By SANCHESKA BROWN
Tribune Staff Reporter
sbrown@tribunemedia.net
BANK Of The Bahamas is suing the tabloid newspaper the Punch for “a combination of outright lies and numerous falsehoods and inaccuracies”.
In a press statement, Director of Bank of the Bahamas, Paul McWeeney said after months of near silence following an onslaught of damaging reports in the Punch, BOB is taking legal action against the publication, its owner, Ivan Johnson, and others.
The statement says leading specialist UK libel counsel and local litigation counsel have been engaged to represent the bank.
“This bank, which has enjoyed tremendous success for 24 of our 25 years, has been the target of calculated and malicious attacks by a local tabloid, The Punch. Today, we want to state for the record that these attacks are, for the most part, based on highly distorted and sensationalised information, and, in some cases, out and out lies,” Mr McWeeney said.
“We remained relatively quiet throughout the barrage of attacks, wanting to take the high road and maintain the dignity that the financial services industry deems appropriate, but following the outlandish and totally false story that appeared on Page One of today’s Punch (February 20, 2014), we have no choice but to proceed with the legal action we have been contemplating for some time. Our customers, shareholders and staff deserve to know the truth and they deserve to have their investment protected from further damage by irresponsible journalists with their own agenda.”
Mr McWeeney said in the latest report, the Punch alleged that BOB was in a bid to pull off an $8 million loan, that was blocked by Central Bank - something he said was an “out and out lie.”
“The loan to which the tabloid referred was in default – that much is accurate,” he said. “However, that is the only part of the story which is accurate. The bank recovered the asset by taking possession of the property and we did so with the full knowledge and consent of the customer and the formal permission of the Central Bank. Throughout the transaction we were advised by McKinney Bancroft and Hughes who confirmed its complete legality. To allege fraud against the bank, as the Punch has done, is an extreme case of actionable defamation for which action will be taken against them.”
Mr McWeeney said the bank’s greatest concern is “what appeared to be a breach of confidentiality” and both the Data Commissioner and the Royal Bahamas Police Force are actively investigating.
He said: “The breach in confidentiality of customer data and its publication is a criminal offence and an attack on the bank and the financial services industry of The Bahamas,” said McWeeney. “Every Bahamian should be concerned about this because it has the potential to jeopardise the very cornerstone of the industry. The bank has taken the action to call in the appropriate authorities to determine how the breach occurred, who is responsible and allow the law to take its course.”
The law suit against the Punch, Ivan Johnson and others will cite more than a dozen specific and separate incidents of the Punch’s defamatory publication of false and or misrepresented information, ranging from personal information about Mr McWeeney’s remuneration as Managing Director to what the tabloid called ‘politically motivated’ loans.
Comments
banker 10 years, 10 months ago
I look forward to the discovery process of this lawsuit. If the Punch says that Mr. McWeeney made x amount of dollars per year, and he in fact made y, he has to provide the evidence. The BoB must lift its skirts in the discovery process, and what that reveals should be really interesting. This is better than a soap opera. I too am concerned about unsecured loans to PLP cronies.
B_I_D___ 10 years, 10 months ago
Yeap...be careful the path you tread!! Better be squeaky clean and 100% covered if you are going to start making noise. My gut tells me that there is more truth in the Punch than there is truth in the BoB's statements. Very slippery slope.
Guy 10 years, 10 months ago
You gentlemen are forgetting that a lot of the information that the Punch reported is proprietary and is protected by statute. The press must have some level of responsibility to ensure that it does not publish such information that is leaked to it, just as it is not allowed to openly discuss and allow commentary of matters that are before the courts. The Punch has got to stop!
ohdrap4 10 years, 10 months ago
they need to change his picture. that monalisa smirk does not look good these days....
banker 10 years, 10 months ago
It's a very happy, dainty smirk. The polished, perfumed banker would win the best dressed banker in the BoB award.
TalRussell 10 years, 10 months ago
Comrade Managing Director Pauly should cut away from the court system chase and release a simple statement listing any and all present and past politicians who currently have outstanding loans with the" "peoples" owned bank. According to media sources both the red and golden boys have had more than their "fair" dealings with loans from the BOB.
sheeprunner12 10 years, 10 months ago
Freedom of Information Act anyone????????????????
