JAMAICA | Integrity Commission wants Financial Probe into PM Holness' Dealings -Regulatory bodies urged to scrutinize companies linked to Jamaican leader

KINGSTON, Jamaica September 18, 2024 - In a move that could send shockwaves through Jamaica's political landscape, the Integrity Commission has recommended that the Financial Investigation Division (FID), Tax Administration Jamaica (TAJ), and the Financial Services Commission (FSC) delve into certain financial activities of Prime Minister Andrew Holness. The commission aims to ensure that no laws have been breached in the complex web of transactions involving entities associated with the prime minister.

Unveiling a Comprehensive Report

The commission's call to action comes on the heels of a revealing 179-page investigation report tabled in the House of Representatives. This extensive document invites the FID to examine statutory declarations submitted by Holness between 2019 and 2022. Central to the probe are the funding and operations of companies linked to Holness—namely Positive Media, Positive Jamaica Foundation, and Greenemerald.

Allegations of Omitted Disclosures

The investigation was sparked by referrals suggesting that Holness might be in breach of the Corruption Prevention Act, the Parliament (Integrity of Members) Act, and the Integrity Commission Act. Specifically, concerns were raised about his holdings in Imperium, a company that invested in two associated firms. Further suspicions emerged that Holness failed to disclose certain joint bank accounts in his statutory declarations.

Director of Investigation Weighs In

Kevon Stephenson, the commission's Director of Investigation, emphasized the need for regulatory scrutiny. "It will need to be determined by the FID and TAJ whether several companies named in the report—and connected to Mr. Holness and at least one of his sons—are operating within the parameters of Jamaican law," Stephenson stated. He added that unresolved questions about the use of funds from Positive Jamaica Foundation to partially purchase a US$94,000 bond must be addressed before any conclusions on illicit enrichment can be drawn.

No Charges Recommended—But Questions Remain

Despite the gravity of the allegations, the commission's Director of Corruption Prosecution did not recommend charges against Holness for failing to declare several bank accounts in his 2021 statutory filing. These accounts, totaling just under $446,000, were held jointly with his mother, father, sister, and a former constituency worker. Holness explained that he was added to his parents' accounts as a minor and was unaware of his name being on the constituency worker's account.

Scrutinizing Financial Transactions

The report delves into multiple transactions involving Holness's companies, notably a US$94,000 investment in an NFE South Power 11% 2039 bond purchased on September 2, 2019. Investigators concluded that only US$61,892.98 of this amount was funded by Holness, with the remaining US$32,107.02 sourced from Positive Jamaica Foundation—a registered charity where Holness was a director at the time.

The commission challenged Holness's claim—made on July 16, 2024—that the entire bond amount was erroneously attributed to him by NCBCM, labeling this assertion as "misleading and unsupported by the evidence." The bond was called in 2020, and the principal and interest were paid directly to Holness, subsequently incorporated into his assets held within Imperium.

Complex Corporate Relationships

Further complicating matters, the report highlights concerns about the operations of Positive Media, a company initially majority-owned by Imperium before ownership shifted to one of Holness's sons in 2022. While Holness indicated that Positive Media was funded by Imperium, evidence suggests the opposite: over $70 million was transferred from Positive Media to Imperium, with about $50 million moving in the reverse direction during the same period. An unexplained surplus of approximately $20 million remained in Imperium's account.

Calls for Broader Investigations

The commission recommended that the FSC investigate a $50 million unsecured loan Imperium secured from Barita. Additionally, significant financial transactions—deposits and withdrawals exceeding $473 million and $427 million, respectively—were noted among Imperium, Positive Media, and Estatebridge between 2020 and June 2023.

Political Implications and Next Steps

This two-year investigation unfolded amid persistent criticism from the parliamentary opposition, who questioned the delay in certifying the prime minister's statutory declarations. While no charges have been filed, the Integrity Commission's findings cast a shadow over Holness's financial dealings and raise questions about transparency and accountability at the highest levels of government.

As financial regulators prepare to sift through the intricate details of these transactions, the nation watches closely. The outcome could have profound implications for Jamaica's political integrity and public trust in its leaders.

In the meantime, Andrew Holness is strongly opposing some of the Integrity Commission's (IC) findings and recommendations. “I will take further legal advice on this report and determine the way forward and I will continue to pray to God for guidance and strength as I continue to lead Jamaica,” the sombre-looking prime minister said yesterday in a prepared statement in the House of Representatives," Holness said.

Noting that the investigation was started in relation to his 2021 statutory filings with the IC, Holness said he welcomed that fact that the report was “finally tabled two years since this process began”.

“Based on what is said in the summary, queries were triggered because I had omitted bank accounts from my declarations and one of these accounts was incorrectly reported as a US dollar balance by the financial institution. These matters were cleared as the accounts in question by my recollection, were dormant, previously reported and the balances in them were JMD 3,000.00 and Euro200,” he said.

He explained that some of the accounts were opened by his parents as far back as 1975 and his name added later, “probably while I was still a child”.

“Many Jamaicans add persons to their accounts for survivorship and in the event of an rgency. I have never claimed these as my assets. I am satisfied that the Director of Corruption Prosecution ruled that there was insufficient evidence to support claims that I intentionally omitted bank accounts from my declaration and that there is greater evidence to support my explanation as opposed to evidence to the contrary,” highlighted.

“I also note that no other matter in the report was referred to the authorised authority, the Director of Corruption Prosecution,” Holness added.

He appeared to take issue with the summary of the report which outlined his personal financial affairs from 2018 to 2023, including associated private third-party businesses and transactions.

“Over 3,600 transactions examined, 28 bank accounts, over 80 witness statements collected. This effort to pursue me and my affairs led to the hiring of an international forensic accounting examiner for six months. As far as I am aware, only my 2021 declaration was submitted for investigation,” he remarked.

“After this most thorough interrogation of my personal affairs, which is not in any way connected to public funds, or a benefit resulting from my office, they were ‘unable to come to a conclusion regarding illicit enrichment,” he said.

-30-