DTL Property Developers Company Limited has broken its silence on the controversial La Forteresse housing project, denying the Public Service Association (PSA) stands to lose $15 million from the sale of the luxurious residential complex.The T&T Guardian has been running an exclusive series on the project, which started in 2006 under the former PSA president Jennifer Baptiste-Primus. The project, which is yet to be completed, was expected to yield a $40 million payout to the PSA.
However, PSA president Watson Duke said last month he was willing to "cut his losses" and accept $25 million from DTL instead of $40 million. He also said that rising building costs had affected the project.Repeated attempts were made by the T&T Guardian prior to the publication of the previous articles to get DTL to explain construction delays and why some of the apartments were being sold twice.
However, general manager Lucien Delpesh refused to answer questions, saying: "As a private organisation DTL Property Developers Company Limited has no comment to advance on any of the queries you have raised."However, in a paid press release yesterday, DTL said it was inaccurate to say that the PSA would lose $15 million from the sale of La Forteresse."The alleged loss indicated relates purely to projected benefits which were revised downwards," the company said.
DTL said the project did not require PSA to engage in any expenditure. It added: "The project has not bought financial distress to the client for the simple reason that the client has not made any cash injection into the project and neither were they required to do so, thus no contingent liability is created."Where legal matters arise, it is the responsibility of the developer to treat with the same as the client is insulated from such risk."
The company also said if the PSA was experiencing financial problems it could not be because of its interest in the project.With regard to the sale of the apartments, DTL said the practice of investors purchasing housing developments prior to construction and selling during construction was normal.The company said it had faced similar challenges as other developers in Port-of-Spain after the global financial collapse of 2008.
Meanwhile, contacted on his cellphone yesterday, Duke said he could not respond to the developers claims because he had not seen the advertisement.He said his decision to accept $25 million from the developer prior to completion was based on several factors so it was not accurate to say the PSA would lose $15 million. He said he would comment further when he saw the DTL statement.