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  • Cash rich, credit poor

    Cash rich, credit poor

    When the Bank of Jamaica (BOJ) began rolling out monetary easing to counter slowing growth and falling inflation, policymakers expected lower policy rates to trickle down to households and businesses in the form of cheaper borrowing costs. Instead, a growing disconnect between central bank policy and real market conditions has exposed deep structural flaws in the country’s credit transmission mechanism, leaving policy stimulus trapped within the financial system.

    Between May 2025 and February 2026, the BOJ cut its benchmark policy rate twice: first from 6% to 5.75% as inflation cooled, then again to 5.5%, before holding rates steady in March 2026. The pause came as global volatility rose, driven by spiking international commodity prices and escalating geopolitical tensions that created new uncertainty for Jamaica’s economic outlook.

    In line with expectations, commercial banks passed rate cuts through to depositors: average deposit rates dropped from 2.7% to 2.1% over the easing cycle. But for borrowers, the story was vastly different. Far from falling alongside policy rates, average commercial lending rates actually ticked up, rising from 11.8% to 11.9% and staying largely stagnant even as funding costs for banks declined.

    This divergence has widened the long-recognized monetary policy transmission gap in Jamaica, with the benefits of lower interest rates never reaching the real economy. Instead of passing cheaper funding on to consumers and firms, financial institutions have absorbed the extra margin from lower deposit costs, leaving borrowing conditions unchanged at best.

    BOJ officials have repeatedly highlighted the structural barriers that block pass-through. In public statements and policy reports, the central bank has pointed to rigidities in domestic credit pricing, most notably the large share of fixed-rate loans on bank balance sheets that can only be repriced very slowly after policy shifts. These rigidities are now directly shaping credit outcomes across the economy.

    Data from the BOJ’s 2025 Financial Stability Report confirms that even after repeated rate cuts, lending activity remains well below historical trends. The credit-to-GDP gap stayed negative through the end of 2025, a signal that credit expansion is not keeping pace with the long-term trajectory of the economy. While loan growth has stayed in positive territory, the central bank described overall pressures in the financial cycle as “muted,” confirming that lower policy rates have not spurred a broad, economy-wide expansion in borrowing.

    This pattern has persisted into 2026, according to the latest available data. Private sector credit growth slowed to 6.9% in January 2026, down from 8% the previous month, with both household and business lending seeing a uniform moderation.

    The most striking part of this stagnation is that it comes as Jamaican commercial banks are operating from a position of unusual financial strength. In 2025, total assets of deposit-taking institutions grew 9.1% to hit 3.06 trillion Jamaican dollars, fueled by a 12.7% jump in total deposits. Liquidity levels far outpace regulatory requirements: the sector’s liquidity coverage ratio stands at 194.1%, nearly double the minimum regulatory threshold. Capital adequacy also improved, rising to 14.8% across the sector, well above regulatory benchmarks.

    Despite strong balance sheets and abundant low-cost funding, banks have remained deeply cautious about expanding lending. Instead of extending new credit to households and firms, institutions have opted to allocate extra capital to liquid assets and low-risk investments, locking policy stimulus within the financial sector rather than putting it to work in the real economy.

    Even as banks hoard liquidity, early signs of stress are starting to emerge in some segments of bank loan portfolios. Consumer non-performing loan ratios ticked up over 2025, even as mortgage delinquencies fell, pointing to uneven financial pressure across different household income groups. Corporate lending trends are similarly mixed, with credit growth varying widely across industries and no evidence of a broad-based increase in business investment borrowing.

    Beyond slowing credit growth, the BOJ has also flagged emerging risks in asset markets. Residential real estate prices have continued to outpace rental growth significantly, a trend that raises concerns about potential overvaluation. If prices correct back to sustainable levels, the BOJ warns that the adjustment could send shocks through the financial system via credit and collateral channels, as falling property values erode the value of security backing existing loans.

    Overall, the BOJ assesses systemic vulnerabilities in the banking sector as moderate, with risks concentrated in exposure to credit and interest rate volatility. The broader financial system remains resilient overall, but the persistent transmission gap has created a challenging policy dynamic for the central bank.

    The combination of strong bank balance sheets, abundant liquidity, and stagnant lending rates confirms that monetary easing is not reaching its intended targets. This dynamic erodes the effectiveness of BOJ policy at a moment when policymakers are already walking a tightrope, balancing lingering inflation risks against slowing domestic growth and rising uncertainty from global markets.

    To address these structural constraints, the BOJ has begun rolling out targeted reforms to improve credit market functioning. These include a new electronic know-your-customer framework to reduce barriers to opening new accounts, planned account portability rules to make it easier for customers to switch providers, and measures to increase competition among financial institutions. The reforms are designed to reduce frictions in the market and speed up the pass-through of policy changes to both deposit and lending rates.

