MONTHLY ROUND-UP per week from London Gatwick, beginning October 30, with twice-

weekly services to Kingston in addition to Virgin’s current twice-

weekly services to Montego Bay.
­­­And Then There Was…SwissCash?
You never really expected people to settle for 10% per month, did Air Jamaica added
you? It appears that alternative investment superstars Olint and that under the
Cash Plus may be eclipsed by a supernova called SwissCash. The agreement
banner on its webpage reads, “25% Fixed Returns Every Month. Be w i t h
A Millionaire In 2-3 Years !” Virgin,
The buzz grows each day. People are searching for the local
representative of this company, and plans have been made to put
money in and draw it out fast. As one Olint and Cash Plus investor
said, “This is too good to be true, but it nah lef me!”
Now Swiss cash Chief Financial Officer, Michael Mansfield,
can be found online. He says on his website that, “SwissCash is
the Financial Facility that will test one’s fear of parting with their
money, the in-depth self believes in building a financial platform and passengers
the capability to manage new-found wealth. There is no doubt that traveling
SwissCash is already creating millionaires around the world, but the b e t w e e n
real challenge for SwissCash and myself personally is to lead these Jamaica and
Swiss Millionaires toward the right financial freedom mindset.” London Heathrow
Mansfield’s motto is in all capital letters: FEAR TO PART WITH would also be able
YOUR MONEY = FAIL TO PLAN = PLANNING TO FAIL. to take advantage of free stop-overs at common gateway cities at
The website states that Swiss Cash has been , “Performing Miami, JFK, Newark, Chicago O’Hare, and Los Angeles, and with
Extraordinarily since April 2005” and that it “Target(s) Global respect to London Gatwick, the same would apply to Orlando and
Investors [with’ Investment of USD10,000 to USD100,000.” Barbados.
Swiss Cash, “Built USD78 million fund within 6 months of global
launching,” and is “expected to hit USD1 Billion by 2007.” And Virgin Atlantic president Sir Richard Branson issued a press
not to worry, your, “ Principal [is] guaranteed by Swiss Mutual release on the same day stating that his airline’s codeshare agreement
Fund(1948).” with Air Jamaica was the best decision for all Jamaicans and the
The Swiss Mutual Fund is opened to investors with at least US$2.5 Jamaican economy, as it would prevent airfares being increased by a
million to invest. The website states, “Swiss Mutual Fund is an monopoly carrier and insulate the island from any possible fallout if
offshore investment company providing services for investors who the London/Kingston route was cut. Branson said that Air Jamaica
seek opportunities through offshore investing. Swiss offers mutual made its codeshare pitch for the London/Kingston route to his
funds and other vehicles that meet our clients’ individual and specific airline and British Airways at the same time.
needs.Swiss is headquartered in The Commonwealth of Dominica, “When it became clear to us that BA might be the frontrunner,
provides a variety of options in the offshore investment category.” we made our representations to the Jamaican Government about the
Mansfield adds, “I don’t know if I have discovered the meaning of need for traveler choice, market competition and a fresh codeshare
life, but I have learned a great deal about what money can and cannot arrangement between ourselves and Air Jamaica,” Branson said.
do. And it can do a lot. I have come to think that money is very Branson stated that it was not viable for Air Jamaica to continue
much like a person...Sometimes it’s fatter, sometimes it’s skinnier, and swallowing the losses mounting from a single daily service, particularly
sometimes it doesn’t feel so good and needs special nurturing. But if given that record fuel prices are adding millions of dollars to airline
you tend it like the living entity it is, then it will flourish, grow...I am costs. He added, “In addition, it is not right that the Jamaican
truly happy to lead SwissCash, the most promising sector of Swiss taxpayer should continue to fund such losses when there may be
Mutual Fund. We believe in the mission and vision that we embrace more pressing demands for precious funds.” Virgin will begin flying
to bring the best financial opportunities to those who want to be part the route in October, using a Boeing 747 and offering 190,000 seats,
of our business.” JBJ a fraction less than Air Jamaica’s current offering. JBJ

