Globe trust depositors unlikely to receive another payout- BOG

Dec 06, 2012 News

It is highly unlikely that depositors of the failed Globe Trust and Investments Company Limited will receive anymore payouts from the Bank of Guyana (BOG) after this tranche. And, all monies uncollected by depositors will be submitted to the Accountant General.
This was related by BOG’s Governor, Lawrence Williams, yesterday.
According to Williams, BOG followed the liquidation procedures for Licence Financial Institution under the Financial Institution Act that resulted in the payout to depositors. However, many depositors had expressed disappointment with the meager sums issued after waiting 11 years for their monies.
Globe Trust began operating in April 1991 and was licensed in 1999 to conduct depository financial business with authority to engage in Trust business. However, in 2000 and again in 2001 a series of inspections by the BOG found the institution to be in breach of the Financial Institutions Act, and the BOG, with the intention to liquidate, seized the institution in September 2001.
In 2010, Chief Justice (ag), Ian Chang, made a ruling paving the way for payments to depositors to commence. Letters were disseminated to over 3,000 depositors who had savings accounts with balances of $100,000 and less when the Bank of Guyana had stepped in and took control back in 2001.
However, BOG recently issued letters inviting depositors to uplift payments. The letter stated, “Pursuant to an order by the Court under Section 55 (1) (f) of the Financial Institutions Act 1995, dated September 21, 2010, we are in progress of making a final apportionment of payment to depositors with accounts of $100,000 and over.”
“Please therefore contact the Banking Division of the Bank of Guyana, with your passbook or any proof of amount owed and National Identification Card or valid Passport, during working days from 8:00hrs to 12:00 hrs between December 3 – 31, 2012.”
According to Williams, from the collection of monies from debtors and sales of assets BOG was able to pay depositors. However, in keeping with the Financial Institution Act monies owing to Central Bank and taxes were paid. Depositors would have represented the fifth or sixth in line to qualify for any payout.
Williams did not disclose the amount of monies the bank received from all transactions relating to Globe Trust. He said that the Accountant General will have to prepare a report.
The bone of contention is that people who had $100,000 and more saved with Globe Trust are being paid between $4,000 and $8,000. These depositors are seeking answers to the method of calculation that would determine how their money could decline to such an extent.

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Globe trust depositors unlikely to receive another payout- BOG

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