EDITOR, The Tribune.
The PLP propaganda machinery continues in full force.
A letter published in your Monday edition attributed to “Bahamas Scoop” placed the blame for $100m in bad loans at the Bank of The Bahamas at the feet of the last FNM Board of Directors of the institution.
But no one in their right minds believes that the $100m in bad loans were approved by the Bank of The Bahamas between 2007 and 2012 during the worst global financial and banking crisis since the Great Depression.
These loans in their majority would have been made before May 2, 2007, the date of the FNM re-election to office.
As I understand it one problem that the Regulator (Central Bank) found was the high level of loans granted to the so-called PEPs (politically exposed persons). These were reportedly overwhelmingly made to PLP insiders.
Bahamas Scoop also sought to exonerate the Bank’s General Manager of responsibility for the bad loans.
I agree that the Managing Director was likely to have been powerless to stop the approval of these 13 or so high risk loans, especially to politically exposed individuals, including Bahamian politicians.
In any event, he has been quoted in the media saying that his involvement with loans was curtailed after 2009.
I suspect this change in policy must have had something to do with a concerned Board seeking to reduce the Bank’s high risk loan portfolio.
Only those Board Members and the Managing Director can explain to their shareholders what caused the change in Bank policy.
Perhaps Bahamas Scoop would make inquiries of persons who ought to know how these loans came about beginning with successive members of the Boards of Directors of the Bank.
Surely, Bahamas Scoop is not suggesting that an FNM appointed Board would have favoured PLP businesses disproportionately.
Then, of course, one has to take into account that the last FNM appointed Board of the Bank of The Bahamas included Mr Khaalis Rolle, now PLP Minister of State in the Office of the Prime Minister.
As the names of the members of the Board of Directors is a matter of public record I do not hesitate to remind Bahamas Scoop of just who was setting Bank of Bahamas policy and when.
With the exception of the late Al Jarrett, all members of the Board continue to live and work in The Bahamas.
All held certain legal and fiduciary responsibilities to the Central Bank of The Bahamas and to the Banks shareholders for the operations of the Bank during the period of their appointments.
Those who served for various periods as revealed in the Banks Annual Reports between 2002 and 2014 include the following:
Between 2002 and 2007: Al Jarrett, Chairman; Lourey Smith, Deputy Chair; Maitland Cates; Allan Benjamin; Max Gibson; Dr. L. Barry Rassin; Ruth Millar; Lennox McCartney; Robert Sands; Patrick Bain and Lester Smith.
Between 2007 and 2012: Macgregor Robertson, Chairman; Craig Gomez, Deputy Chair; Wesley Bastian; Terence Gape, Patricia Hermanns; Pandora Johnson; Algernon Cargill; Hartis Pinder; Khaalis Rolle and Anton Sealey.
Between 2012 and today: Richard Demeritte, Chairman; Rawson McDonald, Deputy Chairman, Bishop Ros Davis; Don Shannon Davis; Eric Gibson Jr., Donna Harding-Lee; Errol J. McKinney, Roger L. Minnis and Alex S. Reckley, JP.
There does not need to be rife dishonest speculation on what transpired at Bank of The Bahamas. Perhaps Bahamas Scoop might consult any or all of those individuals on their oversight of the operations of the Bank during their tenure on the Board.
Bahamas Scoop is duplicitous at best. He starts out claiming that the challenges to the Bank of The Bahamas were those common to most banks as consequences of the recession.
The recession was global even though the PLP claim not to have known this until after their election on May 7, 2012.
While other Banks operating in The Bahamas bit the bullet so to speak and managed their institutions through the recession the Bank of The Bahamas has written their $100m off through the smoke and mirrors provided by a letter of comfort by the Government.
No other bank operating in The Bahamas had a similar experience.
The Bank of The Bahamas is an embarrassment to the entire banking system in The Bahamas.
Sadly, it is unlikely that those who presided over the near destruction of the Bank are able to come up with a plan for its salvation.
And any plan suggested by them is unlikely to earn the faith and trust of the Bahamian community.
KIRKLAND TURNER
Nassau,
December 11, 2014.
Comments
Well_mudda_take_sic 10 years ago
Ray Winder (Deloitte & Touche), James Smith and the other Board members of Bahamas Resolve have only one mandate: TO COVER UP THE FUNDS STOLEN BY 13 POLITICALLY CONNECTED BORROWERS BY WAY OF FRAUDULENT LENDING PRACTICES AT BANK OF THE BAHAMAS! Sadly, Christie himself, as Minister of Finance, had a hand in blessing certain of the "loans" made by BOB to the 13 politically connected borrowers, which "loans" were never intended to be repaid from the get go. WINDER AND SMITH ARE TYPICAL CONFLICTED TRUSTED PUPPETS OF CHRISTIE WHO WILL NO DOUBT EACH BE PAID HANDSOMELY FROM THE PUBLIC PURSE (OUR MONEY!) FOR KEEPING US (THE BAHAMIAN PEOPLE) IN THE DARK!!!!
Reality_Check 10 years ago
As previously reported in the Tribune, Wendy Craigg (Governor of The Central Bank) is essentially on record in correspondence exchanged with Bank of The Bahamas (BOB) of accusing BOB's managing director (Paul McWeeney) and Chairman (Richard Demeritte), and others, of having engaged in fraudulent financial reporting to all of BOB's stakeholders and regulators, not to mention their grave misconduct in failing to adhere to well established banking norms and known requirements imposed by The Central Bank as BOB's primary regulator. Yet, the Bank Supervision Department of The Central Bank and Wendy Craigg have thus far failed to declare McWeeney and Demeritte to be persons unfit to serve as a director of any financial institution. One can only imagine the message this sends to other bankers in our financial services sector who may be contemplating "crossing the line" and causing material financial harm to their customers and other stakeholders, not to mention harm to the reputation of the Bahamas as an offshore financial centre. Wendy Craigg acted nearly 3 years too late in the case of BOB and continues to fail in the timely discharge of her duties by allowing both McWeeney and Demeritte to remain at BOB. Wendy Craigg needs to think much more about her statutory duties and personal legacy and much less about what Christie may want or desire!
duppyVAT 10 years ago
This should not be about propaganda .......... 65% of the BOB are held by the Govt/citizens. So, when the BOB AGM comes up, the shareholders must hold the Board to account ...... this has nothing to do with sweet-talking................. this is about the financial future of the bank
asiseeit 10 years ago
The Bahamian Mafia (government) in full force. Is there any wonder the people are convinced that the Government of the Bahamas is a criminal enterprise that is stealing from the people? Outright theft of the peoples money and not a soul will be held accountable.
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