Done Deal! David Smith, the Benevolent

Air Jamaica officials have finally spoken on. Mike Conway, Air Many Jamaicans will say, “Me nah wuk fe good name,” but
Jamaica president and CEO, told reporters on May 29th that the sale apparently David Smith of Olint isn’t one of them. Establishing his
of the London/Kingston route to Virgin Atlantic will save the airline claim to fame by providing returns of 10% per month to individual
US$30million a year. investors, Smith now wants to do the same for the government.
Effective October 28, Air Jamaica will discontinue its service to Currently, due to a heavy debt burden, the country pays J$0.60 out of
London, and will enter into a code share agreement with Virgin every dollar collected in tax revenues to service debt. From his home
Atlantic, in which the Air Jamaica code will be placed on all Virgin in Turks & Caicos, Smith told the Jamaica Observer daily newspaper
Atlantic flights between Jamaica and London Gatwick. that he could get Jamaica out of debt. “If asked, I would utilise my
Under the agreement, Virgin Atlantic will operate four round trips skills on behalf of my country, and it is a responsibility I would take

 • JAMAICA BUSINESS JOURNAL • July 2007

on. However, trading foreign currencies for a members’ club is a sense of the word. For some time now, we have not been accepting
totally different proposition from trading for a country. I would insist new funds from referrals,” explained Smith. ““I can’t knock anyone,
on having a solid team of hand-picked traders around me in order to and as you well know, I have been knocked myself. Foreign currency
get the very best returns for Jamaica.” trading is relatively new to Jamaica. I have twelve years of experience
According to the Observer newspaper report on June 18th , “Smith as a trader, eight with JMMB and four going out on my own. I have
added that this in no way an unusual remedy to address Jamaica’s had my share of losses and had my share of gains, but I am tested
financial woes, pointing to Australia’s use of currencies trading to and proven.”
virtually eliminate its national debt, and General Motors turning to Smith insisted that his method of investing is relatively safe. “I
FX trading to shore up revenue from flagging car sales.” have formed a system which does not take on too much risk. With
In addition to offering his services, Smith recently donated the size of the club growing over the last couple of years, the most
equipment to several local hospitals. And in March, Smith paid for important thing is managing risk. I cannot overstate the importance
a tennis workshop for disadvantaged children featuring Venus and of having stop losses in place. All I do is trade foreign currencies. I
Serena Williams. do not dabble in the stock market or real estate or commodities. My
Of course, Smith does have a ‘bad name’ in the rest of the financial sole concern is FX trading.” JBJ
services industries. While global returns for foreign exchange trading
is around 6% per annum, the 120% paid out by Smith has given him
celebrity status in Jamaica. Given the widespread interest in Olint,
Smith has undoubtedly taken away customers from established banks New Real Estate Development
and brokerage houses. Naturally, these same institutions will say that Land developer, BCR Industries Company Limited announced
their operations have only been marginally affected. The Observer plans to create a new community on the St Catherine and Clarendon
noted that, “Over the last few quarters, there has been a discernible border that will have a mix of residential, commercial and agricultural
pattern of falling profits among the financial institutions listed on plots. The Villages of Colbeck Castle is estimated to cost US$205
the Jamaica Stock Exchange. Many attribute this to falling interest million and will house an anticipated population of between 12,000
rates and the fact that government paper is no longer the cash cow it and 16,000 inhabitants when completed.
once was. At the same time, Smith’s Olint has gone from strength to The development plan submitted to the National Environmental
strength with many of its clients reporting above average returns.” Planning Agency involves the building of 2,722 housing solutions,
And Smith insists that ‘him come fe count cow not to drink milk.’ including 672 apartments, 1,028 townhouses and 1022 single family
He told the Observer that, “I must take this opportunity to stress units spread over 65 per cent of the land with access to recreational
here that we do not solicit clients and that we are a club in every community space, schools, and commercial area.

NCB is proud to have served this great nation and its people for 170 years. We are driven to be the foremost
provider of financial services in Jamaica because we are grateful for the continued faith of Jamaicans and are
passionate about helping you achieve.

You can be sure that NCB will continue to fulfill its promise to build a better Jamaica;
one person, one company, one community at a time.

