The Integrity Commission (IC), has recommended that the Financial Investigation Division (FID), Tax Administration Jamaica (TAJ) and the Financial Services Commission (FSC) examine certain financial dealings of Prime Minister Andrew Holness to ensure no laws have been breached.
The recommendation is contained in a revealing 179-page investigation report that was tabled in the House of Representatives yesterday.
The IC, in its much anticipated report, said it commenced its investigation on a referral that Holness could be in breach of the Corruption Prevention Act, The Parliament (Integrity of Members) Act, and Integrity Commission Act by virtue of his holding assets in Imperium, a company which made investments in two associated companies.
“The referral (that gave rise to the probe) raised further concerns that Holness omitted to disclose in the referenced statutory declarations, filed by him (in 2021) with the commission, certain bank accounts he held jointly,” said the IC in its report.
The IC’s Director of Investigation, Kevon Stephenson, said it will need to be determined by the FID and TAJ whether several companies named in the report and which have connections to Holness and at least one of his sons, “are operating within the parameters of the laws of Jamaica, given the remit of those entities, and whether recommendations ought to be made to any other authority”.
“Further, the questions surrounding the use of funds belonging to Positive Jamaica Foundation to purchase (in part) a bond worth US$94,000, and the operations of companies with which Mr Holness is/was associated, and which he named as the source of funds to acquire particular assets, would also need to be resolved by the relevant entities before the DI can make a final conclusion on the question of illicit enrichment,” the report said.
It must be noted that the IC’s director of corruption prosecution did not recommend that any charges be brought against Holness for failing to declare a number of banks accounts on which his name appeared when he filed his statutory declarations with the commission for the 2021 reporting period.
The investigation report is the culmination of a two-year investigation during which the prime minister’s statutory declarations remained uncertified and during which he was constantly pilloried by the parliamentary Opposition.
The investigation sought to ascertain whether Holness owns assets disproportionate to his lawful earnings, and if he had in fact made false statements in his statutory declarations, by way of omissions, contrary to law.
The four bank accounts that were not declared had balances totalling just under $446,000 and were in the names of his mother, father, sister and a former constituency worker. Holness explained that he was added to his parents’ accounts when he was a minor. In the case of the former constituency worker, the prime minister said he had encouraged her to open the account but did not know how his name came to be on the account.
The IC has raised numerous questions about multiple transactions involving the prime minister’s companies, including a US$94,000 spend to acquire (NFE South Power 11% 2039 bond) on September 2, 2019.
The DI concluded that only US$61,892.98 was funded by him and that the remaining amount of US$32,107.02 was taken from funds apparently belonging to a registered charity, Positive Jamaica Foundation, of which the prime minister was, at the material time, a director.
“The DI further concludes that Mr Holness’ indication on July 16, 2024, that the full portion of the bond (US$94,000) was erroneously attributed to him by NCBCM, is misleading and unsupported by the evidence. The report said the bond in question was called in 2020, and the principal and interest were paid to Mr Holness.
“The proceeds were incorporated into Mr Holness’ assets which he holds in Imperium, and the DI concludes that the funding of the company, Positive Media, in which Imperium (wholly owned by Mr Holness) was a majority shareholder before being replaced by one of Mr Holness’ sons in 2022, raises several concerns as to the true nature of this company’s operations”.
The DI’s conclusion is premised on Holness’ explanation as to the funding of the referenced company, wherein he indicated that Positive Media is funded by Imperium.
The report said the evidence suggests that Positive Media was funding Imperium rather than Imperium funding Positive Media. It noted that amounts totalling over $70,000,000 were transferred from Positive Media to Imperium and over $50,000,000 from Imperium to Positive Media during the relevant period.
“A surplus of approximately $20,000,000 remained in Imperium’s account. The foregoing will need to be ventilated by the relevant competent authority,” added the report.
According to the report, a $50 million loan that Imperium secured from Barita was unsecured. It has recommended that the FSC launch an investigation into the transaction.
According to the IC, “significant financial transactions were seen among three of the referenced companies, namely, Imperium, Positive Media and Estatebridge. More particularly, the evidence indicates deposits and withdrawals totalling over $473,000,000 and $427,000,000, respectively, between 2020 and June 2023”.