    Even with these reforms in motion, the disconnect between cheaper funding and accessible credit remains in place. For now, policy has brought lower money costs — but easier access to credit for Jamaican households and businesses remains out of reach. The experience makes clear that rate adjustments alone may not be enough to stimulate borrowing and growth without deeper, systemic changes to how credit is priced and allocated across the economy.

  • Cash is still king

    Cash is still king

    Against a backdrop of global accelerating digitization of financial transactions, Jamaica’s payment ecosystem has defied widespread expectations of a rapid shift away from physical currency. Newly released data from the Bank of Jamaica’s 2025 Financial Stability Report reveals that cash still maintains an unshakable hold over the country’s everyday economic activity, even as digital payment networks continue their steady expansion across the island.

    The figures paint a clear picture of lopsided growth between cash and electronic transactions over the 12-month period ending December 2025. The total value of withdrawals from automated banking machines (ABMs) across Jamaica jumped 44% year-over-year, surging from $76.7 billion in 2024 to $110.2 billion at the end of 2025. By comparison, growth in digital point-of-sale (POS) card transactions was far more muted: these payments rose just 13%, climbing from $89.8 billion to $101.2 billion over the same timeframe.

    This data confirms that while card-based payments are still expanding, cash continues to account for a larger share of daily transactions across every sector of Jamaica’s economy. The shifting ratio of POS to ABM transaction value further underscores this trend: the ratio dropped from 1.68 in December 2024 to 1.46 in December 2025, a clear signal that cash usage is growing at a faster pace than electronic alternatives. Even as more businesses across the country now accommodate card payments, a larger volume of daily transaction value still moves through cash withdrawal infrastructure.

    Notably, the expansion of digital payment options has not slowed the surge in cash demand. The total number of POS terminals deployed across Jamaica grew by 7% year-over-year, reaching 34,151 by the end of 2025 as more merchants opted to accept card payments. In stark contrast, the total number of ABMs across the country remained almost entirely static, rising by just two units to 784 from 2024’s total of 782. Despite no meaningful increase in the number of cash access points, total withdrawal values skyrocketed, a clear indicator of sustained, robust demand for physical currency from both Jamaican households and businesses.

    The Bank of Jamaica confirmed that both cash and electronic payment systems operated without major disruptions throughout 2025, effectively supporting the full range of daily economic activity across the country. In its official commentary, the central bank noted that “these increases suggest sustained consumer spending activity and continued confidence in electronic and cash-access payment infrastructure.”

    At present, cash and digital payment methods are growing in tandem rather than one displacing the other, but this delicate balance was tested in a high-stakes scenario last year. When Hurricane Melissa knocked out widespread electricity and telecommunications service across parts of the island, access to both digital payments and ABM cash withdrawals was severely disrupted. The outage exposed how heavily Jamaica’s entire payment infrastructure relies on consistent, reliable basic services to function.

    In response to that event, the Bank of Jamaica emphasized that the post-storm disruption to ABM services “underscores the importance of operational resilience and contingency planning within the financial system infrastructure.”

    Beyond infrastructure planning, the pace of future shift toward digital payments will depend heavily on expanding access to inclusive financial services for all Jamaicans. To remove barriers to digital adoption, the Bank of Jamaica has rolled out a series of policy reforms: it has launched an electronic know-your-customer verification system to streamline account opening, introduced rules that allow consumers to switch bank accounts more easily between providers, and implemented measures to boost competition among commercial banks. The overarching goal of these reforms is to lower barriers for Jamaicans to open new accounts, change financial providers, and adopt digital payment tools for daily use.

    The central bank has also actively promoted its central bank digital currency (CBDC) to expand transactional access and improve the efficiency of digital payments across the country. Even with these concerted policy efforts to accelerate digital adoption, the latest 2025 data makes clear that cash remains the backbone of everyday economic activity in Jamaica for the foreseeable future.

  • Little support for petition to pay school ‘shadows’ more

    Little support for petition to pay school ‘shadows’ more

    A public campaign is pushing Jamaica’s national government to correct longstanding unfair pay practices for school shadows — trained special education support workers — in the country’s public education system, where many of these critical staff members currently earn less than the official national minimum wage.

    Launched on the official Jamaica House online petition platform on April 1, 2025, the appeal formally requests government intervention to uphold equitable compensation for these workers, who deliver specialized one-on-one support to students with disabilities learning in mainstream public school classrooms.

    Also widely referred to as shadow teachers or classroom aides, school shadows play an indispensable role in advancing inclusive education across Jamaica. Their core responsibilities go far beyond basic classroom assistance: they adapt learning activities to match each student’s unique needs, help young people navigate emotional and behavioral challenges, facilitate positive social connections with peers, and intentionally foster long-term independence rather than ongoing reliance on support.

