THE Bankruptcy and Insolvency Act, Government’s latest structural benchmark Bill under its Extended Fund Facility agreement with the International Monetary Fund (IMF), has triggered a number of concerns from its agencies and departments, regarding the provisions of the bill.

The developments suggest that, despite a one-month reprieve of the March 31 deadline by the IMF allowing the Government an additional four weeks to complete the process, the joint select committee could still be pressed for time to complete its review and report to Parliament.

The situation is not helped by the fact that representatives of both the Bank of Jamaica (BOJ) and the Solicitor General’s Department will be off the island in late March, and Parliament is scheduled to be prorogued at the end of that month in time for the opening of the 2014/15 session and the tabling of the Supplementary Estimates on April 3.

Only seven of the 14 members attended the preliminary meeting on February 6 at Gordon House, while only eight members were at last Thursday’s meeting. However, the committee needs only a quorum of the chairman and three members to meet.

It was acknowledged at the preliminary meeting of the committee that not only is the committee affected by a lack of support from its 14-member panel, but that of eight stakeholders asked by the Ministry of Industry, Investment and Commerce to submit their concerns by February 7, only three had done so: the Bank of Jamaica, the Financial Services Commission (FSC) and the Office of the Trustee in Bankruptcy. The Private Sector Organisation of Jamaica (PSOJ), the Securities Dealers Association of Jamaica, the Jamaica Cooperative Credit Union League and the Jamaica Bankers Association have not yet made submissions.

The committee is also awaiting responses from six other organisations, including the Small Business Association of Jamaica, the Jamaica Chamber of Commerce and the Jamaica Manufacturers Association, who were asked to respond following the first meeting on February sixth.

The committee also placed a public notice in the press on February 9 inviting submissions from members of the public. However, up to Thursday there was no indication that it had received any response from the public.

All three institutions that have responded to the request for submissions have important roles to play in the new regime to deal with bankruptcies and insolvencies under the new Act.

The Act will transfer the powers of the minister for the suspension of licences and presenting a petition for winding-up under fault conditions, as stated in the second schedule of the Bill, to the BOJ. Additionally, the FSC has been proposed as the insolvency supervisor; and the OTB is to take over the new role of government trustee, which will be appointed by the governor general to administer the estates of debtors.

Solicitor General Michael Hylton has pointed out that it is the institutions, and not individuals, which will be required to fill the roles under the new Act.

All three have raised concerns about their roles in the new regime under the provisions of the Act, and are seeking clarification prior to the committee reporting back to Parliament in April. However, the next meeting of the joint select committee may not be possible until after the 2014/15 session of Parliament opens in April, raising another deadline issue.