Girl With a Purpose (GWAP)

More Woes For Olint, and Cash Plus Boss Appears in Court Today

The edge of the storm
Originally uploaded by slack12

National Commercial Bank  Jamaica Ltd.(NCB Jamaica) will be going to court on Friday to obtain an injunction against the Alternative Investment Club, Olint.

In a press release made yesterday, NCB stated that even though Olint's assets have been frozen/seized by the Financial Crimes Unit (FCII) of the Royal Turks and Caicos Islands Police, they, the bank, are noticing that withdrawals are being made from Olint's three (3) NCB accounts.

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Yesterday, Cliff Hughes, CEO of Nationwide Radio, obtained an email purportedly sent by David Smith (owner and founder of Olint) to his wife, Tracy-Ann Smith, on Sunday, July 13,2008.

In it David Smith gives a chronology of events affecting Olint. He admits Olint is broke and that there were two runs on the institution...one last year and the other in January of this year.

He stated that Olint's long-standing members...have drawn their money out of the Club and have left - It is it's newest members who are now affected by the financial problems facing the Club.

He also asks his present clients/club members to hold strain...to hang (stay) with him for another year when he promises to return their money at 15% interest. [It was not elucidated (clarified) whether this interest would be per month or per year.]

What is coming out of the story behind this mystery email, is that it was supposed to have been sent to Olint Club members (clients) on Monday.

But when it was sent to the Olint Board, they revamped it and on Monday, July 14,2008, sent a "toned down" version to club members, so as to prevent them from panicking.

Mr. Smith called Nationwide Radio, yesterday, saying that it was untrue that he had penned the email...and asked why would people believe that his house is so big that he'd have to email his wife to tell her these things?

He refused to comment any further, citing that his lawyers have restricted him from saying too much.

The Jamaica Observer carried a story yesterday, re David Smith trying to wire approximately USD $200 million to a Jamaican bank, late last week, but was prevented from doing so when the bank alerted the Royal Turks and Caicos Islands Police.

There are some Olint members who believe that Olint's present problems are being caused by bad-minded people in the financial sector who don't want to see middle-class Jamaicans gaining wealth.

In the meantime, Jamaican Finance Minister, Audley Shaw, says that he is not expecting much fallout in the formal financial sector,as a result of the seizure of Olint 's assets.

However there are a few financial analysts who are contradicting this, saying that the fallout will be huge, due to the huge financial impact, Olint had on the middle classes.

In related news, Carlos Hill, head of another Alternative Investment Scheme - Cash Plus, made his appearance in court, today for his trial on fraud charges, levied against himself, his brother Betram  Hill and Cash Plus' Chief Financial Officer, Peter Wilson, by the Organized Crime Investigation Division of the Jamaica Police Force.

All three were arrested on April 10, 2008 on fraud charges related to Cash Plus and were given bail approximately three (3) weeks later...

All three appeared in court and had their bail extended to July 30, when their trial is expected to begin.

(You can use this search :

Custom Search

to search our blog for posts relating to cash Plus and Carlos Hill. Or you can go to the top left-hand-side of our posts, under the section, "Search This Site or the Web Here", to do so.)

We will keep you updated re events surrounding these two Investment Clubs, as soon as we obtain it.

Gillian

Sources Include:

1) Article, "Cash Plus trio have bail extended", RadioJamaica.com, July 17,2008

2) Programme, "Cover Story", Nationwide Radio, July 16, 2008

3) Television Jamaica, News at 7:00 p.m. and 10:00 p.m., July 16, 2008

Olint Assets Frozen!..What Should Clients Do?

Eat Money
Originally uploaded by waɪ.tiː

The Financial Crimes Unit (FCII) of the Royal Turks and Turks and Caicos Islands Police Force, seized the assets of the Alternative Investment Scheme, Olint, yesterday.

[The Turks and Caicos FCII revealed that they began a probe into suspicious activities of the Foreign Exchange Club (Alternative Investment Scheme) approximately two (2) months ago. As a result of their findings, the Turks and Caicos Supreme Court ordered Olint's assets frozen.]

Olint's assets are said to be worth between USD $600-800 million.

Olint moved to the Turks and Caicos Islands about two (2) years ago after running into problems with the Jamaican Financial Services Commission (FSC), re operating in Jamaica without a securities dealers license.

(The FSC is the body which regulates the securities, insurance and private pensions industries in Jamaica.)

Olint then claimed that they weren't dealing in securities, but were trading in Foreign Exchange. But the FSC claimed that since they were collecting monies to invest on their clients' behalf, that they were dealing in securities.]

About one (1) month ago, Olint placed restrictions on how often their clients could request payments. Clients have also been experiencing lengthy delays in getting back funds.

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The Royal Turks and Caicos Islands Police seized computers and documents from the offices of Olint and searched the homes of founder and owner, David Smith.

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Olint closed it offices in Jamaica, yesterday, as a result of a bomb scare.

Two (2) weeks ago, there were signs of trouble brewing for the company, when it wasn't able to meet its monthly payments to clients.

Founder and owner, David Smith, claimed that this was as a result of due diligence being carried out on the company by Financial Regulators in the USA.

(Olint's trading partner,i-Trade FX LLC along with Ingrid Loiten, May Daisy, Deutsche Bank Trust Company Americas and Turks & Caicos Banking Co. Ltd.Trade, are facing a  USD $20 million lawsuit by Steve Palmer of F1 Investment in Florida. The lawsuit was filed on June 26, 2007, for breach of contract.)

The Jamaican financial community is actively watching this situation to assess the extent of the possible fall-out in the Jamaican economy, that may result from this action taken by the Turks and Caicos Supreme Court.

[It is said that the purchasing power of many middle and upper middle class Jamaicans, was greatly increased (they bought new houses and top-of-the line vehicles, and extended present houses), as a result of their investment in Olint.]

The Turks and Caicos police have confirmed that David Smith has not been arrested and is free to leave the Turks and Caicos Islands.

Hmmh!

Interesting huh?...I'm sure that there are quite a few people today, who are pondering the wisdom of the Royal Turks and Caicos Islands Police Force, in allowing this.

...And are fretting re the status of their monies in Olint.

Well I'm going to say to them:

1) Please don't panic..but keep on top of the news regarding Olint.

Your next steps will be largely dependent on whether or not you still believe that David Smith will come through for you and will return your money.

(If worst comes to worst, a temporary manager will be appointed for Olint and you will be apportioned money in the fairest way that he/she sees fit.)

2) You may also consider meeting and sticking together, as a group, to determine what your next steps should be

3) You should also realize that you have the following options open to you, if you are convinced that David Smith will not come through for you:

a) Contacting the FSC in Jamaica to find out the status of investigations into Olint in the Turks and Caicos Islands. (However, they have a pending court case against Olint and may be scanty with information.)

b) Should you not be able to get any information from the Jamaican FSC,  you may try contacting the  Financial Crimes Unit (FCII) of the Royal Turks and Caicos Islands Police Force, to find out the status of the investigations and what your next steps should be.

(The phone number of the Headquarters for the Turks and Caicos Police is: 946-2499 and their email is: police_hq@gov.tc .

The following website also gives contact information for government officials and agencies in the Turks and Caicos Islands: http://www.turksandcaicos.tc/government/.)

c) Filing a joint suit against the company, as was done by some clients of the failed Alternative Investment Scheme, Cash Plus, to retrieve your money.

I wish all Olint clients, all the best, in getting back the monies owed you!

Please note that the above suggestions do not substitute for advice from your attorney or financial advisor.