    In their petition, organizers emphasize that the vital work school shadows do to enable vulnerable disabled students to access learning, stay safe, and contribute fully to school community life has been largely unrecognized, particularly when it comes to the personal investments these workers make in their own professional development. Many shadows pay for additional training and advanced qualifications out of their own pockets, yet even after meeting these updated professional requirements, the majority of public sector school shadows still earn wages that fall below Jamaica’s national minimum wage.

    Petition organizers call this systemic underpayment unjust, environmentally and professionally unsustainable, and misaligned with both Jamaica’s existing national labor regulations and the government’s stated commitment to educational equity. Currently, Jamaica’s national minimum wage sits at $16,000 per 40-hour workweek, and the government has already approved a scheduled increase to $17,000 per week that will take effect on July 1, 2026. Even with this planned adjustment, the petition notes that the current pay structure for school shadows remains unlawful and unfair, requiring urgent policy correction.

    The issue of school shadow compensation is not a new one for Jamaica’s education leadership. In 2024, then Education Minister Fayval Williams acknowledged that the public education system employed roughly 500 school shadows, and identified improved pay for these workers as an ongoing policy priority. All public sector school shadows are deployed through the Ministry of Education’s Special Education Unit, which provides specialized support for learners aged 3 to 21 with a wide range of disabilities, including hearing and visual impairments, learning disabilities, intellectual disabilities, emotional and behavioral disorders, and autism, alongside tailored support for gifted and talented students.

    Data from past discussions within Jamaica’s education sector highlights a sharp discrepancy between public and private sector pay for these roles. In a 2022 interview with the Jamaica Observer, then President of the Jamaica Independent Schools’ Association (JISA) Dr. Andre Dyer reported that private school parents who cover shadow teacher pay out of pocket often spend between $15,000 and $90,000 per month, depending on the worker’s qualifications, with lower costs only available when schools offer partial subsidies.

    Demand for qualified school shadows has risen steadily across both public and private Jamaican schools since the COVID-19 pandemic, when two years of suspended in-person learning exacerbated developmental and learning gaps that require targeted one-on-one support for many disabled students.

    Under Jamaica’s official petition framework, any registered citizen can launch or sign a public appeal on the Jamaica House portal. For a petition to qualify for formal review by the Office of the Prime Minister, it must gather 15,000 valid signatures within a 40-day window. If the appeal meets the platform’s participation standards, the Prime Minister’s office is required to issue a formal public response. The current petition on school shadow compensation is set to close on July 1, 2025, and as of reporting, it has not yet gathered any signatures. All petitions undergo a pre-publication review to confirm compliance with platform rules, and only eligible appeals are posted for public signing.

  • Stinking sore at UHWI

    Stinking sore at UHWI

    On Tuesday, Jamaica’s Parliamentary Public Accounts Committee (PAC) deepened its probe into longstanding mismanagement allegations at the University Hospital of the West Indies (UHWI), uncovering fresh troubling evidence of systemic improper governance that has raised serious alarms among lawmakers. The review was launched following the release of a damning special audit report from the auditor general into the public hospital’s daily operations and financial management. What PAC members heard during Tuesday’s hearing left many top committee officials stunned: senior UHWI executives confirmed that the major public health institution carries a staggering $40 billion in unpaid tax obligations to the state, and has not developed any formal structured repayment plan to resolve the massive liability. Compounding this revelation, the hospital continues to operate under a temporary tax compliance certificate, a temporary status that is meant only for entities working to resolve outstanding compliance issues, rather than holding billions in unpaid taxes. The hearing also exposed another contradiction in the hospital leadership’s previous accounts: UHWI executives had previously claimed that severe flooding at the facility destroyed key physical files linked to multiple millions of dollars in awarded contracts, but they walked back that explanation during questioning before the PAC. Lawmakers also pressed executives on reports that an outside private entity was allowed to use UHWI’s official tax-exempt import status to bring goods into the country, resulting in more than $10 million in unpaid customs duties that the public is now forced to absorb. UHWI representatives gave inconsistent, halting responses when asked to explain how the private company gained access to the hospital’s tax-exempt privileges. As one of the Caribbean’s leading public teaching and referral hospitals, the ongoing governance and financial irregularities at UHWI have sparked growing public concern about oversight of state-funded health institutions, and the PAC is expected to continue its review of the audit findings in upcoming hearings, with further questioning of hospital leadership planned.

