VZCZCXYZ0021
PP RUEHWEB

DE RUEHKG #0601/01 2251322
ZNY CCCCC ZZH
P 131322Z AUG 09
FM AMEMBASSY KINGSTON
TO RUEHC/SECSTATE WASHDC PRIORITY 7925
INFO RUCNCOM/EC CARICOM COLLECTIVE PRIORITY

C O N F I D E N T I A L KINGSTON 000601 
 
SIPDIS 
 
STATE FOR WHA/CAR (JMACK-WILSON) (VDEPIRRO) (WSMITH) 
WHA/EPSC (MROONEY)(FCORNEILLE) (AWONG) 
WHA/IFD/OMA 
WHA/PPC (JGONZALEZ) 
INR/RES (RWARNER) 
INR/I (SMCCORMICK) 
SANTO DOMINGO FOR FCS AND FAS 
TREASURY FOR ERIN NEPHEW AND LUYEN TRAN 
 
E.O. 12958: DECL: 06/12/2039 
TAGS: ECON ETRAD EFIN ENRG PINR PREL PGOV SOCI IADB
IBRD, IMF, TRYS, KRCM, JM, XL 
SUBJECT: JAMAICA: RUMBLINGS OF KEY PERSONNEL CHANGES IN 
JLP-LED GOVERNMENT 
 
REF: A. 08 KINGSTON 402 
     ¶B. KINGSTON 294 
     ¶C. KINGSTON 427 
     ¶D. KINGSTON 245 
     ¶E. KINGSTON 223 
 
Classified By: CDA Lloyd Moss for reasons 1.4 (b and d) 
 
SUMMARY AND ANALYSIS 
-------------------- 
 
¶1. (C) The Jamaican Labour Party (JLP)-led government is 
undergoing a second major reshuffle of portfolios for the 
year.  Key Minister of Finance advisors Don Wehby and Dennis 
Chung have returned to the private sector.  Chris Zacca, 
President of the Private Sector Organization of Jamaica 
(PSOJ), is a likely Senate candidate to replace Wehby, and 
there are indications he will be appointed to the Office of 
the Prime Minister.  Keith Collister, a respected economist 
and journalist, is being touted as a possible addition to the 
Ministry of Finance and Public Service (MFPS).  Both 
Collister and Zacca currently work for Jamaican business 
mogul Gordon Butch Stewart; thus the transfers would enhance 
Stewart,s already robust leverage within the GOJ.  Financial 
Secretary Sharon Crooks, who once had the full backing of 
MFPS Minister Audley Shaw, was asked to resign last week 
after serving 16 months.  She will be replaced by Wesley 
Hughes, Director General of the Planning Institute of Jamaica 
(PIOJ).  Bank of Jamaica (BOJ) Governor Derick Latibeaudiere 
will likely survive in his position despite continued 
friction with the MFPS, even as the MFPS seeks resumes for a 
potential replacement. 
 
¶2. (C) Prime Minister (PM) Bruce Golding is 23 months into 
his administration, and the second staff shake up for the 
year indicates he is still searching for the right leadership 
mix to achieve his campaign goals of job creation, economic 
growth, and spending reform.  Golding appears disappointed 
with the performance of key Ministers who have spent far too 
much time delivering speeches on grand future plans with 
little actual implementation or measurable results.  Golding 
has also relied too heavily on a few key top performers such 
as Wehby and Chung and overburdened them with multiple major 
tasks.  Wehby and Chung worked on the privatization of 
parastatals including Air Jamaica, tax reform, and conducted 
negotiations with multilaterals such as the Inter-American 
Development Bank (IADB), the World Bank, and the 
International Monetary Fund (IMF).  Golding neglected to 
prepare in advance for their telegraphed departure, and seems 
to have failed in trying to aggressively recruit more top 
talent to tackle the range of challenges facing the GOJ.  END 
SUMMARY AND ANALYSIS 
 
Ministry of Finance Shuffles the Deck 
------------------------------------- 
 
¶3. (C) The July 31 departure of Minister without Portfolio 
Don Wehby and Financial Advisor Dennis Chung leaves behind a 
noticeable leadership void in the MFPS that will need to be 
filled quickly.  Both men were results-oriented and were 
responsible for a wide range of issues facing the Ministry. 
(NOTE:  The GOJ relied heavily on Wehby, who initiated 
negotiations for the return to the IMF.  He is being groomed 
to eventually take over Jamaica,s largest conglomerate, 
Grace-Kennedy.  END NOTE).  Despite Wehby and Chung 
telegraphing their departure for nearly a year, the MFPS is 
just getting around to short-listing their replacements. 
 
Crooks Packs Her Bags... 
--------------------- 
 
¶4. (C) Financial Secretary (FS) Sharon Crooks was asked to 
resign from her permanent secretary level position and will 
be replaced by PIOJ Director General Wesley Hughes.  (NOTE: 
The PIOJ serves as the GOJ,s policy and planning agency, 
particularly in the areas of economic and social development 
programs. END NOTE).  Crooks, who previously served as an 
Advisor to the Director General in the Tax Authority, was 
appointed to the FS position in May 2008.  Despite having 
strong support from Minister Audley Shaw, Crooks raised red 
flags with Post and the Canadian and UK High Commissions, as 
well as Ministry colleagues, when she refused repeatedly to 
be vetted by Jamaican polygraphers (Reftel A). 
 
