Questions raised about special treatment for Crawford
Published:Wednesday | July 6, 2011 | 12:00 AM
McPherse Thompson, Assistant Editor - Business
The Financial Sector Adjustment Company (FINSAC) has realised a net J$122 million from the sale of real estate and other assets, including a 1931 Buick motor car, that were owned by former Century National boss Donovan Crawford and connected parties.
The figure does not include proceeds from the sale of connected companies Blue Cross of Jamaica which, according to FINSAC general manager Errol Campbell, fetched US$3 million, and Jamaica Grande hotel, which was sold for US$37.5 million.
At the same time, FINSAC is seeking to dispose of another 30 prime real-estate properties and three vintage motor cars seized from Crawford and connected parties, but has decided to forgo selling his mother's house and five other apartments in upscale Sterling Castle, St Andrew.
The FINSAC board has opted instead, against a court order giving the agency the authority to sell those and other properties to recover a debt of J$2.5 billion to J$3 billion, to give Crawford's 91-year-old mother, Alma Crawford, lifetime interest in the Sterling Castle residence, as well as five other properties sited on adjoining premises which she jointly owns with her former banker son.
Campbell, testifying before the commission of enquiry into the financial sector meltdown of the 1990s, which continued at The Jamaica Pegasus hotel, New Kingston, on Monday, could give no definitive answer as to why Crawford's mother, who is said to be living with her son in the United States, was being given special consideration.
Campbell said that although the Sterling Castle house has been placed on the list of assets to be sold, it has not been disposed of because a valuation has not been put on the property.
His original explanation was that although FINSAC was unaware whether anyone was living at the house, they were having difficulty gaining access.
However, pressed by Worrick Bogle, chairman of the commission, as well as commissioner Charles Ross on the cause of the delay, Campbell said FINSAC has decided not to sell any of the Sterling Castle properties because they were having discussions with Crawford.
"I do not wish to say anything further on that matter at this time," he said.
But pressed further for an answer as to what the discussions were about, Campbell said Crawford has made representation to the incumbent government for assistance and FINSAC is awaiting an opinion from the attorney general as to whether it should be granted.
He was giving evidence against the background of allegations made by Crawford when he appeared before the commission via videoconference from the United States in June, that the properties were grossly undervalued and undersold by FINSAC in order to keep him as a debtor.
property sale list
Campbell, under examination by attorney Brian Moodie who, along with attorney Danielle Chai, is representing FINSAC, provided a list which shows that the properties were sold within or above the current market value.
The lion's share of the proceeds on that list came from the sale of 1 Paddington Terrace, Kingston 6, which fetched J$60.25 million, with FINSAC retaining J$53.9 million of the total.
The other was 122 Constant Spring Road, Kingston 8, which was sold for J$57.75 million, of which FINSAC kept J$26.1 million, and J$22 million was paid to Pelican Investments, a Cayman-based investment outfit, to settle a previous charge.
FINSAC also received J$4.1 million from the sale of ordinary shares owned by Crawford in the Bank of Nova Scotia, and J$658,000 from an insurance policy he had with Guardian Life. Crawford's 1931 Buick fetched J$801,000, of which FINSAC retained J$676,000.
Campbell said the list of assets sold notwithstanding, attorney Anthony Levy, who is representing Crawford, has advised FINSAC of a number of other properties belonging to Crawford and connected parties which have also been sold.
The general manager added that he was not aware of those but said the agency was in the process of compiling an extended list for submission to the commission this week.
Among the properties yet to be sold are 13 apartments and a town house at Carinosa, part of the Enchanted Gardens, a lot at Shaw Park, and properties at Drax Hall in St Ann.
The offers received were too low, Campbell said.
FINSAC is also trying to dispose of three other vintage cars seized from Crawford — a 1951 MGTD convertible sports car, a 1972 Jaguar and a Morris Minor.
The assets involved were owned by Century and Crawford either by himself or jointly with his mother Alma, or his wife Claudine, as well as Regardless Limited, of which Crawford was the majority shareholder.