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The former members of the Board of the Development Bank of Jamaica (DBJ) including one-time Cabinet Secretary, Dr. Carlton Davis and Aubyn Hill are facing damning allegations in the wake of a probe conducted by the Office of the Contractor-General,(OCG).
The investigation concerns the leasing of properties to Mr. Hill and former Solicitor
-General Michael Hylton.
Contractor-General Greg Christie’s report which was tabled in Parliament on Tuesday concluded that there was evidence of a breach of duty by the former directors in giving the green light to the arrangements.
The findings have been referred to the Attorney-General to determine whether any action should be taken.
Not an ‘arms-length’ deal – Christie
Allegations of a conflict of interest have been included in the report concerning the leasing of premises at 51 St. Lucia Avenue in New Kingston to a company in which Mr. Hill, who was a former Director of the DBJ, is a shareholder.
The company has been identified as NationGrowth Finance Limited.
Two other entities: First Global Bank and Paymaster had expressed an interest in the property but were passed over.
The OCG said a letter from the DBJ claimed that Paymaster was not considered as it had evidence that the company was "less than diligent in honouring its debt obligations."
DBJ claimed that First Global was only interested in the ground floor of the premises and had found another location.
Mr. Christie said the lease with NationGrowth cannot be considered to have been concluded at 'arms length'.
Put to tender
According to the OCG report, although some members of the former DBJ Board had expressed concern about entering into any business agreement with Mr. Hill, the former Cabinet Secretary who was the Chairman gave the nod.
As it concerns the former Solicitor-General renting office space at the DBJ building on Oxford
Road, Mr. Christie said it is unclear how Mr. Hylton obtained information that the property was available.
The space is being used to house Mr. Hylton's law practice.
Mr. Christie has concluded that the leases for the two premises should have been put to public tender to mitigate against the possibility of a perceived conflict of interest.
The investigation concerns the leasing of properties to Mr. Hill and former Solicitor
-General Michael Hylton.
Contractor-General Greg Christie’s report which was tabled in Parliament on Tuesday concluded that there was evidence of a breach of duty by the former directors in giving the green light to the arrangements.
The findings have been referred to the Attorney-General to determine whether any action should be taken.
Not an ‘arms-length’ deal – Christie
Allegations of a conflict of interest have been included in the report concerning the leasing of premises at 51 St. Lucia Avenue in New Kingston to a company in which Mr. Hill, who was a former Director of the DBJ, is a shareholder.
The company has been identified as NationGrowth Finance Limited.
Two other entities: First Global Bank and Paymaster had expressed an interest in the property but were passed over.
The OCG said a letter from the DBJ claimed that Paymaster was not considered as it had evidence that the company was "less than diligent in honouring its debt obligations."
DBJ claimed that First Global was only interested in the ground floor of the premises and had found another location.
Mr. Christie said the lease with NationGrowth cannot be considered to have been concluded at 'arms length'.
Put to tender
According to the OCG report, although some members of the former DBJ Board had expressed concern about entering into any business agreement with Mr. Hill, the former Cabinet Secretary who was the Chairman gave the nod.
As it concerns the former Solicitor-General renting office space at the DBJ building on Oxford
Road, Mr. Christie said it is unclear how Mr. Hylton obtained information that the property was available.
The space is being used to house Mr. Hylton's law practice.
Mr. Christie has concluded that the leases for the two premises should have been put to public tender to mitigate against the possibility of a perceived conflict of interest.
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