ZET - JamaicaGazette.com
Jamaica Government News and Information
Ministries, Departments and Agencies

Page 80

Ministry of Finance and the Public Service Fiscal Policy Paper 2017 77 | P a g e

financial products and services, which would enable them to save, invest and build economic wealth. The FIS">NFIS will focus on the following priority areas: MSME and agriculture finance, housing finance, consumer protection and financial literacy, and retail payment systems.

Enhancement of the Resolution Framework for Financial Institutions Preliminary work commenced with the drafting of a concept paper proposing a special resolution regime (SRR) for financial institutions. This concept paper will inform the drafting of a consultation paper, which is expected to be released for public feedback by end February 2017. An inter-agency technical working group of the Financial Regulatory Committee is drafting the papers, with technical assistance from the International Monetary Fund.

The proposed SRR for financial institutions will provide a framework for the orderly resolution of distressed financial institutions in order to protect financial stability whilst minimizing recourse to public funds. The proposed SRR is in keeping with international best practices promoted by the Financial Stability Board in its guidance document “Key Attributes of Effective Resolution Regimes for Financial Institutions”.

Financial Institutions Services Limited

During FY 2016/17, the FIS continued with the winding up of residual activities on behalf of FINSAC including selling remaining properties under its control. The following are some of its key achievements:-

 The audited financial statements for the year ended March 2016 for FIS and FINSAC were completed and submitted to the MOFPS in July 2016.

 The FIS sold the remaining 10 of the 31 Enchanted Gardens units, which netted $8.2mn. In addition, an agreement has been reached to sell the Mutual Life Warehouse Complex in Kingston which is expected to conclude by May 2017. The remaining properties in FINSAC’s portfolio are four ½ acre lots at Drax Hall, St. Ann and a 16-acre lot at Culloden, Westmoreland.

 A total of $48.0mn was collected from the sale of shares in various listed companies and another $12.0mn is anticipated from remaining sales by March 2017. Listed shares for dissolved companies will be transferred to the Accountant General by March 2017.

 The FIS has received seven (7) payments totalling US$3.4mn as at October 2016 under a settlement reached in 2013 regarding a property in St. Lucia which was owned by International Hotels (St. Lucia) Limited. There are three (3) remaining payments due in April 2017, October 2017 and April 2018, totalling US$1.3mn.

June 12, 2021

Page 55

Ministry of Finance and the Public Service Fiscal Policy Paper Interim Report September 2017 53 | P a g e

 The audited financial statements for the year ended March 2017 for FIS and FINSAC were completed and submitted to the Ministry of Finance in July 2017 and the Annual General Meeting is scheduled to be held on September 8, 2017.

FINSAC continued its efforts to sell remaining properties under its control. No FINSAC- controlled property was sold during the financial year to March 2017, but an agreement was reached to sell the Mutual Life Warehouse Complex at Osbourne Road, Kingston 10. Some challenges with the certificates of title delayed the sale which is now expected to be concluded by October 31, 2017.

 Since the start of the new financial year, FIS has received acceptable offers on three of the four ½ acre lots at Drax Hall, St. Ann and sale of these are proceeding, with completion expected to be achieved by October 31, 2017.

 An acceptable offer was received for the 16-acre beach-front property at Culloden, Westmoreland owned by the subsidiary, Ciboney Group Limited. An attorney has been engaged to represent the vendor in this sale, which is expected to be completed by December 31, 2017.

 Sale of shares owned by Mutual Life in two listed companies is anticipated to yield approximately $20.0mn during the current financial year. Listed shares also valued at approximately $20.0mn owned by dissolved companies will be transferred to the Accountant General during the year, as bona vacantia.

 A settlement was agreed in 2013 in respect to a property in St. Lucia which was owned by International Hotels (St. Lucia) Limited (IHSL - jointly owned by Superclubs and Mutual Life) and compulsorily acquired by the Government of St. Lucia in 2008. The settlement resulted in FINSAC getting 10 bonds each with face value of US$400,000 payable half yearly with interest at 6% p.a. To date eight (8) payments totaling US$3.8mn including interest due up to April 2017 have been received. Two (2) payments remain and are due in October 2017 and April 2018, together totalling US$836,000.

FINSAC continued efforts to resolve the following pension-related matters with Guardian Life Limited (GLL) and the Actuaries (Eckler):-

o Jamaica Mutual Life Staff Superannuation Fund - The final reports prepared by GLL were submitted to the Financial Services Commission in July 2016. At a meeting held at the FSC, also involving GLL, Eckler and FINSAC in July 2017,

June 12, 2021

Page 84

 Sixteen (16) new Digital Forensics cases were received (including requests for assistance from external law enforcement) and 13 were completed.

 Greater focus was placed on higher level financial crimes and criminal matters, leading to the arrest of 27 persons and laying of 61 money laundering charges.

 Several joint cases were launched with the Major Organised Crime Agency (MOCA), Tax Administration Jamaica (TAJ), Office of the Contractor General (OCG), Jamaica Customs Agency (JCA) and the Jamaica Constabulary Force (JCF). The FID also rendered critical assistance to overseas partners, such as the United States (US%29+Drug+Enforcement%0AAdministration">US) Drug Enforcement Administration (DEA), Immigration and Customs Enforcement (ICE), the US Marshalls and the UK Crown Prosecution Service.

 The FID conducted its first pecuniary penalty order hearing under section 5 of the POCA and obtained its first enforcement order under section 50 of the POCA. These matters have set important precedents in the court and developed jurisprudence in the area that will guide future cases.

 The FID was successful in clearing the way for forfeited properties to be disposed of by resolving a legislative glitch in the POCA, as well as obtaining Cabinet’s approval for an expedited process to sell forfeited properties. Over the period, six (6) forfeited properties valued at J$178,800,000.00 were transferred to the Crown, one of which has recently attracted a bid of US$710,000.00 when offered for sale.

 As at end-December 2017, the FID successfully forfeited through the courts, $62.4mn and seized $59.9mn, which will be subject to forfeiture hearings before the court. Property valued at $61.2mn was also forfeited.

Financial Sector Adjustment Company Ltd and Financial Institutions Services Ltd

FINSAC Limited continued the wind up of residual activities including selling remaining properties under its control. Some key developments include:

 Completion of the sale of several properties as follows:

 Mutual Life warehouse complex in Kingston concluded in November 2017 and netted J$73.0mn.

 17-acre beachfront property at Culloden, Westmoreland was concluded in December 2017 and netted US$1.8mn, from which FINSAC is expected to receive approximately J$130.0mn.

June 12, 2021