Mortgage Company Files Accounts but Government fails to explain use of £300 million

The GSD notes that following questions and pressure in Parliament the Government owned company that mortgaged the six housing estates for £300 million has now filed its full 19 page audited accounts at Companies House.

Roy Clinton the shadow minister for public finance said:

“I am pleased to note that following questions in Parliament on 31 May 2018, Gibraltar Capital Assets Limited has now filed full audited accounts at Companies House replacing the single page previously filed.

These accounts show in detail how the housing estates have been mortgaged for 31 years at a transaction cost of £4,642,420 and that the annual rental income of £3 million representing 3,083 flats is collected by the Government and paid to the company. It also confirms that the Government underwrites the £300 million loan notes in the event of a default by the company under the terms of an option agreement that the Government will still not disclose to the Opposition.

The Government cannot deny that this £300 million mortgage is a debt of Gibraltar and will crush any future Government’s ability to spend under the weight of this debt burden.

What I find particularly worrying is that the Chief Minster has still not disclosed what the net proceeds of £275 million are being used for as this does not come before Parliament in the Budget. Indeed the only information that the Chief Minister gave in the last Budget session was that £30 million had been used to inject more capital into the Gibraltar International Bank. The remaining £245 million remains unaccounted for in what can only be described as a disgraceful state of affairs and a complete lack of transparency.”