JAMAICA | Barita Investments referred to FSC over $50m loan to Holness' company

KINGSTON,  Jamaica, September 20, 2024 - In a twist that has sent ripples through Jamaica's political and financial spheres, the Integrity Commission has turned its scrutinizing gaze upon Barita Investments Limited. 

The watchdog agency is now delving into a $50 million loan issued in 2021 to Imperium, a company solely owned by Prime Minister Andrew Holness, citing concerns that raise eyebrows and questions in equal measure.

This financial saga, worthy of a Caribbean version of "House of Cards," has prompted the Integrity Commission to recommend that the Financial Services Commission (FSC) launch a deeper investigation. The goal? To determine whether Barita's practices align with the letter of the law and the spirit of its operating license.

The Commission's report on the Prime Minister's financial affairs reads like a thriller, complete with irregularities that would make even the most seasoned banker pause. The plot thickens as it becomes apparent that what was intended to be a secured loan may have inadvertently wandered into unsecured territory.

The loan's collateral, a triumvirate of security comprising 10 million shares in Derrimon Trading Limited, a legal mortgage on an Imperium-owned property, and an insurance policy, seems to have more holes than a fisherman's net.

In a reveal worthy of a courtroom drama, Director of Investigation Kevon Stephenson dropped the bombshell that Imperium didn't actually own the Derrimon shares when the loan was issued. Adding to the intrigue, the property only found its way into Imperium's name eight months after the loan was granted, while the insurance policy details remained as elusive as a ghost in the machine.

This mortgage mishap meant the loan's security had a gap wide enough to drive a truck through, leaving the Commission scratching its collective head.

When pressed about this unregistered mortgage, a Barita officer offered an explanation that might raise more questions than it answers. Apparently, for "premium customers," normal rules are as flexible as a gymnast, with discretion applied when the risk is deemed low. One can't help but wonder if this financial flexibility extends to the average Jamaican citizen.

Danielle Archer, Principal Director of National Integrity Action, cuts through the corporate speak with a question as sharp as a machete: "How is it that you are able to get a loan for a company without collateral and proper asset tracing? Could that happen to the small man? Could a little man go in and get a $50 million loan without more?"

As the plot unfolds, Prime Minister Holness seems to be feeling the heat. In a statement that could be interpreted as a defensive play, he suggested to the House of Representatives that he might be unfairly targeted.

"The weaponisation of accusations of corruption is nothing new in politics. However, even the most sceptical onlooker must conclude that the handling of this matter, the time it has taken, the public resources used to pursue it, raise cause for concern on many levels," he stated, his words hanging in the air like a challenge.

Archer, not one to let sleeping dogs lie, countered with a call to action for the public. "Get a copy; if you can't get a copy, ask somebody to get it for you. Have your meetings, go through it yourself to see that it is not a witch hunt," she urged, inviting Jamaicans to become detectives in their own right.

In the meantime, Holness has instructed his attorneys to initiate legal action against senior members of the People's National Party, over comments about when he became aware of the Integrity Commission's probe into his finances.

A statement from the Prime Ministe's Office has  described the statements made during a press conference earlier on Thursday, as defamatory and false. A letter from the law firm respresnting Holness, Henlin Gibson Henlin, stated that none of the correspondence from the Integrity Commission to the Prime Minister and the firm referenced the words illicit enrichment.

A spokesman forthe Prime Minister Senator Abka Fitz-Henley, is maintaining that "The fact of the matter is the Prime Minister spoke the truth when he indicated to the media on August 17 last year that he was not aware of any member of the Jamaica Labour Party being written to by the Integrity Commission that they are under investigation for illicit enrichment."

As this financial mystery unfolds, one thing is clear: in the court of public opinion, the jury is still out. The question remains: will this loan investigation reveal a simple misunderstanding, or uncover practices that could shake the very foundations of Jamaica's financial and political establishments? Only time, and a thorough investigation, will tell.

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