分类： business

Jamaica Broilers Group (JBG) is contemplating a strategic exit from its beleaguered US meat business following a significant fraud scandal that has shaken the company. The decision comes as JBG implements a sweeping overhaul to restore financial stability and operational efficiency. The fraud, which spanned nearly four years, involved the deliberate underreporting of costs to artificially inflate profits, leading to $46 billion in balance sheet adjustments and the erasure of shareholder equity. The scheme was uncovered after a whistleblower alerted management, prompting immediate action.

JFP Limited, a leading commercial contract furniture and interior solutions manufacturer, is poised to make a pivotal decision regarding the allocation of multimillion-dollar proceeds from its recent property sale. CEO Metry Seaga emphasized that this decision will be instrumental in shaping the company’s strategic reset and bolstering its anticipated improved performance by 2026. Speaking to the Jamaica Observer, Seaga remained tight-lipped about specifics, stating, ‘We are on the right track, and I’m confident next year will be better — but I want to do more and say less.’

The decision comes on the heels of JFP’s improved financial performance in the third quarter of 2025. The company reported a narrowed net loss of $44.1 million, a significant improvement from the $75.4 million loss in the same period last year. This turnaround was driven by stringent cost controls and a one-time boost from the sale of land adjacent to its Spanish Town Road property. The sale significantly enhanced shareholders’ equity, which surged from $67.6 million to $329.9 million, while investments skyrocketed to $255.4 million from $7.6 million a year earlier.

Despite these gains, JFP continues to face challenges. Year-to-date revenue remains 23% lower at $257.8 million, attributed to sluggish project volumes and delayed contract executions. Total expenses for the nine-month period rose by 6%, primarily due to advisory and restructuring costs, resulting in a net loss of $56.7 million, down from $65.8 million in 2024.

In recent months, JFP has been collaborating with external consultants to reassess its business model and chart a path back to profitability. These efforts have already yielded operational improvements, including the introduction of new equipment aimed at enhancing production quality and reducing waste. Additionally, the company has embraced digital tools to streamline efficiency.

Originally established as Jamaica Fibreglass Products, JFP specializes in supplying seating, cabinetry, fitted furniture, and full-interior packages to hotel chains and restaurant operators across Jamaica and the Caribbean. As the company navigates its financial recovery, the upcoming board decision on the property sale proceeds will be critical in determining its future trajectory.

Jamaica Broilers Group (JBG) is leaving no stone unturned in its quest to recover billions of dollars lost in a multi-year fraud at its US meat division. President and CEO Chris Levy has emphasized that all options, including potential legal action, are on the table to hold those responsible accountable. The company, now stabilized by a new management team and a pending $24-billion refinancing deal, is focused on repairing its balance sheet and seeking redress for the scandal, which forced $46 billion in adjustments. Levy acknowledged the complexity of the situation, stating, ‘No option is off the table,’ while highlighting tax opportunities as a concrete avenue for financial recovery. The company has quantified potential tax benefits and is working to restate its tax positions, though this will involve intricate negotiations with tax authorities. The fraud, described as a ‘coordinated and deliberate’ effort by former US operations leadership to hide costs and inflate profits, was uncovered by a whistleblower. Senior Vice President Ian Parsard revealed that the company is eyeing close to $30 billion in potential tax credits, with even a third of that amount significantly boosting shareholder equity. This recovery effort is crucial to rebuilding JBG’s shattered equity base, recently bolstered by a $40-billion revaluation of its Jamaican assets. Levy assured stakeholders that the internal investigation is complete, but the external mission to seek justice and financial recompense remains a top priority, signaling a potentially protracted next chapter in the JBG fraud saga.

KINGSTON, Jamaica — Jamaica experienced a 0.7% rise in consumer prices in October 2025, primarily driven by increased costs in food and electricity, according to the latest report from the Statistical Institute of Jamaica (STATIN). This uptick pushed the annual inflation rate to 2.9% for the 12 months ending in October. The ‘Food and Non-Alcoholic Beverages’ category saw the most significant surge, climbing 1.5% month-on-month, with vegetables, tubers, and pulses recording a sharp 5.5% increase. Staples like carrots, cabbage, and sweet potatoes became notably more expensive. Additionally, the ‘Housing, Water, Electricity, Gas, and Other Fuels’ category rose by 0.8%, largely due to higher electricity rates. However, some relief came from the ‘Transport’ division, which saw a 0.3% decline due to lower petrol prices. Over the past year, inflation was primarily fueled by three sectors: ‘Food and Non-Alcoholic Beverages’ (3.0%), ‘Housing, Water, Electricity, Gas, and Other Fuels’ (4.0%), and ‘Restaurant and Accommodation Services’ (4.0%). STATIN clarified that the data was collected before Hurricane Melissa, meaning the figures do not account for any potential price impacts from the storm. As Jamaica’s national statistics office, STATIN remains the authoritative source for the country’s economic data.

