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How can we be sure that payments are used only for Raffles construction?

HSBC, as the trustees for Raffles Co., will receive all apartment buyers’ payments only into the owning Co. Raffles Limited account in Isle of Man where they are held until construction can start.

Under Raffles Co. shipbuilding contract with AMS all payments to them have to certified as due under the contract by a third party, such as Lloyd’s Register, before the trustees will release them to AMS. However then only to AMS Raffles project (blocked) account at a bank approved by the trustees.

From Raffles project account funds can only be drawn down for Raffles construction against a very detailed costing / payments schedule, under a strict project control system that is in turn administered by the project bank and audited monthly by Ernst & Young, with reports on the usage of funds provided to trustees.

What this system means is that all funds are isolated / locked in and can only be used for Raffles construction.

Uniquely in order to protect AMS insurances / insurers, the profit that AMS / FVH derive from building and selling Raffles is also locked in until after Raffles is completed / delivered, and the project account is audited and Raffles free of all debt to the trustees satisfaction.