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More tears at Finsac enquiry
Businessman claims collusion at root of his loss
BY PATRICK FOSTER Observer writer fosterp@jamaicaobserver.com
Wednesday, March 02, 2011
Businessman claims collusion at root of his loss
BY PATRICK FOSTER Observer writer fosterp@jamaicaobserver.com
Wednesday, March 02, 2011
FORMER managing director of Thermo-Plastics, Jean Claude Desulme, yesterday claimed that he lost his company in 1998 in what he described as collusion involving the political directorate, NCB, the Financial Sector Adjustment Company (Finsac), and National Investment Bank of Jamaica (NIBJ).
Desulme, giving testimony at the ongoing commission of enquiry into the 1990s financial sector meltdown, said that members of the then ruling People's National Party (PNP) wanted his brother Yvon to assume leadership of Thermo-Plastics on the exit of their father, the company's founder.
According to Desulme, his father was a "staunch supporter" of the PNP and made regular donations to the party.
Desulme added that while he also made donations to the PNP through two former prominent Cabinet members, his brother — considered a "travelling companion" of then Prime Minister PJ Patterson — was favoured for leadership.
In his statement yesterday, Desulme accused his brother of orchestrating the takeover of the company by NCB.
In 1998, NCB placed Thermo-Plastics in receivership but yesterday Desulme told the commission that the company was not in arrears at the time.
He testified that the day he was removed as managing director, an NCB executive called him for an early morning meeting.
He said that the meeting was subsequently rescheduled to the afternoon, which he attended.
According to Desulme, during the meeting he was informed that all was OK with Thermo-Plastics' account.
However, upon returning to his office a new security guard was at the gate and he was refused entry to the premises.
Breaking down in tears, Desulme told the enquiry that when he asked for an explanation, Richard Downer — who he learned was appointed receiver by NCB — emerged from the building with armed guards and told him to leave.
"Not even my medicine in my attaché case he would let me get," said an emotional Desulme. "He just waved me off and told me to get out of here."
After being booted from the company, Desulme testified that he sought assistance from the deputy chairman of NCB, Dunbar McFarlane, who, Desulme claimed, informed him that Thermo-Plastics did not have a financial problem, but rather a political problem. "That's what he told me," Desulme insisted.
Thermo-Plastics and a sister company, Plaspak Limited, were considered at the time the largest of their kind in the Caribbean.
In 2002, Finsac transferred the plastic manufacturing companies (business machinery and land) to NIBJ for $205 million.
But attorney-at-law Anthony Levy, representing Thermo-Plastics, yesterday pointed out that both NIBJ and Finsac had common directors, David Coore (NIBJ chairman), Shirley Tyndale, former financial secretary and Rex James.
According to Levy, the assets of Plaspak were transferred by NIBJ to PPL Limited for $9.4 million.
The Thermo-Plastics property was sold to Omni Industries for $35 million.
In December 2009, Levy told the Commission that records showed that NIBJ managing director James was also a director of FINSAC subsidiary REFIN, as well as a director in the company that purchased the $9.4-million property.
At the time the attorney contended that the assets were grossly undervalued, saying that the tax department had a valuation of $145 million for the land NIBJ sold for $35 million.
Desulme, giving testimony at the ongoing commission of enquiry into the 1990s financial sector meltdown, said that members of the then ruling People's National Party (PNP) wanted his brother Yvon to assume leadership of Thermo-Plastics on the exit of their father, the company's founder.
According to Desulme, his father was a "staunch supporter" of the PNP and made regular donations to the party.
Desulme added that while he also made donations to the PNP through two former prominent Cabinet members, his brother — considered a "travelling companion" of then Prime Minister PJ Patterson — was favoured for leadership.
In his statement yesterday, Desulme accused his brother of orchestrating the takeover of the company by NCB.
In 1998, NCB placed Thermo-Plastics in receivership but yesterday Desulme told the commission that the company was not in arrears at the time.
He testified that the day he was removed as managing director, an NCB executive called him for an early morning meeting.
He said that the meeting was subsequently rescheduled to the afternoon, which he attended.
According to Desulme, during the meeting he was informed that all was OK with Thermo-Plastics' account.
However, upon returning to his office a new security guard was at the gate and he was refused entry to the premises.
Breaking down in tears, Desulme told the enquiry that when he asked for an explanation, Richard Downer — who he learned was appointed receiver by NCB — emerged from the building with armed guards and told him to leave.
"Not even my medicine in my attaché case he would let me get," said an emotional Desulme. "He just waved me off and told me to get out of here."
After being booted from the company, Desulme testified that he sought assistance from the deputy chairman of NCB, Dunbar McFarlane, who, Desulme claimed, informed him that Thermo-Plastics did not have a financial problem, but rather a political problem. "That's what he told me," Desulme insisted.
Thermo-Plastics and a sister company, Plaspak Limited, were considered at the time the largest of their kind in the Caribbean.
In 2002, Finsac transferred the plastic manufacturing companies (business machinery and land) to NIBJ for $205 million.
But attorney-at-law Anthony Levy, representing Thermo-Plastics, yesterday pointed out that both NIBJ and Finsac had common directors, David Coore (NIBJ chairman), Shirley Tyndale, former financial secretary and Rex James.
According to Levy, the assets of Plaspak were transferred by NIBJ to PPL Limited for $9.4 million.
The Thermo-Plastics property was sold to Omni Industries for $35 million.
In December 2009, Levy told the Commission that records showed that NIBJ managing director James was also a director of FINSAC subsidiary REFIN, as well as a director in the company that purchased the $9.4-million property.
At the time the attorney contended that the assets were grossly undervalued, saying that the tax department had a valuation of $145 million for the land NIBJ sold for $35 million.
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