(Jamaica Gleaner) Goddard Enterprises Limited has written off a BDS$9.7 million (J$420m) investment in Jamaica which it linked to deposits in suspended cambio and trader Intertrade Finance.
Goddard conducted an internal audit which resulted in management changes at GCG Jamaica – formerly Versair Inflite – its Jamaica-based subsidiary, as disclosed in its earnings report for the period ending September 2011.
The Barbados-based conglomerate said that GCG invested excess funds in short-term deposit instruments with the then licensed financial institution, Inter-trade Finance Corporation, during April to October 2010.
“This operation incurred a write-off of a short-term investment in Jamaica in the amount of B$9.7 million,” said Goddard in its directors report signed by Chairman Joseph Goddard and Managing Director Martin Pritchard.
GCG did not return calls for comment.
Pritchard told Wednesday Business on Tuesday that the group would make no further disclosures.
“I can’t comment on the matter at this time until the annual general meeting,” he said. “There is no one else at this point who can comment.”
The conglomerate is currently suing to recover the funds but has already written off the amount in its 2011 financials.
Trading was suspended at Intertrade last May by the Financial Services Commission, which has accused the company of misrepresenting to clients the nature of the securities in which their funds were invested.
Goddard advised its shareholders that a “regulatory investigation is under way, which could result in the loss of funds to all investors”.
“This matter is now before the law courts of Jamaica as the authorities seek to prosecute those responsible,” the conglomerate said.
Calls to Intertrade went unanswered up to press time. The company is already being sued by COK Sodality to recover an undisclosed sum.
“As a consequence of which, changes were made to the management of the company. In addition, the group’s investment policy was revisited and measures were implemented to ensure adherence to the policy and prevention of recurrence of such an event,” said the financials.
The write-off contributed to Goddard’s net loss of BDS$5.3 million at September 2011, compared with a profit of BDS$39.4 million the year earlier.
The write-off occurred at a time when other Jamaican subsidiaries performed well.
“Jamaica Dispatch Services Limited produced a satisfactory result in the first five months of operation. Management was working to improve the operational capacity of the company to position it for future growth,” stated Goddard.
