The Tribune

By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia.net

DESPITE reassurances by the Christie Cabinet that Bank of the Bahamas (BOB) customers have no reason for concern, the FNM is questioning if the government has intentionally mislead Bahamians on the institution’s lending practices.

Following the FNM’s declaration on Sunday that they plan to call for a select committee to probe the inner workings of BOB, a release from the government stated that money held at the bank is secured.

“The government does not control or interfere in the management of BOB,” the statement said, “The government is aware, however, that the Bank has already made a number of positive changes to its policies, practices and management structure which will prove beneficial to the Bank as it moves forward.

“In the meantime, however, all customers and the public alike can rest assured that the Bank of the Bahamas is sound, that its fundamentals remain strong, and that it has the full backing of the government.”

But, FNM Chairman Darron Cash dismissed the government’s statement and reminded Bahamians that the Christie administration has demonstrated a lukewarm and flippant attitude when it comes to the affairs of BOB.

He said: “The question must now be asked, did the Minister of State intentionally mislead the House of Assembly? What did the Minister of State for Finance know and when did he know it?”

Mr Cash demanded that Prime Minister Perry Christie clarify other details that will shed more light onto the true state of BOB.

“Will the Prime Minister confirm that the consultancy contract for the Senior Manager of Credit Risk was prematurely and unmeritoriously cancelled as of January 25, 2014? Is the Prime Minister aware that the contract was scheduled to end as of June 30, 2014? Can the Prime Minister explain why the Bank’s Chairman, Chief Operating Officer and Managing Director felt it necessary to prematurely cancel the Credit Risk Manager’s contract rather than permitting it to come to its planned conclusion in June 2014 without first consulting the Credit Risk Committee to whom it is our understanding the Credit Consultant reported directly?

“Will the Prime Minister confirm that the Sr. Manager of Credit Risk had sole authority for the establishment of BOB’s loan loss provision effective January 2013? Will the Prime Minister disclose the schedule of all adjustments and loan related transactions, including loan loss provisions, made between January 25, 2014—the date of the premature cancellation of the Risk Manager’s contract—and February 18, 2014 or the date on which this question is answered, whichever is later?

“The Prime Minister’s statements that “there is absolutely no reason for any fear or concern” about the safety of the people’s money and that BOB has received unqualified audit reports from the external auditors is duly noted. However, we are compelled to ask whether the Prime Minister is aware that prior to its collapse Enron, a United States Corporation, also received unqualified reports from its auditors?”

Mr Cash insisted that Mr Christie be forthcoming with the responses to the FNM’s inquiry during the next sitting at the House of Assembly.