FINSAC bailed out JLP Ministers – Davies

[Lazie]

Opposition Spokesman on Finance Dr. Omar Davies has warned that he would have no problem revealing the names of members of the Jamaica Labour Party (JLP) Cabinet who had to be bailed out by FINSAC following the meltdown in the financial sector in the 1990's.
His threat came after the People's National Party (PNP) called on Finance Minister Audley Shaw to recuse himself from any further involvement in the Commission of Inquiry he announced at the closing of the budget debate on Wednesday.
At a PNP press conference Thursday morning, Dr. Davies explained that the previous administration was hesitant to appoint a commission of enquiry into the financial sector collapse of the 1990's due to the fact that officials with intimate knowledge of information governed by banker client relationship would likely be called upon to give evidence.
Dr. Davies said it was felt that an enquiry would have resulted in possible legal implications in terms of confidential breaches.
The former Finance Minister said he had refrained from divulging sensitive information which came to him in his capacity as minister.
He however noted that the utterances and actions of senior members of senior members of the present JLP administration had left him no option but to make necessary disclosures which he said would impact on the terms of reference of the proposed enquiry.
Conflict of interest
He stated that is a fact that a senior member of the Cabinet was a shareholder of an institution in which depositors had to be compensated by FINSAC.
He also stated that at least four Cabinet Ministers in the present government including Finance Minister Audley Shaw and one Minister of State, had their bad loans acquired by FINSAC because of their failure to service debts to the institutions from which they had borrowed.
Dr. Davies said in each instance, despite attempts by FINSAC to restructure the loans the debts were not settled and were subsequently sold to the Jamaica Redevelopment Company.
He stated that Mr. Shaw's involvement in the process raised serious questions of conflict of interests.
He said based on the information presented, Mr. Shaw had no moral authority to lead the process for the enquiry but and the opposition is demanding that Mr. Shaw recuse himself from any further involvement in the matter and allow the process to move forward independently.
The former Minister said the opposition stands ready to participate in the enquiry said support is contingent on their participation in defining the commission's te3rm of reference.
He added that though he has kept the name of other members of the present administration who had bad debts close to his chest, he is fully prepared to reveal those names when called to the commission of enquiry.

[Lazie]

Its highly unlikely that the MOF would be on that commission. Business people in Jamaica got screwed by Finsac ... Omar call it bail out.

[Assasin]

Call names of the PNP and JLP and tell us why them get money.

As usual the PNP tek 18 years to decide on anything. In any normal country there would have been an inquiry years ago, even if a bias one.

[Gamma]

i think he should call names....on both sides.

[Assasin]

them nuh get it. The fact that their lack of proper policy and treating the Jamaican tax payer like is a private club is the problem.

Imagine if them bail out a few JLPites, imagine how many PNP them bail out and how much instead of setting policy for the sufferning businessmen to benefit.

[Rockman]

Our Minister of Finance has to have the worst credit score of all the cookie jar raiders we elect to lead.
Seems he has an unorthodox way of conducting business, and of course it raises the serious question, should the ones that need to be regulated be the regulators.
Hym get the IMF/WB bank loan hym a look?
Oil and water, that is Shaw and Bruce.




Blessed

[Rockman]

The problem is you will rip the PNP apart for doing something, and ignore the JLP for doing the same, and your rationale is the JLP isn't blameworthy because the PNP did the same.
Also,questions surrounding Audley Shaws' relationship with some of the most influential financial institutions in Ja.


Blessed

[Karl]

Bailout bangarang - Shaw not fit to head FINSAC enquiry

Bailout bangarang - Shaw not fit to head FINSAC enquiry - D a v i e s
published: Friday | April 25, 2008



Arthur Hall, Senior Staff Reporter

Davies


Up to last night there was no response from Finance Minister Audley Shaw to Opposition claims that he does not have the moral authority to oversee the proposed commission of enquiry into the financial sector meltdown of the 1990s and the subsequent creation of the Financial Sector Adjustment Company (FINSAC).

Efforts to contact Shaw started yesterday morning, minutes after former finance minister Dr Omar Davies took off the gloves and started a slugfest over the proposal to establish a commission of enquiry into FINSAC.
Shaw on Wednesday closed the 2008-2009 Budget Debate with the announcement that he would shortly be announcing the names of persons who would be presiding over the enquiry.

He told the House of Representatives that the enquiry would seek to determine why some loans were reduced or written off while others were forced to pay high interest.

But Shaw did not disclose that he was one of those who had his loan reduced, a claim made by Davies yesterday as he ripped into the finance minister.

