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FINSAC’s debacle
Article Published: Sunday, February 7th, 2010
Michael Henry — owed close to $40 million; Morin Seymour — offered a write off of $5 million; Douglas Orane — owed $116 million but was given a handsome write off of $113 million; Robert Russell — $5 million of his $16 million debt written off (File photos)
A number of fresh disclosures emerged last week, as the debacle over FINSAC’s accounts continued before the Boyd Carey led commission of enquiry at the Jamaica Pegasus hotel, in Kingston.
On Friday FINSAC’s general manager Errol Campbell, under pressure from the commissioners, released the names of several top politicians, businessmen and companies who he said were recipients of multi-million dollar bailouts from FINSAC.
Then news broke that lawyers representing clients who appeared before the commission kept their promise to file suit to halt the enquiry on the grounds that head commissioner Carey was conflicted.
Information also emerged that FINSAC’s chairman Robert Martin sought information from the Jamaica Redevelopment Foundation on 28 accounts of debtors who had approached the government for assistance.
Incumbent minister of transport and works Lester Michael Henry and finance minister Audley Shaw as well as former PNP government ministers Ben Clare and Arnold Bertram head the list of politicians, and Douglas Orane were among those who were treated kindly.
According to FINSAC document presented at the enquiry, Minister Henry owed close to $40 million and was offered a write off of $13 million. The FINSAC document shows that $2 million of a $14 million debt owed by finance and planning minister Audley Shaw was written off. A payment of $5 million was made in 2006 leaving an unpaid balance of $7 million.
Former minister Bertram’s Lillyfield Farms in St Ann was listed as owing over $38 million. FINSAC wrote off over $5 million, but according to the document $33 million remained unsettled with a note saying properties with the equivalent value should be transferred.
Ben Clare was stated as owing $5 million, $4.5 million of which was written off, leaving an outstanding balance of almost $400,000.
Another former state minister under the People’s National Party regime Terry Gillette was documented as having a $5 million debt. $4 million was written off and the balance paid
According to the FINSAC document, Douglas Orane owed $116 million but was given a handsome write off of $113 million. However, the documents presented at the enquiry on Friday showed an outstanding balance of over $600,000.
Setting the records straight, chairman of GraceKennedy Douglas Orane said he has never borrowed any money, which “I have not repaid in full.” Orane explained that his parents started a business under the name Douglas C. Orane Limited named after his father Douglas Clair Orane. It operated for several years before it was sold in 1983. The new owners, he said, continued operating under the old name.
According to the FINSAC document Kingsley Cooper, who heads the model agency, Pulse Investments and who was listed as having a debt of $36 million received a write off of $24 million. One of the principals of Reggae Sumfest Robert Russell was stated as having had $5 million of his $16 million debt written off.
The document stated that a group of 12 companies and individuals headed by Cliff Cameron of the Swift Group owed US$8 million. Of this amount US$3 million was written off, leaving an outstanding balance of US$3 million. Great River Rafting and Tours is shown as owing $118 million and had $96 million written off leaving a balance of $22 million and property valued at $18 million was listed to be transferred.
Morin Seymour, chief executive officer of the Kingston Restoration Company, is listed a having a debt of $14 million. He was offered a write off of $5 million. But the FINSAC document showed that up to the end of 2001 only $360,000 of the balance was paid leaving a balance of $9 million.
Status report
Meanwhile, the Jamaican Redevelopment Foundation responded to a request from FINSAC chairman, Robert Martin in March 2009, for a status report on 28 companies, which had approached the government for assistance with their debts.
JRF managing director Janet Farrow in her response in April 2009, noted that such a move would breach the sale agreement between JRF and FINSAC. Any queries from the debtors, Farrow said, should be sent to JRF for a response.
“Considering that the government is a beneficiary of the funds collected by JRF each month, we are not sure what is meant by assistance but we assume that all that you are requesting is assistance for internal purposes.”
On the FINSAC list was Alfrasure Structures & Roofing Limited, which according to Farrow, had a debt of US$1.3 million. The account was restructured to $575,000 in 2004 at 12 per cent interest. The debtor made two payments on the account and then ceased to perform. The account defaulted and demands and statutory notices issued.
Farrow noted that prior to taking the property to auction, the debtor made settlement proposal equivalent of the estimated net proceeds of the sale of debtor’s residence but he again refused to settle. The property was later sold.
Another company, CFC Construction Limited sued JRF and the matter is still in court. When the debt was sold to JRF, the debt was in excess of US$11 million. Among the other debtors were Chatsworth Farms, Ferrco Farms limited, Harold B Ramsey& Associates, Solid Engineering Limited and Stewart Trav.
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Article Published: Sunday, February 7th, 2010
Michael Henry — owed close to $40 million; Morin Seymour — offered a write off of $5 million; Douglas Orane — owed $116 million but was given a handsome write off of $113 million; Robert Russell — $5 million of his $16 million debt written off (File photos)A number of fresh disclosures emerged last week, as the debacle over FINSAC’s accounts continued before the Boyd Carey led commission of enquiry at the Jamaica Pegasus hotel, in Kingston.
On Friday FINSAC’s general manager Errol Campbell, under pressure from the commissioners, released the names of several top politicians, businessmen and companies who he said were recipients of multi-million dollar bailouts from FINSAC.
Then news broke that lawyers representing clients who appeared before the commission kept their promise to file suit to halt the enquiry on the grounds that head commissioner Carey was conflicted.
Information also emerged that FINSAC’s chairman Robert Martin sought information from the Jamaica Redevelopment Foundation on 28 accounts of debtors who had approached the government for assistance.
