Receiver says Cash Plus has very little Money

The receiver’s report has confirmed that there is little or no money in Cash Plus. According to some radio reports, less than $3 million dollars is currently available to repay investors.  The receiver claims that unless or until it recovers some money, from real estate acquired or deposits from incomplete or failed acquisitions, the situation looks very grim. The  assets, land, buildings and deposits,  amount to little over $4 billion dollars.

The reports says the receiver found: 

  • poorly maintained accounting records
  • inadequate internal controls
  • inadequte financial planning 
The report also claims that many of the  acquisitions where above reasonable market price and blamed lack of due diligence and independent valuation.
The Power 106 report claims that J $22 billion was received from lenders with the number of lenders being between 35-45,000.
The receiver also pointed out that money used to pay investors appear to come mainly from funds received from lenders. The report claims that Cash Plus did not have income generating activities that could support paying staff and the interest payments.

Source: http://www.radiojamaica.com/content/view/8247/26/ , http://www.jamaica-gleaner.com/gleaner/20080520/lead/lead1.html ,http://www.jamaica-gleaner.com/gleaner/20080521/news/news1.html , FSC confirms Cash Plus bankrupt 

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