Arthur Hall, Senior Staff Reporter

Davies

Up to last night there was no response from Finance Minister Audley Shaw to Opposition claims that he does not have the moral authority to oversee the proposed commission of enquiry into the financial sector meltdown of the 1990s and the subsequent creation of the Financial Sector Adjustment Company (FINSAC).

Efforts to contact Shaw started yesterday morning, minutes after former finance minister Dr Omar Davies took off the gloves and started a slugfest over the proposal to establish a commission of enquiry into FINSAC.

Shaw on Wednesday closed the 2008-2009 Budget Debate with the announcement that he would shortly be announcing the names of persons who would be presiding over the enquiry.

He told the House of Representatives that the enquiry would seek to determine why some loans were reduced or written off while others were forced to pay high interest.

But Shaw did not disclose that he was one of those who had his loan reduced, a claim made by Davies yesterday as he ripped into the finance minister.

Addressing journalists at a post-Budget Debate press briefing at the PNP's Old Hope Road, St Andrew, headquarters, Davies declared he had nothing to hide and was prepared to take part in any enquiry into FINSAC.

According to Davies, the Opposition was ready to participate in the enquiry but this would depend on some preconditions.

At the top of the list is the Opposition's demand that it should participate in defining the terms of reference of the commission.

The Opposition is also insisting that Shaw should play no role in establishing the commission and defining its terms of reference.

"The (finance) minister has no moral authority to lead the process ... and the Opposition demands that he completely recuse himself from any further involvement in the matter and allow the process to move forward independently and with transparency," Davies declared.

Conflict of interest

Shaw

He based this call on what he said was a conflict of interest involving the finance minister.

"It is a fact that at least four Cabinet ministers of the present administration, including the minister of finance and one minister of state had their bad loans acquired by FINSAC because of their failure to service their debts.

"FINSAC only came into the picture because they were bad debtors," Davies added.

While not naming the other Cabinet ministers, Davies claimed Shaw had a bad loan with a failed institution which was taken over by FINSAC.

Davies further claimed the loan was restructured to a fraction of the original amount after negotiations with Shaw.

"And when we seek to score political points about a transfer of wealth, this agreement amounted to nothing more than a transfer of wealth in that the settlement to which he affixed his signature and did not honour, represented a fraction of the sum owed."

He continued: "We can therefore judge who were the beneficiaries of this transfer."

Davies refused to name other present Cabinet members who had their loans taken over by FINSAC, arguing he did not want to broad brush persons.

The former finance minister also admitted that members of the PNP administration also had loans taken over by FINSAC, but did not disclose their names either.

Davies hinted that the Opposition would not have a problem with Senator Don Wehby, minister without portfolio in the finance ministry, leading the enquiry.

arthur.hall@gleanerjm.com