This agreement facilitated the rerouting of loan funds to a bank account in Panama, instead of the country’s consolidated fund. The agreement also resulted in a 2.56 million dollar commission being paid to a bank account in Panama. UWP claims this sort of agreement is normal and helped to quickly and easily pay the contractor. Former Prime Minister and Infrastructure Minister, Hon. Stephenson King responded, stressing that loan funds are only to be paid to the Consolidated Fund.

 In a release on September 14th, 2023, the UWP said, “Like with most development projects, the financing institution pays the contractor directly therefore funds associated with the project do not necessarily come into the consolidated fund the Caribbean Development Bank currently finances the Millennium Highway Project. Payments for this project are made directly from the CDB to the contractor in charge of the Millennium Highway.”

Former Prime Minister and Infrastructure Minister, Hon. Stephenson King responds to the UWP’s statement, clarifying that funds from loans have never been transferred directly to the bank account of any contractor. “There is no loan that is being directed to any contractor. The Millennium Highway/West Coast road is being funded by the UK Government. So it is a grant, it is not a loan…I am not aware of any arrangement where [loan funds would be transferred to a contractor] or any such model of financing. What would happen is that you’d negotiate the loan with the lending agency, maybe through a government who would guarantee that loan, and the lender would arrange how those funds are transferred to the treasury of that country,” King explained.

While in the UWP’s statement, they claim it is common practice for the “financing institution [to pay] the contractor directly”, in the Opposition Leader’s contribution to the debate - prior to the shocking revelation - he applauded the fact that the Saudi loan funds will be paid into Saint Lucia’s treasury. “[The Opposition is] happy with the terms of the Saudi loan. We are happy the Saudis have chosen not to put the money through CDB and to facilitate a quicker expenditure and implementation,” Chastanet had said on Tuesday, September 12th. 

One question that lingers in the minds of many relates to the ownership of the account into which the US $2.56 million commission was paid. At present, this has invigorated calls for the appointment of a special prosecutor to investigate this, and other suspected cases of corruption. The Prime Minister has said on numerous occasions that he leaves the appointment of a special prosecutor to the Judicial and Legal Services Commission and reaffirmed this sentiment following that Parliament sitting. Out of the woodworks now is former Infrastructure Minister, Guy Joseph, who appeared on a talk show one day after that Parliament sitting, to defend his administration’s decisions as they pertained to the construction of the controversial new wing of SJH. He, however, was not named during Parliament for any involvement in what is regarded as the “improper” transfer of loan funds to the account in Panama.