  • US$15 million enough for FAST, says Holness

    US$15 million enough for FAST, says Holness

    Jamaican Prime Minister Dr. Andrew Holness has introduced a critical policy adjustment to the government’s flagship post-disaster recovery and economic expansion initiative, cutting the minimum investment requirement for the Facilitated Acceleration of Strategic Transformation (FAST) by 90% to unlock broader private sector participation.

    FAST operates as a complementary framework to the proposed National Reconstruction and Resilience Authority (NaRRA), the central government body tasked with leading rebuilding efforts in the wake of Hurricane Melissa, alongside delivering transformative long-term infrastructure projects including a new Kingston Public Hospital, the expansion of Vernamfield Airport, and a new government administrative campus at Heroes’ Circle. When the initiative was first unveiled during Holness’ March budget address, the prime minister set a minimum investment cap of US$150 million for projects seeking to access the FAST accelerated approval pathway. That threshold has now been lowered to just US$15 million, a change announced Tuesday during the opening of parliamentary debate on the NaRRA establishment bill.

    Holness told the House of Representatives that the adjustment follows a thorough review of Jamaica’s current investment climate and the volume of private capital the government aims to attract for its recovery and growth agenda. “After careful reflection on the investment landscape and the scale of private capital the Government would need to crowd in, we have decided to lower the FASTJamaica investment threshold from US$150 million to US$15 million. This is a deliberate decision to widen the door for resurgence. At US$15 million a broader universe of strategic investors — local, regional, Diaspora, international — can qualify for the FAST pathway,” the prime minister stated.

    He outlined the transformative potential of the adjusted threshold, noting that even 100 qualifying projects at the new minimum would generate US$1.5 billion in private sector investment, delivered at a much faster pace than traditional government-led projects. This influx of capital would translate to new job opportunities, expanded industrial and institutional capacity, and broad-based economic growth across every region of Jamaica, Holness added.

    Under the FAST framework, designated private-sector led strategic investment projects gain access to a dedicated, streamlined approval process designed to cut through bureaucratic red tape that has long delayed major developments in Jamaica. While NaRRA will not directly deliver these private projects, it will hold a core coordination role to speed up progress across government. “NaRRA will provide the power of expedition — coordinating across agencies, accelerating regulatory approvals, and compressing the enabling environment that a strategic investor needs to commit capital and commence execution,” Holness explained.

    The prime minister pointed to a widespread backlog of stalled projects across Jamaican government agencies, municipalities, and ministries, where many viable proposals have sat waiting for final approvals and clear decisions for months or even years. For projects that meet the new US$15 million threshold, the FAST pathway will change that: investors will receive a clear yes or no decision, secure all required permits and approvals, and be integrated into the coordinated FAST ecosystem administered by NaRRA.

    Holness emphasized that the new framework directly addresses a long-standing problem that has cost Jamaica dearly in lost economic opportunity. For decades, he argued, countless promising, job-creating private sector investments have opted to locate in other countries that offer more agile, faster approval processes, where decisions on major projects are delivered in weeks or months rather than years. “Too many promising, transformational, private sector investments that would create thousands of jobs, generate significant tax revenues, and reshape our economic geography have gone elsewhere. They have gone to countries that are simply more nimble, countries that can say ‘yes’ to strategic investors in weeks or months, not years,” he said.

    In a move to address concerns that speed would come at the cost of transparency and accountability, Holness stressed that the new system will maintain rigorous oversight standards. On the contrary, he claimed, NaRRA will operate with a level of management discipline, transparent reporting, and public accountability that has never been applied to large-scale government infrastructure delivery in Jamaica to date. To enforce this accountability, the recently established Jamaica Reconstruction and Resilience Oversight Committee (JAMRROC) — modeled after the widely respected Economic Programme Oversight Committee — will oversee NaRRA’s operations and ensure it adheres to strict governance standards.

  • Loyalty or liability?

    Loyalty or liability?

    Nearly two full days after a Sunday night shooting at Jamaica’s popular Big Wall entertainment venue left three people with gunshot wounds, the aftermath of the violent incident continues to send shockwaves through the country’s dancehall community, igniting widespread debate over the longstanding but deeply problematic culture of large, unregulated entourages that accompany many top dancehall artistes. Initial reports confirm that the confrontation involved well-known music producer Jahvy Ambassador, members of dancehall artist 450’s personal camp, and prominent podcaster Jaii Frais, placing the issue of entourage-related violence front and center in national public discourse.

    Beyond the immediate details of the shooting, Jamaican industry insiders and cultural analysts are now tracing the root of the violence to long-unchallenged norms within the dancehall space, calling for systemic shifts in how artistes structure and manage their support teams. Speaking to local outlet Jamaica Observer, popular Jamaican TikTok creator and entertainment commentator Ganja Clauze offered historical context for the role of entourages, while arguing that the practice has strayed far from its original purpose in recent years.

