Kern Spencer
Kern Spencer, the former junior minister who is on trial for corruption, reportedly lodged millions of dollars, in cash, into a private bank account, a month before the controversial Cuban Light bulb distribution programme collapsed in 2007.
According to witnesses who gave testimony on Thursday at Spencer’s corruption trial , the former government Minister was also tipped off by the police that he was under investigation in the fraud case.
During testimony, prosecutors introduced documents to show that Spencer and Colleen Wright - his assistant then, lodged millions of dollars in cash at the Santa Cruz branch of Jamaica National in the southern parish of St. Elizabeth, a month before the Cuban light bulb programme collapsed in 2007.
The Crown introduced the documents through Sacha Neil-Elliot, an employee of Jamaica National in Santa Cruz. She testified that on July 25, 2007, Spencer and Wright, her former schoolmate, visited the branch with more than J$3 million in cash.
She said Spencer lodged the money - that took her nearly two hours to count , in a Fixed Deposit account.
She told the court that when she asked about the source of the funds, the Spencer said that it was proceeds from a loan he obtained from the National Commercial Bank (NCB) and his birthday party which was headlined by dancehall entertainer Beenie Man. The witness said she found it strange that NCB did not make out a cheque to him.
Neil-Elliot added that five days later, Spencer and Wright returned again with another J$3 million in cash, which was also lodged to his account. She also disclosed that Spencer later borrowed J$4 million from the institution, which was converted to US$67,000 and gave instructions to JN to wire the money to a bank in Florida for the purchase of a Land Rover.
The witness added that Wright had more than J$ 4 million in her account with the institution at the time and a portion of the cash was converted to US currency, which she invested in the Olint Ponzi scheme.
She said Spencer and Wright closed their accounts on September 14, 2007 - several weeks before the JLP administration announced that it was calling in the fraud squad to investigate the Cuban light bulb distribution programme.
The witness also testified that in November 2007, during the raging debate over the Cuban light bulb programme, she received a telephone call from Spencer who wanted copies of documents regarding his account with the bank.
According to Neil-Elliot, she was scared based on Spencer’s tone. She said he disclosed that he had a source at the Financial Investigation Division (FID) who told him that the police were onto him in the Cuban light bulb case and that he would be arrested and charged in the matter.
Thursday’s approach by the prosecution was part of its case to show that Spencer who earned an annual salary of J$1.8 million in 2007, was depositing large cash amounts at Jamaica National at the time.
As part of its case, the prosecution alleged that Spencer and Wright set up several dummy companies to funnel money out of the light bulb programme, which was under the control of the junior minister.
The trial continues on Friday.
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