¶5. (C) Darlene Morrison, Deputy FS for the Economic Division, 
is acting as FS until Hughes arrives.  A PIOJ source said 
that Customs Commissioner Danville Walker was Minister 
Shaw,s first choice, but PM Golding, after consulting with 
private sector leaders, refused to move Walker. (COMMENT: 
Walker is viewed as a star performer and has been making 
significant headway in reforming a corrupt and disorganized 
Customs Department, which many in Jamaica thought would be an 
impossible task.  END COMMENT.  During her short tenure, 
Crooks had moved out some MSPS senior staff, who now are 
returning to the Ministry.  This includes Ann-Marie Rhoden, 
who was Deputy FS in charge of Public Enterprises. 
 
...But Where Will She Land? 
-------------------------- 
 
¶6. (C) Crooks is protected in her public sector employment 
status, so the GOJ either has to buy out her employment 
contract or transfer her to another job with the same level 
of salary and benefits.  She was offered the Permanent 
Secretary position in the Ministry of Energy, but apparently 
does not want the job.  Such a move would create significant 
challenges for an already embattled ministry.  PM Golding 
removed former Energy Minister Clive Mullings and his 
Permanent Secretary Jean Dixon in April, (Reftel B). 
Mullings was replaced by James Robertson as Minister and 
Marcia Forbes was brought in as Permanent Secretary.  Forbes 
has been aggressively working to transform the Ministry and 
address Jamaica,s serious energy and power generation 
concerns.  (NOTE:  Jamaica has an antiquated power generation 
system and per hour kilowatt energy rates of near 32 cents, 
the highest in the region, (Reftel C) END NOTE). 
 
¶7. (C) Forbes told Emboffs that she has not been informed of 
any pending changes, but has received phone calls from 
political contacts congratulating her on her promotion to the 
Office of the Prime Minister.  Forbes is considered a solid 
performer; her possible departure would deliver another major 
blow to the Energy Ministry and leave Robertson short-handed. 
 (COMMENT: The situation would be even worse if Crooks were 
appointed Permanent Secretary, as she would seem to lack the 
personality and core competency to manage the portfolio.  END 
COMMENT). 
 
Hughes Answers the FS Call 
-------------------------- 
 
¶8. (C) As for the expected new MFPS FS, Hughes has spent his 
entire professional life in academia and in the public 
sector.  He is respected by public and should be well 
accepted by technocrats throughout the GOJ.  Although the 
announcement has not been made public, Hughes appears to have 
accepted the position, but it is not clear how soon he will 
assume the duties.  According to PIOJ sources, before Hughes 
took the job he was assured that he would have ample autonomy 
to bring in some of his own talent. PM Golding allegedly told 
Hughes that he intends to become more active in the affairs 
of the MFPS, possibly indicating that PM Golding is losing 
confidence in Shaw,s leadership. 
 
Third Round of Shake Ups in the Works? 
------------------------------------- 
 
¶9. (C) PM Golding,s suspected concerns with Shaw,s 
leadership could also set the stage for a third round of 
political reshuffling.  Since taking office, Shaw has been 
aggressive in pushing for a tax amnesty and in reaching out 
to the multilaterals such as the World Bank and the IADB. 
These measures initially won him public support; however, he 
appears to have slowed down in more recent months and does 
not always follow through on implementation after grand 
announcements. Furthermore, he backed Crooks for too long 
even after it become clear that she lacked the capacity to 
serve in the FS position.  Golding already has moved 
economist Wayne Henry from the Ministry of Agriculture to the 
Ministry of Finance to serve as an advisor to Shaw.  There 
are rumors that Golding may possibly be looking to replace 
Shaw down the line. 
 
Who is Coming to the Ministry Finance? 
 
------------------------------------- 
 
¶10. (C) In addition to serving as President of PSOJ, Chris 
Zacca is also Deputy Chairman of the Sandals Group of 
Companies owned by Gordon &Butch8 Stewart.  Zacca is set to 
take a major position in the JLP-led government, either in 
the MFPS or the Office of the Prime Minister.  (NOTE: Stewart 
is the owner of Sandals resorts, Appliance Traders Limited, a 
Honda dealership, the Observer newspaper, and one time 
majority shareholder of Air Jamaica.  He has several other 
investments, and is possibly the most powerful player in 
Jamaican society.  END NOTE).  Zacca could be joined by the 
respected economist and Observer journalist Keith Collister. 
A silent supporter of the JLP, Collister told Emboffs on 
August 12 that he is not aware of his imminent appointment to 
a GOJ position, but Delano Seiveright, an important JLP 
strategist, confirmed that both Zacca and Collister are being 
recruited for GOJ positions.  He elaborated to say that 
Collister should have been a first choice by the JLP for a 
Ministerial-level position in the MFPS when they took power 
in September 2007. 
 