July 2007• JAMAICA BUSINESS JOURNAL • 

MONTHLY ROUND-UP once again. However, two years ago, such an event was hinted at.
Villages of Colbeck Castle, named after the 330-year-old castle In 2005, then Prime Minister of Jamaica, PJ Patterson signed
situated on the land, would be located on the border of Clarendon onto Venezuelan President Chavez’s PetroCaribe deal. Under
and St Catherine, around 6.5 kilometers north of West Indies Alumina the arrangement, Caribbean nations would be allowed to import
Company (Windalco) seaport, Port Esquivel and spread across 394 petroleum products from Venezuela under preferential terms.
acres of land. Jamaica would be allowed to pay 60% of the cost while financing
Speaking to the Jamaica Observer newspaper, Dudley Shields, the rest with long-term, low-interest loans. As a sweetner, Chavez
BCR’s project manager, said the project is currently scheduled to be also said that participating nations could pay a portion in goods and
done in four phases and will take around five years to complete after services.
approval is given, depending on the demand for the units. Not every Caribbean nation thought that PetroCaribe was a good
deal. On January 2006, the Observer newspaper reported, “The
prime minister of oil-rich Trinidad and Tobago advised neighboring
nations this week not to count on the PetroCaribe oil deal with
Venezuela to solve their energy needs.” He warned, “The Venezuelan
agreement would require that oil storage facilities be controlled by
local state-owned companies or by Venezuelan state oil firms.” The
result, Manning predicted was that Caribbean nations would then be
dependent on a single provider.
Of course it was hinted that Manning’s comments was a case of ‘if
the fox can’t get the grapes…’ In the January 2006 Observer article,
it was noted that, “Trinidad and Tobago supplies some 60,000 barrels
of oil daily to other Caribbean nations.”
And even as a major supplier to his neighbors, Manning could not
offer what Chavez could. The 2006 Observer article reported that,
“The [PetroCaribe] deal is expected to save Jamaica between US$180
The Colbeck Castle, Clarendon million and US$200 million in oil payments this year.”
Shields said to the Observer that 60 acres of agricultural land In defense of the deal, Dr Ruth Potopsingh, PCJ group managing
would be subdivided into agricultural lots, outside of the 11-acre director told the Gleaner in the March 2007 article that a critical
nature park that will be reserved, and will use new technology and component in the Sale Agreement is the commitment to jointly
techniques for “high intensity” agriculture. “The agricultural land will upgrade the refinery to ensure a modern facility, with improved
accommodate high intensity agriculture,” said Shields. “Controlled technology for production efficiencies that would guarantee a long
rain houses, agro- ponics, aquaculture are all fundamental parts of life span and a viable operation.
the development. The 60 acres will be able to produce more than Currently, Petrojam now supplies approximately 85% of the
what the entire property (394 acres) would produce normally,” added
Shields.
A heritage site, shopping area and education zone will serve as a
buffer between the farm lands and the residential lands, and will be a
“community focal point”. JBJ

Chavez Takes a Stake in

Petrojam
The Japanese own the power company and have controlling interest
in the coffee industry, so perhaps the Venezuelans were feeling left
out. On June 5th, it was announced that the oil rich South American
nation would be buying 49% of the national refinery, Petrojam.
As reported in the Gleaner, “the Petroleum Corporation of Petrojam plant, Marcus Garvey Drive, Kingston
Jamaica (PCJ) has almost completed the sale of 49 per cent of the non bauxite fuel needs of Jamaica. About 60% of this demand is
government owned Petrojam oil refinery to Venezuela’s state oil produced at the refinery, while the rest is supplied from imports,
company, Petroleos de Venezuela S.A. (PDVSA).” mainly high end products, including unleaded gasoline, LPG and low
The PCJ and PDVSA agreed to a sale price of US$130 million for sulfur diesel, from Trinidad and Tobago.
the Petrojam refinery in Kingston and the product storage terminal Potopsingh told the Gleaner that, “Projects for the upgrade
in Montego Bay. The sale includes the physical plant, storage facility will include expansion of the refining throughput capacity to
and business operations. 50,000 barrels a day, up from 36,000 barrels; modernization of the
Of course, since General Elections are near, the Opposition decried processing technology to produce higher volumes of high end, clean
the deal as a firesale. Valuations done by the Opposition showed that products and low sulfur diesel from lower cost, heavy crude oil, and
Petrojam was actually worth US$300 million. The Government to improve the conversion process to manufacture the full range of
hasted to take out advertisements in the newspaper to justify the sale clean products, eliminating low margin Heavy Fuel Oil (HFO) from
price. Others accused the Government of selling out to foreigners the product mix produced by the refinery.” JBJ

 • JAMAICA BUSINESS JOURNAL • July 2007