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Dr Davies and the Finsac dilemma
Raulston Nembhard
Tuesday, March 04, 2008
Dr Omar Davies seems to be suffering from Finsac Anxiety Syndrome, given his recent anxiety over Mr Audley Shaw's desire to audit Finsac. Anyone with a modicum of concern would understand the need for such an audit and a Commission of Inquiry into what happened. The meltdown of the financial sector was a matter of monumental proportions that has affected, and will continue to affect Jamaica for years to come. The country is entitled to know what happened. If this event had happened in the United States, a number of people would have been called before committees of Congress to give an account of their stewardship. Maybe grand juries would have been put in place to begin prosecution of actors in the saga.
Those who are arguing that this is a witch-hunt and a waste of time are missing the point and are being disingenuous. Is there a sinister motive for them not wanting to find the truth? One wonders whether members of the previous administration who are getting apoplectic about the audit have something to hide. What do they have to fear about the truth being exposed?
At the very basic level there was not a great deal of transparency that went into the sale of government assets to Dennis Joslin and the Jamaica Redevelopment Company. The transactions were done through the Ministry of Finance presided over no doubt by Dr Davies and agents appointed by him. He and his agents acted as laws unto themselves and brooked no criticism of their handling of what amounted to billions of dollars of what had become the country's patrimony.
In the context of the shroud of secrecy that surrounded these transactions, it would help the country to know if sweetheart deals were entered into. We need to know if special people got special treatment because of their proximity to the political directorate, and if transactions were done in the best interests of the Jamaican people who became saddled with the debt portfolio.
Furthermore, we need to know why a foreigner was invited to take over Jamaican assets at 30 cents to the dollar and to have them resold to Jamaicans at a horrendous 12 per cent, when going loan rates in the USA at the time were at five to eight per cent. How many people will lose their assets when the five-year balloon payments on these reconfigured loans kick in? Will we see the great suffering as has accompanied the sub-prime crisis in America?
And people are already suffering as a result of the unconscionable and generous terms given by the government of Jamaica to Joslin. Individuals have been calling the talk shows with horrific stories of the suffering they are enduring. Some have already almost repaid the loans and yet owe more than three-quarters the initial principal sum they agreed to.
The government must be encouraged to proceed with full speed ahead into this matter. They must not be deterred by those who have a pony in this race. On reflection (and Lent is a good time to do this), people like Dr Davies should be ashamed of their complicity in bringing the financial sector to its knees in the 90s. Proud, longstanding institutions such as Mutual Life were crippled. Banks were selectively saved and others driven into the ground. It appeared as if personal peeves were used to put people in their places, and many hit the mute button on their lips for fear of reprisal from an uncaring political directorate.
There is still a lot of pain from this meltdown, Dr Davies. Healing will never be fully achieved until we know the truth of what went on. If you are an advocate of healing you will see to it that the truth is arrived at, for it is only the truth that will bring closure and set many free.
The contractor-general's office
The contractor-general, Mr Greg Christie, has again raised concern about the lack of personnel and staff to do the work that his office has been called on to do. In many ways Mr Christie has been given "basket to carry water". The truly remarkable thing is the amount of water he has been able to carry since assuming office.
No one can say that his office has not been an oasis in the desert of corruption that Jamaica has become. He has stuck to his tasks tenaciously, despite harsh criticisms and obvious dangers to his well-being. It would behove the government to give him and his staff all the support they need, especially in doing the field work that is so crucial to his mandate. Things have improved in recent times, but there is a great deal to be done. Over to you, Mr Prime Minister.
stead6655@aol.com
Raulston Nembhard
Tuesday, March 04, 2008
Dr Omar Davies seems to be suffering from Finsac Anxiety Syndrome, given his recent anxiety over Mr Audley Shaw's desire to audit Finsac. Anyone with a modicum of concern would understand the need for such an audit and a Commission of Inquiry into what happened. The meltdown of the financial sector was a matter of monumental proportions that has affected, and will continue to affect Jamaica for years to come. The country is entitled to know what happened. If this event had happened in the United States, a number of people would have been called before committees of Congress to give an account of their stewardship. Maybe grand juries would have been put in place to begin prosecution of actors in the saga.
Those who are arguing that this is a witch-hunt and a waste of time are missing the point and are being disingenuous. Is there a sinister motive for them not wanting to find the truth? One wonders whether members of the previous administration who are getting apoplectic about the audit have something to hide. What do they have to fear about the truth being exposed?
At the very basic level there was not a great deal of transparency that went into the sale of government assets to Dennis Joslin and the Jamaica Redevelopment Company. The transactions were done through the Ministry of Finance presided over no doubt by Dr Davies and agents appointed by him. He and his agents acted as laws unto themselves and brooked no criticism of their handling of what amounted to billions of dollars of what had become the country's patrimony.
In the context of the shroud of secrecy that surrounded these transactions, it would help the country to know if sweetheart deals were entered into. We need to know if special people got special treatment because of their proximity to the political directorate, and if transactions were done in the best interests of the Jamaican people who became saddled with the debt portfolio.
Furthermore, we need to know why a foreigner was invited to take over Jamaican assets at 30 cents to the dollar and to have them resold to Jamaicans at a horrendous 12 per cent, when going loan rates in the USA at the time were at five to eight per cent. How many people will lose their assets when the five-year balloon payments on these reconfigured loans kick in? Will we see the great suffering as has accompanied the sub-prime crisis in America?
And people are already suffering as a result of the unconscionable and generous terms given by the government of Jamaica to Joslin. Individuals have been calling the talk shows with horrific stories of the suffering they are enduring. Some have already almost repaid the loans and yet owe more than three-quarters the initial principal sum they agreed to.
The government must be encouraged to proceed with full speed ahead into this matter. They must not be deterred by those who have a pony in this race. On reflection (and Lent is a good time to do this), people like Dr Davies should be ashamed of their complicity in bringing the financial sector to its knees in the 90s. Proud, longstanding institutions such as Mutual Life were crippled. Banks were selectively saved and others driven into the ground. It appeared as if personal peeves were used to put people in their places, and many hit the mute button on their lips for fear of reprisal from an uncaring political directorate.
There is still a lot of pain from this meltdown, Dr Davies. Healing will never be fully achieved until we know the truth of what went on. If you are an advocate of healing you will see to it that the truth is arrived at, for it is only the truth that will bring closure and set many free.
The contractor-general's office
The contractor-general, Mr Greg Christie, has again raised concern about the lack of personnel and staff to do the work that his office has been called on to do. In many ways Mr Christie has been given "basket to carry water". The truly remarkable thing is the amount of water he has been able to carry since assuming office.
No one can say that his office has not been an oasis in the desert of corruption that Jamaica has become. He has stuck to his tasks tenaciously, despite harsh criticisms and obvious dangers to his well-being. It would behove the government to give him and his staff all the support they need, especially in doing the field work that is so crucial to his mandate. Things have improved in recent times, but there is a great deal to be done. Over to you, Mr Prime Minister.
stead6655@aol.com