Dennise Williams, Staff Reporter
Roy Johnson, executive chairman of the Jamaica Stock Exchange. - File
"TO THIS day, no executive of Dyoll Group has contacted the Jamaica Stock Exchange (JSE). We have sent out letters, made calls and put out press releases. In fact, Stephen Thwaites, former managing director of Dyoll, in February, said to us that he was stopped by Acting Chairman, Mr. Peter Lawson from providing any information and was therefore not able to respond to the exchange's requirement for information," Roy Johnson, executive chairman of the JSE.
The Dyoll Group is in the midst of a financial crisis stemming from claims presented by clients in the Cayman Islands from damage done by Hurricane Ivan in September of last year. The claims total about $1.6 billion (US$26 million) while the company has equity of about $600 million.
Yesterday, in an exclusive interview with Wednesday Business, Mr. Johnson explained that all actions taken by the JSE have been to protect minority shareholders.
"We have been very clear that, according to the listing contract signed with the JSE, a listed company must report and disclose any material changes to the exchange.
IN NEED OF INFORMATION
And if the company is not sure what information is to be disclosed, they should consult the JSE and we will advise them accordingly. We need the information to allow shareholders to make informed decisions."
Despite the numerous articles and press releases about Dyoll from the company and other interested parties, Mr. Johnson contends that this does not qualify as official information according to the rules of the exchange.
The actions by the Financial Services Commis-sion (FSC) have nothing to do with the exchange according to Mr. Johnson. "There are two regulators at work here looking at two entities. Dyoll Insurance Company is under the regulation of the FSC. They (the FSC) have made arrangements with GraceKennedy to sell off a portion of that portfolio and manage the rest. This is what we understand from the press. We haven't, to this day, received any formal correspondence about what the FSC is doing or about the sale to GraceKennedy."
Mr. Johnson continues: "The Dyoll Group is the listed company that is responsible to us, although we have a good working relationship with the FSC, when a company is being investigated, the FSC tends to not release information. Therefore the onus is on the Dyoll Group executives to communicate with us. This has not been done."
RUMOURS OF INSIDER TRADING
Another controversy surrounding Dyoll, beside its apparent bankruptcy, is the rumours of insider trading by Dyoll executives and related parties. The JSE has indicated that trades of Dyoll shares between September 2004 (when Hurricane Ivan struck) and February (when the shares were suspended) would be investigated.
Mr. Johnson states, "Rumours were circulating that informed investors were trading the stock. We have done our investigation and we have passed on this information to the FSC. I cannot comment about our findings but I will say that the JSE cannot take action against individuals only listed companies. However, the Act governing the FSC does clearly indicate that insider trading, if proven in a court of law, can result in a prison sentence."
And since the JSE can only act against companies, what will be its next action? Mr. Johnson states: "There are two sanctions that we can take against a company. The first is the suspension of trading of shares. The second is delisting of the company. We have applied sanction number one. The council of the exchange will have to meet to consider sanction number two."
He then coyly stated, "It would be not unusual for the press to speculate on what further regulatory action is to be taken by the council given the fact that requests for information from Dyoll have been ignored."
