KINGSTOWN, St. Vincent, The Mustique-based construction company that announced its dissolution and liquidation earlier this month, leaving an estimated 100 people unemployed, has apologized for its statement that “the political and economic climate in St. Vincent and the Grenadines” had contributed to its decision.
“We apologize to the Government and people of St. Vincent and the Grenadines for the comments about ‘the political and economic climate in St. Vincent and the Grenadines,’ and deeply regret any harm done. We withdraw this statement immediately,” the company, JAD (Mustique) Ltd, said.
The company’s British-born chairman and founder, James Archibald, had, in a January 3 letter to staff, also said the coronavirus (COVID-19) pandemic and rising costs had “all combined over the last few years to put the company in “a fragile financial position.”
But Prime Minister Dr. Ralph Gonsalves rejected the comments declaring that the company had “a very checkered interaction” with tax authorities here.
Gonsalves told radio listeners that JAD (Mustique) Ltd owed “close to four million dollars (One EC dollar=US$0.37 cents) on various ranges of taxes” at one point.
Gonsalves rejected the company’s claim, founded in 2002, that “the country’s political and economic climate” had contributed to its closure.
In the statement, the company acknowledged that the January 3 announcement contained “certain words, which were made haste when the company management faced a challenging situation.
“We are presently working with legal and accounting professionals in St. Vincent and the Grenadines to ensure that best practices within the framework of the laws of St. Vincent and the Grenadines address the business of JAD (Mustique) Ltd.
“We are truly grateful to the Mustique Company Ltd, the Government of St. Vincent and the Grenadines, and all the skilled JAD employees for all the support of JAD (Mustique) Ltd. during our years of operations on Mustique,” the statement added.
Last week, attorney Jomo Thomas, representing 41 of JAD’s former employees, told the Caribbean Media Corporation (CMC) that the company had dissolved itself amidst a legal battle to get to outstanding payments to workers dating back to 2008.
But the lawyer, however, said the workers were only claiming payment from 2017 onward.
Prime Minister Gonsalves said that since 2020, the Government has been making sure that “in the granting of things like work permits and residence and the like,” JAD and its principals were compliant with the tax laws, employees’ National Insurance Services (NIS) payments, and the Commercial and Intellectual Property Office (CIPO) requirements.
“What I would suggest always is that the workers be unionized. And that they use the union instruments to make sure that the collective bargaining agreements have particular provisions about these matters,” Gonsalves said, adding that he is reluctant to disclose matters related to the JAD’s relationship with the state.
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