Offshore Islands
Page 24
Castlemain adroitly left the task of drawing up the legal documents incorporating CISCAP Construction & Development, as a limited company under Irish law, to Pat Kennedy. The capital was one hundred thousand Irish punts, although at that precise moment only one hundred had been paid in. The object of the company according to its articles of association was to provide overseas consulting services for the development of the tourist industry as well as undertake any other kind of business decided by its directors.
Irish company law was very accommodating regarding private companies. Their owners and directors had a very large latitude in determining the development of the business, provided that they filed their tax returns on time, and keep the registrar of companies in Dublin informed of all official decisions and changes that the directors were obliged to register.
The directors of the company included Pat Kennedy, Tony Arrowsmith and David Castlemain’s wife Nancy. The registered offices were established at Kennedy’s business address in Limerick City, whilst they awaited approval from the National Investment Board for their financial participation.
A feasibility project had been submitted to the Investment Board that described in generous terms the objectives of the new company, which included; consulting services for the creation of new hotels and tourist centres, management and training as well as financial services.
The base for income calculations was the contract from the future Ciudad Cayo Saetia Development Consortium, which over a five-year period would bring almost fifteen million Irish pounds into the company and create fifty new jobs in the Shannon area. In addition the feasibility analysis foresaw that the company would endeavour to place Irish made equipment and materials in the projects to be developed, thus providing further employment and business prospects for the country.
There was no doubt that Kennedy had prepared a first class application. He knew exactly how the NIB functioned and what was needed to obtain their approval. Arrowsmith provided the technical data, based on the information that had been supplied from Cuba and financial calculations by Castlemain’s specialists.
The feasibility had calculated a budget of eight hundred thousand pounds the first year, covering office facilities, salaries and expenses. The second year would require two million and for each of the three following years four million pounds. Those estimates could be recalculated upwards if the business justified additional funds.
What was important in the calculations was the participation of the NIB in the form of cash grants, which could be as much as one hundred percent of the estimated funds needed for certain items but never less that fifty percent.
Kennedy had calculated total grants of I£7 million over the five-year period, if the NIB accepted the total package, that was a minimum, and there was relatively little doubt that they would approve the project on the basis of the backing from the Irish Union Bank, who would participate in cash and loans to cover all the needs.
It was just after ten in the morning as they drove to Kennedy’s office in the driving rain, typical of the West of Ireland. It was the third Tuesday of the month and as normal at the NIB, the investment committee met at ten to recommend for approval any new investments. Mulligan had promised to call Kennedy, just as soon as the meeting broke up, normally before midday, to inform him of the committee’s decision.
Arrowsmith left Kennedy to get on with his business and passed his time drinking coffee and flipping through the newspapers in the meeting room. In his mind he went over his position, it was not at all critical to his future whether the project was approved or not, but over the six months leading up to that moment he had let himself become involved to a much greater degree than he could have imagined on his first visit to Kennedy in Limerick. He had put a considerable amount of effort into the project and it had become a challenge and even a matter of personal pride.
Arrowsmith looked at his watch, it was just after twelve, he stood up and went into the secretary’s office. She looked at him regretfully.
“No news yet Mr Arrowsmith,” she announced.
“Anybody with Pat?”
“No.”
He opened the door of Kennedy’s office, he was on the phone. He put his hand over the mouthpiece and made a sign.
“Sit down, it’s Mulligan.”
“Yesh John, I see, good we’ll do that,” he said seriously into the phone.
“Okay, this evening at the club, bye for now.”
He put down the phone and then jumped up rubbing his hands together with glee.
“They’ve approved it.”
“Your secretary said they hadn’t called!”
“That’s right, I called Mulligan on his direct line, it was after twelve, they’d just come out of the meeting.”
“So what did he say?”
“He couldn’t say too much, we’ll see him at the club this evening. Don’t worry though everything is okay, just a couple of small points to be clarified.”
“Excellent.”
“We’re in business,” Kennedy beamed.
“Did he say how much?”
“No.”
Chapter 25
Another Start-Up