Jamaican Government, Opposition row over Olint funds
Published:Wednesday | December 1, 2010 | 12:00 AM
Gary Spaulding, Senior Gleaner Writer
Pinned against the ropes yesterday by Prime Minister Bruce Golding's jabs about the People's National Party (PNP) receiving donations from the ill-fated Olint Investment Club, the Opposition hit back at the snail's pace in formulating legislation to stymie the emergence of such schemes, whose collapse wiped out the wealth of thousands of Jamaicans.
Government members gleefully shouted "hypocrisy" as Golding referred to a report in which PNP Chairman Robert Pickersgill admitted that the party had, in the lead-up to the 2007 general election, received US$200,000 from Olint boss David Smith.
Smith has since been indicted for fraud in the United States. He has pleaded guilty to similar charges in the Turks and Caicos Islands.
The Opposition had constantly charged that the Jamaica Labour Party (JLP) had benefited from donations from Olint, which was shut down by the Financial Services Commission - the industry regulatory watchdog - nearly two years ago for allegedly operating illegally.
Smith moved his operations to the Turks and Caicos Islands, where he pleaded guilty to fraud. Smith has since been extradited to the United States, where he is to answer similar fraud charges in a federal court.
Responding to questions from opposition member Peter Bunting in the House of Representatives, Golding noted that Pickersgill had dismissed claims that the figure received by the PNP was US$1.3 million.
Having silenced the Opposition momentarily, Golding told the House that both political parties may have mistakenly sought political contributions from organisations with "unwholesome operations".
Speaking above the din, Golding said, "The bigger point to be made is that poor judgement may have been exercised by politicians on both sides," Golding declared.
Opposition member Ronald Thwaites suggested that the issue highlighted the ongoing debate on political contributions in relation to their source and use.
The prime minister also noted that the House had adopted the recommendations from Electoral Commission of Jamaica (ECJ) on public disclosure of political party funding and that a legislative framework was being worked on.
"Discussions are continuing at the level of the ECJ on (the other issue), campaigning financing," Golding said.
However, he warned that much time should be spent examining aspects of the proposal.
"While we support the measures, we should not be unmindful of the implications of disclosure," he cautioned.
"I think, we should spend some time discussing the integrity of the system."
Opposition members Dr Omar Davies and Fitz Jackson expressed concern about the time it was taking to bring the sore issue to a conclusion.
As Thwaites did, Davies said the protracted time in bringing matters before the court to a suitable conclusion served to undermine the credibility of the legal system.
"I think it is appropriate and desirable to put a specific timeline on taking this matter forward," declared Davies, the opposition spokesman on finance.
He, however, suggested that stakeholders should be engaged before proceeding to the House with the draft legislation.
Noting that no change had been made to the existing legislation governing investment schemes, Jackson, who served as junior finance minister under Davies, said there was nothing in place to prevent the emergence of other schemes.