Barita Investments referred to FSC over $50m loan to Holness's company

By Lorraine Walker    

 

Barita Investments has come under scrutiny in relation to a $50 million loan issued in 2021 to Imperium, a company wholly owned by Prime Minister Andrew Holness.

 

The Integrity Commission has recommended that the Financial Services Commission (FSC) conduct a further probe into the transaction, to determine if Barita's practices are consistent with the law and the conditions of the licence under which it operates.

 

In its investigation report into the Prime Minister's financial affairs, the Integrity Commission noted irregularities in the disbursement of the loan, leading it to conclude that an unsecured loan was provided where a secured loan was intended.

 

The loan was predicated on collateral including 10 million shares in Derrimon Trading Limited, a legal mortgage on a property owned by Imperium and an insurance policy.

 

But Director of Investigation Kevon Stephenson revealed that at the time the loan was issued, Imperium did not actually own the Derrimon shares. Additionally, the property was transferred in Imperium's name about eight months after the loan was issued, and critical details on the insurance policy were missing.

 

The commission said the mortgage discrepancy meant that it could not be registered, creating a significant gap in the loan's security.

 

Following queries by the Director of Investigation regarding the unregistered mortgage, an officer at Barita explained that it was not unusual business practice with regards to premium customers and discretion is usually applied where the risk is deemed to be low.

 

But Principal Director of National Integrity Action Danielle Archer believes the Prime Minister has a duty to explain the transaction in question. 

 

"How is it that you are able to get a loan for a company without collateral and proper asset tracing? Could that happen to the small man? Could a little man go in and get a $50 million loan without more?" she querried. 

 

 

In the meantime, Ms. Archer encouraged members of the public to read the Integrity Commission's report for themselves.

 

She was responding to a statement in the House of Representatives on Tuesday, in which Prime Minister Andrew Holness seemingly suggested that he was being unfairly targeted. 

 

"The weaponisation of accusations of corruption is nothing new in politics. However, even the most sceptical onlooker must conclude that the handling of this matter, the time it has taken, the public resources used to pursue it, raise cause for concern on many levels," he had said. 

 

The NIA's principal director argued that Mr. Holness appeared defensive in his response, even as she urged members of the public to make their own assessment of the contents of the report. 

 

"Get a copy; if you can't get a copy, ask somebody to get it for you. Have your meetings, go through it yourself to see that it is not a witch hunt," she asserted.