Gillian

Sources Include:

1) Radio Programme, "Cover Story", Nationwide Radio, July 15, 2008.

2) Television Jamaica Nightly News at 7:00  and 10:00p.m., July 15,2008

3) Article, "F1 Investments sues May Daisy, I Trade et al", on website: Real Investments for Life, July 6, 2008.

4) Article, "Green Card Politicians": section "Wynter and the FSC caught off base", by Mark Wignall, Jamaica Observer, January 14, 2007

Peter or Portia?: The Battle for the PNP Presidency Begins!

600px-Flag_of_Jamaica_svg
Originally uploaded by AFRO_KING_DUDE

Yes friends, Dr. Peter Phillips threw his hat into the political presidency ring, yesterday, when he announced that he was going to challenge Mrs. Portia Simpson-Miller for the PNP Presidency.

[Dr. Phillips is currently the Vice President of the People's National Party (PNP) and Mrs. Simpson-Miller is currently the President.]

The Executive of the Party is presently meeting to decide whether or not this challenge should happen at the PNP's Annual Conference in September, or at special Delegates meeting, to be held prior to this.

Well of course the Jamaican Talk Shows have been abuzz with their theories re what this challenge means for the PNP and Jamaica, etc.

The prevailing thought is that the Jamaica Labour Party (JLP) would be more than happy to have Mrs. Simpson-Miller retain the presidency of the PNP, as she could not beat Bruce Golding (Jamaican Prime Minister and JLP President) in a political debate.

(According to a Jamaica Observer/Don Anderson Poll, published today, 37% of Jamaicans felt that Mr. Golding is the best person to lead Jamaica.

Mrs. Simpson-Miller and Dr. Phillips, fell behind at 27% and 11% of the votes, respectively.)

So, should the Prime Minister call a snap election (as he's likely to do if the JLP is on the losing end of the current legal battles re dual citizenship of certain Members of Parliament), the JLP would more than likely win.

It is felt that Dr. Phillips can convince delegates that the PNP, through him, can re-emerge as the Party for changing Jamaica for the better and his willingess to educate the new generation of PNP members re what it means to be a member of the PNP, is a good step in this direction.

It is also felt that Jamaica needs a new type of leader and politics - both prepared to help Jamaicans meet its present challenges of crime, rising oil and food prices and the present and future challenge of Jamaica  evolving to developed country status in the next twenty-two (22) years.

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Mrs. Simpson Miller, we are told, welcomes the challenge in the spirit of democracy. She however claims, that up until 5:00 p.m. this afternoon, she was not officially informed by Dr. Phillips that he would have been challenging her.

Dr. Phillips' camp claims that she was informed this morning.

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Well friends, we will keep you informed, as soon as the Executive decides when the official Presidency challenge should take place...

Let the games begin!

Sources Include:

1) Article, "Bruce favoured to lead: Jamaica Observer/Don Anderson Poll", published on Jul 14, 2008

2) Nationwide Radio, July 14, 2008

3) CVM Television News Watch, July 14, 2008

Lessons to Learn from Windies Cricket

Following the dismal display of the West Indies (Windies) cricket team in the International Cricket Council (ICC) Test and One Day International matches against no. 1 ranked team, Australia, we see once again, everyone involved Windies Cricket, pointing at each other, saying, "It wasn't me"..

No one wants to take full responsibility for the losses that occurred.

(The West Indies lost the ICC Test Series 0-2 and the One Day International Matches, 0-5.The only match they won was the 20-20 Match (reduced to 11-11), when, guess, who?...Dwayne Bravo was captain.)

This reminds me of musical artist's Shaggy's famous song, "It Wasn't Me" and hence I've dedicated the above video, "It Wasn't Me", from Shaggy, to all those involved in West Indies Cricket.

The Windies Board is pointing fingers at Windies captain, Chris Gayle, saying that he wants his friends to be on the team. They are also pointing at the team saying that are the third highest-paid team, but produce results that will put them into Minnows status [i.e. not good enough to be placed amongst the top eight (8) teams in the world.]

Chris Gayle is accepting some blame, but is pointing at the Windies Board saying that the Board of Selectors chose differently than both he and they had originally agreed....and that they kept on switching players (experimenting) for different matches: something that shouldn't have occurred, seeing that they were playing the no. 1 ranked team, Australia.

The Windies Board retorted that if players continue to show dismal performances, they will have to be replaced.

But let me ask something, here...isn't this the same Windies Board said that it would implement performance-based pay at least two (2) years ago?

Hmmmh!...and they have yet to implemented it...I wonder why?

And isn't this the same Chris Gayle, who, whilst as captain of the Jamaican team that lost to Trinidad in the Stanford 20-20 Cricket Match, earlier this year, said that at least the Jamaican team got the USD $0.5 million? (The winners, Trinidad, got USD $1 million, had a much more positive attitude, and hence the reason for their win.)

This same Windies Cricket team beat Sri Lanka in the ODI's held earlier this year, but couldn't get it together to face the "mighty" Australians.

And the Australians were beatable!

We saw it over and over again, that when we (the Windies) approached the matches with confidence, our level of play was raised and our opportunities to beat Australia, increased.

We also saw flashes of brilliance in the fielding, batting and bowling departments (with Jerome Taylor, Shivnarine Chanderpaul, Dwayne Bravo, Sulieman Benn, Zaviar Marshall )...but apparently the West Indies haven't quite learned the fine art of proper fielding without injury, because their fourth ODI match was played with five (5) injured players.

We continue to see budding talent among the young West Indians with players like Sean Findlay, Zaviar Marshall and Sulieman Benn, who played well against the Australians seeing it was their first stints at international level cricket.

And yet the Windies Board continues to complain about the teams' poor performance, when they, the Board, have refused to implement the Cricket Academy, where these and other young players could hone their skills...a Cricket Academy that has taken 12-15 years to get off the ground.

Unfortunately, what we see happening, is typical of many managers (in the private and public sectors) in the West Indies/Caribbean.

No one wants to be held accountable...everybody wants a big post...but when failure happens, as sometimes it will, no one wants to hold themselves responsible.

Is it that the captain, Chris Gayle, was given basket to carry water (an impossible job)?...in that the pool of players he had to select from was so limited in experience and performance, that West Indies was doomed to failure from the beginning?

Or is it that, as many commentators have said, Australia was used to winning, so even in very close matches, they could eke out a win?  (In other words, Australia approached the matches with the right attitude...they thought that they would win no matter what and hence could perform, optimally, in every situation.)

Hmmmh!

But there are lessons we can take from both Australia's and West Indies performances:

1) Winning is 90% attitude and 10% ability...this is what separates top performers from losers..attitude!

Most teams have the requisite skills to win, but very few have the tenacity to snatch a win from a loss

2) West Indians have a lot of mouth, most of us chat a lot...but ask us to do work that will ensure success..and we don't know where to start...we have to call in some non-Caribbean person to be over us like slave masters, to make us work (perform) consistently.

Lesson to be learned: Pay attention to doers (people who get things done)...they are the real stars! Ignore chatters (people who love the sounds of their own voices) -  they are usually hindrances to true progress

3) Never have a boy do a man's job...in the same vein...never have a girl do a woman's job:

People who are novices, with no desire to learn and to improve things, should never be in charge of people who are experts, with every desire and skill to make drastic changes for the better...and yet we have this happening every day in our work lives...the world is full of novice bosses, who are consistently promoted, because they have an oily mouth and the right "connections"...

