fp Turks and Caicos

However, His Excellency the Gov. Gordon Wetherell disputed the release Wednesday (Jan. 26), saying the government is in negotiations with Herzog to pay what is owed.

“I was very surprised to see that particular statement because we are in fact in the process of negotiating a settlement with Herzog, and agreement was reached on the basis of that,” the governor said.

“I believe that this statement by (Herzog’s lawyers) Misick & Stanbrook was issued in error and that it will be retracted.”

The press release said the company is owed more than $13 million for road construction between 2006 and 2008.

“Herzog made numerous efforts to accommodate the Turks and Caicos Government (TCIG), as Herzog did not want to have to file an action to collect its money,” the press release says. “In April 2009, TCIG and Herzog entered into an agreement which allowed TCIG to make payments to Herzog over time.

However, unfortunately, after a few payments were made by TCIG, TCIG defaulted and stopped making payments.”

“Herzog wants to be paid by TCIG so Herzog can pay its local subcontractors who are located in Turks and Caicos Islands,” the press release concluded.

On Thursday (Jan. 27) Herzog released their own statement saying they were pleased to advise that it has recently re-engaged in meaningful negotiations which may very well lead to an amicable settlement of the indebtedness which Herzog Caribbean is owed by the Turks & Caicos Government. "While the details are still being worked out, both parties are optimistic that an acceptable resolution can soon be finalized. At this time Herzog Caribbean is focusing all of its efforts on reaching a settlement rather than litigation."

Herzog has been involved in a number of projects in the TCI, including the National Stadium. It lost a bid for the airport expansion project, and it currently owns 50 percent of Provo Stevedoring.