Incumbent minister of transport and works Lester Michael Henry and finance minister Audley Shaw as well as former PNP government ministers Ben Clare and Arnold Bertram head the list of politicians, and Douglas Orane were among those who were treated kindly.
According to FINSAC document presented at the enquiry, Minister Henry owed close to $40 million and was offered a write off of $13 million. The FINSAC document shows that $2 million of a $14 million debt owed by finance and planning minister Audley Shaw was written off. A payment of $5 million was made in 2006 leaving an unpaid balance of $7 million.
Former minister Bertram’s Lillyfield Farms in St Ann was listed as owing over $38 million. FINSAC wrote off over $5 million, but according to the document $33 million remained unsettled with a note saying properties with the equivalent value should be transferred.
Ben Clare was stated as owing $5 million, $4.5 million of which was written off, leaving an outstanding balance of almost $400,000.
Another former state minister under the People’s National Party regime Terry Gillette was documented as having a $5 million debt. $4 million was written off and the balance paid
According to the FINSAC document, Douglas Orane owed $116 million but was given a handsome write off of $113 million. However, the documents presented at the enquiry on Friday showed an outstanding balance of over $600,000.
Setting the records straight, chairman of GraceKennedy Douglas Orane said he has never borrowed any money, which “I have not repaid in full.” Orane explained that his parents started a business under the name Douglas C. Orane Limited named after his father Douglas Clair Orane. It operated for several years before it was sold in 1983. The new owners, he said, continued operating under the old name.
According to the FINSAC document Kingsley Cooper, who heads the model agency, Pulse Investments and who was listed as having a debt of $36 million received a write off of $24 million. One of the principals of Reggae Sumfest Robert Russell was stated as having had $5 million of his $16 million debt written off.
The document stated that a group of 12 companies and individuals headed by Cliff Cameron of the Swift Group owed US$8 million. Of this amount US$3 million was written off, leaving an outstanding balance of US$3 million. Great River Rafting and Tours is shown as owing $118 million and had $96 million written off leaving a balance of $22 million and property valued at $18 million was listed to be transferred.
Morin Seymour, chief executive officer of the Kingston Restoration Company, is listed a having a debt of $14 million. He was offered a write off of $5 million. But the FINSAC document showed that up to the end of 2001 only $360,000 of the balance was paid leaving a balance of $9 million.
Status report
Meanwhile, the Jamaican Redevelopment Foundation responded to a request from FINSAC chairman, Robert Martin in March 2009, for a status report on 28 companies, which had approached the government for assistance with their debts.
JRF managing director Janet Farrow in her response in April 2009, noted that such a move would breach the sale agreement between JRF and FINSAC. Any queries from the debtors, Farrow said, should be sent to JRF for a response.
“Considering that the government is a beneficiary of the funds collected by JRF each month, we are not sure what is meant by assistance but we assume that all that you are requesting is assistance for internal purposes.”
On the FINSAC list was Alfrasure Structures & Roofing Limited, which according to Farrow, had a debt of US$1.3 million. The account was restructured to $575,000 in 2004 at 12 per cent interest. The debtor made two payments on the account and then ceased to perform. The account defaulted and demands and statutory notices issued.
Farrow noted that prior to taking the property to auction, the debtor made settlement proposal equivalent of the estimated net proceeds of the sale of debtor’s residence but he again refused to settle. The property was later sold.
Another company, CFC Construction Limited sued JRF and the matter is still in court. When the debt was sold to JRF, the debt was in excess of US$11 million. Among the other debtors were Chatsworth Farms, Ferrco Farms limited, Harold B Ramsey& Associates, Solid Engineering Limited and Stewart Trav.
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8 Responses to “FINSAC’s debacle”
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Talk the Truth says:
February 9, 2010 at 2:05 pm
Do you all notice that it is associated with politically involved or supporters of both parties,from PNP there supporters get a better or preferential bail out during there ruling now there is a change JLP is doing the same damn thing!!!!No party is better than the other,People of Jamaica hey a we have the power not them without us they cannot get in to power so think not just short term but long term…because at the rate at which we are going the countrys currency is loosing value[explanation-the higher the paper money goes that shows the weakness example a $5000 bill we are following in the steps of zimbabwe with $200,000 bill dat cant buy nutn…and a tell unuh something herald is more open,earlier with the news compared to the others keeep it up.
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Jamaica Livin says:
February 8, 2010 at 11:53 pm
Can anyone explain what this has to do with why the banks failed in the first place? This commission is a fiasco - just a bunch of debtors complaining that they should have had the same write off as other people - what happened to the idea of repaying your debt? Do people really understand that the tax payers bought these bad debts and its the taxpayers who gave them the write off? And by the way - go read what’s filed in court - the debtors — including the finsac’d lady who is always talking - her husband should have told her the truth cause what she say don’t match the facts. What a waste of money when you have people unable to get water or roads or have a decent room to live in. Politics will be the death of jamaica.
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Ken says:
February 7, 2010 at 10:19 pm
FINSAC was a BIG Man ting!
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Dickie Crawford says:
February 7, 2010 at 8:17 pm
Clearly these people are going to pay back these amounts aren’t they.
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bobbyR says:
February 7, 2010 at 7:46 pm
This is way pass living high on the hog. Aren’t these people ashamed of themselves?
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Be fair and honest says:
February 7, 2010 at 3:06 pm
Be careful Herald, be careful that a law suit from some these people named by your newspaper. I think you (Herald) should wait on the documented hard evidence out of the commission of enquiry before naming these people. ” BE CAREFUL”
But by the way HERALD, weren’t you one of the media houses against this commission of enquiry from the very beginning?. “What a FLIP - FLOP” As country people used to say ” MOUTH MEK FI SAY ANYTING”
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