The Tribune

By LYNAIRE MUNNINGS

lmunnings@tribunemedia.net

THE collapse of FTX serves as a crucial learning lesson and an opportunity to fight for the reputation of the country, according to representatives of the Organization for Responsible Governance.

Hubert Edwards, chief executive officer of Next Level Solutions consulting firm, said the fallout of FTX should not be the primary focus, but instead the reputation of the broader financial services sector within the country.

Yesterday, Mr Edwards told this newspaper that the Securities Commission of The Bahamas should make the necessary changes moving forward, however he noted that effective resolution of the present issue serves as a priority.

“I believe that there will be a time and place for dissecting and debriefing, that time is not now. It is of little value at this moment for the country to delve into what deficiencies may or may not have existed,” he said.

The chair of ORG’s economics committee also said: “What might be at issue here is the public’s demand for more information. However, one must appreciate that we are here dealing with very sensitive matters, including legal manoeuvrings which are clearly contentious at the moment. It is, therefore, unreasonable to anticipate information to be provided more rapidly than it is being done currently.”

He continued: “What we have seen thus far does not, in my mind, suggest a lack of transparency on the part of the authorities, but rather necessary caution and professional diligence.”

When asked by this newspaper what he believes could be handled differently in the process, he said it is “unreasonable” to speak on what should be done differently at this current time.

“It’s not reasonable to speak to what could be done differently at this stage as we do not yet fully appreciate all that was or was not done,” he said.

“Any statement in that direction at this point will necessarily include some level of speculation and for those committed to the best interest of the country such an approach should be avoided at all cost.”

With the collapse of FTX Digital Markets currently being investigated by local and international law enforcement agencies, ORG Executive Director Matt Aubry said this serves as an opportunity to reinforce the dynamic of transparency and accountability being the path forward.

In an interview with this newspaper yesterday, Mr Aubry acknowledged the attempts of the government to be transparent, however, he suggested putting more attention on fixing “long-term” circumstances.

“At the end of the day, though, the whole lesson of FTX I think comes into a few different things,” he told this newspaper yesterday.

“It reinforces the dynamic that transparency and accountability is the path forward. There needs to be greater transparency related to entities like FTX in terms of their board, governance systems, ensuring that they have the sufficient funds.”

He continued: “Transparency can also help to establish the trust of the public.”

He said officials should attempt to learn from situations such as FTX and more importantly similar instances have happened in past administrations.