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Local News>Crawford committee recruiting offshore centre consultants - For two-month studySabrina Gordon - Business Reporter |
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The Eric Crawford-led team, created by Senator Don Wehby, to explore an offshore centre for Kingston, is in the process of commissioning a study to guide its deliberations and is hunting consultants.
Wehby, a Minister without Portfolio in the Ministry of Finance, expects to get the Crawford committee recommendations on the viability of the International Financial Services Centre by the end of the first calendar quarter.
On that timetable, the issue could possibly take centrestage during the budget season, which normally kicks off in April.
"Tenders from potential consultants came in on the 31st of December and we are now in the process of evaluating them," Crawford said Wednesday.
"The contract is expected to be awarded as early as within the next two weeks."
He would not name the three bidders but said they were from local and international sources, and that the local entities also had international connections and experience.
Crawford, a tax expert with the auditing firm, PricewaterhouseCoopers Jamaica, says his work on the committee is voluntary.
Learning Lessons
He leads a 10-member committee, established in October, which includes a Jamaican domiciled in the Cayman Islands, a well-known offshore jurisdiction from which Kingston hopes to learn lessons.
The evaluation of the tenders is being done by members of the committee, among them Christopher Zacca, president of the Private Sector Organisation of Jamaica; managing director of FirstCaribbean Jamaica, Milton Brady, representing the Jamaica Bankers Association, and Pauline Gregory-Lewis from the tax division of the Ministry of Finance.
Other committee members include Robin Sykes out of the Bank of Jamaica, Milton Samuda, representing the Jamaica Chamber of Commerce, and attorney-at-law, Malcolm McDonald, from the firm McDonald Millingen.
Peter Young, formerly of Citibank and who now operates his own fund management company in the Cayman Islands, also sits on the committee, as well as Lisa Bell from Jamaica Trade and Invest, which performs secretariat functions.
Financial analyst Keith Collister, an advisor on tax policy, also acts as alternative representative for the PSOJ and the JCC.
Collister, who for years has been at the forefront of a quiet private sector lobby for an offshore centre, has said its proponents favour a low tax, as opposed to a no tax jurisdiction and also foresees the operation as a backdoor business processing centre.
The Bruce Golding administration brought the issue to life in its election manifesto, saying an offshore financial centre could be the "fulcrum for the much needed redevelopment" of downtown Kingston.
It's not clear how much the study is costing. Crawford said he has no budget and that the committee's work is being funded by Finance on an 'as needed' basis.
The study, which will be conducted over a seven-week period, is intended to identify possible services and products that can be offered, and the critical factors that will make the financial centre successful, as well as the required regulatory and legal framework to guide its operation.
The regulatory issues are seen as key, given BoJ governor Derick Latibeaudiere's early warning that the creation of the centre would result in greater scrutiny for Jamaica by the multilateral agencies under the money laundering and anti-terrorism laws.
Crawford said the study would identify and strengthen gaps in regulatory institutions, such as the Company Office of Jamaica, BoJ, and the Financial Services Commission.
"The legal and regulatory framework will be an advantage for Jamaica, as it is considered a high risk jurisdiction for money laundering and other such illegal activities, and, thus, the success will depend on a strong and modern legal framework," said the committee chair.
Framework
"Having done this comprehensive study the committee will be in a position to say to the Government, this is what Jamaica can do, these are the services that can be offered and the framework that is required for an offshore financial centre."
The research to be done will also explore strategic advantages to be gained by Jamaica in offering the service, target market, and revenue potential for the economy and professionals.
The findings will guide the timetable for establishing the offshore centre and the development of a marketing strategy.
"An offshore financial services centre is very competitive but, at the same time, a lucrative industry as many countries have gone after this market," Crawford noted.
His committee is planning a seminar, for February, on how an offshore centre operates, targeted at government agencies, businesses and the financial community. A report on the study will also be done at the seminar.
sabrina.gordon@gleanerjm.com