John Fernandes Limited (JFL) yesterday said that its $20m down payment in a now aborted land sale at Beterverwagting (BV) was refunded by a real estate agent who is seeking to have the deal go through against the wishes of the Neighbourhood Democratic Council (NDC) in the area.
In a statement, JFL was explaining why it had returned the $20m down payment which had been transmitted to it by the BV/Triumph NDC.
“On Friday 30th September, JFL received a cheque from the NDC that corresponded to the deposit made when the agreement was signed. On that same day an article was carried in the news indicating that the NDC had refunded JFL its deposit for the sale of the land. JFL however was not in a position to legitimately accept any refund as that would have resulted in the company collecting the deposit twice”, JFL said, adverting to its decision to accept a refund of the down payment from Mohamed and Sons and Daughters, Trading, Mining, Logging and Construction Inc ( MSDTMLC).
In the statement yesterday, JFL said that it had backed out of the deal after claims were raised that parts of the 143.1 acres of land constituted ancestral lands.
“JFL has been seeking to purchase land in various areas for future development. The company was presented with an opportunity to purchase 143.10 acres of land in the area of Beterverwagting identified as Section “G” under the Triumph/Beterverwagting N.D.C. This was considered at that time to be a worthwhile opportunity. JFL engaged the local NDC and entered into an agreement to purchase the land.
“Sometime after this agreement was signed and a deposit by JFL made to the NDC, an individual unknown to the company, stated via social media that the land earmarked for purchase was in fact ancestral lands meant to be owned by their descendants and objected to it being sold to a corporation. This was followed by claims that there were persons holding transport for some parts of the land.
“While no evidence was produced to legitimize these claims, JFL decided not to proceed with the purchase, a position which remains the same to date”, the company statement said.
While it says it decided not to proceed with the deal, it then transferred its rights in the arrangement to MSDTMLC in return for a refund of the $20m down payment.
“The Real Estate Agent responsible for finding the land and bringing the opportunity to JFL’s attention, Mohamed and Sons and Daughters, Trading, Mining, Logging and Construction Inc. (Mohameds), expressed an interest in its purchase. It agreed to refund JFL its deposit if the rights to the agreement was transferred to Mohameds. JFL then concluded that transfer as JFL was no longer interested in playing any role in any transaction being made regarding the land in question,” the company said in the statement.
The question that remains unresolved for JFL is why – given the concerns that ancestral lands might have been involved – it did not seek the refund from the NDC so that the deal could be completely unwound. It instead transferred its interest to the real estate agent which has been pressing for the deal to be requited despite concerns that private lands might be involved.
JFL also suggested that judicial intervention might now have to determine the legality of the transaction.
“JFL would not support any illegitimate sale of land, however, it remains a matter for the judicial system to determine whether this is the case. JFL wishes to state unequivocally, that it is not connected or conducting business with Mohamed and Sons and Daughters, Trading, Mining, Logging and Construction Inc”, the statement yesterday said.
Balance
MSDTMLC has since taken the NDC to court in a bid to secure the 143.1 acres. In the court proceedings, the company is asking that the NDC be ordered to release to it, the 143.1 acres located at BV, once it would have paid the balance of the $35 million purchase price which the NDC had originally agreed to with JFL.
Aside from the fact that private land might also be affected in this deal, the $35m figure for the acreage was seen as a ridiculously low price.
Chairman of the BV/Triumph NDC, Jimmaul Bagot who had announced that he would be resigning as chairperson, said that he has since put that plan on hold to “see out to completion” the issue regarding the lands, given that it was under his tenure that the original agreement with JFL had been made.
He said that he was surprised when he received a call from the clerk of the NDC informing him that the cheque and accompanying letter from JFL had been received.
Bagot and the NDC had last month, called a press conference to relay that it was fighting an attempt to “bully” it into giving over 143 acres of land under the aborted deal with JFL.
Emphasising that the council will not be bullied, Bagot had said that the local authority simply cannot sell what it doesn’t own, much less to a company it never had an agreement with – MSDTMLC.
“We’ve made it clear to them in several letters that we cannot sell what we don’t own. Hence, we had to rescind the agreement. However, they’re still pursuing it. I also want to make it clear that the NDC has already refunded John Fernandes the sum of $20 million..,” Bagot had said then.
MSDTMLC wants the NDC to forthwith complete all conveyancing of property and the company is then seeking to have the court order the Registrar of Deeds to convey the property in question to it.
Further, the company wants to be permitted to pay all the outstanding statutory and tax liabilities arising as a result of the conveyance of the property as a precondition of the conveyance and to deduct the value thereof from the balance of the purchase price.
The company is also seeking court costs and any further order the court deems just to grant.
JFL yesterday said that it issued the statement in an attempt to “clarify any misconceptions” that have been levelled against it, since several accusations were made.
And while MSDTMLC continues to press for ownership of the lands, JFL has distanced itself from the company henceforth, as it said that it is not doing other business with the company.
“JFL wishes to state unequivocally, that it is not connected or conducting business with Mohamed and Sons and Daughters, Trading, Mining, Logging and Construction Inc.,” JFL’s statement contended.
