Athaliah Reynolds, Staff Reporter

The ongoing tussle between the Financial Services Commission (FSC) and investment club, Cash Plus Limited, has heigthened with the regulatory body claiming the company, at present, could be insolvent.

The investment company has, however, dismissed the claim.

FSC Deputy Director George Roper yesterday said that, if the unaudited reports issued by the company last September are reflective of its financial standings, the company could very well be operating at a loss.

"The accounts that they published at the end of September 2007 reflect accumulated losses of $8.9 billion," Mr. Roper said. "The accounts apparently are indicative accounts and what they did was reflect the lenders liability as preference shares."

The FSC deputy director said Cash Plus preference shares figures at that time were shown as $16 billion.

Liability

"So, if that's really showing for what it is currently, I believe the company would be showing a liability in excess of its assets," reasoned Mr. Roper.

"Those accounts are not giving the impression that (Cash Plus) is a strong financial institution. That is the key issue people need to zero in on. What is the financial health of Cash Plus?"

According to Mr. Roper, Cash Plus' financial standing is going to play a key role in the company's ability to regularise its operations.

However, Vice-President of Cash Plus, Chris Golbourne, immediately denied the FSC's claims, arguing that since the release of company statements on September 30, the company saw exponential growth between September 30 and November 30.

"So there is no way one can look at those September 30 accounts to say that Cash Plus is not in a position to pay back its lenders," said Mr. Golbourne.

Despite the FSC's recent cease-and-desist order against Cash Plus, scores of distraught investors up to yesterday continued to converge on the company's premises, anxiously awaiting reimbursement.

athaliah.reynolds@gleanerjm.com.