paid back to the Development Bank of Samoa.
They also provided copies of bank statements, bank swifts to confirm funds the Group has sent back to Samoa to invest in the refurbishment of the Sheraton Aggie Grey’s Hotel and Bungalows.
“The loan was a long term loan and was to run for many years,” Lupesina said.
He said the Grey family has made multiple re-payments towards the Development Bank loan totaling $ST3,650,000 million and that they have made substantial repayment having particular regard to the term of the loan.
The newspaper, in an earlier story quoted the Minister of Finance, Sili Epa Tuioti, as saying that if repayments for the loan were not up to date by January 2019, the Government would begin to seize the assets used as collateral for the loan. These included the iconic hotel on Beach Road.
It seems the problem may be between the new owners and the Grey family firm which could be the main reason for the delay on further payments.
“Where you purchase shares in the company unless you agree otherwise you take the shares with all assets and liabilities (Debt) of the company,” said Lupesina.
He said this is often reflected in the purchase price.
“In general terms if a purchaser of shares takes over the loan they might pay a lesser price having regard to the liability (Debt) they are inheriting.”
