Sweet heart land deal with do what you like clause
The Panama government sold a plot of land on Isla Contradora to a newly created company at way below market prices and with an extraordinary sweetheart clause.
The 8,883 square meters lot, adjoining the yacht club, was bought by created company Isla Piedra Society, SA, with an advantage: that if after two years the company decides its original tourist project is not viable, it can do what it likes with the land.
The fourth clause of the bill of sale, spells out the special exemption for Stone Island, SA, and says they can do whatever they like with the land "unilaterally", after 24 months from the date of purchase.
For the lot in a prime tourist area of the Pearl Islands, Stone Island, SA paid $942,117 or about $ 100 per square meter.
This price is below the market value of a beachfront island, which some experts say can cost up to $ 900 per square meter.
The sale of the land, farm 443, went through last November in favor of the company which was created in 2010 by the now Deputy Minister of Land, Eladio Ostia Pravia, who served as a lawyer at the time .
After one year from the sale of the lot no earthwork or evidence of a particular project, was found by La Prensa while investigating the area.
La Prensa which has uncovered the deal says it has tried to talk to representatives of the company to learn more about the project, but can get no answers