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The Government has ordered a forensic audit into the operations of the Financial Sector Adjustment Company (FINSAC) and the Financial Institution Service (FIS).
This follows the revelation of fraud, and other acts of illegality in the disposal of the assets held by the governments two financial sector bail-out agencies.
There was a heated debate on the issue in Tuesday's sitting of Parliament on February 19th.
Finance Minister Audley Shaw said the audit was necessary due to some irregularities which have been uncovered in the disposal process at FINSAC.
"Last week I ordered a forensic external audit which is now underway. The purpose of that audit is to examine and report on the probity, propriety and legality of sale agreements and management decisions made by the company and whether the government of Jamaica suffered any loss which could have been avoided. To examine also the internal control systems that led to fraud in the company. The audit was considered necessary because of reports of improper management and the manner in which sale agreements of FIS and FINSAC had been conducted," said Mr. Shaw.
He said a report on the audit is to be tabled in Parliament.
Government member Gregory Mair asked whether a Commission of Inquiry would be carried out in order to prevent a recurrence.
Mr. Shaw said an attempt had already been made to determine what led to collapse of the financial sector in the 1990's.
He added that in his opinion, a Commission of Inquiry should be conducted into the matter but did not give a commitment that it would be done.
A heated debate developed between both sides of the House over the previous administrations handling of the FINSAC debts.
Leader of Opposition Business in the House, Dr. Peter Phillips made a pronouncement.
"This is an abuse of the question time and the intentions. Instead of answering questions legitimately asked, Members of the government are taking an opportunity to abuse persons of the former government to pay petty politics with the interest of the country. If they want to engage in witch hunts, then we can all decide to just have fisticuffs," he said.
FINSAC was established to oversee the restructuring of the financial sector while the FIS was responsible for the recovery effort following the collapse of the Blaze
This follows the revelation of fraud, and other acts of illegality in the disposal of the assets held by the governments two financial sector bail-out agencies.
There was a heated debate on the issue in Tuesday's sitting of Parliament on February 19th.
Finance Minister Audley Shaw said the audit was necessary due to some irregularities which have been uncovered in the disposal process at FINSAC.
"Last week I ordered a forensic external audit which is now underway. The purpose of that audit is to examine and report on the probity, propriety and legality of sale agreements and management decisions made by the company and whether the government of Jamaica suffered any loss which could have been avoided. To examine also the internal control systems that led to fraud in the company. The audit was considered necessary because of reports of improper management and the manner in which sale agreements of FIS and FINSAC had been conducted," said Mr. Shaw.
He said a report on the audit is to be tabled in Parliament.
Government member Gregory Mair asked whether a Commission of Inquiry would be carried out in order to prevent a recurrence.
Mr. Shaw said an attempt had already been made to determine what led to collapse of the financial sector in the 1990's.
He added that in his opinion, a Commission of Inquiry should be conducted into the matter but did not give a commitment that it would be done.
A heated debate developed between both sides of the House over the previous administrations handling of the FINSAC debts.
Leader of Opposition Business in the House, Dr. Peter Phillips made a pronouncement.
"This is an abuse of the question time and the intentions. Instead of answering questions legitimately asked, Members of the government are taking an opportunity to abuse persons of the former government to pay petty politics with the interest of the country. If they want to engage in witch hunts, then we can all decide to just have fisticuffs," he said.
FINSAC was established to oversee the restructuring of the financial sector while the FIS was responsible for the recovery effort following the collapse of the Blaze
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