There is a large question mark hanging over the whereabouts of nearly $400,000 of an $18 million loan made to the Par-la-Ville Hotel and Residences Ltd development company.

Documents show that Mexico Infrastructure Finance made a claim against the mortgage on the Par-la-Ville car park, when Par-la-Ville Hotel and Residences apparently failed to repay its debt on December 30.

According to an accountant who went through several documents and letters that were also seen by this newspaper, while most of the funds received by Par-la-Ville Hotel and Residences Ltd can be roughly accounted for, the whereabouts of some of that money is still not clear.

The accountant explained that about $2.5 million of the original $18 million sum was withheld by Mexico Infrastructure Finance to pay fees and interest.

The remaining $15.5 million was then deposited into an escrow account by Mexico Infrastructure Finance at the Bank of New York Mellon, specifically to be used to pay the costs and fees associated with entering into a binding agreement for the permanent financing for the hotel project.

The terms of the escrow agreement allowed for a distribution of up to $1.2 million to pay various legal and professional fees that were detailed in the Credit Agreement, a document which clearly states the conditions which had to be met to distribute funds from the escrow account.

Additionally, it was stated that $500,000 must remain in the escrow account after the Corporation of Hamilton and Par-la-Ville Hotel and Residences Ltd released the funds from escrow to secure the permanent financing for the hotel and residences project.

It appears that $1.2 million was dispersed from escrow to pay legal and professional fees that were detailed in the Credit Agreement, $500,000 was held back in the escrow account, and approximately $13.8 million was dispersed from the escrow account to the Clarien Bank account of Michael and Yasmin MacLean.

Correspondence shows that Par-la-Ville Hotels and Residences Ltd were the party that instructed the escrow agent, the Bank of New York Mellon, to release the full balance in the escrow account to the MacLeans’ account with Clarien Bank.

Further correspondence shows that the Corporation of Hamilton approved the release of the money to the personal account of the MacLeans. It is signed by Mayor Graeme Outerbridge and Corporation secretary Ed Benevides.

Sources have confirmed $12.5 million was sent directly or indirectly from the MacLeans’ account to a company called Argyle UAE Ltd, a Dubai entity.

It is believed that the transfer to Argyle UAE Ltd is directly connected to an agreement with Argyle Ltd, a Gibraltar entity, which received the $12.5 million in the form of a one-time irrevocable fee payment in exchange for a one-year credit facility in the amount of $125 million.

The exact whereabouts or use of approximately $400,000 remains a mystery.

The Corporation of Hamilton was entitled to a $900,000 fee for guaranteeing the credit agreement using the PLV property, but sources have confirmed that the Corporation of Hamilton has not been paid this fee.

•To see a PDF chart of where the money has gone, click the link under Related Media