The Gleaner - January
Patrick Hylton fields questions on FINSAC
Patrick Hylton, managing director of the Financial
Sector Adjustment Company (FINSAC), with Go-Jamaica's client relations
officer, Marlene Davis, just before the start of The Gleaner's Talk 2000
session via the company's Go-Jamaica website last night. Winston Sill
...and one from a US woman seeking a Jamaican mate.
AN AMERICAN woman last night gave Patrick Hylton, managing director
of the Financial Sector Adjustment Company (FINSAC), her vital statistics,
marital status and other personal information, bluntly telling him she was
looking for a Jamaican man.
But, for the most part, he was asked a multitude of well thought-out
questions about FINSAC as he participated in The Gleaner's Talk 2000
session via the company's Go-Jamaica website.
Among the questions was whether he would be willing to disclose the names
of the politicians who have been bailed out by FINSAC. Mr. Hylton said he
would not disclose the names. However, he said there has been no political
interference in the work that the government agency has been doing.
Mr. Hylton said he believed the crisis in the banking and insurance
sectors was over and he knew of no other financial institutions which he
thought might go bust.
"I believe the crisis is over," he said. "I am not aware of
any financial institution that is in danger of going bust at this time. In
any case, most of the rehabilitation work has been completed and our focus
is now on divestments." He said the $22-billion loss incurred by
FINSAC was not a reflection of its operating performance. Rather, it was
the adjustment made in the value of assets acquired, including companies
in which FINSAC has intervened, non-performing loans purchased and
interests accruing to FINSAC on its investment in intervened companies.
Mr. Hylton said their focus for 2000 would be on divestments.
Asked how many consultants were working at FINSAC, Mr. Hylton said he
could not give a definitive figure then, but he knew only of consultants
who were involved in a project being undertaken with the Inter-American
Development Bank (IDB), as well as a few in forensic accounting.
One participant suggested that FINSAC has been making a loss since its
inception and wanted to know when the Government was going to shut it
down, like it did other money-losing entities.
Mr. Hylton said FINSAC was established with a specific mandate to operate
within a five- to seven-year period and therefore would not exist in
perpetuity. It was expecting to complete its work within five years.
"We are on target to come in ahead of the seven years," he
Asked about the sale of some assets such as hotels to businessman Gordon
'Butch' Stewart and whether they were sold at fair prices, he said
professional valuations were done before assets were sold and he believed
they were sold at fair prices.
Mr. Hylton said that as a direct result of the Government's decision to
set up FINSAC to rehabilitate the financial sector, the sector was now
He explained the laws and other controls being put in place to ensure
there was no repeat of the debacle in the financial sector.
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