Former Prime Minister Hubert Ingraham.
By SANCHESKA DORSETT
and NEIL HARTNELL
FORMER Prime Minister Hubert Ingraham has questioned under what “lawful authority” did the government use $50m of the “people’s money” to partially replenish the Bank of the Bahamas’ capital because of $100m worth of non-performing loans.
In a speech he had planned to deliver in Grand Bahama at a Free National Movement (FNM) rally but was unable to because of rain on Friday night, Mr Ingraham also asked the government to reveal if any government ministers or members of the governing party “are on the list of non-performing loans to the tune of tens of millions”.
Mr Ingraham said the public’s money should not be paying private loans and the only way to get the government to stop using the Public Treasury “like their own purse” is to vote them out.
“My concern about the $100m in non-performing loans is that we the taxpayers are now responsible for it,” Mr Ingraham noted in his prepared speech.
“So if any politician is caught up in this, we would wish to know and know what is being done about it. The government has put $50 million of our money up to partially replenish the bank’s capital because of these non-performing loans.
“Well I asked on Wednesday night three questions, one of which I will deal with now but up to now I have not seen nor heard of any response to the questions asked. The question was: what was the lawful authority for the $50 million paid by the government to partially cover the bank’s loss from these non-performing loans without the approval of the House of Assembly? Not having received an answer, I presume therefore that the $50 million paid by the government from our taxed and borrowed dollars was paid unlawfully and there are consequences for unlawful public expenditure.”
He also said the only way to “save” Bank of the Bahamas is to “fire the PLP”.
Tribune Business has learned that BOB is seeking Supreme Court protection from the Central Bank, with the regulator demanding an “immediate” $50 million increase in loan loss provisions and legal action against “politically exposed” bad borrowers. Legal documents obtained reveal the extent of the stricken bank’s woes, with its problems so severe that its liquidity could deteriorate “quite literally on any day”.
Abhilash Bhachech, the Central Bank’s inspector of banks and trust companies, expressed concern that BOB’s application for a ‘stay’ of the regulator’s demands could undermine its ability to properly supervise the troubled BISX-listed institution. He warned that imposing a ‘hold’ or injunction on the Central Bank could also “further erode depositor and public confidence” in BOB, as well as undermine “the retail banking system of the Bahamas” given the bank’s systemic importance.
In February, Tribune Business reported that BOB’s financial statements for the half-year to end-December 2016 showed that its total comprehensive loss had increased by almost $2 million year-over-year, rising from $3.587 million to $5.428 million.
However, the loss for the final three months, or second quarter, dropped by 37.3 per cent, falling from $3.267 million to $2.049 million. Provisions for non-performing loans again helped to drive the ‘red ink’, as they rose for the half-year by 18 per cent, from $6.134 million in 2015 to $7.237 million at the end of last year.
In 2014, the Christie administration created a new company, Bahamas Resolve, to take over $100m in bad debt from BOB. At the time, BOB had incurred losses in the previous two years, with its most recent quarterly report noting that its shareholders incurred $4.172m in “red ink.”
While questioning if any well-connected members of the PLP are on the list of non-performing loans, Mr Ingraham continued: “The FNM has repeatedly asked for the names of persons on the list with negative results. I think you ought to know the answer to my question before you vote on Wednesday. You may decide that you shouldn’t be paying off their private loans. Or you might wish to do so. It’s your choice.”
Mr Ingraham said PLP “big shots” think they are untouchable and “entitled to be crooked and corrupt.”
“They believe they are entitled to tell you that what you read, what you hear and what you see are illusions,” Mr Ingraham noted.
“They think your treasury is their bank account. They are the most brazenly corrupt government in the history of the Bahamas - from repair contracts to building contracts; from business contracts to kick-backs from transportation contracts; from acting as front-men selling government approvals and permissions to issuance of permits and licences; to peddlers with arms stretched out collecting left right and centre.”
Mr Ingraham said a vote for the FNM is a vote for change - “change of your government, change of your condition, change of your economy, change in your community, change in your country, change for the better.”