But look at the organizations that they lead, they eventually go down...until an expert with every desire to please customers and improve processes, gets to shine.

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Windies Board, a word to the wise is sufficient...you're walking around naked, exposed, but you are so deeply immersed in the sand, that you don't even notice.

Please, for the future of Cricket in the Caribbean, excuse yourselves (tek weh uself!) and allow the experts who remember how we once owned the game, who value West Indies achievements in cricket, who are knowledgeable about Sports Marketing and how to manage a team, to shine!

Nuff said (Jamaican, meaning, enough has been said).

I want to thank Shazd2k7 for the use of his/her inset YouTube video above, "It Wasn't Me", by Shaggy.

Gillian

Sources Include:

Article, "WICB boss: Windies players must earn their salaries",CMC, July 3,2008

Air Jamaica Shake-Up

IMG_14843
Originally uploaded by Ian Fuller

The names of the members of the new Air Jamaica Board were announced, yesterday,  by Senator Don Wehby, Minister Without Portfolio in the Ministry of Finance.

[The previous Board was asked to resign last Wednesday, to make way for a new Board with the financial savvy to negotiate the divestment of the airline. The current Board has been reduced from fourteen (14) to nine (9) members.]

They are as follows:

Previous Members Who Remain:

• Dennis Lalor - Deputy Chairman responsible for divestment (ICWI Chairman)
• Shirley Williams – Non Executive Chairman (Business Woman) - she will not have an office at headquarters and will not manage the day-to-day operations of the airline.
• Derrick Latibeaudiere - (Governor, Bank of Jamaica)
• Richard Byles – (President, Sagicor Life Jamaica)
• Wilfred Bagaloo – (of PriceWaterhouseCoopers Jamaica)
• Carolyn Hayle - (Financier and Lecturer)
• Omar Parkins - (Pilot)

New Members:

• Chris Berry – (Chairman of Mayberry Investments)
• Colin Steele – (Chartered Accountant)

Senator Wehby has given the new Board the following mandate, to be met by March 2009:

1) Stabilize the losses of the airline, which are currently at USD $10 million/month

2) Restructure the airline

3) Divest the airline by March 2009.

[Air Jamaica has been racking up losses to the tune of USD $560 million (JMD $ 40 billion) for the past three (3) years, but has continuously been in a loss position for the past twenty (20) years.

(The airline has lost USD $85 million since January 2008.)

However, the airline's revenue has been approximately USD $350 million/year.]

Senator Wehby, in an effort to further curtail losses, will be requiring that the sixty (60) Members of Parliament and twenty-one (21) Senators who, along with their spouses, are entitled to four,  first class tickets per year, will willingly have this reduced to two (2), first class tickets and eventually zero first class tickets, each.

(The cost of a first class ticket ranges from JMD $150,000 - 300,000)

He reported that negotiations via the Internatinal Finance Corporation (the Financing arm of the World Bank) for a buyer for the airline are going well and that the airline has received USD $1 million and USD $800,000 grants, respectively, from the World Bank and the US Trade and Development Agency (USTDA), to help with this process.

Ideally, he would like to see an ownership structure of 50-60% for the buyer, 20% by the Government of Jamaica and 20% Employee Owned (under an ESOP - Employee Share Ownership Plan.)

The Board and himself are now scouting for a CEO who will manage the day-to-day operations of the airline. They have a short-list of 2-3 applicants which include David Banmiller.

Sources Include:

1) Article, "Air Jamaica revamped - New board named, David Banmiller tipped to be new Air Jamaica CEO", by Arthur Hall, Senior Staff Reporter, Jamaica Gleaner, July 3, 2008

2) Cliff Hughes' Interview with Don Wehby, on his TV Programme, "Impact", July 2,2008.

3) Article, "Air J Board asked to resign", by Vernon Davidson, Executive Editor - Publications, Jamaica Observer, June 25,2008

Usain Bolt's Record-Winning 9.72 Seconds, Makes Jamaicans Proud

Friends, last night was one I will remember for the rest of my life!

In a well-trumped up race which had the world, but especially Jamaicans, at the edge of their seats, Usain Bolt ran a record 9.72 in the men's 100m at the Reebok Grand Prix, last night!

He not only beat Tyson Gay...his new 100m rival, but became the second Jamaican male to hold the world record in the men's 100m.

(Jamaican, Asafa Powell, held the previous world record of 9.74, up until last night.)

Well, as Jamaicans we always knew that Usain Bolt had the potential for attaining great things in Track and Field..from his stunning performances at the School-Boy level, six (6) years ago.

We knew that he had something special to offer in the 200m and the 400m (he came second in the 200m at the World Championship in 2007) , but he surprised us on May 3, 2008, when at the Jamaica International Invitation Meet, he ran a scorching 9.76 seconds, thus giving the world warning that he was a force to be reckoned with, in the 100m, as well,.

We want to offer a big Girl With a Purpose (GWAP) congratulations to Usain for setting the new 100m world record and just hope that he will not relax, but use this as an impetus to do his best at all times when he races.

Usain, we are looking forward to either you or Asafa to bring home the 100m gold at this year's Beijing Olympics!

GWAP also congratulates Jamaica's Golden Girl, Veronica Campbell-Brown, who won the 100m in 10.91 seconds (this year's best time) at the same Reebok Grand Prix, last night.

You may view Usain Bolt's bio from the International Association of Athletics Federations (IAAF ) site, here.

You may also view Veronica Campbell-Brown's bio, from the IAAF site,  here.

I want to thank keanu2003 for the use of his inset video shown above that he has posted on Youtube...

It shows the 100m race at the Reebok Grand Prix last night, with Usain Bolt (in the white shirt and grey shorts) coming first and setting the new 100m world record.

(The footage is a bit grainy, but unfortunately, this is the best we have available.)

Gillian

Sources Include:

1) Article, "Bolt sets 100, record,Campbell-Brown wins", Reuters, June 1, 2008

2) CVM Television, May 31, 2008

3) Article, "Usain Bolt runs 100-meter in 9.76 sesonds", Associated Press, May 4, 2008

Bad News for Cash Plus Clients

There is unfortunately bad news for Cash Plus clients, tonight.

A summary of the Receiver Manger's (Mr. Kevin Bandoian from PriceWaterhouseCoopers USA) report was released by the Supreme Court today. Mr. Bandoian has confirmed that Cash Plus is insolvent...

Of the two hundred (200) entities reportedly owned by Cash Plus, only three (3) of them are viable, as  transactions for ownership were not completed for most of these entities.

Mr. Bandoian also found that Cash Plus has 4 billion in assets and 25 billion in liabilities.

This means that it owes more than in owns.

Of the four (4) billion in assets, only three (3) billion is liquid (easily converted to cash.)

What this means is that the 35,000 - 45,000 investors will  each receive between Jamaican dollar (JMD)   $89,000 - $115,00 on average, small change when compared to the average JMD $550,000 that each of these clients had invested.

Mr. Bandoian found that 70% of Cash Plus clients' investments were used to pay other clients and he stopped just short of calling Cash Plus a Ponzi Scheme.

He also reported that due to the limited time he was given to conduct his investigations, he was not able to speak with all the people he would have liked to.

Gillian

Sources Include:

1) Television Jamaica News at 7:00 p.m., May 19, 2008.

2) CVM TV News at 8:00 p.m. May 19, 2008

Jamaica Public Health Alert - Measles Alert!

Jamaica is on a Public Health Alert tonight, for Measles, a very contagious respiratory disease that is spread by breathing in the droplets from an infected person.

