Latest update October 18th, 2024 12:59 AM
Oct 20, 2017 News
Investigators have filed contempt charges against the Guyana Bank For Trade and Industry (GBTI) in a major case that will test the country’s capacity to handle financial crimes.
Yesterday, a number of the bank’s directors were reportedly summoned to the Camp Road headquarters of the Special Organised Crime Unit (SOCU), where top lawyers, including Nigel Hughes and Stephen Fraser, were also on the scene.
At around 4pm, the bank officials, which included Chairman, and directors, Robin Stoby, Suresh Beharry, Basil Mahadeo and Richard Isava, were seen exiting the SOCU compound with their lawyers.
According to sources at the Georgetown Magistrates’ Courts, contempt charges were filed yesterday by SOCU. The charges are said to be in relation to the alleged failure of the bank to provide requested documents ordered by the Chief Justice (ag) Roxane George-Wiltshire in Production Orders granted on the August 30th, 2017.
The bank had been given seven days to comply, but SOCU claimed that it failed and even refused.
The bank and directors are to be arraigned next week in court.
Named in the charges are Chairman, Robin Stoby; and directors, Edward A. Beharry, Suresh Beharry, Kathryn Eytle-McLean, Richard Isava, Carlton James and Basil Mahadeo. Chief Executive Officer (ag) Shaleeza Shaw has also been named.
The case has pitted SOCU against the Director of Public Prosecutions (DPP) after the unit reportedly complained that there were delays in making a decision to charge.
The unit had moved to have the directors be charged after the deadline for the orders elapsed.
However, what SOCU said should have been straightforward case for contempt ended up to something else.
But SOCU’s questions about the seeming delays at the DPP with the files, elicited a sharp retort, with the Chambers questioning the quality of investigative work that the police unit is carrying.
Yesterday, Government officials insisted that the police have been given plenty training in recent times.
The Chambers had said it will not treat the GBTI files in any different manner from others. That issue arose as the DPP, Shalimar Ali-Hack, has retained GBTI’s Chairman Stoby as her lawyer in a case being investigated by SOCU.
The DPP is one of several persons, including ex-ministers, and former President Bharrat Jagdeo, who it has been reported, benefitted from what was described as prime land at Sparendaam, East Coast Demerara, which was sold below market value.
The DPP, in relation to the fallout from the GBTI case, said that the police unit should focus on how to conduct “proper investigations”.
Last month, SOCU, which is tracking down US$500M that the Guyana Rice Development Board (GRDB) handled as far back as 2010, submitted files to the DPP recommending contempt charges against GBTI’s eight directors, including Stoby, the chairman.
This was after the bank and SOCU were locked in a battle over information concerning the GRDB accounts, since February.
SOCU is contending that the bank failed or stalled and gave all kinds of excuses, and even destroyed pertinent records relating to GRDB.
SOCU reportedly argued that other banks complied, but it was finding it hard going with GBTI.
SOCU received four court orders, including one from the High Court, asking that GBTI hand over the information.
In late August, the acting Chief Justice granted production orders to SOCU, giving the bank a week to hand over certain information. That deadline expired in early September, and the bank was reportedly granted some extra time. However, the deadline elapsed and SOCU prepared files recommending the highly unusual charges of contempt against the directors.
Under tough anti-money laundering laws, once court orders are granted, financial institutions are reportedly bound to provide information. In this case, the monies are not from private accounts, but rather from the US dollar and other accounts of GRDB, a state entity.
Since coming into office in May 2015, the administration has ordered several forensic audits into a number of state agencies, including GRDB, the Central Housing and Planning Authority, Guyana Gold Board, the Guyana Marketing Corporation and the National Industrial and Commercial Investments Limited (NICIL). The reports found several questionable transactions up to May 2015, under the previous administration – the People’s Progressive Party/Civic.
SOCU, an arm of the police, was handed those files to carry out the investigations
Several persons, including top GRDB officials, were hauled in for questions. Several of them were charged.
Former President, Bharrat Jagdeo, and several persons, including former Cabinet Secretary, Dr. Roger Luncheon, were also detained.
According to officials, SOCU’s is conducting over 150 separate investigations into financial crimes with at least 40 probes in the NICIL file.
With limited personnel, a number of files have been handed over to the Police Legal Advisor and the DPP, recommending charges.
With regard to the GRDB case, the SOCU investigators were reportedly tracking down where US$500M went. Those monies represented transfers from the Ministry of Finance to pay rice farmer and millers who participated in a lucrative rice-for-oil deal with neighbouring Venezuela.
Farmers and millers, up to 2015, would supply rice, through GRDB.
Under the deal, Guyana received oil, at concessional rates and conditions…Guyana would pay part of the money upfront and the rest over a number of years. The delayed oil money was what the Ministry of Finance paid over to the GRDB to pay rice farmers and millers.
SOCU is reportedly contending that GRDB used those monies to grant illegal loans to some rice millers and even organizations close to the former ruling party.
GRDB is being investigated also about a number of transfers overseas to a number of banks.
Investigators in the case are also reportedly looking at the linkage between GBTI and the rice board.
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