In early February, Prime Minister Perry Christie said the government would soon make a full disclosure on the current affairs of BOB and Resolve Bahamas.
Firing back at suggestions at the time that such a disclosure would not come before the upcoming general election, Mr Christie said: “The elections are not in the near future.”
“Let me say that we are just about ready to come to Parliament with respect to Resolve, its operations and with respect to the Bank of the Bahamas (BOB). We are going to make a full disclosure as to the current affairs and the outcome of Resolve,” Mr Christie said in February.
However a full disclosure was never made in Parliament.
• BOB in legal battle with Central Bank, see Business section
Comments
DDK 7 years, 6 months ago
Looks like the government used BOB as part of their own version of a Ponzi scheme. Plunder Loot Pillage profit, People lose! Fire them is right! Then make them accountable in a legally administered and fully transparent Commission of Enquiry. Don't let 'em run! Make sure they foot the bill for the Enquiry!
Well_mudda_take_sic 7 years, 6 months ago
The rape, pillage and plunder of BoB has been in the news for years now and this ugly oaf Hubiggity only now decides to speak up about it on the eve of a general election. Ask yourself why? Also ask yourself why neither Minnis when he was leader of the opposition nor LBT after him ever spoke out very loudly and forcibly about all the shenanigans at BoB over many years that occurred right under the noses and with the approval of Paul McWeeney and Richard Demeritte. The shenanigans that occurred at BoB are tantamount to outright theft by high ranking PLP and FNM officials alike, depending on which party had control of the government at the time. That's right, the FNM too under Hubiggity saw to it that certain mega million dollar loans were made by BoB to cronies of Hubbigity and Frank Watson while the FNM was the governing party; loans that should never have been made. Ask yourself why Hubiggity fired Al Jarrett (long since deceased) as Chairman of BoB because he refused to do the bidding of Hubiggity as PM at the time and have BoB make loans to certain of Hubigitty's cronies that Jarrett knew full well could not and would never repay their loans! And to think Hubiggity only now decides to stand four square (like an unhealthy oversized toothless old red glassy eyed pitbull) behind the greedy power hungry incompetent dimwitted Minnis who he effectively foisted on us by his sore loser attitude after his embarrassing unexpected defeat in the 2012 general election. What a joke!!
Well_mudda_take_sic 7 years, 6 months ago
Sorry, my grandson just called me to say "who" should be "whom" in penultimate sense to my post immediately above. Not only is my grandson very well educated but he always politely seeks to better his grandparents' command of the English language. A proud grandparent I am.
TalRussell 7 years, 6 months ago
Comrade Well_Mudda_Take_Sic, does your grandson has a interest in expanding his Tutuage Agency - say by one pupil?
themessenger 7 years, 6 months ago
Hey Mudda, you think that because Al Jarrett also owed BoB a large sum might of had something to do with his getting fired? Not to mention this weird PLP practice of appointing people, Jarrett, Miller, Chairman of the Board of banks,companies or corporations that they owe millions to. Your hard on for the FNM reminds me of Birdie just a little more articulate.
Well_mudda_take_sic 7 years, 6 months ago
My friend, the FNM today is not the FNM that it once was......and if you can't figure that out for yourself, well, just do whatever your misguided heart desires you to do come election day.
themessenger 7 years, 6 months ago
Good advise Mudda, I think I'll pick the lesser of the two weevils...........
Well_mudda_take_sic 7 years, 6 months ago
But pleeeezzzz, if you are a registered voter in Killarney, vote for anyone but the greedy power hungry corrupt dimwitted Minnis! And if you live in the Centerville constituency and have registered to vote, please vote for anyone but Christie who, like Minnis, is now definitely corrupt to the core!! And no, I'm not a supporter of McCartney!!! Whomever is the best man or woman in my constituency with the least amount of known undesirable qualities will be getting my vote without any consideration being given to their party affiliation. All of us need to THINK, THINK, THINK!!!!!
themessenger 7 years, 6 months ago
Do you honestly believe that voting for some supposedly "honest" unknown not affiliated with one of the two, or three if you like, major party's will influence the change in government so badly needed at this point? Do you envision a coalition government of these so called honest independents and who do you consider honest and competent enough to lead them? Have you taken a leaf out of Loretta's book "An end game was never part of the plan" or do you just enjoy being that voice in the wilderness?