Jamaican Public Health authorities issued a release this evening.

They are requesting that all passengers that came into Kingston, Jamaica, from London Gatwick Airport (LGW) on May 1, 2008, on Virgin Atlantic flight no. 69, immediately report to your nearest Health Centre.

A nine (9) year-old girl from Europe, who was travelling on that flight, has Measles and it is feared that she may have passed it on to the rest of passengers on the flight.

(Measles is 90% contagious. According to the Directors of Health Promotion and Education website, Measles symptoms usually show up in two stages:

The first stage begins with a runny nose, cough, and a slight fever. As the infection progresses, the person's eyes become red and sensitive to light, and the fever rises.

The second stage begins after 3 to 7 days. The fever reaches 103^oF-105^oF, and a red blotchy rash appears.

The rash usually starts on the face and then spreads to the chest, back, and arms and legs, including the palms and soles of the feet. The rash lasts for 4 to 7 days. Small white spots might also appear on the gums and inside of the cheeks.)

You can find more information about the disease, here.

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All passengers who were on the Virgin Atlantic flight are asked to call the following toll-free no.: 1-888-663-5683, immediately, for more information.

You should take your immunization cards and see the Senior Health Nurse, or Medical Officer at your nearest  Health Centre, now!

Gillian

Sources Include:

1) Nationwide Radio, May 15, 2008

2) Article, "Measles Facts",  Directors of Health Promotion and Education website

News Byte: Cash Plus Boss' Day in Court, Sees Minor Setback!

Cash Plus boss, Carlos Hill, his brother, Bertram Hill and Cash Plus Chief Financial Officer, Peter Wilson, will have their day in court on July 17, 2008.

They appeared in the Half-Way-Tree Resident Magistrate Court, today, but their lawyers complained that the documents with specific charges made by the Jamaican Police, were not presented by the Director of Public Prosecutions.

As such, their clients' bail has been extended until the above-mentioned date, when these documents, it is hoped, should have been presented and analyzed.

In a related story:

On Monday afternoon, the Jamaican Supreme Court was presented with the report from Kevin Bandoian, the PriceWaterhouseCoopers Receiver-Manager appointed to ascertain the assets of Cash Plus.

However, there is no word as yet, as to whether or not Cash Plus clients will be able to get back all, or a portion of the monies owed them.

Will let you know as soon as we have this information!

Gillian

Sources Include:
1) Television Jamaica News at 7:00 p.m. May 14, 2008

2) Power 106 FM News at 5:00 p.m. May 13, 2008

Carlos Hill Released, But Will He Deliver?

Cash Plus boss,Carlos Hill and his brother, Bertram Hill were both given bail yesterday.

As a condition of his release, Carlos Hill will be under house arrest from 6:00 p.m. to 8:00 a.m. every day.

What I find amazing is that in spite of the US$ billions we hear of him having in investments worldwide, Mr. Hill  could not find the (Jamaican dollar) JMD$ 15 million to make bail. ( USD $1= JMD $71.3)...

It was one of his own investors that bailed him out....interesting huh?

Friends, this doesn't look good for Cash Plus clients...for a man with supposedly so much money and he couldn't even make his own bail...this doesn't look good at all!

In the meantime, Kevin Bandoian, the Receiver Manager from PriceWaterHouseCoopers in the USA, that was appointed by the Jamaican Supreme Court to assess Cash Plus assets in March, has asked the court for an extension of the time (from May 5, 2008) to release his report on said assets.

He should have this information available on May 12,2008.

The trial for both Hill brothers (who have been charged for fraud and money laundering) will begin on May 14,2008.

Hopefully,as a result of this trial we will get the answers that have been looming in the minds of a lot of Jamaicans, since December 2007:

1. Was Cash Plus, as an entity, a Ponzi Scheme or a legitimate business?
2. Did Carlos Hill really mend his ways and become a legitimate business-man?
3. Will Cash Plus investors get back none, some or all of their principal and interest, invested in this Investment Scheme?

Friends, we have interesting days ahead!

I want to thank brianmax4438 for the use of his Youtube video above.

Please use the following search box to find related posts on GWAP, re Cash Plus:

 

                 

Gillian

Sources Include: a) CVM Television News at 8:00, May 5, 2008

Cash Plus Boss Denied Bail!

200601 court room
Originally uploaded by superciliousness

Yesterday, Cash Plus' Chairman, Carlos Hill and his brother, Bertram Hill, were denied bail...when they appeared in the Half-Way-Tree Resident Magistrate Court.

Cash Plus Chief Financial Officer (CFO), Peter Wilson was however released on JMD $5 million bail.

(All three were charged on Tuesday for conspiracy to defraud and fraudulent conversion of funds.)

As I watched the news last night, what I found to be interesting is the contrasting stories from both news stations,re the Cash Plus clients who were demonstrating outside the Court House.

Television Jamaica (TVJ) focused on the plight of Cash Plus Clients, especially the Jamaican  lady who had come down from New York to see the proceedings...she had mortgaged her house and invested the USD $300,000 she received into Cash Plus...she's owing on the house, can't pay her bills, so is anxious to know when she'll get back her money.

While CVM Television focused on Cash Plus clients' support for Mr. Hill. They reported that these clients are hopeful that Mr. Hill will be released soon so that they can get their monies back. That these clients feel that while he's behind bars, he cannot enact plans to begin payment of their monies.

Meanwhile, the police claim they are remanding Carlos Hill for his own security...they don't feel he's safe being released.

They also claim that his release at this time will interfere with ongoing investigations of fraud and into his assets.

Well of course Mr. Hill's lawyers (Valerie Neita-Robertson and Churchill Neita) were in total disagreement with this and claimed that if the police had hard evidence against their client, they should have argued this in court versus holding that press conference on Monday, April 15, 2008.

A press conference that they claim will obviously create bias when a hearing is actually held.

Well all Jamaica is anxiously awaiting the results of the Organized Crime investigation Division of the Jamaican Constabulary Force in to the assets of Mr. Hill...

USD $7 billion, dollars is nothing to sneeze at...and over 40,000 Cash Plus clients will continue to face sever economic hardship, if the US $450 million (JMD$ 32 billion) owed, is not recovered.

Hmmmh!

Friends, please allow me to make two statements here, in relation to the choices you make in investing your monies.

1) Please invest your money carefully...try to throughly investigate companies, before you invest with them. This includes banks.

You work too hard and smart for your money, to throw it away.

2) Please ensure that when you are accepting financial advice, that it is from people who are qualified to give it.

Think,long term, before you act!

Nuff said! (Jamaican meaning, enough has been said!)

Gillian

Sources Include:

1) Television Jamaica News at 7:00 p.m., April 17, 2008

2) CVM Television News at 8:00 p.m., April 17, 2008

News Byte: Carlos Hill to Be Charged for Fraud!

At a press briefing held at 10:00 a.m. this morning, Assistant Commissioner of Police (ACP) Les Green, head of the Organized Crime Investigation Division, (the division of the Jamaican Constabulary Force that is leading investigations into the operations of Cash Plus Ltd.), reported that the raid on Carlos Hill's premises, last Thursday, has yielded numerous information.

(Carlos Hill was Chairman of Cash Plus Ltd., an Alternative Investment Scheme in Jamaica, which after three months, could not meet its debt obligations to its clients/lenders.)

He reported that Cash Plus was in fact a Ponzi Scheme...that they in fact had 106 affiliates, worldwide, in addition to 80 companies directly linked to Cash Plus, and that Carlos Hill has numerous assets outside of Jamaica:

Including Turks & Caicos Islands, China, Dominican Republic, Ghana, British Virgin Islands, Spain, Kuwait and the Netherlands.

