The Tribune

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.