Tuesday, November 4, 2014
By RASHAD ROLLE
Tribune Staff Reporter
rrolle@tribunemedia.net
FNM chairman Darron Cash called yesterday for a complete overhaul of the board of directors at the Bank of the Bahamas and criticised Central Bank governor Wendy Craig for agreeing with the government's decision to establish a company that will absorb $100 million of BOB's toxic commercial loan debts.
Mr Cash, who has long raised concerns about the bank, said there remains a striking lack of accountability over how BOB operates.
His statements came after BOB's latest quarterly report for the year to end June 30 noted a $68.747 million net loss for the bank's shareholders, wiping out its retained earnings prior to the government $100 million rescue plan announced on Friday.
“At a time when we have clinics that cannot be finished and opened, schools that cannot be repaired and roads that cannot be fixed, shortage of medicines and hospital rooms,” said Mr Cash, “it is a national disgrace that when it comes to Bank of the Bahamas, Prime Minister Christie's dollars have no end.
“Starting with Paul J McWeeney the entire board should be changed. Nothing they can do will have any integrity to correct the crooked course that the bank is on and set it straight. For the past two and a half years they have been a part of the problem. They are to blame. The decent thing for them to do is to resign. This board lacks the moral authority to govern BOB. It is nothing short of Perry Christie's complete failure of leadership that Paul McWeeney and this Board should be permitted to be in BOB for one more day.”
Mr Cash asserted that out of fear, regulatory agencies have not taken appropriate action against the government in relation to BOB.
Calling this a disgrace, he said: “They have been scared, intimidated powerless and in the final analysis and by their behaviours they have been complicit in BOB's failure. The question that the Bahamian people should be asking is who is going to jail? And if not, why not? The governor of the Central Bank has done her institution a disservice by standing with this bank and validating this travesty.
“She is in essence giving cover to the people at BOB, whose actions have brought that bank to the brink of collapse. She too has an ethical and moral obligation to the shareholders of Bank of the Bahamas and to the Bahamian people to give them comfort that her agency was not part of the cover-up. The Governor must tell the Bahamian people what she knew and when she knew it.”
Bahamas Resolve has been established to go after $100 million of BOB's toxic commercial loans, with officials last week saying the company will have the wherewithal to use mechanisms not available to BOB in pursuit of the overdue payments.
Mr Cash, however, blasted this idea. “The lack of accountability is striking,” he said. “Any reader saw a demonstration of first rate cover-up and distortion when the newspaper reported that in answer to the question of why BOB felt the government could collect payments when BOB could not, McWeeney said, 'the Bank was limited by certain policies of the commercial banking sector'.
“What utter nonsense. In the first instance, this is the same government that cannot collect more than a half billion in outstanding real property taxes. What will a feckless Christie government do differently? Nothing!
He continued: “Secondly, BOB and all the other banks have no problem kicking struggling Bahamian families out of their homes in order to collect their money when mortgages go bad. No policies' seem to prevent them from doing that to poor and struggling middle class people. And I reiterate, what is the mastermind behind the bank's failure still doing on the stage?
“Clearly the shame associated with bringing BOB to its knees has not been enough to compel him to put his pretty, well-groomed tail between his legs and bow out gracefully. I delude myself in that regard because Ishmael Lightbourne did not have the good taste to bow out, so why should anyone else? They are after all first class FOCs (Friends of Christie).”
Comments
DonAnthony says...
So much blame to go around but no accountability. Of course the entire BOB board should be replaced immediately. The managing director's resignation should have been tendered Friday. Anyone who leaves more than $50,000 (max level depositors insured for) in this bank needs their head examined. Of this bank's 750 million loan portfolio an astounding 58% of the loans are either past due or impaired. There is no sugar coating it as that farce of a press conference tried to do on Friday, this bank has been grossly mismanaged and if not for govt intervention would be teetering on insolvency. It is truly frightening the financial situation this bank is in.
Posted 4 November 2014, 12:45 p.m. Suggest removal
GrassRoot says...
they should have merged BOB with NIB and list Resolve Bahamas on the BISX and sucker more small investors into this. I like that PGC wants to steer more government business to BOB. Ever heard of a black hole my Dear? Only in the Bahamas they throw good money after bad money.
Posted 4 November 2014, 12:49 p.m. Suggest removal
TalRussell says...
Things getting so tough for Bahamalander's, they's selling their belts buy grits and sardines, that suppose keep they pants up. It is important Comrades are made aware that the Bank of the Bahamaland is not the nation's National Bank. There are NO requirement for taxpayers to bail out the banks managements risky lending polices. That the $100 million might help the share values held by the 4000 private individuals and commercial shareholders but will do nothing to lift even one family above the poverty line. It will not provide one single paycheck for the thousands paycheck less. Brace to pay your VAT to further entice this PLP administration blow it on their special pet spending projects. Millions spent that will not loosen the economic belt-tightening of even one of the many thousands pushing their all but empty groceries shopping buggies up to Super Value's checkout registers. PM it may be time for an early checkout of the balance of your 5 year peoples mandate? PM and PLP cabinet Ministers we's the people's is too damn tired be pushing PLP empty promises buggies around, to prop-up you PLP big shots. At least under Papa Hubert the nation's $100 million provided sexy new roads drive around Nassau Town on? You'd have be a pretty bad government for me praise Papa Hubert's spending over PM Christie's not so sexy burning through billions.
http://tribune242.com/users/photos/2014…
Posted 4 November 2014, 1:20 p.m. Suggest removal
jlcandu says...
