Jamaican economists have given reasons why the country could feel the pain of the investment scam that saw Usain Bolt and others lose millions of their hard-earned money.
The impact of Usain Bolt’s lost millions could start to be felt following warnings by economists in Jamaica that the scam will likely erode investor confidence in the country.
Bolt was among 200 people who lost their hard-earned money mysteriously through an investment scheme Stocks & Securities Limited (SSL) in January 2023 and up to now, there is no news of how it happened and if they will ever recover it.
The Jamaican sprint legend lost over $6 million from what he had invested in the scheme and had been quiet about it until this week when he said he might be forced to apply pressure to recover his money as he feels the government has the capacity but has done little so far.
Bolt said he had decided not to go public over the scheme, despite numerous requests from international media outlets, to protect the country’s image, and experts agree the fraud will hurt the Caribbean nation economically as investors will either be scared to come in or those in already will bolt away.
Usain Bolt’s lawyer has slammed Jamaicans for victim-shaming the legendary sprinter over the millions he fraudulently lost from an investment scheme.
“Matters in the financial world depend to a large extent on the power of perception. So, if negative signals are sent globally, that could impact metrics like investor sentiment, credit ratings and willingness to do business, even if those may not be directly related to the nature of this incident,” economist Keenan Falconer told The Gleaner.
It is reported that $30 million of 200 investors was lost in the fraud with Bolt, who had invested through his Welljen Limited, losing $6.2 million but the sprinter had opted to let his lawyers deal with the matter until he spoke about it briefly to a Jamaican outlet the Fix podcast.
Falconer says Bolt’s profile means he will always attract global attention and such bad news will raise questions over Jamaica’s regulatory regime and its capacity to resolve such matters quickly, scaring off potential investors.
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Amid a $12.8M fraud case and stalled government action over his lost investment, Usain Bolt lashed out at a fan by retorting, ‘Don’t be a syndicate.’
“That also impacts perceptions of institutional rigour and desire to engage with domestic entities. So, it is really in the best interest of the competent authorities to quicken the pace of recovery, not only in respect of Usain but all who were affected in order to restore any potentially lost confidence,” he added.
The latest fears come a day after Bolt’s lawyer Linton Gordon dismissed reports that the 100m and 200m world record holder had not done his due diligence before putting his money in the scheme, hitting out at Jamaicans for victim-shaming their hero when they should be supporting him.
