SHOCK RAIDS
Over $1 billion potential loss in suspected St Catherine MC fraud scheme, sources indicate; operations target employees, associates
Published:Friday | January 10, 2025 | 12:11 AMLivern Barrett and Ruddy Mathison/Gleaner Writers
An investigation has revealed that multiple fraudulent schemes were used over several years to bleed nearly $1 billion from the coffers of the St Catherine Municipal Corporation (StCMC), law-enforcement sources have disclosed.
No-show contracts – paying out millions for work that was not done – were the main fraudulent schemes detected during the four-year investigation, which began in 2020, according to multiple sources.
“People getting monies for work they did not do. This could easily go over $1 billion,” said one source, who acknowledged that there was still no clear indication of how long the alleged fraudulent schemes were operating.
“Everybody – PNP and JLP – was benefiting,” another source added, making reference to the two main political parties, the People’s National Party and the governing Jamaica Labour Party.
The joint investigation was led by the Major Organised Crime and Anti-Corruption Agency (MOCA) with assistance from the Financial Investigations Division and other agencies.
It spilled out into the public yesterday as agents from MOCA, with help from the police and the army, executed search warrants at the StCMC’s main office in Spanish Town, St Catherine, and 16 other locations across the parish as well as in Kingston and Westmoreland.
The searches, which began Tuesday night, also targeted the homes of several StCMC employees “and persons associated with them”, sources revealed yesterday.
The StCMC’s main office was briefly shuttered during the search, and dozens of files were taken away by investigators.
“The operations are aimed at executing search warrants at the various locations in connection with an investigation in allegations of serious organised crime,” said a statement released by Major Basil Jarrett, director of communications at MOCA.
Yesterday, Spanish Town Mayor Norman Scott dismissed claims that his house was among those raided by investigators.
“There is absolutely no truth to the rumour that ... my house was raided. I woke up this morning to the news that a police operation was taking place at the corporation offices, and it extended to several of the employees’ homes,” said Scott, who is chairman of the StCMC.
“It is an investigation, so let the police do their job. Let the chips fall where they may. I just want to say that from the council’s perspective, we have been doing everything correctly,” he added.
The homes of several accounting and engineering staff and that of at least one former senior staff member were reportedly searched.
Several computers, laptops, and boxes of documents were seized.
Fraudulent cheques and cash were allegedly recovered at the home of an associate of one employee.
Despite the ongoing investigation, Scott ensured that the first corporation meeting of the year proceeded as scheduled.
Minority leader Theresa Turner Flynn expressed surprise at the situation, saying: “I have no knowledge of what is going on. I was surprised when I turned up and saw a lot of police and soldiers in the building. I don’t understand about the fraud issue. Nothing was said to us. Nobody knows, and we are just waiting for the results.”
However, one councillor, who spoke to The Gleaner on condition of anonymity, welcomed the operation.
“They don’t even want to sign the cheques for the water trucks to get water into communities where citizens are suffering for water,” the councillor said.
There was no confirmation of arrests or charges up to late yesterday.