The PM can cook the books of BOB as much as he wants, but the bank will continue to fail unless the management team is replaced and some standards are adhered to within the company. All those people with deposits at BOB, I would suggest changing your bank forthwith!!!
Posted 4 November 2014, 1:22 p.m. Suggest removal
CrystalR says...
Exactly the ENTIRE Management team has to go not just the Board. The executives and managers sat in their monthly meetings and allowed this mess and what about Central Bank they did not even put BOB in time out!
Posted 11 February 2015, 6:40 p.m. Suggest removal
asiseeit says...
The PM will overhaul the directors and the head of BOB in proper Bahamian style, they ALL will get a bonus for a job well done. Mark my words there will be bonus's paid at Christmas out of OUR 100 million dollars. Maybe we should make ALL politicians put up THEIR property as collateral to ensure the Bahamian people are paid back their 100 million with interest!
Posted 4 November 2014, 3:38 p.m. Suggest removal
ThisIsOurs says...
What would a failing BOB do to the Bahamian economy? Might be some impact but everything won't grind to a halt. BOB is NOT too big to fail. Stop wasting our money, I mean stealing our pension money to give loans to your friends. I'd ask for a third NIB audit at this point.
Posted 4 November 2014, 3:56 p.m. Suggest removal
EasternGate says...
Wendy Craig is like most bureaucrats currying favour with Government to land another cushy job
Posted 4 November 2014, 4:34 p.m. Suggest removal
EasternGate says...
Darron Cash is right on target. Kick their greedy, crooked asses out!
Posted 4 November 2014, 4:36 p.m. Suggest removal
TalRussell says...
Comrade EasternGate there are close $1 billion in outstanding loans at BOB. Only the $100 million of the worst performer loans are being packaged in this funding deal. If you're suggesting that there are no red shirts among these loans it's laughable. Let's open all loan books to the public? Maybe, the cabinet is cleaning up bad loans to sell BOB to Chinese? After all, if you left certain non performing loans in place, you can take it to the bank the Chinese will not write them off. They will come to collect
Posted 4 November 2014, 5:10 p.m. Suggest removal
ThisIsOurs says...
I'm with eastern gate, *greedy crooked asses* wear a rainbow of colours.
Posted 4 November 2014, 9:18 p.m. Suggest removal
Shevone says...
What saddens me is the amount of professionals whose reputations will be scarred by this debacle. If there is one thing mcWeeney seemed good at was influencing all of his senior management teams to turn a blind eye by massaging them with high salaries and pictures in the well produced annual reports. Let's strip away the pomp and pageantry and the expensive colour ads in the newspapers which have hidden the truth. Mr Cash I pray for your wife who became an easy and unnecessary target she should feel vindicated.
Posted 4 November 2014, 10:33 p.m. Suggest removal
CrystalR says...
"Professionals"? They are crooks and complicit in this fraud. He did not force them to turn a blind eye as you said they did it for money. They have NO integrity and they should all be fired along with him!
Posted 11 February 2015, 6:45 p.m. Suggest removal
John says...
When you look at the penalties this government is set to impose on businesses that even make an honest mistake in the VAT regulations (fines that can cause the demise of their businesses or jail time, the management of BOB should not be allowed to carry on business as usual after they obviously wasn't following proper banking rules when the bank lossed over a hundred million dollars.. Leaving the same management team in place is like writing the movie, "Lets Do It Again,(or at least "Lets do it Some More").
Posted 4 November 2014, 10:54 p.m. Suggest removal
ED says...
I just don't know how these guys walk around everyday. They balls got to be so damned big to stand there and lie to us when we know they lying/covering up on SOOO many issues. Then, they want to force VAT down our throats and threaten with ridiculous punishment if we don't give them more of OUR hard earned money. Man, they balls got to be so big they drag behind 'em!
How dare they, our Stealing, Lying, Law Breaking Public Servants threaten us to give them more our our hard earned money. They are one big joe, they can't be serious!
Posted 5 November 2014, 9:35 a.m. Suggest removal
John says...
What is the penalty for raping a bank in such a ravishing and violent manner?
Posted 6 November 2014, 4:41 p.m. Suggest removal
John says...
@ Paul McSweeney...an example when loyalty to political parties and friends takes precedence over professionalism.
Posted 6 November 2014, 4:48 p.m. Suggest removal
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