Well_mudda_take_sic 7 years, 6 months ago
We have at least two, possibly three, political parties with known corrupt candidates who are certainly not fit to be involved in governing our country. No one should be voting for a candidate known to be dishonest and/or incompetent simply because he or she happens to be affiliated with a particular political party. We can only hope each constituency has at least one candidate who is not known to be dishonest and/or incompetent and who may or may not be affiliated with the PLP, FNM or DNA. Have more faith in mankind my friend and just let the chips fall where they may when it comes to the political parties that have exercised little care in their candidate selection process. We desperately need to avoid our HOA being stacked with dishonest and/or incompetent individuals.
baldbeardedbahamian 7 years, 6 months ago
AL JARRETT WAS A WELL SPOKEN IDIOT WHO SOLD HIS HONOUR TO THE PLP FOR A POLITICAL APPOINTMENT. MOST OF WHAT I HEARD HIM SAY ON THE RADIO AND WHAT HE WROTE IN THE NEWSPAPERS IN THE RUN UP TO THE LAST ELECTION WAS GARBAGE.
DDK 7 years, 6 months ago
http://www.tribune242.com/news/2016/apr…
Well_mudda_take_sic 7 years, 6 months ago
@DDK - Fat chance of that ever happening! And in any event, reveal to whom? To Minnis or to the public at large? Don't hold your breath!!
banker 7 years, 6 months ago
This is what you have become with your incessant crossposting, doppelgangers, and incessant ranting.
I thought that you were smarter than that.
Grandson -- LOL !
http://tribune242.com/users/photos/2017…
Well_mudda_take_sic 7 years, 6 months ago
Most prefer a 'cooing' pigeon to a 'clucking' hen, especially one that drops nothing but rotten eggs. Sorry - just couldn't resist.
TalRussell 7 years, 6 months ago
Comrades! Who could've known all along Papa Hubert had been reading Comrade Tals's posts - and one them I has been blooging for a long time how there aren't a lot of cash in that vault over at Bank of Bahamaland (BOB) - cause the politicians had long got there before the ordinary bank's customers could.
John 7 years, 6 months ago
Wasn't some of the shareholders planning to take BoB to court over the matter of these toxic loans.?
alfalfa 7 years, 6 months ago
Well mudda, you are correct. The shenanigans occurred under both the FNM and PLP. No doubt about it. McWeeny was hired under the FNM and while having little commercial bank experience, came in as senior management. The majority of the bad loans relative to those with political connections, are however, PLP MP's and cronies. It has been stated in the press that Leslie Miller, Obie Wilchcombe, Pat Mortimer, are some of these offenders. Jarrett's political appointment to chairman has always been questioned, as it is rumored that he too, obtained a mortgage at BOB, which ended up delinquent.
TalRussell 7 years, 6 months ago
Comrades! Shouldn't the going on's over at BOB - not raise inquiring eyebrows as to exactly what is the taxpayers connections/obligations to The China Export-Import Bank's releasing about $100 million to pay out Baha Mar's local creditors? Why not make public a complete list of all the local names and amounts, and for what the $100 million, or so went to pay? The lists from both BOB and Baha Mar, are NOT PLP politicians exclusive - in fact some of the recognizable names of the lists are lets just say are politically well connected, government people, lawyers and business people - and just your ever day known political hang-oners who regardless of which political party happens hold power - they show-up?
alfalfa 7 years, 6 months ago
John, we have witnessed many times over, what the PLP thinks of court decisions. If they are not in their favour, they ignore them. The Government is the majority shareholder in the Bank, but the minority shareholders, could institute action against the management and Board who approved the loans in question. At very least Resolve, and the Bank should be forced to sell the assets being held as security, as well as obtain judgement for as much personal assets as possible. It is ludicrous to think that you can owe millions of dollars on property that you still own, and run a business in same, all the while laughing at the Bank, holding the loans, and the shareholders, whose investments you have destroyed. In a "civilized" actual democracy, some of these, including the Management and Board, would be facing criminal charges and incarceration. This will never happen here.