    “From a historical perspective, I understand completely why artistes have felt the need to surround themselves with a group of supporters. Every person was supposed to fill a specific, useful role,” Ganja Clauze explained. “But what we’re seeing now is that these groups have ballooned to sizes that are impossible to manage. You’ll see entourages with as many as 30 men, and half of them aren’t even personally known by the artiste. There’s no way that all of those people add any real value to the entertainer’s career or brand.”

    For Ganja Clauze, the problem extends far beyond just inflated numbers. He pinned much of the issue on a widespread lack of strong intergenerational mentorship that has left younger dancehall artistes without clear guidance on how to maintain control over their crews and keep potential conflict in check. “It’s devastating to see this outdated practice still leading to senseless violence like this,” he said. “Right now, there’s very little active mentorship from dancehall legends and older industry figures to the upcoming generation. We desperately need open, consistent communication between yesterday’s stars and today’s new artistes.”

    That call for greater intergenerational connection was echoed by leading Jamaican cultural analyst Professor Donna Hope, who emphasized that the growing disconnect between older and younger dancehall creatives has created a dangerous gap in institutional knowledge and guidance. “Young men in the modern dancehall space often don’t respond well to input from older industry elders,” Professor Hope noted. “That’s very different from reggae, where it’s still standard for young artists to listen to and learn from veterans. I don’t see that dynamic in dancehall anymore, especially with the latest wave of talent.”

    She added that experienced elders have a unique and critical role to play: “Older men who have already been through every struggle the industry can throw at you, and who have mellowed with time, are the perfect people to lay out clear dos and don’ts for the next generation. Even though everyone in the industry knows the risks of unregulated entourages, those risks are almost never taken seriously until something terrible like this shooting happens.” Professor Hope went on to argue that unchecked egos, both for artistes and for members of their inner circles, directly contributed to the avoidable violence at Big Wall: “None of what happened on Sunday needed to happen.”

    Ganja Clauze pushed for entourage reform that centers on clear role definition, arguing that adding loosely connected hangers-on to an artiste’s crew almost always creates more harm than benefit. “There are far more productive ways to empower young people in your community than bringing them along to a high-profile party as part of your entourage,” he said. “If these individuals don’t contribute anything to your work or your brand, artistes need to stop feeling obligated to bring them along just for the sake of appearances.”

    Pointing to the high-profile case of iconic dancehall artist Vybz Kartel, who is currently serving a 13-year prison sentence, Ganja Clauze highlighted the long-term damage that can come from embracing an unregulated “bad man” culture within an artiste’s circle. “Kartel himself will tell you now that leaning into the bad man lifestyle and surrounding yourself with that culture is terrible for long-term success,” he said. “It cost him 13 years of his freedom, hundreds of thousands of dollars, and most painfully, the chance to watch his children grow up. That’s why we need clearer boundaries and a more professional approach to entourages in dancehall today.”

    Professor Hope offered a more nuanced take on the place of entourages in dancehall, noting that the practice is deeply woven into the fabric of the industry and serves both practical and symbolic purposes. “You can’t just wave a magic wand and eliminate entourages entirely—that’s not how the ecosystem works,” she explained. “They actually serve real functions for hard-core dancehall artistes. They’re part of what I call the artiste’s ‘ego-system’: they provide security, they display public loyalty, and they act as a visible marker of an artist’s status and influence. Every person in the crew usually sees themselves as having a clear role.”

    That sense of duty, however, can often lead to extreme reactions that escalate minor disputes into deadly violence. “Members of these crews almost always feel it’s their responsibility to protect their artiste’s name and reputation by any means necessary,” Professor Hope said. She went on to warn crew members that in the modern digital age, violent public incidents leave permanent marks that no public relations work can erase, noting that 450’s public reputation has already suffered far more damage than that of his manager Jahvy Ambassador in the wake of the shooting. “I don’t think anyone in that entourage stopped to think through what the consequences would be of having a violent public confrontation with Jaii Frais,” she said.

    The shooting has now opened the door for a long-overdue industry-wide conversation about reform, with leaders calling for tangible changes to reduce the risk of future violence and protect the reputation of Jamaican dancehall on the global stage.

  • Big UHWI bill, no repayment plan

    Big UHWI bill, no repayment plan

    A major financial and compliance crisis has emerged at Jamaica’s leading public healthcare institution, the University Hospital of the West Indies (UHWI), with lawmakers on Parliament’s Public Accounts Committee (PAC) learning Tuesday that the facility carries more than JMD $40 billion in unpaid tax obligations — and has no formal structured plan to repay the massive debt, all while operating on an expiring temporary Tax Compliance Certificate (TCC).

