Davies

Former finance Minister Dr Omar Davies yesterday suggested the commission of enquiry into the Financial Sector Adjustment Company (FINSAC) might have been misled by entrepreneurs who told compelling stories last week about how their lives had been devastated by the financial crisis of the 1990s.

Continuing his testimony at The Jamaica Pegasus hotel in New Kingston, Davies revealed the findings of research he had promised, which contradicted the claims made by entrepreneurs in questions directed at him.

Davies had promised to investigate the cases of Mechesk Willis and Yola Grey-Baker, who had told stories of ruin as they asked him questions.

Willis had told The Gleaner that he feared for his family after the mid-1990s crash, and claimed he had borrowed $480,000, repaid $1.5 million, had his house repossessed and sold for $3.5 million, and still owed more than $7 million. Davies said, however, that the information he received indicated that the former fabric salesman had borrowed two sums, not one.

Davies said the documents in his possession indicate that Willis secured two loans of $560,000 and $1.3 million. He said the records indicated that after the sale of his house the rest of his debt was written off.

Promissory notes

Grey-Baker had said her husband received $10 million, had repaid $52 million, had their house sold for $20 million and still owed the Jamaica Redevelopment Foundation (JRF) more than $80 million.

Davies said his information suggested Grey-Baker's husband signed promissory notes in 1997, agreeing that he owed $27.3 million, and agreed to a payment plan. Davies said he had defaulted and that in 1999 he and his attorney had acknowledged the debt owed and the amount, but subsequently denied the debt in 2008.

Davies also said that before the sale of the property, Grey-Baker's husband had paid $7.3 million.

Victims upset

After the sitting, both Willis and Grey-Baker, who were visibly upset, denied Davies' claims and stuck by their original stories.

"I don't know where he got those documents from, but I would like him to disclose how him get those documents, and those documents are not correct," declared Willis.

The Gleaner was yesterday unable to obtain account summaries from the JRF, to which the bad debt was sold.

A representative of the JRF said the administrative official who could speak to the matter was out of office.

An emailed response from Errol Campbell, general manager of FINSAC, stated that the relevant loans were sold to JRF, and FINSAC therefore had no files from which the requested information could be verified.

The hearing will recommence next Tuesday with a representative from FINSAC taking the stand.

mark.beckford@gleanerjm.com