Kroll team costs US$1.2M
THE Uk-based investigating firm that was tapped to help investigate fraud at Stocks and Securities Limited (SSL) has cost the Government US$1.2 million in fees for the work.
The figure was outlined by Finance Minister Dr Nigel Clarke in his opening speech of the 2024/25 Budget Debate.
“In regards to the fees paid to Kroll, the UK provided US$50,000 as an initial retainer for the engagement. The remaining portion, inclusive of reimbursable expenses, amounted to US$1.2 million, and this has been paid from the Civil Recovery Fund held by the Financial Investigations Division (FID),” Clarke told the House of Representatives Tuesday.
He added that the Kroll team, working with the support of government agencies, including the FID and FSC, utilised technology, data analytics and forensic expertise to produce a comprehensive and independent report of its findings in November 2023. The Kroll report has confirmed that the suspected fraudulent activity and mismanagement at SSL and its related parties were much broader than initially understood.
“The investigative authorities now have a much clearer picture of what took place, and those involved, and they are committed to bringing those who are involved to justice. The FID will use all the powers at our disposal to attempt to recover as much of the dissipated clients’ monies.”
He said in addition to the payment to Kroll, the FID transferred $100 million from the Civil Recovery Fund to the Consolidated Fund as budgetary support, including support for national security.
The Civil Recovery Fund maintained by the FID is funded from the proceeds of crime forfeited via the civil recovery provisions under the Proceeds of Crime Act.
The funds in the account are designated for use by the FID in the furtherance of its mandate to investigate financial crimes and money laundering.
He said the magnitude of the case and length of time that the alleged fraudulent scheme occurred at the SSL warrant a long, thorough investigation and that the investigation is progressing as planned. A file was submitted to the Office of the Director of Public Prosecutions for the consideration of criminal charges against individuals linked to the SSL network of companies and/or the companies pursuant to the Proceeds of Crime Act, Larceny Act and financial sector legislations.
“There has been ongoing dialogue between the team of investigators and the prosecutors, led by a deputy director of public prosecutions. Madam Speaker, I am informed that a ruling from the Office of the Director of Public Prosecutions is imminent,” Dr Clarke said.