KINGSTON, Jamaica, CMC – The Jamaica government Tuesday said public funds will no longer be used to pay the salaries and operational expenses of fraud-hit Stocks and Securities Limited (SSL company.
In a statement, Finance Minister Dr. Nigel Clarke said that it is no longer necessary for the Jamaica government to provide support for the salaries of SSL staff members, given that an insurance claim made by the SSL Temporary Manager in April to SSL’s insurers in England, had now been settled.
He said SSL received the insurance payout of one million US dollars on September 7, enabling it to settle the remainder of its August staff salary bill last week.
“As such, with this new development, no taxpayer money, no Government of Jamaica resources, no public funds have, or will be, used to support SSL in the payment of any of its employees or any other expenses,” said Clarke.
The government said SSL’s receipt of insurance proceeds occurred before the Financial Services Commission finalized the steps required for the Commission to provide short-term support to SSL.
The Ministry of Finance said that SSL clients directly own Jamaica dollar (JS) denominated stocks and bonds held in the Jamaica Central Securities Depositary, which form part of SSL’s off-balance sheet business.
It said as of Friday, September 22, SSL will begin transferring these client securities from SSL’s custody to other security dealers selected by clients, and any cash balances in client accounts will be transferred to banks specified by clients.
“While we expect up to one-third of JS client balances to be transferred within days, the entire process could take up to six weeks to be completed, given the volume of client accounts,” said Clarke.
However, transferring US dollar-denominated securities owned by SSL clients will involve collaboration with US-based regulators and US-based investment houses, which will take more time.
“The Jamaica Central Securities Depositary and the Jamaica Stock Exchange are working with the Temporary Manager and the FSC to facilitate the transfer of J$ securities and balances. SSL clients will be required to complete the relevant Know Your Customer documentation. SSL will communicate directly with its clients on the procedures to be followed,” the ministry said.
It said given the recent progress in the investigation announced by the Financial Investigation Division and the expected winding down of SSL’s off-balance sheet book of business, SSL’s staff complement is projected to decline from 22 persons to no more than eight persons by the end of November.
“It should be noted, however, that complete removal of SSL as a contingent liability of the GOJ requires a final determination by the Court on the issues surrounding who has proper authority over SSL: whether it is the Financial Services Commission’s appointed Temporary Manager or the SSL Board appointed Trustee,” the Ministry of Finance added.
SSL hit the headlines in January this year, and in June, wealth advisor Jean Ann Panton was remanded into custody to allow investigators more time for the submission of crucial files related to significant fraud at the company
She has been indicted with three counts of theft as a servant, three counts of falsification of accounts, five counts of forgery, five counts of uttering forged documents, three counts of engaging in transactions involving stolen property, and three counts of breaches of the Cybercrimes Act.
Panton is accused of fleecing roughly three billion dollars (One Jamaica dollar=US$0.008 cents) from more than 30 SSL clients over ten years, including Olympian and World record holder Usain Bolt, whose account at SSL was reportedly bilked of over US$12 million.
In January, his attorneys demanded that the investment firm return US$12.7 million to his account within ten days or face civil and criminal action.
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