Wedco clients owed an extra $700,000 during the 2014-15 fiscal year, the House of Assembly heard today.

Lieutenant-Colonel David Burch said new tenants are now being subjected to a more comprehensive assessment as the West End Development Corporation has faced “perennial challenges” in collecting rent.

Colonel Burch, the Minister of Public Works, was speaking after tabling Wedco’s annual reports for 2014 and 2015, which he noted were late as the result of an oversight from the former government.

He described the 2014 report as unremarkable, with satisfactory financial results and a clean audit opinion.

But regarding the 2015 report, he said: “Accounts receivables increased significantly in the amount of $700,000.

“Wedco faces perennial challenges in the collection of outstanding rents due. All efforts to collect funds are made including legal recourse and this is highlighted in the general manager’s report.

“In an effort to mitigate this problem a new application process has been expanded to include a more comprehensive assessment to ensure tenants are capable of meeting their financial obligations.”

Colonel Burch said damage from Hurricanes Fay and Gonzalo in October 2014 meant Wedco also recognised a writedown on tangible capital assets of $6.3 million. He said insurance proceeds of an identical amount were received.

He also said Wedco’s cash position is “significantly reduced due in large part to expenditures made in upgrading and renovating properties in the Dockyard”.

Regarding the timing of the release of the reports, Colonel Burch said: “One may wonder or ask why the 2014 and 2015 annual reports are being tabled on the same day and I can advise members that the 2014 report was previously submitted by Wedco but never tabled in the House as a result of an oversight within the Ministry.

“I invite either the Honourable and Learned Member who signed the report or the Honourable Member who should have tabled it to explain that oversight.”

• To read Colonel Burch’s statement in full, click on the PDF under “Related Media”