FID DIGS IN
... but Holness could pursue judicial review of IC’s decision to refer report to financial crimes investigators
Published:Friday | September 20, 2024 | 12:16 AMEdmond Campbell/Senior Staff Reporter
As the Financial Investigations Division (FID) moves to analyse the Integrity Commission’s (IC) report on Prime Minister Andrew Holness’s statutory declarations, The Gleaner understands that his legal team plans to pursue a judicial review of the referral.
Sources have indicated that the prime minister is taking steps to use Section 6(3)(a) of the Integrity Commission Act, which states that in carrying out its duties, the commission shall not be subject to the direction or control of any other person or authority other than the court by way of judicial review.
In that regard, the informed sources said that the prime minister would be seeking a judicial review of IC Director of Investigation Kevon Stephenson’s decision to send his investigation report to the FID, which probes financial crimes.
In a release yesterday, the FID said it received communication from the IC earlier in the day.
“The FID will undertake a comprehensive analysis of the Integrity Commission’s report and determine what, if any, specific area may be probed in keeping with the mandate of the FID,” the investigative body said.
Stephenson said the IC could not certify the assets of the prime minister until the FID completed its probe.
In his report, Stephenson said that having regard to questions around the funding and operations of companies linked to the prime minister as well as his charity, he recommended that a copy of the report be referred to the FID for further investigation.
The report outlined that the full proceeds of a US$94,000 bond – inclusive of US$32,107.02, which Stephenson pointed out was now being said belonged to the Positive Jamaica Foundation – were transferred to Imperium, for which Holness is the sole owner, and reinvested by that entity.
“In other words, the portion allegedly belonging to Positive Jamaica Foundation formed part of Imperium’s assets for over three years and was appropriated by that entity as it deemed appropriate,” he said.
In the report, which was tabled in Parliament on Tuesday, Stephenson said further that the funds were only remitted to the Positive Jamaica Foundation after enquiries had been made by him.
“The foregoing raises questions as to whether Mr Holness’ alleged use of funds belonging to a charitable foundation to partially fund the acquisition of a personal asset amounts to misappropriation. The DI (director of investigation) finds in the circumstances that an investigation by the FID is warranted,” Stephenson said.
At a press conference on Thursday, Opposition Leader Mark Golding said the inability of the IC to certify the prime minister’s statutory declaration was a “serious blot on the country’s image both locally and internationally”.
Arguing that it was “untenable” for the prime minister not to be in good standing with the IC, Golding said the head of Government should “step aside now or call fresh elections so that the people have the chance to elect a new Government that can take our country out of this mess”.
Commenting on the IC’s report, Golding drew attention to the filing of nil tax returns by Holness’ companies, indicating that they had no taxable income or expenses when the companies appeared to be engaged in business activities.
He contended that the IC suggests that this could be a significant violation under Jamaica’s tax laws, and as such, should be referred to the commissioner general of Tax Administration Jamaica.
The investigation report said the payments between Holness’ personal companies over the review period exceeded $400 million.
“Holness has placed Jamaica in a dangerous and untenable situation. His integrity issues cannot be resolved, partly because of the baffling complexity of his personal financial affairs,” Golding said.
“He operated no less than 28 bank accounts. His three personal companies were involved in a very high volume of transactions, averaging more than four per banking day over the period of review, including many substantial inter-company payments and including more than $4.5 million of cardless cash deposits made over a three-month period into his bank accounts by depositors whose identities remain unknown to the commission,” the opposition leader said.
He argued that the IC said it was unable to conclude its investigation, in part, owing to the fact that Holness refused to provide them with critical information that it needed to do so.
Commenting on the IC investigative report, Jamaica Accountability Meter Portal Executive Director Jeanette Calder said she welcomed the news that the prime minister had not been flagged for illicit enrichment.
However, she argued that the process of investigation had unearthed some extraordinary findings that point to possible breaches of serious financial laws, particularly concerning the prime minister’s foundation.
She also expressed concern about the prime minister’s statement that “the current context of its [IC’s] operations does weaken its credibility, and we must do everything to ensure that the appropriate laws are in place to prevent the politicisation of the commission”.
According to Calder, “This amounts to an admission by the prime minister that politics, not principle, has influenced his investigation and that he intends to make changes to a law of the land based on his personal perception.”