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Viewing cable 06KINGSTON1423, JAMAICAN FINANCE MINISTER NOT READY TO QUIT (YET)

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Reference ID Created Released Classification Origin
06KINGSTON1423 2006-07-21 15:52 2011-05-30 09:00 CONFIDENTIAL Embassy Kingston
VZCZCXYZ0004
RR RUEHWEB

DE RUEHKG #1423 2021552
ZNY CCCCC ZZH
R 211552Z JUL 06
FM AMEMBASSY KINGSTON
TO RUEHC/SECSTATE WASHDC 3243
INFO RUCNCOM/EC CARICOM COLLECTIVE
C O N F I D E N T I A L KINGSTON 001423 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR WHA/CAR (MCISAAC) 
 
E.O. 12958: DECL: 07/18/2016 
TAGS: ECON EFIN PGOV PINR PREL JM
SUBJECT: JAMAICAN FINANCE MINISTER NOT READY TO QUIT (YET) 
 
 
Classified By: Ambassador Brenda Johnson, reasons 1.4 (b) and (d) 
 
1. (C) Summary: Minister of Finance and Planning Omar Davies 
will not/not resign just yet, despite widespread media 
reports last week indicating that Davies was preparing to 
leave the cabinet, his Parliamentary seat, and 
representational politics.  Embassy contacts had confirmed 
that his rumored departure was true, and were surprised when 
Davies announced that he would remain.  One contact believes 
that this is merely a delay to give time to find a successor, 
and to take the PNP through an impending general election 
without disruption.  His replacement is likely to be one of 
two businessmen: Richard Byles or Peter Bunting.  End summary. 
 
2. (U) Widespread media reports last week indicated that 
longstanding Minister of Finance and Planning Omar Davies was 
preparing to resign from the cabinet, his Parliamentary seat, 
and from politics.  Many expected Davies to make the 
announcement when he met with constituents on Saturday, 15 
July.  Instead, Davies was returned unopposed as the 
candidate for the St. Andrew South constituency, and he 
announced that he had no intention of resigning his 
Ministership.  He did note, however, that he would cease his 
People's National Party (PNP) duties as a Regional Chairman 
in order to devote more time to solving the crime problems 
that are plaguing his community. 
 
3. (C) Two Embassy contacts - both of whom are close to 
Davies - noted on July 14 that the rumors that Davies would 
step down as Minister were true, and both were surprised by 
the sudden reversal at Saturday's meeting.  One source, who 
worked on the Davies campaign for PNP leader, claimed that 
new Prime Minister Portia Simpson Miller and Davies were at 
odds over spending: Davies has been known for his tight 
fiscal policy and spending restraint, while Simpson Miller 
has built her political career on social spending.  The other 
contact claimed that the crime and violence in his community 
were the driving factors behind his rumored departure.  He 
also remains convinced that Davies' departure as Minister is 
simply being delayed until after the General Election (which 
appears likely before October). 
 
4. (C) According to PNP activists, there are currently two 
likely replacements being suggested privately as successors 
to Davies at the Ministry of Finance and Planning (MFP): 
Richard Byles and Peter Bunting.  Byles is a former socialist 
who has been "born again."  He has accumulated large 
shareholdings as the CEO of Pan Jamaica Investments, and also 
serves as CEO of the Life of Jamaica Insurance Company, 
Chairman of Pan Caribbean Financial Services, Director of Red 
Stripe, and Chairman of the National Water Commission.  Byles 
holds a degree in Economics from the University of the West 
Indies, and a Masters degree in National Development from the 
University of Bradford, England.  Most think that he has the 
technical expertise to run the Ministry in the Davies mold - 
running large primary surpluses as a way to reduce the 
country's crippling debt burden.  Bunting is a partner in the 
investment firm Dehring, Bunting and Golding.  He has been a 
staunch supporter of Davies for many years, and the PNP has 
always been a party that rewards loyalty.  Nevertheless, he 
is less well regarded because Byles has the stronger academic 
background, and is closer to Prime Minister Simpson Miller. 
 
5. (C) Comment: Rumors have persisted for a long time that 
Davies wishes to leave, but he is clearly concerned about his 
legacy and wishes to groom the incoming replacement.  Post 
expects that whoever is selected will join MFP in some 
capacity - likely as Minister of State - so that Davies can 
shepherd him into his role.  Contacts also indicated that PNP 
heavyweights such as Foreign Minister Hylton prevailed upon 
Davies to remain both as Finance Minister and as Regional PNP 
Chairman, to avoid any semblance of disunity in a PNP that 
has been rocked by crises recently.  In any event, spending 
is almost certain to increase as a result of impending 
elections, as well as Simpson Miller's natural propensity 
towards assisting the poor.  It seems that Davies wishes to 
ensure that the careful work he has done over the past decade 
to bring down the debt-to-GDP ratio, and to improve Jamaica's 
standing with the international financial community, is not 
threatened after he steps down.  End comment. 
JOHNSON