Friday, January 9, 1998
Cayman official surprised Canada hasn't
requested Felderhof probe
By SANDRA RUBIN
The Financial Post
The top justice official of the Cayman Islands admitted yesterday he's surprised
Canadian authorities have made no request for assistance in their investigation of
Bre-X Minerals Ltd.
John Felderhof -- a key figure in the spectacular gold fraud -- has been holed up in a luxury
US$3-million Cayman home since March.
Attorney General Richard Coles said Cayman authorities have not interviewed the Dutch-born
geologist, nor are they monitoring his visitors. He said Felderhof is free to leave the island if he pleases.
But Coles had a terse "no comment" when asked whether police are keeping track of Felderhof's
actions.
He said he's well aware of the notoriety surrounding the securities swindle. But he defended his
government's decision not to step in and investigate Felderhof's source of
funds, or whether he made any misrepresentations on his visa application,
saying he will take his cue from Canada.
"The investigation was initiated, and is being carried out by, the Canadian
authorities," he told The Financial Post. "All we can do, and all we should be
doing, is responding to any request for assistance from the Canadian
authorities.
"Now, I can't force the Canadian authorities to request any assistance. All I
can do is respond when they do. And all I can tell you is they haven't asked
for assistance as yet."
Asked if he was surprised, he said "yes."
The RCMP formed a special 10-member squad more than six months ago
to work on unravelling the $6-billion salting scam. The force declined to comment on the attorney
general's remarks.
"All I can say is that our investigation is continuing," spokeswoman Deleen Schoff said from Calgary.
"At the proper time we will follow our leads, as the investigation progresses."
Coles said he is in touch "sporadically" with RCMP investigators and is open to working with police
or securities investigators from any other country asking for assistance in connection with Bre-X or any
of its players.
In response to questions, he said he has not been contacted by U.S., Swiss or Bahamian officials over
a probe of the mining firm.
Felderhof and his wife, Ingrid, are in the Cayman Islands on short-term residency permits, which must
be renewed every six months.
Coles said he doesn't know when the Felderhofs' current visas expire, but said, in principle, the
government has the right to refuse to renew anyone's visa.
"Cayman wouldn't need any specific reasons to refuse to renew a permit."
He indicated the welcome mat could be yanked if criminal charges were brought, saying the island
isn't interested in harboring anyone involved in an international business scandal.
"Anybody who has taken part in criminal activity is most unwelcome in Cayman."
Coles said the government is not going to take any steps to freeze the Felderhofs' assets to prevent
funds from being transferred out of Cayman, because a court has already ordered a freeze in a civil suit
filed last week by Deloitte & Touche Inc.
"As far as I'm aware, all the assets have been frozen, or injuncted as we call it."
Felderhof made $71 million trading in Bre-X shares. |
