More finger pointing over the regulation of alternative inve

[Lazie]

More finger pointing over the regulation of alternative investment schemes

There is a new twist to the ongoing controversy surrounding unregulated investment schemes.

Allegations have surfaced that former Finance Minister, Dr. Omar Davies, failed to act on advice from Government lawyers for action to be taken to regulate the schemes.

The allegations were made on Wednesday by Minister of Finance, Audley Shaw.

According to Mr. Shaw, the legal advice was submitted to Dr. Davies by the Attorney-General's Office in April last year.

He said the Attorney-General's detailed letter to the Minister, dated April 20, 2007, determined from that time, that at least one scheme, fell under the jurisdiction of the Financial Services Commission because the operators were trading in securities.

Mr. Shaw stopped short of accusing Dr. Davies of dereliction of duties, for failing to regulate investment schemes from the outset.

He said an investigation carried out at the Finance Ministry, has raised several questions which require answers from the former Finance Minister.

Mr. Shaw said his investigation revealed that Dr. Davies sat on the Attorney-General's advice and did nothing.

He said he has searched the records, but was unable to find any evidence that Dr. Davies took any action based on the considered opinion of the Attorney General.

Mr. Shaw added that he will be seeking answers from Dr. Davies when the matter comes up in Parliament next week.

[Lazie]

Audley Shaw says his stance on unlicensed investment schemes clear

Finance Minister Audley Shaw has fired back at former Minister of Finance, Dr. Omar Davies, who had accused him of leaving the country in the dark, regarding his position on regulations for unlicensed investment schemes.

Mr. Shaw said the former Finance Minister has been twisting a statement he made in Parliament last year to cause confusion.

He said at the time, when all kinds of schemes were popping up, he told Dr. Davies to regulate and enforce the law as he must, but do not stifle entrepreneurship.

Minister Shaw said he still stands by that statement.

He declared that he fully supports the Government's position that all investment schemes be licensed, failing which, they will be served with cease and desist orders.

[Gamma]

unnuh si di issue re: solicitor general and the finsac files?

[Lazie]

unnuh si di issue re: solicitor general and the finsac files?

Haven't got the chance to read it yet!

[Lazie]

Will minister Shaw encounter backlash for telling Court Jester Omar Davies ...fi hold him corner and be quiet?

[Karl]

unnuh si di issue re: solicitor general and the finsac files?

Haven't seen it!
Wah file missing? ...or, a wah?

[Lazie]

Haven't seen it!
Wah file missing? ...or, a wah?

Ministries said unaware about approval of FINSAC's legal representation

ERICA VIRTUE, Observer writer virtuee@jamaicaobserver.com
Thursday, January 17, 2008



THE Ministries of Finance and Justice say they are still in the dark about the circumstances which led to the board of the Financial Sector Adjustment Company (FINSAC) authorising former solicitor general Michael Hylton to act on its behalf in more than 80 cases involving FINSAC clients.

At the same time, despite raised eyebrows and concerns from sections of the government, the former solicitor general has not been asked to return the files, amid the administration's decision to prosecute the cases using its legal expertise.

Acting Solicitor General Patrick Foster said Tuesday that as far as he was aware the former solicitor general had not been asked by the contracting entity (FINSAC) to return the files.

FINSAC answers to a board, which in turn answers to the finance ministry.

"I have seen no letters to that effect," Foster said, adding that, "Had he been written to, it is a letter that I would see."
Observer sources said the financial secretary, who is an automatic member of FINSAC, wrote to Hylton asking that the files be returned.

However, Foster said he had received communication from the financial secretary, Colin Bullock, seeking to find the most effective ways to have the files returned as Hylton had already begun representing the entity.

"I do not know if he wrote directly to Mr Hylton, but up to a week ago, he (Hylton) had not received any notification authorising him to return the files," he said.

Late last year, the Observer learnt that the former solicitor general was now the lawyer representing FINSAC and by extension the finance ministry, and government in these cases.

However, Minister of Justice Dorothy Lightbourne was only made aware of the matter when she was contacted by one of her Cabinet colleagues, asking if her ministry would be handling the cases.

According to Observer sources, the minister said as far as she was aware the Solicitor General's Department would be handling the cases. But she was told that the files were in the hands of a private attorney.

Information from government sources is that Hylton, who obtained the files legitimately, would be asked to return them.
On Friday, when the finance ministry was contacted, Finance Minister Audley Shaw referred questions to the attorney general.

When the Attorney General's Office was contacted Lightbourne, too, was not certain if the files had been returned.

According to Foster, only the contracting entity can ask for the files to be returned.

The files involve clients of the infamous financial crisis of the mid-to-late 1990s and the subsequent collapse of the financial sector.

This resulted in the closure of several financial institutions and their subsidiaries.

[Gamma]

potential policy conflict?