Jamaica Broilers Group (JBG) President and CEO Chris Levy has issued a stark warning about the company’s upcoming third quarter, citing a dual crisis of collapsing US meat prices and the disruptive effects of Hurricane Melissa on its core Jamaican market. Despite a recent operational turnaround that slashed US production costs by a third, Levy emphasized that external shocks now pose the greatest threat to recovery. This warning contrasts sharply with JBG’s strong Q1 performance, which saw a $1.6 billion profit, attributed to the initial success of its operational overhaul. However, Levy cautioned that this momentum is unlikely to continue, predicting a “bumpier” path to full-year recovery. The company’s Q2 results, expected by mid-December 2024, will include a significant $40 billion asset revaluation aimed at rebuilding shareholder equity. Meanwhile, Q3, covering the period ending January 31, 2025, is expected to be particularly challenging, with US meat prices plummeting and Jamaican revenues projected to dip by 5-6% due to the hurricane’s impact. While JBG’s main revenue driver, Best Dressed Chicken, is expected to remain resilient, its Hi-Pro division, which supplies baby chicks and feed, is likely to face significant challenges. Despite operational improvements in the US meat business, falling prices may negate these gains. Levy confirmed that strategic reviews are underway, including potential difficult decisions for the US meat business, with a possible exit still on the table. The company’s ability to navigate these turbulent economic and environmental conditions will be critical to its full recovery.

Executives at Jamaica Broilers Group (JBG) have expressed deep concerns over the failure of multiple audit teams to detect a significant, multi-year fraud within the company’s US operations. CEO Chris Levy highlighted the oversight failure as a critical issue requiring further investigation. The fraud, which involved concealing costs in biological assets and inventory accounts while understating vendor financing, led to a staggering $46 billion in financial adjustments. Despite three layers of auditors—including those from the US banking syndicate and JBG’s own auditors—issuing clean opinions on financial statements, the irregularities were ultimately uncovered by an internal whistleblower. Ian Parsard, Senior Vice President of Finance and Corporate Planning, expressed astonishment at the systemic failure, noting the coordinated efforts by leadership to evade detection. The company has since implemented sweeping reforms, including replacing its US accounting team, changing auditors, and introducing new controls with IBM’s assistance. The new auditors bring specific poultry industry expertise, enabling them to identify irregularities previously overlooked. This case raises broader questions about the effectiveness of audits in complex, multi-jurisdictional organizations and underscores the potential for determined management to bypass even robust financial oversight systems. For JBG, the fallout has been severe, necessitating a complete financial restructuring and eroding shareholder trust.

BRIDGETOWN, Barbados – In a landmark move, the Caribbean Development Bank (CDB) announced on Wednesday the successful issuance of its first-ever sustainable bond, raising 100 million Swiss francs (approximately US $110 million). This five-year bond, carrying a fixed coupon of 0.59 per cent, marks a significant step under the bank’s newly established Sustainable Finance Framework. The issuance, which was met with robust demand, was priced at the top of its initial guidance, with the order book closing within just 90 minutes of opening. The proceeds from this bond will be directed towards funding projects in the bank’s borrowing member countries, focusing on critical areas such as renewable energy, climate adaptation, sustainable water management, and food security. The investor base was predominantly composed of treasury departments, which secured 62 per cent of the deal, followed by asset managers (17 per cent), private banks (11 per cent), and pension plans and insurance companies (5 per cent each). The CDB, which holds an Aa1/AA+/AA+ rating, emphasized that this transaction not only strengthens its yield curve but also underscores its dedication to embedding sustainability into its core operations. Established in 1970, the CDB serves 19 borrowing members across the Caribbean and nine non-borrowing members, including Brazil, Canada, China, and the United Kingdom. As of December 2024, the bank’s total assets were reported at US$2.02 billion.

KINGSTON, Jamaica—Motorists across Jamaica are bracing for a notable surge in fuel prices, effective Thursday, November 20, as announced by Petrojam, the nation’s sole oil refinery. The latest ex-refinery costs indicate a uniform increase across various fuel types, signaling a financial burden for consumers and businesses alike.