Dear Editor,
Kindly allow me to clarify Hand-in-Hand’s position with respect to the Amaila Falls road project. We have refrained from doing so to date since the business between any financial institution and its customers has to be held in the strictest of confidence. Only statutory declarations and information required by other lawful authorities ought to be disclosed. However, we may comment in general and with our client’s permission. Surety or bond business is a type of business which Hand-in-Hand is licensed to do. We pride ourselves in being a leading provider of this vital service to contractors, ultimately contributing meaningfully to nation building. With these types of bonds, the insurance company would generally insist on its exposure being protected by some form of collateral. This may be represented by cash, property or project equipment, counter guarantees and such like. Insurers also reinsure these risks. Usually, the final position is a combination of these. By putting together all the premiums it receives from a large number of contractors into an insurance fund, the insurance company can meet the claims of the few. With respect to the Amaila Falls project, the bonds issued to Synergy take effect and expire at different times. Hand-in-Hand has not withheld any bond it has issued with respect to Synergy and/or the Amaila Falls road project.
Yours faithfully,
Keith Evelyn
Director/ CEO
Hand-in-Hand
Group of Companies
