Don’t Let $2.5M Investment Issue Die –Opposition Leader

Opposition Leader Marlon Penn is pleading with residents not to allow questions surrounding the Government’s failed $2.5 million investment in a troubled Jamaican company to disappear from public attention, as he announced plans for a public investigation through the Public Accounts Committee (PAC).

Penn said the controversy reinforces his position that the Virgin Islands does not have a shortage of money, but a serious problem managing its financial resources.

“We do not have a money problem, we have a management problem,” Penn said recently.

He pointed to the $2.5 million invested in Jamaica-based Delta Capital Partners Limited, arguing that Premier and Minister of Finance Dr. Natalio Wheatley must be held accountable for a transaction that occurred under his watch.

The Premier previously said he was unaware of the investment when it was made and acknowledged that the required process was not followed. He said the matter was being investigated by the Financial Investigation Agency.

“A failed investment and our leader says to us he had no idea,” Penn stated.

Citing Section 25 of the Public Finance Management Act, Penn said the Financial Secretary may invest money from the Consolidated Fund in an authorised investment with the approval of the Minister of Finance.

“It means it has to go through a process of authorisation to say that this is a good investment, it’s something that we want to invest in and the Government is going to invest,” he explained.

Penn said the Opposition is raising the matter again because it cannot be allowed to fade away without answers.

“The Premier has to be held accountable for this. We are bringing it up again because it cannot die,” he declared.

He said there is also uncertainty over whether other questionable investments were made with public funds.

“We do not know if there are more. That’s the problem. What else?” Penn questioned.

The Opposition Leader said trained professionals involved in managing the Territory’s finances should not escape scrutiny, arguing that the circumstances surrounding the investment must be thoroughly examined.

“We cannot just give the executives a pass. These are trained professional people who know better, and it begs the question: what was the motive?” he stated.

PAC Probe

Penn said the Opposition would not depend solely on an investigation initiated by the Premier and intends to use the PAC’s authority to summon individuals and question them publicly.

“People have to be brought before the Public Accounts Committee to answer questions to the people, and it is our intention to call an investigation on this,” he announced.

“It is going to be a public investigation because we have within our ability to do public investigations, and the people need to see and hear for themselves what happened with their money.”

Penn said the investigation should also determine what happened to the remainder of the Government’s investment portfolio.

Former At-Large Representative Shereen Flax-Charles also questioned whether the Delta investment was properly examined before the public’s money was committed.

“This goes to show there was no proper vetting process in place because, if there were, you would have picked up on the signs that this investment company that we are putting this $2.5 million in had a problem,” Flax-Charles said.

“You have to investigate before you invest the Government’s money. And if this was a private company with a CEO, that CEO’s head would be on the block for not being able to account for $2.5 million.”