Prime Minister of Jamaica and the Integrity Commission

On September 17, the Jamaican Integrity Commission (IC) tabled a report in Parliament that revealed that Jamaican Prime Minister Andrew Holness was under investigation for illicit enrichment.

While citing a series of discrepancies in the prime minister’s financial affairs, IC Director of Investigations Kevon Stephenson said he was unable to continue the investigation and therefore could not comment on the illicit enrichment. However, as is customary, he referred his report to the Tax Administration Jamaica (TAJ) and the Financial Investigations Division (FID) for further investigation. Mr Stephenson’s report stated that “there can be no finality” in the certification of assets for the 2019-2022 period without further investigation.

A report in the Jamaica Gleaner revealed that the nearly two-year investigation into Mr Holness’s income and assets declarations for the years 2019 to 2022 was aimed at investigating allegations that Mr Holness had assets disproportionate to his legitimate earnings.

He also assessed allegations that Mr Holness made false statements through omissions. Among other things, the Gleaner report said the Integrity Commission cited millions of dollars in flows between companies linked to Mr Holness, which it said had not been fully explained.

According to the Gleaner, the report stated that the entire proceeds from the $94,000 bonds – including $32,107.02 that Mr Stephenson indicated was now supposed to belong to the Positive Jamaica Foundation – were paid into a company called Imperium, which is wholly owned by Mr Holness, and reinvested by that entity.

“In other words, the portion purportedly belonging to the Positive Jamaica Foundation formed part of the Empire’s assets for over three years and was appropriated by that entity at its discretion,” he said.

Mr Stephenson added that the funds were only transferred to the Positive Jamaica Foundation after being informed by him.

“The above raises the issue of whether Mr Holness’s alleged use of charitable foundation funds to part-finance the acquisition of personal assets constitutes misappropriation. The DI (director of investigations) concludes in the circumstances that an FID investigation is justified,” Mr Stephenson said.

Mr Stephenson also said in his report that he was unable to draw conclusions regarding the Prime Minister’s illicit enrichment because he did not have access to Mr Holness’s personal expenses during the relevant period, “and also because of unresolved issues regarding the activities of companies with which Mr Holness is associated”.

“The Director of Investigations reiterates that he is unable to make calculations of illicit enrichment in relation to Mr Holness’ assets, liabilities and income, and that the issue of related companies has not been addressed and no timeline of his personal expenses for the period has been provided,” Mr Stephenson said, the Gleaner reported.

In its first correspondence with Mr Holness, the IC stated that “the results of investigations to date have shown that you have assets that are disproportionate to your legitimate earnings, if any, as declared by you”.

Mr Holness has been invited to the IC office on Thursday 31 August 2023 for an interview to provide explanations to Mr Stephenson and/or his representative to answer questions relating to the investigation.

The director of the inquiry noted that during a meeting with Mr Holness and his legal team, the prime minister opted to provide written statements rather than an interview. Written statements were provided on at least four occasions, the most recent being on 16 July 2024.

The report said the prime minister was linked to three companies or had financial interests in them.

The Company reported that a forensic review of bank accounts attributed to Mr. Holness and the named companies for the period from January 1, 2020 to June 13, 2023 revealed intercompany deposits and withdrawals of $473,161,545.37 and $427,174,913.86, respectively.

The report said financial statements provided by Holness show that the empire earned at least $5,121,105 in dividends, foreign exchange gains and interest in 2021.

Despite this, Imperium filed a zero tax return for 2021 and 2022.

As reported by the Gleaner, Positive Media’s board of directors’ reports and statement of comprehensive income for 2021 filed by Holness show that total income was $20,069,697.

Despite this, Positive Media filed a zero tax return for 2021 and 2022, indicating that the company did not conduct any revenue-generating activities during its two years of existence.

The Estatebridge management report shows that the income statement for the year ended 31 December 2021 shows “interest income” of $1,040,625.

The report indicated that Estatebridge nevertheless did not file a tax return for 2021, meaning the company did not conduct any income-generating activities this year.

The report further indicated that between March 2021 and May 2022, a fourth company, Greenemerald, made loans to Positive Media in the amount of $20,625,000 and appeared to be operating during that time period.

Greenemerald filed a zero tax return for 2021 and filed tax returns in 2022 showing income of $355,100.

According to the Gleaner, Mr Holness defended himself vigorously. Noting that he has been in politics for more than 30 years, Mr Holness stressed that he has never tried to use his “humble beginnings” to garner political sympathy.

“I don’t do this because I believe in working for what I have. And I have worked hard, smart and honest to achieve what I have.

“I have never been dependent on public money,” Mr Holness said, adding that he had left out the salary increase due to the prime minister in solidarity with all people with high income levels.

He added that apart from having the privilege of leading the country, he always carried out his duties with respect and dignity.

“Even for those who are trying to humiliate me and harm me personally. Arming with corruption accusations is nothing new in politics, but even the most skeptical observer must conclude that the way this case was handled, the time it took and the public resources used to prosecute it raise concerns on many levels,” he said.

While the rigor of the Integrity Commission investigation will have to be decided by regulators, supervisors and the citizens of the island, the investigation into Mr. Holness is a sign of the vitality and maturity of Jamaican democracy. All CARICOM countries should be watching closely to see how due process and its finality are achieved, and what it means for accountability and transparency at the highest levels.

In Guyana, where the PPP/C government is responsible for appointing all the watchdogs, it is inconceivable that the finances of senior government officials would be investigated or even subjected to an Integrity Commission probe. Given the vast oil revenues that flow into the country and the enormous expansion of public procurement, one can only anticipate the scale of corruption. Given the country’s already appalling ranking on Transparency International’s anti-corruption index, it is imperative that watchdogs such as the Integrity Commission step up their efforts to ensure integrity in public life and seek greater resources to protect public finances.