An open letter to Chris Ram

Jul 02, 2014 Letters

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Dear Mr. Ram,
Re: Republic Bank (Guyana) Ltd.
We learn from the 2013 Annual Report of this institution titled “Above & beyond” that your firm is its Auditors.
In the aforementioned Annual Report we note the Managing Director’s assertion of the Bank’s commitment to the building of a “financial system that is characterized by integrity” and further of its belief that “integrity (is one component of) … is the foundation on which (its) contribution to the future well-being of Guyana is founded.”
The above values, principles and goal are endorsed by the Bank Chairman in the penultimate paragraph of the Statement of Corporate Governance Practices. He unequivocally commits the Bank to upholding confidentiality, honesty, highest ethical standards, integrity, etc in its business and the banking affairs of its customers.
We learn, as well, that the “External Auditors have full and free access to the integrity of the Bank’s financial and accounting reporting.”
Under the Auditors’ Report we note that your firm’s responsibility is to ensure that it complies with “ethical requirements, etc.”
While we have no reason to suspect that your firm does not take its stated responsibility seriously, our experience with this institution belies the pious declarations and it is this that we wish to bring to your attention.
In a nutshell we have been at the receiving end of the most dishonourable and reprehensible conduct at the hands of this Bank. In particular, we refer to an undertaking given to us by the Bank’s Managing Director on June 30, 2011 and in the presence of three other senior officers of the Bank.
The said Managing Director subsequently denied ever giving this undertaking and following our earnest efforts to have the issue resolved with the Bank’s then Chairman, we were forced to initiate legal action to seek redress. This Action -No. 298 C/D 2012-was filed on May 15, 2012.
To date the Bank has filed a Defence and Counterclaim as well as a Witness Statement under the hand of Patricia Plummer. The purported Receiver has filed a Defence but not a Witness Statement. These submissions can only be described as a collection of pitiful lies.
Our Witness Statement chronicles our travail and a chronology of our court appearances these past 24 months would make for instructive reading. Suffice to say that twice dates were fixed for a trial to begin and on both occasions the trial seemed to disappear into thin air. Interrogatories were sought (after the trial dates), granted and submitted 31 days late without any explanation from the Defendants!
This correspondence is not the place to rehash what’s in our Writ and Witness Statement. We wish though to draw your attention to three issues chosen at random. These are :
1. Demand for Payment under Guarantees from Republic Bank to Ronald Bulkan and Rustum Bulkan, dated July 13, 2012 for a sum of money that does not take into account the Proceeds that would have accrued from an Agreement of Sale and Purchase that we took to the Bank. Failure to conclude this Agreement of Sale was due entirely to actions on the part of Republic Bank and its agent, Kashir Khan. We describe such conduct as worse than what might obtain in the underworld.
2. In their Defence & Counterclaim the Bank denies any knowledge prior to our meeting with them on June 30, 2011 of our intention to dispose of real estate (lots 32 & E1/2, 21 Ruimveldt Industrial Estate).
That this communication was via email of June 24, 2011 seems to be of no consequence. Perhaps your client is of the view that it is not possible to independently verify the authenticity of email.
3. The Bank claims that the sum of $82,068,617. which we were informed was deposited in our account on June 16, 2011 was actually a “Loan Loss Provision” effected under the Financial Institutions Act and the Bank of Guyana Rules and Orders.
In the Notes to the Financial Statements in the Annual Report and at 19.2 the Bank provides a clear procedure for loan loss provisions. Therein it is stated that “a review of these provisions is conducted quarterly in accordance with established guidelines and recommended provisions arising out of this review are submitted to the Board for approval.”
It is the case that our account was in proper standing at the end of Q2 2011 and this supposed loan loss provision/credit to our account was effected BEFORE the end of Q3 which rubbishes the stated operating principle.
While it is that we recognize that you are under no obligation to respond to us we are of the opinion that you do not see your duty as being narrowly circumscribed and are therefore hopeful that you will see it fit to act in the wider interest. Such interest would include, among others, that of the Bank’s shareholders. In this regard the largest shareholder, CLICO Investment Fund with 24.8 % shareholding in Republic Bank Ltd (the parent company of Republic Bank Guy. Ltd) and a vehicle of the Government of the Republic of Trinidad and Tobago by definition will be interested in this matter.
The above said, we stand ready to provide you with any further information you may require and we repeat our hope that this intervention of ours will net be a futile one.
 Ronald and Rustum Bulkan
C.c.    Mr. Khemraj Ramjattan — Attorney-at-Law
C.c.    Mr. Joesph Harmon — Attorney-at-Law

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