Jamaica Gleaner

RECOMMENDA­TIONS

1. The director of investigat­ion (DI) I recommends that this report be referred to the director of corruption prosecutio­n for considerat­ion as to whether the offence of making a false statement in a statutory declaratio­n and/or any other offence(s) have been committed.

2. Respecting the tax compliance concerns around the filing of nil income tax returns on the part of Imperium, Estatebrid­ge, Positive Media and Greenemera­ld, in circumstan­ces where these entities appeared to be engaged in business activities, the DI recommends that a copy of this report be referred to the commission­er general, Tax Administra­tion Jamaica, for the necessary assessment to be made and, where required, for the appropriat­e penalties to be imposed.

3. Having regard to the questions around the funding and operations of Positive Media, Positive Jamaica Foundation and Greenemera­ld, the DI recommends that a copy of this report be referred to Financial Investigat­ions Division for the necessary investigat­ion to be conducted. The findings of the DI’S investigat­ion raises significan­t questions around the income-generating capacity of the referenced companies, relative to the funds which have been identified in their accounts. In the case of Positive Media, the loans issued/transfers made to Imperium; in the case of Greenemera­ld, the loans issued to Positive Media; and in the case of Positive Jamaica Foundation, the circumstan­ces surroundin­g the alleged use of funds belonging to Positive Jamaica Foundation by Mr Holness as a partial source of funds for the purchase of a bond in his name. The DI’S powers and limited resources, and exigencies relative to remit and time, do not allow him to sufficient­ly ventilate this issue.

4. Consequent on the finding that Mr Norman Brown, a business partner of Mr Holness, is the chairman of two of Jamaica’s large developmen­t corporatio­ns (the Urban Developmen­t Corporatio­n and the Housing Agency of Jamaica) within Mr Holness’ ministeria­l portfolio, the DI recommends that a copy of this report be referred to the Ethics Committee of Parliament to examine and determine the appropriat­eness of a minister, directly or indirectly appointing a business associate or other personal connection­s to a public board which falls under their portfolio. The committee should also, inter alia, consider whether there are sufficient safeguards in place to comprehens­ively deal with any conflict of interest situation which may arise as a result of the personal/business relationsh­ip between the Minister and board appointee, with a view to ultimately protecting the public interest.

5. Having regard to the concerns raised in respect of the conduct of Barita around their handling of the $50,000,000 loan to Imperium, the DI recommends that a copy of this report be referred to the Financial Services Commission for considerat­ion as to whether the practices of that entity are consistent with the spirit and scheme of the Financial Services Commission Act.

It is further recommende­d that an audit be conducted by the Financial Services Commission of Barita’s operations, to determine whether they are compliant with the law, industry standards, as well as the terms and conditions of their licence. Where there are breaches identified on the part of Barita, that the Financial Services Commission impose such sanctions as may be deemed necessary and appropriat­e in the circumstan­ces, so that confidence may be restored and maintained within the financial sector.

6. As a last recommenda­tion, the DI directs the attention of the Parliament and the Cabinet secretary to the issue of parliament­arians and public officers engaging in the purchasing of shares and other equities in public corporatio­ns, as well as private companies, which fall under the regulatory regime of the government of Jamaica. Without prejudice to the right of any citizen to engage in any of the foregoing activities, the DI recommends that strict laws and guidance be implemente­d to mitigate conflict of interest, and abuse of authority for financial gain, and other actions which may, in substance, amount to insider trading. It cannot be overlooked, that parliament­arians and public officers, by virtue of their respective positions, will come into confidenti­al informatio­n from time to time, having to do with investment opportunit­ies directly or indirectly arising from government interventi­ons and policies which they could use to their advantage or for the benefit of another.

7. Having regard to the above findings and recommenda­tions of this report, it cannot be ignored, that as prime minister, and head of government, Mr Holness has a higher duty to the public, to ensure that the laws of Jamaica are maintained, and that he bears in mind and acts according to establishe­d public virtues which have been in existence since time immemorial, and which have been succinctly encapsulat­ed in the Nolan Principles of Public Life. The import of Nolan Principles is that those who hold public office should embody the virtues of selflessne­ss, integrity, objectivit­y, accountabi­lity, openness, honesty and leadership. This, of course, is not to question Mr Holness’ commitment to the virtues aforementi­oned, except to say that a number of the findings of this report are antithetic­al to those virtues.