Seeking to maximise the returns on $241 million of Kingston and St Andrew Municipal Corporation (KSAMC) cash that has been sitting in an account at Scotia Investments Jamaica Limited for 12 months earning a mere one per cent interest, KSAMC Chief Executive Officer Robert Hill has written to the bank demanding a meeting, no later this next week, to discuss the issue.

Hill wrote to Scotia Investments after councillors expressed anger and disappointment that a Scotia Investment representative, who should have attended the Finance Committee meeting last Thursday, did not show up.

The committee, which has been haggling with Scotia Investments for some time over the low interest rate on the sum, was furious when Hill told them that Scotia Investments had requested that the meeting be rescheduled to the committee’s February sitting.

Councillor Dennis Gordon (People’s National Party, Maxfield Park Division), who said that he was dissatisfied with Scotia’s response, pointed out that the committee needed information about the investment and how it would impact the KSAMC’s 2020/21 draft budget through source of revenue.

Jamaica Labour Party councillors John Myers (Lawrence Tavern Division) and Rosalee Hamilton (Rae Town Division) said that Scotia Investments should be given an ultimatum.

Vernon McLeod, chairman of the Finance Committee, said that a much higher interest than the estimated monthly $160,000 could be earned on the investment.

“If calculated at four per cent per annum the interest we could earn is $800,000 monthly. [Therefore,] it is earning practically nothing. We have asked them to come and give us the best investment offer or we will move it,” he said.

Councillor Eugene Kelly (People’s National Party, Whitfield Division) argued that the councillors should be more active and find out the best return that the KSAMC could get on the investment.

McLeod told the Jamaica Observer that for months the Finance Committee had been in discussion with Scotia Investments as it was seeking to put the cash on a higher-yielding instrument.

He said that Government financial regulations “do not allow agencies to tie up money for more than one year”.

“Scotia is very slow. Three months ago the committee asked them for a list of the different yields or instruments. They should have come back to us, but they have not returned so that the committee could choose,” he said.

When the Observer contacted Scotiabank for a comment on its discussions with the KSAMC, Yanique Forbes-Patrick, vice-president, public affairs and communications (Caribbean), said: “Scotia Investments confirms that we received an invitation letter on January 28, 2020 to attend a monthly KSAMC meeting on January 30, 2020. We responded via e-mail to indicate that we were unable to attend the meeting due to prior commitments, but we could attend the following month’s meeting.

“We are unable, however, to comment on the specifics of any of our client relationships as that would be a breach of our client’s privacy, which is something we consider to be of the utmost importance.”

Forbes-Patrick said Scotia Investments employs a portfolio advisory approach for all its clients. “This means we focus on the total needs of each client, including their objectives, liquidity needs, and risk tolerance to gain an in-depth understanding of their risk profile. Each client’s risk profile ultimately guides the investment options we recommend. In general, a customer with a conservative risk profile will yield lower returns than one who is more aggressive.”