Legal client funds and tourism dollar leakage debated on CVM panel

CVM’s Lead Story Prime on June 10 centred first on how attorneys should handle money paid on behalf of clients, after the programme reported that the Government had transferred $79 million plus interest to lawyers in a matter involving attorney-at-law John Clark.

Host Tyrone Reid said the client told CVM reporter Natasha Williams he had not received any money and did not know whether his lawyers had been paid. CVM said its checks showed the Government made the payment on May 15. In a recorded phone conversation, Clark told Williams he could not immediately confirm or deny the information and said he would have to verify the position with the bank. He also referred to discussions around funds expected from the Attorney General and the Director of Public Prosecutions in relation to legal costs connected to a Privy Council matter.

King’s Counsel Peter Champagnie, chairman of the Disciplinary Committee of the General Legal Council, declined to comment on the specific case. Speaking generally, he said lawyers who receive client funds must account for them and hand them over within a reasonable time. He stressed that communication with clients is a professional obligation, and that failure to update a client in a timely way can itself amount to a breach.

Attorney-at-law Javed Grant said lawyers are expected to move with due expedition, even though there is no fixed number of days set out for every case. In his own practice, he said his benchmark is usually three to five business days, after securing written instructions from the client on where the funds should be sent.

Champagnie also said attorneys are normally notified when funds are transferred, including by email in modern practice. He added that the public can check the General Legal Council’s website to confirm whether attorneys hold practising certificates and to review published disciplinary findings.

The programme later turned to tourism earnings. Tourism Director Donovan White said available assessments indicate Jamaica keeps about 40 cents of every tourism dollar, while regional retention ranges from about 10 cents to 50 cents. He said Jamaica should aim for 60 cents, but argued that weak local supply capacity forces the industry to import many goods and services needed for roughly 4.3 million annual visitors, including cruise passengers.

Jamaica Hotel and Tourist Association president Chris Jarrett said leakage is tied to structural issues such as imported fuel, food and equipment. Devon Mitchell, president of the Alliance Craft Traders and Producers Association, argued that Government must invest more in grassroots tourism players, especially craft traders.