ACP Green says that mutual assistance is being sought from these countries.

Examples of the amount of monies found in Cash Plus accounts, are as follows:

• US $1 billion in one account alone
• US $2.5 billion in five (5) accounts
• US $450 million
• US $100 million

Preliminarily, it may seem that Carlos Hill may have sufficient funds outside of Jamaica, to return monies owed to Cash Plus clients.

ACP Green said that Carlos Hill is to be charged on conspiracy to defraud and fraudulent conversion of funds.

We are not sure if these are the full charges to be laid on Mr. Hill and what charges, if any, will be laid against his brother, Bertram Hill and Cash Plus CFO, Peter Wilson.

The men are to appear in court on Thursday.

The men are to be represented by lawyers: Hugh Thompson, Mr. Hill's defense lawyer from the US; Churchill Neita and Mrs. Valerie Neita-Robertson.

To find all our previous posts related to Cash Plus, please type in "cash plus" in the Google Search box, found to the top, left-hand side of our posts, select, "www.girlwithapurpose" , then press the "Search" button.

Gillian

Sources Include:

Nationwide Radio April 15, 2008

Cash Plus Declared Insolvent...Chairman Arrested, Assets Siezed!

Ok friends, Girl With a Purpose Blog has sad news to report this afternoon.

Cash Plus' Receiver, Kevin Bandoian,from PriceWaterhouseCoopers USA, has completed his assessment of the actual assets belonging to the company and has declared Cash Plus insolvent .

In a preview of his final report, yesterday, Mr. Bandoian stated that neither Cash Plus, nor its eighty (80) affiliates, have enough money to pay its clients (lenders), on April 14, 2008, as promised.

In a related incident, the  Jamaican police from the Organized Crime and Investigations Division (OCID) surrounded the Norbrook home of Cash Plus Chairman, Carlos Hill, in a surprise pre-dawn raid, this morning.

(Norbrook is an upper-middle class neighbourhood in St. Andrew, Jamaica)

They seized five( 5) luxury vehicles worth over JMD $30 million and have arrested Mr. Hill.

They have also conducted raids on the houses of some other Cash Plus' senior managers and have vowed to continue raids on other Cash Plus residences.

Several Cash Plus senior managers have also been arrested.

Assistant Commissioner of Police (ACP), Les Green, has asked Cash Plus lenders with dishonored cheques, to file formal reports of fraud on Cash Plus, on the designated form on Ministry of National Security website at www.mns.org.jm.

(This can be found under the link entitled "Witness Statement Re Cashplus", to the top right-hand-side of the page. )

Will keep you updated of events as they unfold in the Cash Plus saga, as soon as they become available.

Please read our previous post for background information...

To get  a chronology of events re Cash Plus, please use the Google Search bar, under the section entitled,
"Search This Site or the Web Here!" to the top left-hand-side of our posts and type in "Cash Plus":

This will give you resultant posts that outline this.

Gillian

Sources Include:

a) Television Jamaica News at 7:00 p.m. , April 9, 2008

b) Nationwide Radio, April 10, 2008

c) Article, "Cash Plus broke- Receiver says investment club has no money to pay out", by Arthur Hall Senior Staff Reporter, Jamaica Gleaner, April 10, 2008

Good News for Cash Plus Clients!

Yes friends, Cash Plus Ltd.'s clients (creditors) might just be able to rejoice today!

The Financial Services Commission(FSC), has varied the cease-and-desist order it placed on Cash Plus in December 2007, thus allowing Cash Plus to pay the outstanding monies it owes its clients.

[Cash Plus  Ltd. (CPL)  is one of the Jamaican Alternative Investment Schemes that has been hammered by the FSC, for its failure to register as a securities dealer and file audited financial statements that would prove assets to keep the company afloat.

In November 2007, as a result of Cash Plus' inability to provide its, banker, National Commercial Bank(NCB), with audited financial statements, outlining the source of its funds, the bank closed seventeen (17) of Cash Plus' twenty-six (26) accounts.

NCB completed this process in February 2008, thus preventing Cash Plus from disbursing monies to its clients.

The bank claimed it did this to prevent the bank being implicated in money laundering and terrorist financing.

Following the  decision by NCB to close some of Cash Plus' accounts in November, the FSC placed the cease-and-desist order on Cash Plus.

NB: Cash Plus claims that its clients are really creditors, as they have loan the company money to invest on their behalf.]

Cash Plus then asked it clients for three months (up until March 31,2008) to be able to come up with monies to pay them back.

Cash Plus however failed to meet its March 31,2008 deadline  and was put in receivership last Monday by the Jamaican Supreme Court, at the request of lawyers representing the company.

The court then appointed a Receiver (Mr. Kevin Bandoian) from PriceWaterhouseCoopers USA, to assess the actual assets that the company has and to begin disbursement of funds to its clients.

Apparently Cash Plus, in the documents it presented to the FSC, last Friday, has been able to prove that it has monies to the tune of US $460 million (JMD $32 billion) to pay its clients, from its affiliate in the Turks and Caicos islands. Thus allowing the FSC to waive the cease-and-desist order.

Although Cash Plus Ltd. in a press release in the Sunday Gleaner on Sunday April 6, 2008, claims that it will actually start disbursing the monies on April 14, 2008, Cash Plus clients are yet to get verification from the FSC, re the actual disbursement date.

In the April 6, 2008 press release, Cash Plus vowed to continue operating as soon as it  applies to the FSC to become a licensed securities dealer in Jamaica.

I would like to thank deshoda for providing us with the inset video seen above. Deshoda's YouTube.com profile can be seen, here.

Gillian

Sources Include:

1) The Business Day, via Television Jamaica (TVJ) News at 7:00 p.m., April 7, 2008

2) CVM News Watch, at 8:000 April 7, 2008

3) Article, "Cash Plus in turmoil - Investment Club in receivership- Investment club in receivership", by Barbara Gayle and Gareth Manning, Jamaica Gleaner, April 1, 2008

Kern Spencer Trial Postponed!

IMG_3347.JPG
Originally uploaded by dowilliamson

Well friends, today was supposed to have been the big trial day for Kern Spencer, Member of Parliament for North East St. Elizabeth and Former PNP State Minister in the Ministry of Industry, Technology, Energy and Commerce.

So too for his co-accused, business man Rodney Chin and Mr. Spencer's Personal Assistant, Coleen Wright, who, along with Mr. Spencer, have been charged with fraud, money laundering and corruption, for their roles in the JMD $270 million, Cuban Light Bulb Project, gone awry.

However, the Director of Public Prosecutions (Ms. Paula Llewellyn) pleaded for more time, due to the enormity of information to be gathered and analyzed.

Meanwhile Mr. Spencer's lawyer, Ms.Deborah Martin, claims that the police have yet to provide her with the details of Mr. Spencer's charges.

The trial has been postponed until May 16,2008.

The bail terms for all three accused, have also been extended until then.

Mr. Chin's travel documents were returned to him, at his lawyer's (Mrs. Valerie Neita-Robertson) request, to facilitate him doing business abroad.

Please remember to read our posts (from February 26-29) to refresh your memory re the background to this post.

Gillian

Sources Include:

1) Television Jamaica (TVJ) Nightly News at 7:00 p.m, March 26,2008

2) CVM Television News (News Watch) at 8:00 p.m., March 26,2008

Kern Refuses to Resign!

happy talk like a pirate day
Originally uploaded by jgrantmac

Friends we have interesting news to report this morning.

