The Tribune

EDITOR, The Tribune.

Re: Dispute at National Investment Board

As one of many thousands of pensioners served by the NIB, I trust that the current dispute and executive uncertainty is not impairing  management’s integrity and ability in handling the NIB’s massive investment portfolio, totaling over $1.5 billion.

Earlier this year, I was invited by Mr Algernon Cargill, Director and CEO (currently on suspension) to review the portfolio, as set forth in the NIB Annual Report dated December 31, 2011 (available on the Internet), and to provide any comments or suggestions, in recognition of my long and varied financial experience.

After making such a review, on September 5, 2012, I met with Mr Cargill and Ms Phaedra Mackey-Knowles, Deputy Director/Vice president-Investments, and gave them my opinion, followed by letter, stating that they had created  a sound and sensible portfolio.

It provided a reasonable mixture of yield and preservation of capital, with adequate diversification given the limited investment options in the Bahamian capital markets and the restricted portion that NIB was authorised to invest in foreign currencies.

I made a few suggestions as to additional or alternative investments. My opinion in no sense represented a complete analytical report on performance of the portfolio, but was purely an informal presentation for which I neither asked nor received compensation – other than a modest lunch probably paid with Mr Cargill’s now contentious corporate credit card.

I noted that NIB carried substantial equity investments in three publicly traded Bahamian companies: Bank of the Bahamas, Cable Bahamas, and Commonwealth Brewery, all made in accordance with Government policy presumably set at Cabinet or Ministry of Finance level. Mr Cargill was named as a  Board Director of each of these companies, an essential position for him to hold as protector of NIB’s interests.

I seriously wonder what is the current status of these directorships, in view of his suspension that apparently became effective last November 14th. 

Somewhere in the many recently publicised documents emanating from Mr Cargill and the NIB Chairman Mr Gregory Moss, it was indicated that Mr Cargill’s place would be taken by Mr Moss or Mr Arthur Davis, another NIB Director.

Has this happened? What is the position taken by the three companies involved?

Who is attending, or will attend, their Board meetings?

Under ordinary company law, the membership of the Board of Directors is solely determined by a meeting of shareholders of the company, or by the Board pending ratification by shareholders, and not by any single shareholder wishing to get a representative elected as a director.

Our Securities Commission requires prompt reporting of any changes in directorships of public companies. Usually they are sticklers in matters of corporate governance, but to date, nearly a month later,  we have heard nothing.

Of course, the three companies may choose to elect Mr Moss to their Boards if the suspension of Mr Cargill is of long duration or should become permanent. As a busy lawyer and politician, and in his brief period as Chairman, he has had little opportunity to familiarise himself with these companies, or with the many other complex details of becoming ultimately responsible for the NIB investment portfolio. 

Naturally, he may require more space and facilities to undertake these new roles. That doubtless explains why, as of one his first actions  as Chairman, he allegedly requisitioned a larger office at NIB, accompanied by directions to retain an interior decorator to refurbish the premises to a standard befitting a Minister –  a position to which he may aspire but does not (as yet) hold.

RICHARD COULSON

Nassau,

December 10, 2012.