• Finsac Enquiry chairman’s link to Century National

Chairman of the FINSAC Commission of Enquiry and former Appeal Court judge Justice Boyd Carey could find himself in a serious tangle, if charges that he and his wife Beverly had business transactions with Century National Bank, including an unpaid $1.7 million debt owed by Bev Carey & Associates (1985) Limited, are proven.

Indications are that the chairman could be forced to provide answers since the law firm representing the Jamaica Redevelopment Foundation Inc had written to the Commission last year, seeking assurance that none of the commissioners or any immediate family member of theirs is or was indebted to any of the banks or financial entities that were re-structured or that had its loan portfolio restructured through Workers Savings & Loan Banks, Finsac Limited or any related entities of Finsac Limited.

According to Sunday Herald sources, parties representing persons and institutions have provided the commission with information indicating that the Careys maintained a current account at Century National Bank. Based on the data, the account was from time to time in overdraft and the overdrafts were unsecured and unauthorized.

An internal bank document, a copy of which was seen by the Sunday Herald, indicates that Mr. Carey was a close associate of the chairman of the bank, Don Crawford, and this was used as a basis for granting the extension.

Several letters were exchanged between the Careys and Financial Institution Services Limited (FIS) after the bank was taken over in 1996.  In January 1998, an agreement was arrived at between FIS and the Careys under which the outstanding overdraft would be settled by a setoff of a deposit held by the chairman with the bank and the payment of the balance due.  Subsequently, Mr. Carey signed the form and paid the balance.  FIS confirmed receipt of the form and the cheque and that the overdraft had been cleared and the account closed.

Debt sold remains unpaid

Regarding Bev Carey and Associates (1985) Limited, it is understood that in 1994 Century National Bank authorized a personal overdraft for Mrs. Carey, which was later converted to a debt owed by Bev Carey Associates (1985) Limited.

Based on research, records at the Office of the Registrar of Companies reveal that no annual returns have ever been filed for that company, but the memorandum of association and the company information report issued by that office indicate that the issued shares in the company are held equally by the chairman and Mrs. Carey.  The records also indicate that the directors are Mrs. Carey, Iskra Carey and Ivy Townsend.

Indications were that the debt was not serviced in accordance with the agreed terms and was among the debts sold to Jamaican Redevelopment Foundation Inc (JRF) in 2002.  JRF later sold the debt to International Asset Services Limited (IAS).

Sources say JRF recently contacted IAS, which confirmed that the debt remains outstanding and said that Mrs. Carey had told them that her attorney would be contacting them to settle the matter.  This did not occur.  IAS indicated that the debt owed by Bev Carey and Associates (1985) Limited is approximately $1.7 million and that it remains unpaid.

Based on the non response to its first request, the law firm representing JRF made a further request for a response last December.  The commission responded to the law firm saying its letter would be presented at the next meeting, which was last Tuesday.  It is not clear what transpired then.

However, when the Sunday Herald contacted commissioner Carey, he said he was aware of the letter and the issues raised were being investigated and as soon as they are completed the parties would be informed.