The Tribune

By NICO SCAVELLA

Tribune Staff Reporter

nscavella@tribunemedia.net

FNM Leader Dr Hubert Minnis yesterday led dozens of party members in a protest outside of Bank of the Bahamas, calling on Prime Minister Perry Christie to demonstrate “true leadership” and fire the management team at the bank.

He said the government should instead fill those positions from “the ranks of the many experienced Bahamian bankers who are capable of managing the bank.”

Roughly 40 FNM supporters, armed with placards, marched from the General Post Office onto Shirley Street, ultimately ending at the Bank of the Bahamas branch on Shirley Street where Dr Minnis made his remarks.

PLP Chairman Bradley Roberts promptly responded to the protest, and said it demonstrated Dr Minnis’ “duplicity” and “dishonesty” in the matter.

The protest comes almost two weeks after Mr Christie revealed that Paul McWeeney, BOB’s managing director, had submitted a formal notice to the institution of his intent to resign within six months.

It also comes after months of constant criticism from Dr Minnis and other FNM members regarding the bank’s state of affairs.

Dr Minnis said the FNM intends to move for the appointment of a select committee in the House of Assembly to review the bank’s operations.

“The FNM is outraged at this latest example of the cronyism of the bankrupt PLP government,” he said. “We are outraged that, of all the commercial banks which are operating in our country, under the same adverse economic conditions, it is only the government’s bank, the people’s bank, which has been brought to its knees by cronyism, mismanagement, and now by a full-fledged personal rescue package for failed and imprudent leadership at the bank.”

He added: “The government needs to do what is right. This had occurred under the management team, and the government must dismiss the management team and put competent individuals in there so that we can correct the problems that we face today. The people’s money cannot be lost.”

Last October, the government announced it would establish Bahamas Resolve, a new state-owned and controlled company, to assume liability for $100 million of BOB’s non-performing commercial loans in October.

The move came after BOB incurred losses in the past two years, with its most recent quarterly report noting that its shareholders incurred $4.172 million in “red ink”.

The new company was expected to mitigate against bad credit risks, improve the bank’s revenue prospects and enhance its shareholder value and financial condition for 10 years, following which the government “will re-evaluate the value it has realised from the debt portfolio, examine Resolve’s financial situation and determine a way forward”.

Mr Roberts yesterday criticised the FNM protest, saying the demonstration was “reckless, irresponsible, and harmful to the reputation of BOB.”

“Since Dr Minnis and the FNM do not have an alternative plan to rescue the bank after playing a significant role in creating the current fiscal mess or driving the bank in the ditch as he described it, he must act responsibly and get behind the rescue plan of the government to save this public financial institution,” he said. “The bank, the Bahamian people, and the country are better served if Minnis just gets out of the way, and lets the people who actually have a plan execute their plan without the nuisance of his constant distraction and public antics to seek headlines and to sound relevant.”

Mr McWeeney released a statement on his resignation yesterday, saying the choice was his. He said after nearly 25 years at the bank, he decided not to renew his contract.

“The decision to retire is entirely mine,” he said. “It has been given freely and was not demanded or requested of me by the board or the majority shareholder.”

Mr McWeeney added that he is “fully committed” to ensuring that a proper succession plan is implemented to facilitate the handover to his successor.