FINSAC commission to recall Davies

The FINSAC commission of enquiry is expected to recall former finance minister Dr Omar Davies when it resumes sitting, Secretary to the Commission Fernando DePeralto said Thursday.

Patrick Hylton, current group managing director of the National Commercial Bank Jamaica and former head of of FINSAC, which was formed during Davies' tenure as minister, may also be asked to return to the stand, he said.

DePeralto, a former deputy governor of the Bank of Jamaica, also indicated that the hearings may not resume before the end of this month.

He said the enquiry was being held up by the inability of the Financial Sector Adjustment Company Limited (FINSAC) to produce records relating to statements which have been made at the enquiry from as far back as 2009.

He confirmed that following the latest request from the commission, FINSAC wrote the commissioners on September 1 stating that it could produce some of the information by September 16, and the rest by the end of the month.

Commissioners not satisfied

However, indications are that the commissioners are not satisfied with that response, and were scheduled to meet Thursday afternoon to discuss the situation and make a decision on how they would proceed.

DePeralto said Davies and Hylton were the only two witnesses likely to be called.

Davies originally appeared before the commission in November 2009, but is expected to respond to more recent questions pertaining to his administration's role in issues surrounding the meltdown and the operations of FINSAC.

The commission, which is headquartered at the Jamaica Pegasus hotel in New Kingston, last met three weeks ago. The delay has been blamed entirely on FINSAC's inability to produce the records needed by the commissioners.

FINSAC general manager, Errol Campbell, has stated repeatedly that the lack of a proper data-maintenance system at the company, and its reliance on manual searches were the causes of the delay. He also confirmed that many of the documents are with the Jamaican Redevelopment Foundation, the American-owned firm which bought the FINSAC bad debts in 2002.

The commission of enquiry, appointed in October 2008, has been sitting since September 2009. The commission was reformulated the following year after legal challenges led to the disqualification of the original chairman, Justice Boyd Carey. The Supreme Court upheld submissions from four claimants, including Davies, that there was perceived bias on the part of Justice Carey, who they claimed was a FINSAC debtor.