Questions are being raised about the Federal Bureau of Investigation’s (FBI) role in the ongoing multi-billion dollar Stocks and Securities Limited (SSL) fraud investigation, following the announcement by Finance Minister Dr Nigel Clarke that UK-based firm Kroll Associates will be providing forensic audit services in the matter.
The minister signed the agreement with Kroll Associates UK on Tuesday, March 7, during a short ceremony at his office. He later stated in his budget presentation that the forensic auditing firm will support the Financial Investigations Division (FID) in unraveling all aspects of the fraud and bringing co-conspirators and accomplices to justice.
“I’m happy to also share that the British government, which has long supported the FID, has offered to cover some of the initial costs of this engagement, with the Government of Jamaica covering the balance,” he said.
Among those questioning the latest development in the SSL saga is former high ranking FBI official Wilfred Rattigan. He wants to know, among other things, who selected the company and what services will they provide that the FBI is not in a position to offer? Given the fact that the FBI was already said to be involved, and they offer their services free of cost, he does not understand why money is being paid to get another international company. He also wants to know how Kroll Associates compares to other UK based firms that offer similar services?
“If you are going to spend money and also the British government is going to help you defray some of the costs, then you would at least seek out the very best or a top tier company,” he told the Freedom Come Rain Newspaper.
A worthwhile investment
It is alleged that more than 40 investors have been fleeced of money invested in the SSL, including Olympian Usain Bolt, who is said to have been defrauded of US$12.7 million or nearly $2 billion. Former wealth advisor at the SSL, Jean-Ann Panton has since appeared in court on several charges in relation to the multi billion-dollar fraud scandal. She has been charged with breaches of the Larceny Act, the Proceeds of Crime Act, the Forgery Act and the Cybercrimes Act.
Executive director of the Jamaica Accountability Meter Portal (JAMP), Jeanette Calder, believes getting Kroll Associates involved is a worthwhile investment.
“The matter of public confidence in our public and political affair is crucial for the good governance of any society. The Government will have to ensure that all investigations are done thoroughly and effectively to deliver the answers expected,” she said.
She said the process will have to inspire confidence and credibility in the findings.
“In light of the established but unfortunate low confidence and trust in our local law enforcement (reasonable or not), JAMP believes the decision to engage the financial forensics experts at the UK based firm Kroll will enhance the public perception of an independent and objective [investigation], more so than if it were done by their local counterparts, making it a worthwhile investment,” she said.
Press conference needed
Dr Clarke had consistently stated that the FBI is involved in the investigation, however head of the Counter-Terrorism and Organised Crime Division (CTOC), Assistant Commissioner of Police Anthony McLaughlin stated on February 17, that local law enforcement had the capacity to conduct the investigation and did not need the assistance of the FBI at this time. Two days later the Jamaica Constabulary Force and FID issued a statement saying that SSP McLaughlin had been referring specifically to the local aspects of the Fraud Squad investigation that led to the initial charges against Panton, and not to the wider dimensions of the SSL probe.
In referring to the differing statements from journalists and law enforcement officials on the involvement of the FBI, Rattigan believes it might be necessary at this time for a joint press conference to be held with all the groups involved, given the importance of the SSL matter. He believes this would be in the best interest of the public.
“They don’t have to say much, but just the fact that the FBI is sitting there and the rest of the agencies are there, that would give a measure of comfort to the people,” he said.
“The FBI gave a measure of relief, in the sense that, ‘ok, if the FBI is involved, we believe that they are going to take this investigation to its logical conclusion, and wherever the money is or whoever is responsible, they will determine that, and hopefully we will get our money back,” he asserted.
No basis for alarm
Calder said JAMP is not concerned about the fact that a formal agreement was not signed with the FBI in public, similar to what happened with Krolls Associates.
“We see no current basis for an alarm. Not all contracts awarded utilise a public signing event, however, the public concerns associated with the SSL saga and the doubts recently raised as to whether there was in fact FBI assistance would have guided the Ministry about the need to remove any potential doubt about engaging Kroll. For the removal of any doubt, the access to information legislation gives any citizen or journalist the legal right to request a copy of a MOU or any agreement made between the FBI and the people of Jamaica via our Government,” she noted.
The fraud at the SSL went undetected for 13 years.
“To have this fraud occur in the context of, and over exactly the same period as, the otherwise extremely successful tenure of our regulators in preventing Jamaica from failure in the financial sector, is a bitter irony for both our financial sector regulators and for Jamaica,” Dr Clarke said during his budget presentation.
