THE probe into fraud-hit Stocks and Securities Limited (SSL) could cost taxpayers hundreds of millions of dollars, according to figures presented in the approved estimates of expenditure for the 2023-2024 fiscal year.

The cost was outlined in the approved or passed estimates, dated March 21, 2023, which showed a $300-million allocation “to meet the cost of external forensic auditors who will be providing forensic audit investigative services to the Financial Investigations Division (FID), in the entity’s probe of Stocks and Securities Limited (SSL).” It added that part of the money will go towards financing “preliminary work in respect of refurbishing and upgrading of the Shalimar property”, but it did not outline how much.

The Shalimar property is in reference to the headquarters of the FID which is to undergo refurbishing. It was earlier this year upgraded from a division of the Ministry of Finance to a department in the Ministry of Finance.

Efforts to reach Finance Minister Dr Nigel Clarke to get a better breakdown of how much of the $300 million is to pay external forensic auditors proved futile. His Opposition counterpart Julian Robinson, who has been calling for full disclosure on the cost of the investigation into the decades-old fraud at SSL, told the Jamaica Observer he was unaware of the allocation, adding that it was not discussed in Standing Finance Committee ahead of the approval of the 2023/24 Estimates of Expenditure.

That is because the cost of the probe into SSL was not captured in the original estimates of expenditure which was tabled on February 14. That estimate did have a $300-million allocation “for the refurbishing and upgrading of the Financial Investigations Division and is represented as appropriations-in-aid.”

A finance ministry source said the sums were simply reallocated from being set aside to refurbish the FID to paying for the probe. It was added that the decision was taken after financial aid sought from the UK High Commission was “not as encouraging” as the Government would have liked. That aid was sought to help pay Kroll Associates, the UK-based forensic auditors which the Government engaged to investigate SSL and to show the public that the country is serious about going after “30 years of impunity with respect to financial sector fraud”.

“The cost of FID operations are their costs. They have a budget and this investigation is being undertaken within their normal operating budget,” Clarke said during an X (formerly Twitter) Spaces forum Friday evening.

“However, with respect to the engagement of Kroll Associates, we are providing additional support,” Clarke continued. He declined to say how much that support is costing taxpayers, but instead pointed out that, “I would have mentioned when I first mentioned Kroll that we are also getting the support of Government of the United Kingdom as they have done in the past with matters related to the FID. They are providing support for the engagement of Kroll in this matter.”

Clarke clarified that the support is financial.

“I don’t have it off the top of my head. It’s decent in the context of the cost of engaging Kroll Associates. I don’t have it on me and I also need to check any confidentiality clauses before I can divulge on that. I said it back in January, I believe this is a matter in which we have received the financial support of the Government of the United Kingdom through the UK High Commission here in Jamaica,” Clarke told the audience on the X Spaces.

However, a source indicated that the money allocated is a ‘ballpark’ figure, adding that the sum that is eventually spent may be lower or higher, depending on the circumstances, especially with the Government pledging to leave no stone unturned in the fraud investigations.

So far, an update from the FID last Thursday indicated that the number of accounts which were subjected to fraudulent activities have reached 70, up from the 40 that were disclosed earlier this year. More arrests are also expected given the findings so far. Only one person, Jean-Ann Panton has so far been arrested and is set to face the court to answer charges in December.

“Kroll Associates…are deeply involved and have made trips to Jamaica, spending intense periods each time. They were here last week and they would have provided me with an update that is similar to the update provided by the FID to the country [last] week,” Clarke said of the investigation so far.

“I have said in the past that the Government will provide whatever resources are required by investigators and others to see this investigation through,” Clarke reiterated in the X Space forum on Friday.

The Government through the FID, along with help from Kroll Associates and the US-based Federal Bureau of Investigations, has been investigating a US$20-million fraud at SSL. Just last week the finance minister said he had to step in to pay approximately $15 million in operating costs for SSL, including salaries for its employees.

“I will provide a fulsome update as soon as all the information are available on the operating cost that would be supported by the Government of Jamaica,” Clarke said when asked about the size of the support it will give SSL until the investigations are over.