Peter Espeut | Hoping for a good breeze-blow

I monitored Melissa on-line as she passed well to the south of Kingston on Sunday night, and rejoiced that the capital was spared the worst. And then she didn’t turn north when expected, and I hoped and prayed that she would pass Negril before changing course. But it was not to be.

By all accounts, the face of Georgian Black River is no more. I have spent time – on more than one occasion – capturing images of vintage buildings in that town; overnight those photos show ancient history. Sad!

At time of writing, the first deaths due to Melissa have been reported there. It would have been unusual for a Category 5 hurricane not to take human life. Sadly, I am sure more will be discovered. My sympathies to all!

The recovery of livelihoods and livity in St Elizabeth and elsewhere will be slow; the breadbasket parish reeled from Hurricane Beryl just last year; two hits in two years may be more than some can bear. Food prices can be expected to soar. Melissa will impact all of us – bar none!

Sadly, based on past experience, it is likely that this tragedy will become another opportunity for corruption. Let the donor beware! We in civil society must keep our eyes open!

And speaking of corruption, thanks to overseas anti-corruption legislation, on September 29 last we learned that CEMEX – a foreign company registered in Mexico – in 2024 paid a “fee” to the Jamaica Labour Party (JLP) of US$201,500 (ca. J$32.6 million), presumably for services rendered.

Pray tell: What services did the JLP render to CEMEX in 2024 worth J$32.6 million? The mind boggles! Trafigura 2.0!

The People’s National Party (PNP) has called upon the JLP to explain the payment. Of course, no explanation will be forthcoming, just as the PNP never satisfactorily explained the J$31 million they received from Dutch oil-lifting company Trafigura Beheer in September 2006. At the time the PNP said the money was a “donation”, but Trafigura said it was payment on a “commercial transaction”; (Dutch companies donating to political parties is illegal in the Netherlands).

IMPORTANT

Why is it important that these “fees” and “commercial transactions” and “donations” be thoroughly explained? Because they could be the quid in a quid pro quo arrangement, where political parties peddle influence, and private companies buy it!

There are other less tasteful ways to put it: the possibility of “bribery” or “graft” or “kickbacks”.

In what “commercial transaction” might Trafigura Beheer have been involved with the PNP worth J$31 million? It seems we will never know!

The issue has never been whether any Jamaican laws were broken. Remember that Jamaican politicians make the laws of Jamaica, and they have not made it a criminal offence for foreign companies to make large donations to either the PNP or the JLP. It was the Dutch government that was trying to catch Trafigura breaking Dutch law.

CEMEX shares are listed on the New York Stock Exchange; US anti-corruption law requires – for the information and protection of shareholders – that publicly listed companies annually report “Payments to Governments” to the US Securities and Exchange Commission (SEC).

CEMEX was seeking to comply with US law by declaring the “fee” to the SEC.

Thank God! Otherwise we would never have known!

And we only came to know about the Trafigura “commercial transaction” because of a heroic whistleblower at the bank which handled the transaction.

The PNP calling upon the JLP to explain the CEMEX “fee” is ludicrous! And laughable!

Jamaican law does not require companies listed on the Jamaica Stock Exchange to publish donations to political parties, local or foreign. Nevertheless, shareholders in companies publicly listed in Jamaica have a right to know how much and to whom the companies of which they are part-owners give donations, political or otherwise. Large donations may reduce company profits, and therefore reduce dividends.

Again, Jamaican politicians have not promoted transparency and protected shareholders by requiring that political donations be explicitly declared in their annual reports.

I notice that the Private Sector Organisation of Jamaica (PSOJ) has indicated that CEMEX’s multi-million-dollar payment to the JLP has reignited concerns around campaign financing. “We are looking at it,” said PSOJ President Metry Seaga in an initial response to queries.

WHO IS IT

But who is it that provides multimillion-dollar donations to Jamaica’s political parties, allowing them to market themselves (overtly and covertly) to the voting public? Why the private sector, of course, many of them members of the PSOJ!

The PSOJ announcing that they are going to be investigating CEMEX’s payments to the JLP is more than ludicrous! It is hilarious!

What I want to hear from the PSOJ is a call on the Parliament to pass legislation requiring all political donations to be declared in a public manner, and offering the support of their members for this patriotic move. I want the PSOJ to distance itself from “quid-pro-quo” political party financing.

Shall I hold my breath?

Presently, only donations of J$250,000 and over must be reported to the Electoral Commission of Jamaica (ECJ), and only those made within the campaign period; these declarations are made to the ECJ in secret; i.e. this information is withheld from the public.

Because CEMEX stated that the fees paid to the JLP were made in 2024, this means they were made before the start of the official campaign period for the September 3 general election; therefore neither CEMEX nor the JLP would have had to report the secret donation to the ECJ.

How will we ever detect malfeasance with such deficient campaign finance laws?

Anyway, in an October 17 updated filing to the SEC, CEMEX deleted the previously reported payment to the JLP. What does that mean?

What good strong breeze could blow that could ever get the PNP and JLP to enact effective anti-corruption legislation, especially in the area of campaign financing? What public action could possibly persuade them?

Peter Espeut is a sociologist and development scientist. Send feedback to columns@gleanerjm.com