    The stunning disclosure was made during the PAC’s ongoing review of a damning auditor general’s report into questionable procurement practices at the hospital, opening a new front of scrutiny over the institution’s long-term financial management and failure to meet core statutory requirements.

    Appearing before the committee to answer questions from PAC Chair Julian Robinson, UHWI Acting Chief Executive Officer Eric Hosin confirmed the staggering scale of the outstanding arrears. Hosin clarified that the full $40 billion sum includes years of accumulated compound interest and late payment penalties, with the underlying pre-penalty principal amount of the debt sitting at approximately $18 billion.

    The revelation immediately sparked urgent concern among committee members, who zeroed in on whether statutory payroll deductions taken directly from UHWI employees’ salaries — including contributions to the National Housing Trust (NHT) and National Insurance Scheme (NIS) — had actually been remitted to the relevant government agencies as required by law. Robinson highlighted the direct, tangible harm this could inflict on ordinary hospital workers if the funds had been withheld.

    “It would be important for us to know, particularly on the employee side, because this would impact people who might go to NHT seeking a benefit, people who are retired and would go to the NIS office and can’t get a benefit,” Robinson told the hearing.

    Hosin moved quickly to reassure the committee that no current UHWI employees have faced negative consequences from the debt crisis, confirming that the hospital is now fully up to date on all monthly NHT and NIS contribution remittances. He explained that the facility’s ongoing cash flow crisis only affects older outstanding tax obligations, noting “we don’t have enough money to pay the other tax obligations.” Those unpaid older obligations include outstanding income tax and education tax payments, Hosin added.

    Lawmakers continued to press for answers on how such a massive debt could build up largely unchecked over time. Hosin acknowledged the arrears stretch back multiple years, but he was unable to provide the committee with a precise timeline for when the debt began to accumulate during Tuesday’s sitting.

    Adding to lawmakers’ alarm is the hospital’s shaky tax compliance status. Despite owing tens of billions in unpaid taxes, Hosin confirmed UHWI is currently operating on a temporary TCC that is set to expire on May 6. Most worryingly for the committee, Hosin admitted the hospital has not negotiated any formal repayment agreement with Tax Administration Jamaica (TAJ) to resolve the outstanding debt — a requirement for most entities with large tax arrears seeking to retain compliance status.

    Robinson questioned how the hospital could be granted any form of compliant status without a structured repayment plan in place, noting that standard regulatory protocols would require such an arrangement for any organization carrying major unpaid tax obligations.

    In response, Hosin explained that negotiations to resolve the debt are still in their very early stages. He outlined that UHWI’s leadership plans to first consult with the Ministry of Health and Wellness before approaching the Ministry of Finance to discuss potential pathways forward, including possible relief for the accumulated interest and penalties tied to the original debt.

    Hosin also revealed that UHWI operated for an extended period without any valid TCC at all, though he again could not provide a clear timeline for how long that status lasted. That additional revelation raised fresh questions about the hospital’s ability to legally import critical medical supplies independently, and ties back to earlier audit findings that the facility’s tax-exempt status was misused for private business transactions involving third-party entities.

    Chairman Robinson stressed that pinning down how long UHWI has operated without full tax compliance is a critical part of the PAC’s ongoing investigation, particularly as the committee probes whether the failure to meet statutory obligations is connected to the procurement irregularities already under review.

    Robinson also called for a full, itemized breakdown of the $40 billion debt, so lawmakers can clearly distinguish what portion of the liability stems from unpaid employee payroll deductions like NHT and NIS versus other unpaid tax types.

    While Hosin repeatedly reiterated that current employees have not been impacted by the backlog, noting the hospital is current on monthly contributions and has put safeguards in place to ensure no worker is denied rightful benefits, Robinson remained firm that the committee will not move forward without a full comprehensive ageing report that details when each portion of the debt was accumulated and breaks down every component of the total liability. The PAC’s investigation into both the procurement irregularities and the broader tax debt crisis is ongoing.

  • JACDEN’s $10-million payment raises questions

    JACDEN’s $10-million payment raises questions

    Calls for transparency grew louder on Tuesday during a public accounts committee (PAC) hearing, as a ruling-party Jamaican MP pressed senior leaders of the University Hospital of the West Indies (UHWI) for clear answers about a $10.8 million customs duty payment made by a private company for imports declared under the public hospital’s tax-exempt name — answers that hospital officials were unable to provide.

    The growing controversy revolves around the transaction attributed to JACDEN, a private firm where opposition Member of Parliament Dennis Gordon, representative for St Andrew East Central, holds a principal leadership role. The payment was made to Jamaica Customs for goods imported under UHWI’s name, tying the case to a broader investigation into misuse of the major public hospital’s tax-exempt import status.

