FINSAC to sell off Crawford assets
Published:Friday | July 15, 2011 | 12:00 AM
FINSAC Limited said Tuesday that it would seek new valuations on assets once connected to former Century National Bank chairman Don Crawford and then list them for sale to recover up to J$3 billion of debt.
The properties include a house at Sterling Castle, St Andrew, for which FINSAC had been asked to consider giving Crawford's mother a lifetime interest.
On July 4, FINSAC general manager Errol Campbell told the commission of enquiry into the financial-sector crises of the 1990s that those properties had not been sold because valuations had not been obtained.
He also said that Crawford had sought assistance from the Government, and FINSAC was awaiting the attorney general's opinion.
But this week when Campbell returned to the witness stand, FINSAC attorney Brian Moodie had him read into the record a statement seeking to "set the record straight" on Crawford's properties.
From the statement, signed by Robert Martin, chairman of FINSAC Limited, Campbell read: "I wish to bring to the attention of the commission that in late 2005, the Privy Council handed down a decision upholding the decision of the Jamaican courts for Donovan Crawford and connected parties to pay to Financial Institutions Services Limited (FIS) sums totalling in the region of J$2.5-J$3 billion plus interest.
"Subsequently, our attorneys in the matter obtained a court order for sale of various properties owned by Mr Crawford and some connected parties," he said.
Referencing enquiries made by commission chairman Worrick Bogle and commissioner Charles Ross at the July 4 hearing as to why special consideration was being given to Crawford's mother, Campbell said:
"We have reviewed the files and can confirm that representations were made in early 2006 by Mr Crawford's attorney to ours that based on the age and health of his mother, consideration be given to granting her a lifetime interest in her residence at Sterling Castle," which, along with five other adjoining apartments, she jointly owns with the former banker.
The request "was not agreed, but she was allowed to continue occupying the house for a further three months as this would not unduly affect the timetable for the proposed sale of the properties, bearing in mind the sale process."
"Mr Crawford made a number of subsequent representations to FINSAC, and to the former (PNP) Government, for leniency or assistance with medical bills on humanitarian grounds, for his ailing mother who is over 90 years old. These were not approved in view of the court orders obtained for sale of the properties.
"Similar representations have been made to the present Government, and the matter has been referred to the Attorney General's chambers for advice on whether any assistance may be granted," Campbell read from the statement.
Contrary to his earlier testimony, Campbell also revealed that in 2006, valuation reports were obtained on Mrs Crawford's residence and the five adjoining apartments. The properties were listed for sale with real estate dealers D.C. Tavares & Finson.
However: "No offers were received, but they were never taken off the market," he said.
In view of the age of the existing valuations, Campbell said, "FINSAC will obtain up-to-date valuations and proceed to auction all the remaining properties and, if not sold, list them with brokers for sale by private treaty."
As regards apartments at Carinosa, part of the Enchanted Gardens in Ocho Rios, St Ann, Campbell said "these are part of a complex consisting of 78 units, 31 of which are controlled by FINSAC/FIS, including the 13 related to Century.
"The other 47 units have diverse ownership and previous efforts - by the liquidator of the company which formerly owned the common area - to sell, were futile. The common area has since been sold and contact will now be made with the liquidator requesting that efforts be resumed to obtain agreement from the various owners to again pursue sale," Campbell concluded.
Last week, Campbell said FINSAC has so far realised J$399 million from the sale of some assets formerly owned by Crawford and connected parties.