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NBS politically hijacked, bridge bonds purchase illegal – ‘Concerned’ Members
…legal action contemplated
Chartered Accountant Christopher Ram making a point at yesterday’s meeting
By Gary Eleazar
Despite a less than desired turnout, the Committee of Concerned NBS Members yesterday ventilated their grouses over what is happening at the company.
The meeting was chaired by the Committee Chairman, Cyril Walker, and there were extensive presentations by Ramon Gaskin and eminent Chartered Accountant Christopher Ram.
One of the main points ventilated extensively was the political hijacking of the administration of the NBS, something that was considered a dangerous precedent in that the government could use the money in the Society as a slush fund.
“The composition of the board is off grave concern…it is a political board.”
Another issue discussed was the $1.5B purchase of the bonds in the Berbice River Bridge, an act that was deemed illegal given that under the NBS Act investments by the Company should be in guaranteed and secured bonds or instruments.
It was pointed out that the Government from the inception had asked NBS to invest $3B in the construction of the Bridge and after a report was compiled and submitted the company decided to invest a mere $350M.
Gaskin, who prepared the report, informed the company that apart from the fact that the investment would have been illegal, he said that he was further convinced that the Bridge would make a profit.
It was pointed out that had the Company been registered under the Financial Institutions Act as it should, it would not have been allowed to invest the $1.5B in the bridge bond that was held by CLICO (Guyana).
“Investing some $2B in the bridge is risky business.”
The Committee members also pointed out that the decision was not discussed; rather, it was done round robin.
One of the other issues raised in the meeting prior to Saturday’s Annual General Meeting was the proposal to remove the current auditors that have been assessing the company for the last 30 years and replace them with another. According to the committee members, the present crop was also politically inclined.
It was pointed out, too, that the audit committee at NBS consisted of a lawyer and an ex Deputy Commissioner of Police.
According to Ram, it is the audit committee that is supposed to justify the removal of the present auditors and validate reasons for the new ones.
“There is no qualified accountant on that audit committee.”
The increasing of the lending limit as approved by the board or Finance Minister was also raised and was described as a dangerous precedent.
According to Ram, NBS is the third largest financial institution in Guyana and as such cannot be managed like a cake shop. “You cannot treat NBS in such a cavalier manner…it has to be properly regulated.”
The decision as it relates to the choice in location was another bugbear in that it was pointed out that 80 per cent of the shareholders were in Georgetown and the meeting was being held in Berbice.
It was a deliberate ploy, he said. “How many persons from Demerara would travel to Berbice to vote against the proposals?”
Ram was adamant that the committee must not remain silent and launch a vociferous campaign against the injustices being perpetrated.
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