    This probe is part of an ongoing PAC review of damning findings from Jamaica’s Auditor General, which uncovered repeated misuse of UHWI’s tax-exempt privileges to allow private companies to import goods duty-free. The practice has resulted in millions of dollars in lost government revenue from unpaid customs duties, prompting wide-ranging scrutiny of regulatory and institutional oversight.

    During Tuesday’s committee sitting, Government MP Heroy Clarke questioned the legal and procedural foundation for any private entity to pay customs duties on behalf of a public medical institution, especially when the hospital is formally listed as the official importer of record. He repeatedly pressed acting UHWI CEO Eric Hosin for clarity on what authority allowed a third-party private firm to cover duties for goods imported in the hospital’s name, asking “On what ground, what condition, what authority, that some goods that were brought in the name of UHWI, that a third party, a private entity, would have gotten the authority to pay duty on behalf of UHWI.”

    In response to the committee’s questions, Hosin stated that no such private payment arrangement had been approved by the hospital during his tenure as acting chief executive. However, Clarke pushed back, pointing to official documentation submitted to the committee that confirms the payment was processed by Jamaica Customs despite UHWI being named as the importer. He continued to press for clarity, asking “On what grounds did this company, JACDEN, pay over $10 million to Customs, Customs accepting that money in the name of UHWI — because the goods belong to UHWI?”

    Ultimately, Hosin conceded that he could not explain how the unusual transaction was approved or processed, telling the committee “I don’t know. You’d have to speak to Customs.”

    This unresolved exchange has amplified longstanding concerns about critical gaps in regulatory oversight, particularly around how public institutions’ tax-exempt status can be exploited by private actors for unauthorized financial gain. Clarke also flagged a documented violation of Jamaica’s Customs Act, noting that UHWI has been officially cited for making a false import declaration in breach of Section 209 of the legislation. Customs has notified the hospital that it may file an objection to the citation, but requires a deposit to process the appeal. Clarke asked UHWI officials whether the institution had drafted an objection and paid the required deposit, and Hosin confirmed no action has been taken on the citation to date.

    The case has gained heightened political attention due to Gordon’s direct ties to JACDEN, placing the opposition MP at the center of the unfolding scandal. The controversy has already expanded beyond the PAC, with Parliament’s Ethics Committee launching a review to re-examine previous disclosures Gordon made about his business interests. As the PAC’s investigation moves forward, Clarke has made clear that full public clarity will be required not just from UHWI leadership, but also from Jamaica Customs, particularly around the agency’s protocols for accepting third-party payments in import transactions involving public institutions.

  • ‘FULLY ON-BOARD’

    ‘FULLY ON-BOARD’

    After a two-year absence from the Caribbean Premier League (CPL), Jamaica is set to make a major comeback to the region’s premier Twenty20 cricket tournament this summer, backed by a new private franchise owner and a formal five-year commitment from the Jamaican government. This return marks a pivotal turning point for Caribbean cricket, following the 2023 exit of the former Jamaica Tallawahs franchise that stemmed from a public dispute over government financial support.

    The country’s new CPL entry, the Jamaica Kingsmen, is owned by U.S.-based Kingsmen Sports Enterprise, and will play all home matches at Kingston’s iconic Sabina Park – the first time the venue has hosted CPL games since 2019. The shift in ownership traces back to 2024, when former Tallawahs owner Kris Persaud, who had purchased the franchise in 2017, sold the team’s rights back to CPL organizers. Persaud went on to launch the Antigua and Barbuda Falcons, and publicly cited the Jamaican government’s refusal to provide financial backing as the core reason for his exit, arguing that the tournament delivered widespread economic and social benefits to the country that justified public investment.

    Nearly three years after that high-profile departure, Jamaican authorities have brokered a landmark tripartite agreement between the government, CPL governing body, and Kingsmen Sports Enterprise that secures Jamaica’s place in the tournament for the next five years. Jamaican Sports Minister Olivia Grange emphasized that securing the country’s return to the CPL was always a long-term government priority, pushing back against earlier criticism of the 2023 decision to allow the Tallawahs to exit.

    “When we made the decision last time that we could not afford to bring CPL back to Jamaica, Government was criticised for it but we knew that in time we would be in a position to do so,” Grange stated during a March 31, 2026 press conference at the Jamaica Pegasus, where the return was officially announced. “Now, we have worked closely with the CPL and they have found a new franchise holder for the Jamaica T20, and Government is fully on board. So, this tripartite agreement is one that we expect to bear fruit. It’s over a period of three to five years, and the new franchise holder has expressed the same vision and objectives that we have.”