BOB is 65% owned by the government (citizens) of The Bahamas. What information do we have access to about the dealings of BOB ... and WHY it made a loss while other banks are making handsome profits....... despite the slowed economy.
The directors/management of BOB has much to answer for....... don't try and bully the Punch
WHERE THERE IS SMOKE............... THERE MAY BE FIRE
ThisIsOurs 10 years, 10 months ago
Still waiting on that lawsuit from Alfred Grey...
realfreethinker 10 years, 10 months ago
They always threatening the punch with lawsuit and nothing happens
sheeprunner12 10 years, 10 months ago
Can someone post a bio of Paul McCartney??????? Is he any family to Sean McCartney??? Is he a PLP "surrogate" as defined by Doc Rollins????????
ohdrap4 10 years, 10 months ago
muss be a "long and winding road" to link mcweeney to McCartney.
but the plp politicians all live in the yellow submarine
jt 10 years, 10 months ago
Meriting claims in the Punch with the threat of legal action seems to validate them to me, not the other way around...
TalRussell 10 years, 10 months ago
I could be mistaken but I'm pretty darn sure Bahamalander's don't think it's good public relations for the BOB to take an already damaged who and how they lend image as perceived by the public and add to it by the threat of a law suit against a local media outlet? Aren't the owners of the Punch and each of of their native employees, really shareholders in BOB and have every right to question what's been going on with their lending practices? You would be suing your own BOB shareholders ... right?
concernedcitizen 10 years, 10 months ago
They are not going to sue anyone ,just like Obie was going to sue CNN and Larry King over the Travoltra shakedown and PGC was going sue the punch during the campaign when they said he was gay ,,,,,,,,,,,,
Guy 10 years, 10 months ago
Freedom of information Act will not allow the press to publish people's personal bank information. Get real!
TalRussell 10 years, 10 months ago
If they are delinquent on repaying their loans they should be sued to recover the bank's loaned monies, and BOB has every legal entitlement to release to the media such names and if they don't, the media can easily access their names through public court records. The same media who loves publish all the names of any leading PLP, or their fifth removed distant cousin, who have ever been sued, since the days of Blackbeard and Captain Cook.
Bahamianpride 10 years, 10 months ago
A lot of paper shredding & computer system cleansing must have occurred prior BOB's President making these statements.
Honestman 10 years, 10 months ago
There will be no lawsuit - this is pure bluster. The best thing BOB can do us keep a low profile and get its house in order. Step one should be to replace the existing executives and replace them with professionals who will follow best banking practice.
John 10 years, 10 months ago
The Punch has fired their lawyer of 17 years who kept them from getting into situations like this or helping them to get out. Not taking sides but RBC recorded losses for several recent years for the first time in its 100 year history of doing business in the Bahamas and did not pay dividends for several years. Other banks recorded losses and some are still in the recovery stage so BoB problem is not unique.
ThisIsOurs 10 years, 10 months ago
Hmm... I wonder if they were giving out millions of dollars in unsecured loans too....
banker 10 years, 10 months ago
This is not true. RBC has recorded loan losses of three times of what BoB has, but their loan portfolio is over 30 times what BoB is. Overall RBC made very healthy profits last year. You are also wrong about dividends. The profits are repatriated back to Canada yearly, and the dividends are paid from there.
crabman 10 years, 10 months ago
Shades of CLICO, whatever happened to all of the governments (Papa) promises to get the people their money. This was also a Central Bank "JOB". How do you move that much money without SOMEBODY knowing about it.
sheeprunner12 10 years, 10 months ago
So......................... does the Central Bank know whats going on at BoB????????? What has CB Gov Craigg to say about the apparent risky business practices at BoB............... especially in the face of how other quasi-Govt corporations are run
Bahamianpride 10 years, 10 months ago
The point is did these people in there official compacity as public's servants used there postions as public officials to secure unsecured loans that they would not otherwise be qualified for if the loan were based on the merits of sound business principles or investment used to establish loan qualification. 2nd did the BOB a Quasi government corporation serving the people loan this money based on political favor, ignoring all ordinary loan qualifications procedures. If this is so, u have a crime of Official Misconduct on the part of bank officials and the politicians who took the money period.. It just sames like the evidence is overwhelmingly pointing to corruption & once u start opening & looking into BOB's box of corruption it can get nasty fast...
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