A high level delegation from the People's National Party (including PNP General Secretary, Peter Bunting) met with the Constituency Executive of North East St. Elizabeth, yesterday.

[Mr. Kern Spencer, the Member of Parliament for North East St. Elizabeth, has been charged with fraud, money laundering and corruption, for his role in the JMD $270 million, Cuban Light Bulb Project, gone awry.

----------------

(Jamaica is divided into 60 constituencies, whose elected representatives sit in Parliament.

These representatives are called Members of Parliament)]

The Constituency Executive told the delegation that they are fully behind Mr. Spencer - they really don't see any reason why he should resign.

[There has been mounting pressure on Mr Spencer to resign his post as Member of Parliament (MP) for the constituency, following his arrest, last Tuesday, on money laundering, corruption and fraud charges, as they relate to the Cuban Light Bulb Project.

(Mr. Spencer was former State Minister in the Ministry of Industry,Technology, Energy and Commerce and was given oversight of this Project.

Please read our posts for the week of February 26,2008 for a background re this.)]

Mr. Spencer also met with the delegation, this week and communicated his intent to remain as MP of North East St. Elizabeth.

Well, if what we hear from the Constituency Executive and what we see on television are to believed, then the people of North East St.Elizabeth are so enamored by their representative, that they do not want him to resign.

They are willing to accept him as their representative, no matter what charges have been made against him.

Interesting, huh?

This gentleman has been accused of defrauding the people of Jamaica to the tune of JMD $270 million dollars and yet the people that he represents, see nothing morally wrong with him representing them.

That $270 million dollars that could have been used to:

1) Improve their and our hospitals, schools, roads (most of which are in deplorable conditions) and that could help to pay off our trillion dollar debt.

2) Pay their and our teachers, nurses, doctors who work in public hospitals, police, firemen and women, civil servants...

Who, come April, when the new budget is announced, will be pressuring the government for increased pay...

and for whom the government of Jamaica will have to borrow money to pay, since we can't seem to generate enough revenues to meet their pay bill.

3) Support their and our elderly, disabled and destitute and contribute to a better standard of living for all Jamaicans.

--------------

In any other civilized country, if a public official is implicated in wrong-doing, he/she doesn't even wait to be officially charged, to resign his/her post...he/she does it immediately...for,

He/she knows that:

1) He/she owes it to the people he/she represents, to have representatives who will act in their best interest and who will appear to be transparent, ethical and honest in all their dealings, but especially those that involve the people's money.

2) The people he/she represents, think enough of (so highly of) themselves, to not allow people who may be involved in wrong-doing...even if it's an implication, to represent them...as it's a bad reflection on them as a people, to have representatives who appear to be dishonest...

(Additionally, there are too many honest people falling over themselves to represent them, that they don't have to dig at the bottom of the barrel, to find a representative.)

3) It's a bad reflection on the political party who put him/her up, for election, in the first place.

Hmmmh!

----------------------

All I can say is that the PNP surely has interesting days ahead.

For the Party is caught in a moral dilemma....

Should their leaders force Kern to resign against the wishes of his constituents, or should they allow him to stay, despite the moral implications of him doing so?

It will surely be instructive to see the decision the Party makes, re this in light of the recent admission by Dr. Peter Phillips, PNP Vice-President, that the PNP has lost the trust of the Jamaican people in terms of its moral authority to lead.

Gillian

Sources Include

1) Nationwide Radio, News at 7:00 a.m., March 7, 2008

Kern Released on $10 Million Bail!

Yes friends, Kern Spencer, former PNP Minister of State in the Ministry of Industry, Technology, Energy and Commerce, and his Personal Assistant, Coleen Wright, have been released on $10 million and $5 million bail, respectively.

Both spent three (3) nights in prison following their (and business man, Rodney Chin's) arrest on Monday  on charges of Fraud, Corruption Receiving Criminal Property and Money Laundering, as related to the Cuban Light Bulb Scandal.

There is still no affirmative word from the Opposition People's National Party (PNP), as to the future of Mr. Spencer within the Party and as Member of Parliament for North East St. Elizabeth.

As usual, we will keep you updated re this.

[Please see our previous posts for this week  (from February 26,2008), for background information to this post.]

Sources Include:

1)  Power 106 FM News at 3:00 p.m., February 29, 2008

2) Nationwide News Radio, February 29, 2008.

No Bail for Kern, Yesterday..Today, Maybe?

Kern Spencer, former PNP Minister of State in the Ministry of Industry, Technology, Energy and Commerce, spent another night in prison, last night.

The Deputy Bail Clerk decided to stick to her guns, yesterday, and not work a minute after the time designated for her to stop working (3:30 p.m.).

(However, a prominent lawyer stated that  Bail Clerks have such a huge workload to complete for at least two (2) hours following their designated work, stop time,  that there is no way for them to accommodate bail processing after 3:30 p.m.)

As a result, Mr. Patrick Roberts, Mr. Spencer's surety, could not post bail on Mr. Spencer's behalf.

[The bail-posting process proved to be a very tedious one for Mr. Roberts (PNP Caretaker for West Central St. Andrew, who put up his property for the bail amount), yesterday.

He tried to post bail at 10:00 a.m., having gone to court with the relevant papers. This was when he found out that in order to post bail, the property Title had to be notified by a Justice of the Peace and the property be recently valuated.

Mr Roberts had to get all of this done, yesterday and thus was not able to meet the 3:30 p.m. deadline, yesterday.]

Mr. Rodney Chin, on the other hand, was able to post bail.

(His attorney, Mrs. Valerie Neita-Robertson told Television Jamaica News that Mr. Spencer's and Miss Wright's attorneys could not be found, as they were out of office. She had been asked to intervene in offering guidance to the process for the posting bail on behalf of Mr. Spencer and Miss Wright.)

As a part of their continued investigations, the police searched the present and former homes of Mr. Spencer's parents and the business place of Mr. Spencer's stepfather.

Meanwhile, the Petroleum Corporation of Jamaica, the government agency reportedly responsible for oversight of the Cuban Light Bulb Project , is reporting that Coleen Wright, one of Mr. Spencer's co-accused, was not employed by them, but was assigned to Mr.Spencer on his own accord.

[Girl With a Purpose (GWAP) Blog previously reported (based on media reports) that Ms. Wright was a supervisor in the Ministry of Industry, Technology, Energy and Commerce, but as it stands, no one is quite sure as to which government agency/Ministry, Ms. Wright was assigned.]

The Opposition People's National Party (PNP) has yet to make any public statement concerning Mr. Spencer's imprisonment and his future with the Party and his constituency of North East St. Elizabeth.

(Mr. Spencer, who is the Member of Parliament for North Eastern St. Elizabeth, had offered to not attend Parliament, until investigations into the Cuban Light Bulb Project were completed.)

We will keep you informed re updates re this case.

Gillian

Sources Include

1) Television Jamaica Nightly News at 7:00 p.m, February 28, 2008.

2) Programme, "Cover Story", Nationwide News Radio, February 28, 2008

3) Programme, "This Morning", Nationwide News Radio, February 29,2008

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Kern Spencer Expected to Post Bail Today!

Kern Spencer, former PNP State Minister in the Ministry of Industry, Technology, Energy and Commerce, in Jamaica, is expected to post bail of JMD $10, million today.

(Please read our previous post,"Kern Spencer, Former Jamaican Junior Energy Minister, Charged!" for background to this post.)

