Compiled by Due Diligence and BU
BU readers will recall that the Confidential Offering Memorandum for the Cahill “Investment Opportunity” was prepared by Jacobs Securities Inc. who were flogging the project to potential investors.
It has been a while since BU posted anything about the Cahill Waste –to – Energy plant, however, today’s Globe and Mail article titled Turmoil marred Jacob Securities’ final months makes for interesting reading. Another article titled UPDATED: IIROC suspends Jacob Securities Inc. informs that the:-
IIROC has released its reasons for the decision (dated January 14, 2016; posted on IIROC’s website January 26, 2016). They include:
- serious lack of accounting and reporting controls and risk management resulting in misstatements of risk-adjusted capital;
- failure to contain confidential information;
- failure to establish an effective supervisory structure with respect to client accounts and employee activities;
- failure to establish adequate written policies and procedures;
- an undisclosed conflict of interest; and
- failure to meet anti-laundering requirements.
In all, IIROC’s report detailing its examination of Jacob Securities Inc. “listed 40 deficiencies, seven of which were classified as Repeat Significant Items and 21 of which were classified as Significant Items.
It looks like the Cahill/Jacobs Securities Inc. relationship is a case of “Birds of a feather flock together”. Surely the failure of Jacobs will be the final nail in the coffin of the Cahill Waste-to-Energy project, and two will fail together.
And to think that a bit of due diligence by government into MECC and Cahill back in 2012/2013 could have prevented this sorry story from becoming a black eye on Barbados’ reputation as a place to invest.
We do not expect the traditional media to vigorously report on this issue.