JAMAICA | PNP wants disclosure of full cost of SSL fraud probe to taxpayers

KINGSTON,  Jamaica, September 1, 2023 - The opposition People's National Party wants the government and specifically Finance Minister Nigel Clarke to “provide a comprehensive breakdown of the expenses incurred by taxpayers in the course of the investigation into the extensive fraud at Stocks and Securities Limited (SSL).”

With news emerging that the government has taken responsibility for paying the staff and administrative costs at SSL, Opposition Spokesman on Finance Julian Robinson has questioned what other costs are being borne by the government as the investigation continues. 

"In addition to the staff's salary costs, what is the cost of retaining the receiver manager and his team, and what is the cost of the international forensic firm, Kroll Associates, and [is] the government covering these costs?"

Given that SSL is insolvent and it is unlikely that the government will recover these costs, Mr. Robinson argued that the public has a right to know since taxpayers are footing the bill. 

He also wants the Finance Minister to provide a timeline of how long he expects the government to continue covering the costs associated with the investigation and respond to whether there is provision in the current budget for the undertaking. 

On Friday, Finance Minister Dr. Nigel Clarke said it was a matter of policy that the government foots the salary bill for staff at the fraud-hit investment firm Stocks and Securities Limited (SSL).

Speaking on Radio Jamaica's Hotline on Friday afternoon, Dr. Clarke said the monthly compensation bill amounts to an estimated $15 million.

"I will come to the public and give further details once they're available. But we're talking about 22 members of staff. The staff bill on a month basis is $9.5 million. There are the operating expenses of about $5 million and there are some one-off expenses," he disclosed. 

Asked how long this arrangement would last, Dr. Clarke could not give a timeline but sought to assure that "it's clearly not an indefinite situation". 

The minister said the government is committed to ensuring the probe into the fraud at the company continues unimpeded.

"We just want to make sure that the investigation can proceed to the point where the FID (Financial Investigations Division) can bring the matter to court," he insisted.  

Investigators are probing a US$20 million fraud at SSL.

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