|
contd....
FINSAC continued its sales efforts in relation to the pool of
commercial and residential real estate with good results, as the pool of
residential properties was completely exhausted by the end of F/Y
2001/2002. For the upcoming fiscal year, FINSAC will continue to explore
initiatives to accomplish a possible bulk sale of the portfolio.
Indications are that there continues to be a reasonable level of
activity in the commercial real estate market and FINSAC continues to be
encouraged by this.
Major property sales included:
| |
J$M |
|
J$M |
| Pavillion Mall |
135 |
25 & 26 Tropical Plaza |
39 |
| |
|
|
|
| 30 - 36 Knutsford Blvd |
69 |
39 - 43 Barbados Ave |
157 |
| |
|
|
|
| 66 Half Way Tree Road |
50 |
48 - Main Street, May Pen |
21 |
| |
|
|
|
| 2 - 6 Trafford Place |
59 |
40 Market Street, Montego Bay |
25 |
| |
|
|
|
| 18 Trafalgar Road |
150 |
17 Dominica Drive |
200 |
| |
|
|
|
| 15 & 30 Grenada Crescent |
36.5 |
32 - 34 Market Street, Montego Bay |
81 |
| |
|
|
|
| 16a Half Way Tree Road |
48 |
Liguanea Lands |
27 |
| |
|
|
|
| |
|
|
|
OTHER ACTIVITIES
Insurance Regulatory Reform Project
This project is jointly funded by FINSAC and the Inter-American
Development Bank (IADB). It is designed to put more effective external
regulation in place and, through clearly defined responsibilities in the
new Insurance Act, create better company management. Beginning in 1998
and continuing through the last financial year, the Insurance Regulatory
Reform project has focused on:
- the updating and strengthening of Jamaica’s Insurance Act and
regulations;
- the establishment of new accounting standards and financial
reporting guidelines for insurers;
- the establishment of new solvency requirements for both life
insurance and general insurance companies;
- the establishment of investment standards for insurers; and
- the evaluation of the management of private pension funds in
Jamaica, together with other reforms.
With the creation of the Financial Services Commission (FSC) on April
1, 2001, the team continued to work closely with the staff of the former
Office of the Superintendent of Insurance (OSI). As at November 1, 2001,
the FINSAC staff members attached to the project took up positions at
the FSC, as part of a smooth transition exercise. The Insurance Act was
passed on December 21, 2001, and the project is now essentially at an
end, save for minor administrative matters remaining.
Forensic/Prosecutorial Activities
An important part of FINSAC’s operations is its Prosecutorial and
Forensic Unit, which co-ordinates and assists in the conduct of
investigations into suspected fraudulent activities committed at FINSAC
- intervened entities prior to the intervention.
In relation to criminal matters, the Unit initiates investigations
and based on its findings, may make a report to the Police Fraud Squad.
Thereafter, members of the Unit work closely with the office of the
Director of Public Prosecutions and the Fraud Squad to identify further
evidence and assist the prosecutors generally in trial preparation.
In relation to civil matters, the Unit works closely with FINSAC’s
external attorneys to prepare matters for suit (and thereafter for
trial) against persons identified as being responsible for losses
suffered by the institutions under investigation, where such losses are
due to the acts or omissions of these persons.
For the fiscal year, the Unit focused on assisting external counsel
in the following:
- litigation against former principals of Workers Savings and Loan
Bank et al arising from the initial public offering of shares in
Friends Group Limited in 1993;
- litigation against former directors of the Blaise financial
entities for mismanagement, breach of fiduciary duty, fraud and
seeking recovery of over J$1Billion; and
- litigation against former principals of the Eagle financial
entities for recovery of estimated J$450Million in damages for breach
of fiduciary duty, breach of contract, negligence and fraud.
During the period, there were some significant developments in the
matters being pursued by the Unit as follows:
-Financial Institutions Services Limited (FIS) was successful in
its case against an entity controlled by the Panton family, former
principals of the Blaise financial entities, for possession of
premises at Blaise Industrial Park, and the appeal against the
judgment was dismissed, therefore, affirming FIS’ right to possession
of the premises. FIS also won an award of J$7.31Million against the
company. The company filed an appeal against this award, and also
applied for an order staying the execution of the judgment pending the
hearing of their appeal. The application was dismissed.
- the Pantons’ appeal to have civil cases against them stayed
pending completion of criminal proceedings was heard in June 2001 and
dismissed. The matters are expected to come on for trial in June 2002.
- the proceedings against the former Chairman of the Century
financial entities continued, with the defendant’s appeal against the
Supreme Court judgment being pursued. The appeal having been dismissed
by the Court of Appeal, the defendant obtained leave to appeal to the
Privy Council. However this appeal has since been blocked by the Court
until the legal costs of FIS are paid by the defendant.
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