PwC, JRF wanted to settle Thermo Plastic fraud suit
Published:Friday | March 4, 2011 | 12:00 AM
Dionne Rose, Business Reporter
Douglas Chambers, former receiver of Thermo Plastics, was offered US$500,000 by Price-waterhouseCoopers (PwC) to settle three lawsuits that he brought against the auditing company and a senior partner alleging fraud and negligence, but refused the money, according to documents read into evidence at the Finsac enquiry on Wednesday.
Chambers was later fired by Jamaica Redevelopment Foundation Inc (JRF).
But documents read into evidence at the enquiry cited different reasons for the termination.
On Tuesday, Anthony Levy, the attorney representing Jean-Marie Desulme, former managing director of Thermo Plastic Jamaica Limited and its subsidiary Plas Pak, read into evidence at the FINSAC enquiry portions of a 2005 witness statement by Chambers charging that former receiver Richard Downer committed fraud amounting to J$29.455 million against Thermo Plastic while he was in charge of the company.
On Wednesday, Levy again read into evidence Chambers' acknowledgement of correspondence from JRF's lawyer Peter Millingen urging him to settle with PwC.
In a letter to JRF asset manager John Jordan, Chambers responded: "Upon my refusal to accept the settlement under the terms and conditions as outlined in Mr Millingen's letter, you then gave him a termination letter, which was handed to me," read Levy.
"I received your letter approximately five minutes after receiving Mr. Millingen's letter," wrote Chambers, who is now deceased.
Chambers, in his response letter to the dismissal, noted that JRF cited his failure to provide timely and proper accounting records for all receipts and expenses, and of all legal and business claims against or filed on behalf of the companies, as reasons for his firing.
But the chartered accountant dismissed the claims.
"Our records show that since taking this assignment in mid-2002, we have provided you with approximately eight written reports and have had countless email correspondence with you, which served to update you on all matters as they affect the receiverships," Levy read.
"You have never made a request of me to provide any information which was not immediately provided. As such, I expect to get a retraction from you as to the reason for my termination as they are false and libellous."
Offer questioned
Stephen Shelton, attorney-at-law representing PwC and Downer in his cross-examination of Desulme, asked if he had seen the offer letter from PricewaterhouseCoopers.
"The letter I have seen is a letter from Mr Peter Millingen to Mr Chambers," he said. "I have never seen a letter of offer from whom to whom."
Shelton was unrelenting. "When you said there was an offer to settle, and produced this document, you don't know if there was a letter of offer or a public offer was made to Mr Chambers ... and you can't say what it was to settle or the terms?" he asked.
Desulme said he only saw the letter that was addressed to Chambers, referring to a lawsuit number, and Mr Millingen making reference to an offer of US$500,000 made to Chambers to settle the suit.
"On behalf of Jamaica Redevelopment Foundation, I wish to advise you that this amount is acceptable to them and look forward to receiving your immediate reply," responded Desulme, as he read from a letter from Millingen to Chambers.
"That's what I have in front of me."
Chambers was hired as receiver of Thermo Plastic and Plas Pak in 2002 to replace Downer after National Commercial Bank transferred its debenture to JRF.