KINGSTON, Jamaica, CMC – The Jamaica authorities Tuesday stated public funds will now not be used to pay the salaries and operational bills of fraud-hit Shares and Securities Restricted (SSL firm.
In an announcement, Finance Minister Dr. Nigel Clarke stated that it’s now not crucial for the Jamaica authorities to supply help for the salaries of SSL employees members, on condition that an insurance coverage declare made by the SSL Non permanent Supervisor in April to SSL’s insurers in England, had now been settled.
He stated SSL obtained the insurance coverage payout of 1 million US {dollars} on September 7, enabling it to settle the rest of its August employees wage invoice final week.
“As such, with this new growth, no taxpayer cash, no Authorities of Jamaica sources, no public funds have, or can be, used to help SSL within the fee of any of its staff or another bills,” stated Clarke.
The federal government stated SSL’s receipt of insurance coverage proceeds occurred earlier than the Monetary Companies Fee finalized the steps required for the Fee to supply short-term help to SSL.
The Ministry of Finance stated that SSL shoppers instantly personal Jamaica greenback (JS) denominated shares and bonds held within the Jamaica Central Securities Depositary, which kind a part of SSL’s off-balance sheet enterprise.
It stated as of Friday, September 22, SSL will start transferring these consumer securities from SSL’s custody to different safety sellers chosen by shoppers, and any money balances in consumer accounts can be transferred to banks specified by shoppers.
“Whereas we count on as much as one-third of JS consumer balances to be transferred inside days, the complete course of may take as much as six weeks to be accomplished, given the quantity of consumer accounts,” stated Clarke.
Nevertheless, transferring US dollar-denominated securities owned by SSL shoppers will contain collaboration with US-based regulators and US-based funding homes, which can take extra time.
“The Jamaica Central Securities Depositary and the Jamaica Inventory Alternate are working with the Non permanent Supervisor and the FSC to facilitate the switch of J$ securities and balances. SSL shoppers can be required to finish the related Know Your Buyer documentation. SSL will talk instantly with its shoppers on the procedures to be adopted,” the ministry stated.
It stated given the latest progress within the investigation introduced by the Monetary Investigation Division and the anticipated winding down of SSL’s off-balance sheet guide of enterprise, SSL’s employees complement is projected to say no from 22 individuals to not more than eight individuals by the tip of November.
“It needs to be famous, nevertheless, that full elimination of SSL as a contingent legal responsibility of the GOJ requires a closing dedication by the Courtroom on the problems surrounding who has correct authority over SSL: whether or not it’s the Monetary Companies Fee’s appointed Non permanent Supervisor or the SSL Board appointed Trustee,” the Ministry of Finance added.
SSL hit the headlines in January this 12 months, and in June, wealth advisor Jean Ann Panton was remanded into custody to permit investigators extra time for the submission of essential information associated to vital fraud on the firm
She has been indicted with three counts of theft as a servant, three counts of falsification of accounts, 5 counts of forgery, 5 counts of uttering cast paperwork, three counts of partaking in transactions involving stolen property, and three counts of breaches of the Cybercrimes Act.
Panton is accused of fleecing roughly three billion {dollars} (One Jamaica greenback=US$0.008 cents) from greater than 30 SSL shoppers over ten years, together with Olympian and World file holder Usain Bolt, whose account at SSL was reportedly bilked of over US$12 million.
In January, his attorneys demanded that the funding agency return US$12.7 million to his account inside ten days or face civil and prison motion.
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