Mr. Spencer, Rodney Chin and Coleen Wright were offered bail in the sums of JMD $10 million, JMD $10 million and JMD $5 million respectively, yesterday.

Their travel documents were also seized.

Both Mr.Spencer and Ms. Wright were offered bail with three sureties and Mr. Chin, 4 sureties.

(According to www.YourRights.co.uk, a surety is one someone who knows you personally and offers the court a sum of money to guarantee you will attend court when required. They do not have to pay the money in court, but have to show that they have it available. If you then do not turn up at court on time, they may have to pay the money or even go to prison themselves if unable to do so.)

But since they were seen late yesterday evening in the Half-Way-Tree Resident Magistrate's Court, they were not able to post bail, as the Bail Court closed at 4:00 p.m.

Their court hearing is set for March 26,2008.

----------------------------------

Since we posted on Tuesday:

1) Mr. Spencer's four (4) counts/charges of Money Laundering were increased to six (6) and the police raided the residences of all three accused, as a part of their investigations.

2) All three (3) spent Tuesday and Wednesday nights in prisons in Kingston (one of the capitals cities in Jamaica).

3) The People's National Party (PNP) Executive should be meeting, today, to ascertain Mr. Spencer's future with the Party. (Some of them met with the lawyers of the accused, yesterday, in a status meeting at PNP Headquarters.)

Will keep you updated!

Gillian

Sources Include:

1) Nationwide News Radio, February 27-28,2008
2) TVJ Evening News at 7:00, February 27,2008

Kern Spencer, Former Jamaican Junior Energy Minister, Charged!

Former PNP State Minister in the Ministry of Industry, Technology, Energy and Commerce, Kern Spencer, who has been at the centre of the Cuban Light Bulb Scandal, here in Jamaica, was charged by the police, today.

He was charged along with his Personal Assistant Coleen Wright (also supervisor in the former Ministry) and Rodney Chin, Managing Director of Universal Management and Development Company and Caribbean Media Communication Network Ltd., two companies that provided services under the Project.

Today represents day three (3) of Mr. Spencer's questioning by members of the Organized Crime Investigation Division (OCID) of the Jamaican Police Force.

[This is big news in Jamaica, as this is the first time in eighteen(18) years, that a Minister of Government has been charged by the police. (The last person to be charged was former JLP-Minister, J.A.G. Smith, in 1990.)]

Mr. Spencer was charged for seven(7) offenses namely:

1) Conspiracy to Defraud

2) Offenses under The Proceeds of Crime Act

3) Offense under The Corruption Prevention Act, specifically:

a) Receiving 3.1 million from Rodney Chin

4) Three(3) Charges under The Money Laundering Act

Rodney Chin was charged for:

1) Two counts of Conspiracy to Defraud

2) One charge under The Corruption Prevention Act

3) An Offense under the Money Laundering Act

4) Engaging in Transactions with Criminal Property

While,Coleen Wright was charged for seven (7) offenses:

1)Two charges of Conspiracy to Defraud

2) Offenses under The Corruption Prevention Act

3) Money Laundering

All three will be held in police custody until their appearance in court on Thursday.

Short Background:

On October 23, 2007 present Minister of Mining, Energy and Telecommunications, Clive Mullings, ordered a probe into the Cuban Light Bulb Project which had gone awry and which cost Jamaican taxpayers JMD $277 million.

[The Cuban Light Bulb Project which should have seen the installation of four (4) million energy-efficient light bulbs in Jamaican homes for free (as a gift from the Cuban government) suddenly racked up a JMD $277 million dollar bill.]

On January 16, 2008, as a result of the probe, Jamaica's then Auditor General, Adrian Strachan, gave a damming report on the Project.

He told of a project which was obviously mismanaged and of nepotism by Kern Spencer, State Minister responsible for oversight of the project. (Mr. Spencer had hired his baby mother as project manager, a woman who reportedly had no project management experience.)

According to article, "No new light - Auditor General's report confirms bulb breaches, Mr. Strachan went on to describe, wide-scale breaches of Government's procurement rules in relation to registration with the National Contracts Commission (NCC), production of Tax Compliance Certificates, recommendation of NCC, Cabinet approval or use of competitive  tenders.

He the reported a general failure to comply with Government's disbursement rules in connection with the need for independent certification that goods and services paid for were properly provided. No supporting bills and invoices acknowledging receipt of funds by payees. This prevented verification that many payments made were authentic.

The Jamaican Police Fraud Squad and Department of Public Prosecution were called in to conduct further investigations.

There are 160,000 undistributed light bulbs, worth JMD $93 million, still unaccounted for.

Please see the inset YouTube Video, above, for a background to this Scandal.(We wish to acknowledge Brianmax4438, who uploaded the above video to YouTube.com.)

We at Girl With a Purpose (GWAP) Blog, will keep you informed of updates re this matter.

Sources Include:

1) Nationwide Radio: February 26, 2008

2) Television Jamaica (TVJ) Nightly News at 7:00 p.m., February 26, 2008

3) CVM TV News at 8:00 p.m., February 26,2008

4) Article, "Kern remains in hot seat: Embattled politician interrogated for a second day", by Daraine Luton, Staff Reporter, The Jamaica Gleaner, February 23, 2008

5) Article, "No new light - Auditor General's report confirms bulb breaches", Jamaica Gleaner, January 16,2008

6) Article,"Light Bulb Project Turned Over to Fraud Squad and DPP", Jamaica Information Service, November 8, 2007

Gillian

News Byte: Cash Plus Clients Sue for Breach of Contract

Court Room
Originally uploaded by 4737 carlin

Three(3) Cash Plus clients sued the company for breach of contract, in the Jamaican Supreme Court, yesterday.

(Cash Plus is the Alternative Investment Scheme whose accounts were closed by their bank, National Commercial Bank, on February 2, 2008. Please read our post, "All Cash Plus Accounts with NCB Closed!", for more information.)

The suit was for nearly JMD $7 million.

They sued for not being able to access their principal and interest on same.

Well this is certainly a new development in the Cash Plus saga.

We will see if other clients will follow suit, bearing in mind the March 2008 deadline that Cash Plus has requested that clients wait, to receive their monies.

Will keep you posted re this and other occurrences re Cash Cash Plus!

================

Take GWAP Podcasts with you!...

Listen to the podcast of this post, below:

Download CashPlusClientsSuetstmp3.mp3

================

Gillian

Source:

1) Nationwide Radio News at 6:00 p.m., February 19,2008

Jamaica's New Government: Tenuous Days Ahead?

Well, Jamaicans are bracing for the 2008/09 budget, set to be announced in Parliament in March of this year.

The Prime Minister, Mr. Bruce Golding, gave us a preview of what to expect this year, on Wednesday, January 23, at a post-Cabinet Press Briefing:

He said that:

1) The output (GDP) of the country needs to be expanded. In layman terms:the economy needs to grow, we need to produce more goods and services.

However, in light on the global economic outlook for 2008 and pending US recession, the government has revised its its projected GDP (gross domestic product) growth from 4 1/2 % down to 3%.

2) He also promised that he'll be concentrating on:

a) Job creation and attracting investments that auger this.

b) Human Resource Development with emphasis on our education system.

c) Ensuring our Energy security

d) Ensuring our Food security.

All this in light of news that NROCC..the government entity that is managing the implementation and expansion of Highway 2000 (the highway project that seeks to connect Kingston with Montego Bay and Ocho Rios, while passing through St. Catherine, Manchester, St. Elizabeth, Westmoreland, Hanover and St. Ann) suffered losses of JMD $1.6 billion in 2006/07 and is projected to have losses of JMD $2.4 billion by March 2007/2008.