    Grange also expressed confidence in the new leadership of the franchise, led by owner Fawad Sarwar, noting that the government has already built a strong working relationship with the Kingsmen executive team after the fractured partnership with Persaud. “This franchise holder comes with a good name and a commitment, and I am very impressed with Mr Sarwar and his team,” she said. “We had several meetings and I’m satisfied that they will work towards delivering what they are committed to delivering — and, of course, we will work with them to create a lasting bond and to get the desired results.”

    Beyond securing the franchise’s return, the Jamaican government has unveiled an ambitious initiative to reverse the widely discussed decline of cricket across the Caribbean, aiming to restore the sport to its historic prominence in the West Indies. Grange outlined a grassroots development strategy that starts at the early childhood education level, introducing basic batting and bowling skills to young children before expanding into intensive training programs for primary school students.

    To inspire the next generation of players, the government will tap retired legendary Jamaican cricketers to lead outreach efforts, including global cricket superstars Chris Gayle and Courtney Walsh. In a move that prioritizes cricket over partisan politics, the administration also plans to involve Wavell Hinds, the opposition spokesperson on sports, in the development push. “It’s not about a divided Jamaica — it’s about cricket and bringing it back to its former glory,” Grange said, adding that “the region is depending on Jamaica” to lead the sport’s revival.

    The announcement comes nearly four years after the Jamaica Tallawahs lifted the CPL trophy in the 2022 tournament final held in Guyana, a reminder of the country’s deep cricketing legacy that officials and the new franchise owner aim to build on in the coming years.

  • Flood theory sinks!

    Flood theory sinks!

    A months-long controversy over missing procurement documentation at Jamaica’s University Hospital of the West Indies (UHWI) took a sharp new turn this Tuesday, when top hospital officials formally dismissed the earlier claim that repeated flooding caused the disappearance of critical records. The development has intensified scrutiny of the public health institution’s governance and accountability frameworks before Parliament’s Public Accounts Committee (PAC).

    The saga first came to light during the PAC’s March 31 sitting, when Ainsworth Buckeridge, UHWI’s senior director of public procurement, suggested multiple flooding events that hit the hospital’s file storage areas could explain the gaps in documentation flagged in a recent audit by the auditor general. At that meeting, Buckeridge told lawmakers the storage zone had been inundated “at least twice or three times”, leaving open the conclusion that water damage had destroyed the missing records.

    That narrative fell apart entirely during Tuesday’s follow-up hearing, when Eric Hosin, UHWI’s acting Chief Executive Officer, confirmed to PAC chair Julian Robinson that while minor water damage had occurred during past floods, none of the incidents resulted in the destruction of any procurement files. “Mr Chair, based on our investigation, there was some damage. However, there was no destruction of any files,” Hosin told the committee.

    Robinson pressed for clarity, asking whether flooding could even partially account for the absence of the key documents. “In essence then, while there would have been damage, damage would not have prevented you from having access to the file, even if the file got wet. So the flooding could not explain the absence of the files, then,” Robinson said. Hosin confirmed this assessment, invalidating the core of the original explanation and opening the door to deeper investigations into UHWI’s administrative failures.

    Previously, the PAC had been informed that three flooding events – dated October 2020, March 2022, and October 2023 – had impacted the procurement document storage area. Tuesday’s testimony clarified that while these events caused minor disruption, they never destroyed files or blocked staff access to stored documentation.

    With the flooding explanation ruled out, attention has now shifted to the root causes of the missing records, which UHWI management itself has conceded stem from long-standing systemic problems rather than an unforeseen disaster. In a formal submission to the PAC responding to the auditor general’s findings, hospital leaders acknowledged that documentation gaps originated from “fragmented record-keeping systems across departments” and the “inconsistent application of procurement procedures” – confirming broader weaknesses in institutional governance.

    To date, UHWI officials report that 28 of the previously missing files have been recovered, but search efforts for the remaining unaccounted-for documents are still ongoing. Hosin told the committee that the hospital is currently working to reconstruct the missing records by cross-referencing data from the institution’s finance department and other internal units, with a target completion date for the reconstruction process set for the end of this month.

    Alongside efforts to resolve the missing records issue, hospital officials have also outlined corrective actions to address the flooding problem that was previously mis-cited as the cause of the disappearance. These interventions include targeted drainage improvements and roof repairs to the storage building, which Hosin said have eliminated further flood risks. “We have actually put in a drain to ensure water does not reach the building… as well as we have repaired the roof of the building. And we have not seen any further problems with any flooding or water damage on that building,” he explained.

    Even with these corrective steps in place, PAC members have stressed that serious concerns remain about how critical procurement records could go missing in a major public institution that manages large amounts of taxpayer funds. Robinson confirmed that the committee will continue its investigation into the incident, with a particular focus on evaluating UHWI’s existing systems for document storage, internal accountability, and external oversight to prevent similar gaps from occurring in the future.