Holness administration accused of failing to protect MLI as a foreign investor

Durrant Pate/Contributor

The Government of Jamaica (GOJ) has found itself in the middle of trying to resolve bribery allegations being levelled against the Jamaica Stock Exchange and Cumax Wealth Management by US-based Music Licensing Inc (MLI) and its principal, Jake P Noch. 

MLI, which is a diversified holding company and public performance rights organisation and its principal say they have strong evidence to support their claims of various improprieties on the part of the two named entities such as attempted extortion for bribes, misappropriation of funds, fraudulent representations, wire fraud and mail fraud. 

In our continuing expose on this matter, Our Today has obtained a letter written by American attorney, Davy Karkason, Esq, representing the two accusers to Foreign Affairs and Foreign Trade Minister, Kamina Johnson-Smith in which he promised to provide further evidence to substantiate his clients’ claims.

In the letter, Karkason requested that the GOJ “initiate consultation and negotiations with the aim of reaching an amicable resolution to our dispute, as outlined in Article IV of the United States and Jamaica Bilateral Investment Treaty (BIT), while fostering a positive investment climate between our two nations. We are prepared to provide further evidence on our claims, including evidence of the damages incurred and suggestions for possible resolution.”

The attorney in the letter, dated February 8, two weeks after the claimants, threatened to take out a lawsuit against the JSE, Cumax and several named managers of those institutions, regarding the irregularities being alleged.

GOJ accused of failure to protect MLI

While the GOJ is seeking to play referee in the matter, it too has been cited in a negative light with MLI and its principal citing what it says is, “the lack of state responsibility and the failure to protect our investment in Jamaica.”

They acknowledged that “MLI has been an active foreign investor in Jamaica’s music and entertainment sector, contributing significantly to the local economy”.

The attorney contends that despite his clients’ commitment and adherence to Jamaica’s laws and regulations, they have encountered substantial challenges, directly attributable to the actions and omissions by various government entities.

Government negligence cited

MLI is advising that because of the irregularities perpetrated by these entities, it has resulted in, “significant monetary damages to our investments, primarily, due to the government’s negligence in providing the necessary protections against harms that a foreign investor should not reasonably anticipate.

“The difficulties we have faced include but are not limited to arbitrary change in the regulatory framework without prior notice, lack of enforcement of existing regulations against local entities infringing on our rights and direct interference in our business operations.”

Prior to MLI levelling the allegations, the company, which is a licensee of notable companies such as TikTok, iHeart Media, Triller, Napster, 7Digital, Vevo, and many others, sought to be listed on the JSE but this did not materialise.