The Butch Is Back 
----------------- 
 
¶11. (C) The possible Zacca/Collister two-pronged appointment 
could be Stewart,s attempt to gain even greater influence in 
the JLP-led government.  He held a similar level of influence 
in the previous PNP-led administration until he fell out of 
favor following his mismanagement of Air Jamaica after taking 
it over from the GOJ. It has been alleged that Stewart sold 
discount airline tickets on the national carrier to fill his 
hotel rooms and was less concerned with the profitability of 
the airline.  After the GOJ took control of the airline back 
from Stewart, his level of influence in the PNP party 
dropped.  In response he used his influence to campaign 
against the PNP, helping to facilitate the JLP,s historic 
victory in the 2007 national elections.  Stewart continues to 
use the pages of the Observer to criticize the opposition PNP 
as well as economic rivals such as the Spanish-owned hotels 
on the North Coast and John Issa-owned SuperClubs, both of 
which have created greater competition for Sandals, 
all-inclusive resorts. 
 
Bank of Jamaica 
--------------- 
 
¶12. (C) As the GOJ makes its return to a borrowing 
relationship with the IMF, the JLP-led government is being 
forced to rely on Derick Latibeaudiere, the Governor of the 
Bank of Jamaica (Central Bank).  To his credit, Latibeaudiere 
has sufficient knowledge and experience in this area, but he 
appears to be losing the confidence of his boss, MFPS 
Minister Shaw. (Reftel D), an issue that was jokingly 
referenced by reporters at the Governors, Quarterly Press 
Briefing on August 12.  Latibeaudiere is a skilled survivor 
who, despite being a JLP supporter, was able to be hired on 
by a PNP-led administration.  He also has survived a 
low-intensity public scandal relating to a USD 700,000 
mortgage provided by the bank without adequate collateral in 
August 2008, as well as public concerns over the years about 
his generous salary, one of the highest in the GOJ. 
 
Finance Looking for BOJ CVs 
--------------------------- 
 
¶13. (C) Although not the most competent technocrat, 
Latibeaudiere is a talented strategist who surrounds himself 
with highly skilled advisors--including Deputy Governor for 
Research and Economic Programming Myrtle Halsall, who was 
rumored to have been offered Hughes previous job at PIOJ, but 
turned it down.  In the August 12 press briefing 
Latibeaudiere was asked by a reporter about Halsall,s 
suspected departure, and he responded that she would remain 
at the BOJ.  Halsall, who was seated next to him at the time, 
did not comment.  There has been historical antagonism 
between the MFPS and the BOJ; the former blames the latter 
for tight monetary policy which leads to high interest rates, 
while the BOJ in turn blames MFPS for fiscal indiscipline. 
This war of words took a new turn when Shaw recently made 
thinly veiled attacks against the BOJ for hiking interest 
rates to as high as 24 percent per annum. (Reftel E). 
 
 
Latibeaudiere Likely to Survive 
-------------------------------- 
 
¶14. (C) Latibeaudiere,s long term future at the BOJ remains 
uncertain; a former personal assistant of Shaw,s has asked 
Post about resumes for potential candidates to possibly 
replace Latibeaudiere.  However, the cost of buying out 
Latibeaudiere's remaining employment contract, as well has 
hiring a replacement, are really beyond the capacity of GOJ 
finances at this time.  Also, the JLP is not likely to want 
to change the BOJ Governor during negotiations with the IMF, 
since this is an area in which Latibeaudiere is skilled.  His 
long term survival may depend on future leadership changes at 
MFPS. 
 
COMMENT AND ANALYSIS 
-------------------- 
 
¶15. (C) PM Golding is 23 months into his administration, and 
the second major staff shake up since April indicates he is 
still searching for the right leadership mix to achieve his 
campaign goals of job creation, attracting foreign 
investment, rooting out corruption, and addressing spiraling 
crime.  He appears disappointed with the performance of key 
Ministers who have spent far too much time delivering 
speeches on grand future plans with little actual 
implementation or measurable results.  Golding has also 
relied too heavily on a few key top performers such as Wehby 
and Chung and overburdened them with multiple major tasks. 
Golding neglected to prepare in advance for their telegraphed 
departure, and seems to have failed in trying to aggressively 
recruit more top talent to tackle the range of challenges 
facing the GOJ. 
 
¶16. (C) Furthermore, Golding, having subsumed several 
portfolios under the Office of the Prime Minister (e.g. 
Environment, Telecommunications, the Business Development 
Approval Process), appears to be micromanaging as PM instead 
of providing a macro-level JLP vision for the country.  He 
also speaks frequently of &tough decisions8 and &painful 
choices8 that need to be made in the face of the major 
economic downturn, but over the past few months there have 
been no major policy shifts to indicate implementation of 
such choices. END COMMENT AND ANALYSIS. 
MOSS