JNBS mem­bers to vote on tran­si­tion Novem­ber 14

Jamaica Gleaner - - BUSINESS - Steven Jackson Se­nior Busi­ness Re­porter tameka.gor­don@glean­erjm.com

JUCDA cites po­ten­tial sav­ings of $600m

THE JA­MAICAN Gov­ern­ment can save up­wards of $600 mil­lion on cap­i­tal ex­pen­di­ture if it fol­lows through on the ac­qui­si­tion of pre-owned ve­hi­cles for the po­lice force, ac­cord­ing to Lyn­valle Hamil­ton, pres­i­dent of the Ja­maica Used Car Deal­ers As­so­ci­a­tion.

It comes as the Min­istry of Na­tional Se­cu­rity just JA­MAICA NA­TIONAL Build­ing So­ci­ety (JNBS) has set Novem­ber 14 for a spe­cial meet­ing at which mem­bers will vote on plans to re­or­gan­ise the group amid its tran­si­tion to a com­mer­cial bank.

As­sum­ing a vote in favour of the res­o­lu­tion now be­ing cir­cu­lated, the fi­nan­cial group plans to con­vert the so­ci­ety to a com­pany to be called JN Bank Lim­ited.

The change is en­cap­su­lated in a new Scheme of Ar­range­ment for the en­tire group that mem­bers must also vote to ap­prove at the meet­ing set to take place at the Ja­maica Con­fer­ence Cen­tre in Kingston. The Supreme Court sanc­tioned the plan on Septem­ber 22, and gave the go-ahead for the gen­eral meet­ing to be con­vened.

Un­der the re­struc­tur­ing, the 142-year-old JNBS will re­main a mu­tual or­gan­i­sa­tion, con­tin­u­ing the own­er­ship by its mem­bers, which will be pre­served in a new mu­tual hold­ing com­pany. That hold­ing com­pany will own all the en­ti­ties in the over­ar­ch­ing JN Group.

“The or­gan­i­sa­tion will separate its non-fi­nan­cial and fi­nan­cial com­pa­nies, for reg­u­la­tory pur­poses, through two sub­hold­ing com­pa­nies, which will both be owned by the mu­tual hold­ing com­pany,” closed bids for the pro­cure­ment of 200 pre-owned ve­hi­cles for the Ja­maica Con­stab­u­lary Force’s fleet.

The ten­der closed last Fri­day, fol­low­ing an ex­ten­sion be­cause of the ap­proach of Hur­ri­cane Matthew. The num­ber of bids re­ceived was not as­cer­tained.

It’s the largest ten­der for pre-owned ve­hi­cles for the JCF, and a switch in pro­cure­ment pol­icy. The fleet for Earl Jar­rett, group gen­eral man­ager of Ja­maica Na­tional Build­ing So­ci­ety.

JNBS said in a press re­lease. JN Bank will be the name for the com­mer­cial bank­ing side of op­er­a­tion, JNBS told Gleaner Busi­ness on Tues­day.

The group’s busi­nesses cur­rently span mort­gage bank­ing through the build­ing so­ci­ety, money ser­vices, life and gen­eral in­sur­ance, mi­cro­fi­nance, wealth man­age­ment, and IT ser­vices.

JNBS, which is now the top build­ing so­ci­ety in a market of three, will be­come the third largest of seven com­mer­cial banks once the tran­si­tion is com­plete. At June 2016, the build­ing so­ci­ety was val­ued at $142 bil­lion by as­sets, ac­cord­ing to cen­tral bank data.

the po­lice is usu­ally re­plen­ished by new mod­els.

“The Gov­ern­ment is strapped for cash, and if they went in the di­rec­tion of buy­ing new ve­hi­cles, it would be ex­pen­sive, as one new ve­hi­cle costs the price of two or three pre-owned ve­hi­cles,” Hamil­ton told Gleaner Busi­ness on Tues­day from his Au­toChan­nel car deal­er­ship.

The Min­istry of Na­tional Se­cu­rity in­vited qual­i­fied pre­owned mo­tor ve­hi­cle deal­ers to sup­ply pre-owned mo­tor ve­hi­cles not older than five years, prefer­ably 2012 mod­els, for use by the JCF. The min­istry wants 80 sedan pa­trol cars and 120 dou­ble-cab pick­ups.

“De­pend­ing on the ve­hi­cles they choose, they could save a lot,” Hamil­ton said then re­sponded to Gleaner es­ti­mates. “It’s not easy to es­ti­mate, but $600 mil­lion, yes – or even more – de­pend­ing on the used cars they buy.”


Kent LaCroix, chair­man of the Au­to­mo­bile Deal­ers As­so­ci­a­tion, a group of new­car deal­er­ships, de­scribed the ten­der as “at­trac­tive” and that it could have re­sulted in new­car deal­ers seek­ing to ap­ply by align­ing with pre-owned­car deal­ers.

“Some­thing like this ten­der could see them forg­ing an al­liance with some­one and putting in a bid,” he said, while not stat­ing whether any al­liances oc­curred in ac­tu­al­ity. Kent LaCroix, chair­man of the Au­to­mo­bile Deal­ers As­so­ci­a­tion.

LaCroix, who is group spe­cial projects man­ager at Ste­wart Mo­tors, a new-car deal­er­ship, says that while he sees the util­ity in pre-owned ve­hi­cles, new ve­hi­cles should be the pre­ferred choice for the po­lice force.

“There are pit­falls with used ve­hi­cles, be­cause the force will need to use them 24 hours a day, and the ve­hi­cles have to be in tip-top con­di­tion,” he said.

The Ja­maican Gov­ern­ment an­nounced the switch to used cars for the con­stab­u­lary back in March dur­ing a town-hall meet­ing in Sa­vanna-la-Mar, West­more­land, where Min­is­ter of Na­tional Se­cu­rity Robert Mon­tague was re­ported by state me­dia JIS as say­ing his min­istry could buy 400 used cars for the price of 100 new cars.

The used ve­hi­cles are to last for at least three years, said Mon­tague.

THE GLEANER, WED­NES­DAY, OC­TO­BER 19, 2016 Lyn­valle Hamil­ton, pres­i­dent of the Ja­maica Used Car Deal­ers As­so­ci­a­tion.


Newspapers in English

Newspapers from Jamaica

© PressReader. All rights reserved.