Well_mudda_take_sic 7 years, 6 months ago
Paul McWeeney, Richard Demeritte, Christie, Hubbigitty and others like them who are responsible for the raping of Bahamian taxpayers and National Insurance contributors through their pillaging and plundering of BoB should all be sharing one SLOP bucket in a cell at Fox hill prison.....with the cell next door reserved for Minnis and his cronies who would continue doing the same if the people are foolish enough to allow Minnis to become PM!! And notice how none other than the PLP's King Kahuna of crooks - Sir Snake - has hired Paul McWeeney as the new managing director of Sunshine Insurance!! These thugs steal from the people and cover/protect one another's backs. Much like the Symonette family, the D'Aguilar family, the Mosko family and so many other corrupt Bahamian families that have unjustly enriched themselves at the expense of poor honest hard working Bahamian taxpayers over many decades. What a joke!!!
baldbeardedbahamian 7 years, 6 months ago
This comment was removed by the site staff for violation of the usage agreement.
rowenabethel 7 years, 6 months ago
This comment was removed by the site staff for violation of the usage agreement.
rowenabethel 7 years, 6 months ago
This comment was removed by the site staff for violation of the usage agreement.
birdiestrachan 7 years, 6 months ago
Thank God it rained and a fresh wind blew. I am not sure the FNM Papa bombastic ways will work. There are other banks with bad loans. Persons who have borrowed should pay their loans. but he is pulling out every thing he can think of and it is not as if his hands are clean. the man has done nothing to advance the Bahamas or the average Bahamian.,
proudloudandfnm 7 years, 6 months ago
PLPs don't do loans Mr. Ingraham. They do overdrafts....
Ax Obie and Pleasant.....
Well_mudda_take_sic 7 years, 6 months ago
When it comes to the tiefin' from BoB, it doesn't matter a hill of beans whether it was by way of loan, overdraft or advance because no collateral of any significant value was ever put up by the cronies of Hubigitty and Christie who borrowed the funds from BoB with no ability or intention of repaying same. It was all about sticking it to Bahamian taxpayers and/or National Insurance Fund contributors at the end of the day! And has anyone noticed how McCartney also refuses to deny whether he or any of the companies controlled by him or his family members have loans, overdrafts or advances from BoB that are delinquent and for which loss provisions or write offs have been made or will soon be made?
lucaya 7 years, 6 months ago
Hurry close that bank it failed, another good institution messed up by these greedy corrupt politicians.
TalRussell 7 years, 6 months ago
Comrades! It takes some big set bad balls for a PLP cabinet to have helped take the Bank of Bahamaland into the negative operating ledger it finds itself in today. The bank's doors would have long been closed-shut had the government not pumped millions of taxpayer monies and borrowed dollars to prevent its closing shop.
You go figure hey - a bank has borrow from others to not go out business? The BOB needs a loan more urgently than the people asking their loans people for loans. Like, why do they still keep their branches staffed and open?
sheeprunner12 7 years, 6 months ago
This PLP designed BOB meltdown deserves a serious investigation by the next government ..... Someone must account for the BOB losses that have taken place since 2012
Well_mudda_take_sic 7 years, 6 months ago
Dream on if you think Minnis or McCartney as PM would ever support a Royal Commission of Enquiry being held to look into Baha Mar, The Pointe, BoB, illegal activities involving Crown Land, and so on.
BMW 7 years, 6 months ago
I hope there will be Royal Commision of Enquiry , the everyday people who are taxed to the hilt deserve to see just who got what from who. Lets see bank accounts of the wilsons, the fitzgeralds, the maynard gibsons, christie and the crew. Then put all of them in jail!!
Sign in to comment
OpenID