Addressing journalists at a post-Budget Debate press briefing at the PNP's Old Hope Road, St Andrew, headquarters, Davies declared he had nothing to hide and was prepared to take part in any enquiry into FINSAC.

According to Davies, the Opposition was ready to participate in the enquiry but this would depend on some preconditions.

At the top of the list is the Opposition's demand that it should participate in defining the terms of reference of the commission.

The Opposition is also insisting that Shaw should play no role in establishing the commission and defining its terms of reference.

"The (finance) minister has no moral authority to lead the process ... and the Opposition demands that he completely recuse himself from any further involvement in the matter and allow the process to move forward independently and with transparency," Davies declared.

Conflict of interest

Shaw


He based this call on what he said was a conflict of interest involving the finance minister.
"It is a fact that at least four Cabinet ministers of the present administration, including the minister of finance and one minister of state had their bad loans acquired by FINSAC because of their failure to service their debts.

"FINSAC only came into the picture because they were bad debtors," Davies added.

While not naming the other Cabinet ministers, Davies claimed Shaw had a bad loan with a failed institution which was taken over by FINSAC.

Davies further claimed the loan was restructured to a fraction of the original amount after negotiations with Shaw.

"And when we seek to score political points about a transfer of wealth, this agreement amounted to nothing more than a transfer of wealth in that the settlement to which he affixed his signature and did not honour, represented a fraction of the sum owed."

He continued: "We can therefore judge who were the beneficiaries of this transfer."

Davies refused to name other present Cabinet members who had their loans taken over by FINSAC, arguing he did not want to broad brush persons.

The former finance minister also admitted that members of the PNP administration also had loans taken over by FINSAC, but did not disclose their names either.

Davies hinted that the Opposition would not have a problem with Senator Don Wehby, minister without portfolio in the finance ministry, leading the enquiry.
arthur.hall@gleanerjm.com

[Assasin]

I will rip anybody. The PNP had the power and made no effort to have an inquiry which should be done.

I am not afraid to rip any JLP. I don't care who got or not got, let the public know how everything went. Why not? In any sensible country there would have been inqury from at least 8 years ago.

[Mosiah]

Sass, you try to appear neutral and reasonable. You try.

[Mosiah]

Why should the PNP have an enquiry when they are the ones who put FINSAC in place and never had a problem with it?

Should we have an enquiry into highway 2000 too?

[Lazie]

Why should the PNP have an enquiry when they are the ones who put FINSAC in place and never had a problem with it?

Should we have an enquiry into highway 2000 too?

Mosiah, like Omar yuh missing it. The enquiry should start with what led to the creation of FINSAC ... Omar is talking as if all of this started with FINSAC.

[Assasin]

As a young country Jamaica can only learn from its mistake there must be inquiries, people speak on the record and things investigated. It must be documented and people go forward.

If Omar had done this do you believe Shaw could be talking now? So many people in the country begged for this. The Jamaican finances is not a private club that the minister of finance do whatever they want and get a free pass, it is only fair for people know what is happening.

For example the coffee money in the Blue Mountain went down in these crashes as well and most of the farmers think that only Ronnie Thwaites and a few other connected got bail out and most of them were held holding the bag, now is that true? That is part of the reason why some things must be in the public on the record.

I care less for these politicians I care for the people of Jamaica and the little bit of policy studies that I do help me fi know that information is key.
I am more concerned about my neigbour in Jamaica who now have a heart problem because of what happen to his acres of coffee that he got no money for, I am more concerned for the people who I know who needed some help and got none, had to take out 35% interest rate and some of us had to help bail them out.

[Mosiah]

Oh, okay. I can accept that.

But, on the other hand, if what led to FINSAC was not a "mystery" then there would be no need for an enquiry. Clearly, Omar might be the last person to think an enquiry is necessary.

Anyway, at this point, I think we could all benefit from an enquiry.

[Lazie]

Oh, okay. I can accept that.

But, on the other hand, if what led to FINSAC was not a "mystery" then there would be no need for an enquiry. Clearly, Omar might be the last person to think an enquiry is necessary.

Anyway, at this point, I think we could all benefit from an enquiry.

Listening to Omar's tone yesterday ... he isn't interested in any enquiry. I heard some people who were FINSACKED on NNN yesterday and they pointed out that the previous gov't didn't give them the time of day. Now that there is a change of gov't they're hoping that someone will listen to them.

You are aware that people are still losing their homes today as a result of the FINSAC saga?