To make up for this shortfall in the budget, the PM has announced that Jamaican taxpayers may have to pay...

He has already asked Portmore residents to brace for a 100% increase in toll-fees...

This is the same Jamaica Labour Party (JLP), who, when in Opposition, promised Jamaicans that there would be a reduction in toll fees if they were selected as the next government...that they would renegotiate the contract with Bouygues, the French company that won the contract to construct Highway 2000.

[NROCC is the National Road Operating and Constructing Company Limited. From the sources, below, it seems that the Development Bank of Jamaica (DBJ) in 2001, guaranteed loans of US $115 million, to NROCC, to start Highway 2000...

The Government of Jamaica(GOJ)  had no money of its own and so had to borrow money (from Jamaican taxpayers' pension funds, PetroCaribe money, and in the form of  Euro bonds) to enact Phase 1A of Highway 2000. The total cost of the project, at the time was estimated to be US $390 million.

Bouygues, a French company,  won the bid (for US $141 million), to do the road construction work for Phase 1A of the project. They set up a local registered firm, here in Jamaica, Trans Jamaica Highway Ltd., to perform this work.

They then contributed US $20 million to do said road construction...this represented their equity investment in the project...a sort of goodwill offering. So NROCC still owed them $121 million($141-20 million.)

So Bouygues, contrary to popular belief (and what was touted by the then GOJ), was not a private investor to the project, but a contractor. They were to be paid to do the construction work on the project and for lending their know-how to the project.

They were to be paid via:

1) The loan from NROCC, that was guaranteed by the DBJ

2) Toll fees charged to Jamaicans, over the next 35 years.

What it seems is that, from the evidence presented below, Bouygues (Trans Jamaica Highway Ltd.) is being paid twice.

Why on earth, would the then GOJ take out a loan to pay Bouygues and then agree to pay them over a period of 35 years, via toll fees?

This just doesn't make sense and I urge the present GOJ and the Contractor General to closely re-examine the contract  and related documents that were signed between the then GOJ and Bouygues...something smells fishy in the State of Denmark and it ain't the fish!]

According to article, "Gov't moves to restructure NROCC's debt", Jamaica Observer, January 25,2008, "The PM told the House of Representatives on Tuesday, January 22,2008, that NROCC will be in no position to meet its loan servicing obligations beyond 2008/2009, after which it will experience negative cash flow accumulating to $9.7 billion by 2012/2013.

No wonder!...they are paying for a loan to Bouygues...can't meet their servicing obligations for these loans and no doubt have been penalized for not meeting these obligations. Additionally, the projected revenues that they should have earned from toll-fees, are not being met, due to under-use of the toll-roads by Jamaicans.

Hmmmh!!! and double hmmmmh!

I wonder what other measures will be implemented by the GOJ, to make up for this and other budgetary shortfalls?

Should we be expecting an increase in General Consumption Tax (GCT) and other taxes, in March 2008?

============

But it seems that the JLP is finally understanding the sad economic situation that Jamaica is in...we're broke.

Well, on the books we are..Jamaica is a very rich country whose wealth, unfortunately been squandered, plundered and pirated over the past 46 years. (It's been 46 years since we've become independent.)

However, I do admire the valiant attempts at profitability by the government-run Boards at the Jamaica Urban Transit Company (JUTC) and Air Jamaica (Jamaica's national airline) ... two companies that heavily contribute to our debt burden.

As a result of these two government-owned companies' having new Boards, whose members seem to be knowledgeable, experienced and proactive:

1) JUTC's monthly losses have been decreased from JMD $160 million/month to JMD $104 million/month [in just under four (4) months.]

Whilst:

2) Air Jamaica's Chairman, Mrs.Shirley Williams, has projected a decrease in its losses by US $80 million, by December 2008. (Air Jamaica is said to amass losses of up to US $100 million, yearly.)

The sad reality is that jobs will be lost...but both companies are trying to make the process as painless as possible for those to be affected.

So yes, with more and more being uncovered re the real financial quagmire that the country is in, the way forward may seem rocky for this new government.

However, by by the looks of things, they will continue to help keep Jamaica afloat, even though we, as Jamaicans, may undergo severe economic hardship in facilitating this.

Gillian

Sources Include:

1) Interview with Mr. Kingsley Thomas, then President of the Development Bank of Jamaica, on Radio Programme, "This Morning", Nationwide Radio, January 29, 2008.

2) Article, "No plans now to cut public sector - Golding", by Damian Mitchell, News Coordinator - Radio, Jamaica Gleaner, January 25, 2008

3) Article, "Gov't moves to restructure NROCC's debt" Jamaica Observer, January 25,2008

4) Highway 2000 website, http://www.h2kjamaica.com/2005/about/index.htm, January 28, 2008

5) Article, "Jamaica's development - cause for much concern", by Clifton Yap, Jamaica Observer, December 17,2006.

6) Article, "Dark side of Highway 2000 and its tolls", by Ken Chaplin, Jamaica Observer, August 22,2006

Tropical Storm Olga Weakens to a Tropical Depression, No Longer a Threat to Jamaica!

Tropical Storm Olga has weakened and is now a Tropical Depression.

This means that Jamaica will experience wind gusts [of 45 miles/hour (72.4 km/hr) ] and lots of rain, (especially to the North of the island), but nothing like the stormy weather we had expected.

At 4:00 p.m. today, Tropical Depression Olga was located to the North of Jamaica, at Latitude 18.9 degrees North and Longitude 76.9 West.

Maximum sustained winds are at 35 miles/hr (56.3 km/hr).

It is still moving along a Westerly path at  23 miles/hr (37 km/hr), but is not a threat to Jamaica.

It will, however,pass over the Cayman Islands by tomorrow evening.

Olga is expected to bring lots of rain to Jamaica until tomorrow evening.

It is expected to move into the Yucatan Penninsula by Friday of this week.

Gillian

Sources Include:

1) Power 106 FM 5:00 p.m. News

2)Television Jamaica Nightly Weather at 7:53 p.m., December 12,2007

3) 5-Day Forecast Map of Tropical Depression Olga (showing Olga's position at 4:00 p.m. EST), Weather Underground website, December 12, 2007.

Tropical Storm Olga Weakens, Expected to Pass North of Jamaica Later This Afternoon

Tropical Storm Olga, is expected to pass north of Jamaica,later this afternoon. This is a strange phenomenon,seeing that the Hurricane Season officially ended on November 30, 2007.

But what seemed "strange" a few years ago, will become the norm, due to the effects of global warming.

At 1:00 p.m. Eastern Standard Time (EST), the centre of Olga was located to the west of Hispaniola, at latitude 19 degrees North and longitude 76 degrees West.

At 12:00 p.m. EST, Olga's centre was located  102.5 miles (165 km) NorthEast of Port Antonio.

Olga will continue along a westerly track.

Although her movement has weakened to 23 miles/hour (37 km/hour), Olga will bring strong gusty winds and torrential rains to the island.

The island will be experiencing heavy rainfall up until Friday of this week.

But Jamaicans are praying that Olga's effect on the island will be minimal.

The US National Weather Centre, Miami, has stated that "Olga lacks the convection required of a tropical cyclone...and based on visible satellite imagery probably also lacks a closed surface circulation.  however...we will hang on to Olga for a few more hours just in case deep convection returns or west winds become evident."

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