On September 17, the Jamaican Integrity Commission (IC) submitted a report to Parliament which revealed that Jamaican Prime Minister Andrew Holness had been under investigation for illicit enrichment.
While citing a series of discrepancies in the financial affairs of the PM, IC Director of Investigation Kevon Stephenson said he was unable to pursue his investigation further and therefore could not pronounce on illicit enrichment. He, however, as is customary, referred his report to the Tax Administration Jamaica (TAJ) and the Financial Investigations Division (FID) for further examination. Mr Stephenson’s report said “there can be no finality” in the certification of assets for 2019-2022 without further probe.
A Jamaica Gleaner report said that the nearly two-year-long investigation into the income and assets declarations submitted by Mr Holness for 2019-2022, looked into allegations that Mr Holness owned assets disproportionate to his lawful earnings.
It also assessed allegations that Mr Holness made false statements, by way of omissions. Among other things, the Gleaner report said that the Integrity Commission cited the movement of millions of dollars among companies connected to Mr Holness, which it said has not been fully explained.
The report, according to the Gleaner, stated that the full proceeds of a US$94,000 bond – inclusive of US$32,107.02, which Mr Stephenson pointed out was now being said belonged to the Positive Jamaica Foundation – were transferred to Imperium, of which Mr 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.
Mr Stephenson further said 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,” Mr Stephenson said.
Mr Stephenson also said in his report that he was unable to arrive at a conclusion regarding illicit enrichment in respect of the prime minister as he did not have access to Mr Holness’ personal expenses over the relevant period, “and due to unresolved questions concerning the operations of companies with which Mr Holness is connected”.
“The DI (director of investigation) reiterates his inability to proceed with illicit enrichment calculations in respect of Mr Holness’ assets, liabilities and income given, the unresolved questions around connected companies and the absence of a schedule of his personal expenses over the period,” Mr Stephenson said, according to the Gleaner.
In its initial correspondence to Mr Holness, the IC said that “the proceeds of its investigations, so far, have determined that you own assets disproportionate to your lawful earnings, insofar as have been declared by you”.
Mr Holness was invited to attend on the IC offices on Thursday, August 31, 2023 to be interviewed, for the purpose of providing an explanation to Mr Stephenson, and/or his designate, for the purpose of answering questions concerning the investigation.
The director of investigation noted that on meeting with Mr Holness and his legal team, the prime minister opted to make written submissions instead of being interviewed. The written submissions were made on at least four separate occasions, the last of which was July 16, 2024.
The report said the prime minister is connected with or had financial interests in three companies.
It said a forensic examination of bank accounts attributable to Mr Holness and the referenced companies for the period January 1, 2020, to June 13, 2023, revealed intercompany deposits and withdrawals of $473,161,545.37 and $427,174,913.86, respectively.
The report said the financial statements provided by Holness indicate that, in 2021, Imperium earned at least $5,121,105 in dividends, exchange gains and interest.
Still, Imperium filed a nil tax return for 2021 and 2022.
Positive Media’s management accounts and statement of comprehensive income for 2021, submitted by Holness, indicate a total income of $20,069,697, the report said, according to the Gleaner.
Nevertheless, Positive Media filed a nil tax return for 2021 and 2022, indicating that the business had not engaged in any revenue-generating activity over the two years of its existence.
For Estatebridge’s management accounts, the report said the statement of profit and loss account for the year ended December 31, 2021, shows an ‘interest income’ of $1,040,625.
The report said, despite this, Estatebridge filed a nil tax return for 2021, which meant that the business had not engaged in any revenue-generating activity in that year.
Further, the report stated that, over the period March 2021 to May 2022, a fourth company, Greenemerald, provided loans to Positive Media to the tune of $20,625,000 and appeared to be in operation during the referenced period.
Greenemerald filed a nil tax return for 2021 and tax returns declaring income of $355,100 in 2022.
Mr Holness has staunchly defended himself, according to the Gleaner. Noting that he has been in politics for more that 30 years, Mr Holness emphasised that he has never sought to use his “humble beginnings” for political sympathy.
“I don’t do that, because I believe in working for what I have. And I have worked hard, wisely and honestly to achieve whatever I have.
“I have never depended on the public purse,” Mr Holness said, while adding that he had bypassed a salary increase due to the prime minister in solidarity with all the people whose income levels are challenging.
Furthermore, he said besides having the privilege of leading the country, he has always discharged his duties, with respect and dignity.
“Even for those who try to bring me down and do personal harm to my reputation. The weaponisation of accusation of corruption is nothing new in politics, however, even the most skeptical onlooker must conclude that the handling of this matter, the time it has taken, and the public resources used to pursue it, raise cause for concern on many levels”, he said.
While the rigour of the Integrity Commission probe is for watchdogs, regulatory bodies and citizens on the island to pronounce on, the investigation of Mr Holness is a sign of vitality and maturity in Jamaica’s democracy and all of CARICOM should watch closely for due process and finality and what it means for accountability and transparency at the highest levels.
In Guyana, with the PPP/C government in charge of appointments to all watchdogs, it is impossible to conceive of the finances of senior government officials coming under investigation or even being forensically examined by the Integrity Commission here. Given the massive oil revenue inflows into the country and the gigantic expansion of public procurement one can only project what the scale of corruption could be. With the country’s already appalling ranking in the Transparency International anti-corruption index, it is imperative that watchdog bodies like the Integrity Commission step up their efforts to ensure probity in public life and seek greater resources to protect public finances.