UK Government Helping Finance SSL Investigations

KINGSTON, Jamaica – The government of the United Kingdom (UK) has so far contributed just under 10 million Jamaica dollars to assist with investigations into alleged fraud at the Stocks and Securities Limited.

Jamaica Finance Minister Dr Nigel Clarke told a local newspaper on Saturday that “the Government of the United Kingdom, through the British High Commission in Jamaica, has provided grant support to the Financial Investigations Division (FID) in the amount of £50,000 (just under $10 million), to assist in the investigation into the alleged fraud at Stocks and Securities Limited,” adding that “the Ministry of Finance and the Public Service is grateful to the British High Commission for this meaningful support, which ultimately comes from British taxpayers.”

His response to the newspaper’s questions comes two days after Opposition spokesman on finance Julian Robinson asked for a complete report on government’s expenditure in this investigation, adding that each day more information emerges on the extent of the role being played by the Government and its agencies in footing the bill for the investigations

“Full transparency requires the disclosure of expenditures not just by the Ministry of Finance, but by both the Financial Services Commission and the Financial Investigations Division, who are funded by the public purse,” Robinson said.

In March this year government signed with Kroll Associates UK in which the company agrees assist local law enforcement agencies with their probe of the more than $3-billion fraud at SSL in which Jamaican sprint icon Usain Bolt, is among 40 clients who’s accounts have been implicated in a fraud scheme.

“Kroll will bring to the table technology and expertise that will enable the investigators to unravel every aspect of this fraud,” Clarke said in March, pointing out that Kroll Associates is “a subsidiary of Kroll International, a firm known for their forensic auditing experience and expertise”.

On Saturday, Clarke, re-endorsing the decision to engage Kroll, said Jamaica will be the ultimate beneficiary of successful investigations into alleged financial crime here, and that, “Successful investigations increase public trust, strengthen our financial system, and serve as a deterrent to other potential wrongdoers.

“However, these kinds of investigations are expensive, especially for fraud of the magnitude and duration of what allegedly occurred at SSL.”

“Highly specialized resources have to be retained and international collaboration has to be sustained.

Clarke assured the newspaper that government was “not using tax revenues to fund the extraordinary costs of the SSL investigation”,  but added that “as a country we will need to be prepared to make the necessary fiscal allocations for investigations of this kind if we are interested in achieving a Jamaica governed by the rule of law.”

A former wealth advisor at SSL, Jean-Ann Panton, who confessed to stealing from the clients has been charged with three counts of larceny as a servant, five counts of forgery, five counts of uttering forged documents, three counts of engaging in transactions involving criminal property, and three counts of breaching the Cybercrimes Act.

However, two weeks ago the FID said it expects to make more arrests in relation to the fraud probe as the corruption at the securities dealer is much bigger than previously thought and has affected almost twice as many people as earlier stated.

Selvin Hay, director general of the FID, said the investigation is progressing with the application of the highest professional standards.

“It has taken on new dimensions which are wider than first expected,” Hay was quoted as saying in the release. “What is being uncovered is that there are approximately 70 affected accounts — this is significantly more than the just-over 40 affected accounts at the initial phase. The investigation has also identified other fraudulent schemes at SSL which has resulted in the misappropriation and/or loss of numerous investors’ funds amounting to over US$10 million ($1.5 billion).”