The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Free National Movement’s (FNM) deputy leader yesterday denied claims that the Opposition was effectively trying to drive Bank of the Bahamas (BOB) into insolvency, arguing that “the time has come” for the Government to get out of the banking sector.

Echoing recent sentiments expressed to Tribune Business by businessman Dionisio D’Aguilar, K P Turnquest, during his contribution to the Electricity Amendment  Bill 2014, responded to last week’s assertions by Prime Minister Perry Christie that the Opposition was attempting to undermine the BISX-listed bank.

“We on this side categorically deny the assertion,” Mr Turnquest told the House of Assembly. He called on the Government to answer several  questions on Bank of the Bahamas, such as the were number of loans, amnd their respective dollar amounts, which were transferred to Bahamas Resolve.

He also asked whether the issuance of bonds to Bank of the Bahamas via Bahamas Resolve, and backed by a Government ‘comfort letter, should first have required authorisation via a Parliamentary resolution.

Mr Turnquest said: “Contrary to assertions we have no interest in seeing the destruction of Bank of the Bahamas. We want to see it prosper, strengthen and survive. I do believe that the time has come for the Government of the Bahamas to get out of the banking sector.”

The Opposition last week led a demonstration against the way Bank of the Bahamas had been managed, and said it intended to call for the creation of a select committee to review its operations.

Bank of the Bahamas has suffered major financial losses over the past two years, with the almost $69 million in ‘red ink’ incurred during the 2014 financial year leading to its $100 million ‘rescue’ by the Bahamian taxpayer.

Rising on during a presentation by Montagu MP Richard Lightbourne on the Bank of the Bahamas situation, Prime Minister Perry Christie yesterday again blasted the demonstration and questioned the motive behind it.

“Whatever their intentions are we are not going to let them succeed,” said Mr Christie. “The Government of the Bahamas is not going to compromise on doing  the things it has to do to ensure that the Bank of the Bahamas is secure and continues to remain a safe investment for Bahamians.”

Mr Christie confirmed that a search for a Paul McWeeney’s replacement as managing director is underway.

The Government announced last October that Bahamas Resolve, headed by former Central Bank governor James Smith, had been established to take over $100 million in troubled commercial loans from Bank of the Bahamas.

The new company will focus on recouping the outstanding loan balances owed to the Government.  Deloitte & Touche has been selected as the accounting firm charged with collecting on this portfolio.