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Government of Jamaica

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Government of Jamaica

STATEMENT FROM THE MINISTER OF FINANCE AND THE PUBLIC SERVICE

Hon. Nigel Clarke, DPhil., MP
Hon. Nigel Clarke, DPhil., MP

Ministry of Finance and the Public Service

Audit Committee Performance Evaluation guideline (ACPE tool)

Hon. Nigel Clarke, DPhil., MP, (2nd left) Minister of Finance and the Public Service and Lilia Burunciuc (2nd right), World Bank Country Director for the Caribbean Countries sign a loan agreement to support the Jamaica Social Protection for Increased Resilience and Opportunities Project during a visibility ceremony at the ministry on Tuesday, June 11, 2024. Looking on are Collette Roberts Risden (left), Permanent Secretary, Ministry of Labour and Social Security and Dr. Jaime Saavedra Chanduvi (right), World Bank Human Development Director for Latin America and the Caribbean Region.

­­­­­­­­Kingston, Jamaica: Thursday, October 3, 2024

This statement is in response to a media story today.

The multi-billion Stocks and Securities Limited (“SSL”) fraud, which dates back to at least 2010, and which only came to light in January 2023, was a punch to the gut for all Jamaicans. The magnitude of the fraud, its duration and the fact that the victims included several elderly Jamaicans, as well a beloved icon, shocked the nation. I shared and still share those emotions.

As such, the policy has been to (i) leave no stone unturned, (ii) get international help and (iii) follow the evidence wherever it may lead. I have repeated this policy mandate several times, including in my 2023 and 2024 budget presentations and in statements issued to the press and uploaded to my social media accounts.

Consistent with this policy, in January 2023, within days of the allegations of the fraud, I wrote to the Foreign Commonwealth and Development Office of the British High Commission and requested their assistance in identifying international forensic auditors who could assist with an investigation. They kindly obliged and the GOJ, through the Financial Investigations Division (“FID”), engaged KROLL Associates UK (“KROLL”), a multinational firm of forensic auditors who have considerable global experience. It was important to me that we engaged an international firm that has no connection in Jamaica and one with deep expertise because of the complexity of the matter, the volume of transactions, the number of accounts and the time span of the fraud.

The KROLL team worked with the support of the FID and the Financial Services Commission (“FSC”), utilized technology, data analytics and forensic expertise to produce a comprehensive and independent report of its findings which was delivered to the FID in November 2023.

The collaboration between the Jamaican investigative authorities and KROLL allowed the FID to report to Jamaicans in September 2023, by way of press release, about the expansion in the “scope and size of the probe”. Resulting from the collaboration with KROLL, the FID was able to again report to Jamaicans in December 2023, also by press release, that “there are over 200 affected accounts and a staggering amount exceeding US$30 million [J$4.7 billion] attributable to fraud and other irregularities related to clients’ funds”. This was up from the estimated 40 affected accounts and J$2 billion that was initially reported in January 2023. The GOJ’s engagement of KROLL has therefore greatly assisted the investigation process in identifying other fraudulent schemes and affected accounts at SSL.

Furthermore, the FID reported in December 2023 that they had a submitted a file on their findings in the SSL investigation to the Office of the Director of Public Prosecutions (ODPP) for a ruling. At the time the FID stated that “prosecutors …are reviewing the evidential material with a view to discerning the possible charges.”

I have been informed that, since that time, the FID and ODPP have met on several occasions, including within the last month in regards to the review of the comprehensive and voluminous SSL investigative file. Among other things, the ODPP has recommended that the FID collects three further statements, the process of which has already commenced.

I understand the frustration and the desire for tangible results. I share these feelings too.

However, I ask the public to reflect on the fact that there can be no better demonstration of transparency in this matter than our decision to procure the services of an international forensics audit firm to support an independent and thorough investigation as we have done.

And there can no better indication of the importance attached to this investigation than the fact that, despite the complexity of this matter with 200 affected accounts and despite the timeline of the fraud that spanned more than a decade, the investigative bodies were able to submit a file to the ODPP in December 2023 for an investigation that began in January 2023. I cannot think of a precedent for this level of efficiency among similarly complex financial frauds of the past.

Finally, we must remember that the ODPP is a constitutionally independent office with great expertise and experience. I appeal with the public to continue to exercise patience as the independent constitutional authority carries out a diligent and meticulous review of the SSL investigative file so that culpable persons may be held to account.

-end-

For further information contact: 

Ministry of Finance and the Public Service

30 National Heroes Circle

Kingston 4

 

The Hon. Nigel Clarke, D.Phil., MP

Minister of Finance and the Public Service
30 National Heroes Circle, Kingston 4
Tel: (876) 932-4656 / 4660 / 4655
Eml: opedjamaica@gmail.com

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