Funding fallout looms for PNP candidates

The lawsuit filed by Fitz Jackson against Scotiabank over cheque-cashing fees could result in a drop in campaign contributions from financial institutions to prospective candidates of the Opposition People’s National Party (PNP), former General Secretary Paul Burke has predicted.

However, he believes that the litigation, which is likely to stir unease within the banking sector, is “worth the punishment”.

Both the governing Jamaica Labour Party (JLP) and the PNP have had their campaigns partially funded by banking donors, who have combined to give millions of dollars.

There may not be the collective punishment of the PNP, Burke said, but individual candidates who previously benefited may find themselves without “significant” funding.

He said institutions such as the National Commercial Bank and Jamaica Money Market Brokers, which have in the past declared funding support for the two main political parties, are expected to remain true to their assistance.

He also disclosed that a financial institution had, when he served as general secretary, donated $250,000 to both political parties quarterly, while others gifted amounts during elections or for special projects.

He declined to name the bank when pressed.

“What I believe, however, is that some candidates like Fitz will not get any money from banking interests, but I support him,” Burke said in a Gleaner interview on Tuesday.

Jackson, the St Catherine Southern member of parliament, is seeking a declaration from the court that Scotiabank, through the imposition of the cheque-cashing fee, has breached its obligation by failing to honour a negotiable instrument.

The legislator is also seeking to regain $385 spent to cash a cheque drawn in his name, general damages, and costs associated with the suit filed.

The lawsuit stemmed from a May 2019 incident in which Jackson claimed he was compelled to pay the fee before a teller at Scotiabank’s Portmore branch would cash a $2,500 cheque.

Section 73 of the Bills of Exchange Act defines a cheque as a negotiable instrument and stipulates that it must be honoured on demand without conditions, Jackson and his team have argued.

“This bill is not about whether the encashment fee is reasonable or not. It doesn’t make that assumption or proceed on that premise. It’s whether it is illegal or not,” Jackson said on Tuesday during a press conference at Spanish Court Hotel in New Kingston

“This action (lawsuit) is in regard to the illegality of that action as it is with other fees.”

Burke said if Jackson’s suit is successful, banks’ profit lines could be slashed by as much as 20 to 30 per cent. A successful ruling could also set the precedent for banking transaction fees throughout the sector.

“I believe that it is going to impact on the party, and more so its candidates, but that cannot be the reason not to pursue the matter,” he said.

Jackson said that the matter has been raised within the corridors of the PNP and there is unanimous support for the legal battle.

He said he and his colleagues were elected to defend and protect the interests of Jamaicans.

“God forbid we fail to act in the protection of the people’s interest because of a partisan interest. It would be a condemnation of us all,” the St Catherine Southern representative said.

Jackson pointed out that his introduction of a banking services bill in 2018, which he said would have addressed cheque-cashing fees, was supported by all members of the parliamentary Opposition. It was rejected by government members.

The Gleaner contacted treasurer of the JLP, Aubyn Hill, who dismissed suggestions that government members voted against the bill because of a fear of backlash from banking donors.

“That’s not a fear I have,” Hill said.

kimone.francis@gleanerjm.com