Police pursue criminal charges in NBS standoff

Jan 25, 2018 News

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• mortgage lender threatens to freeze $59M paid to former CEO
• claims doors locked after believing robbery underway

Police have taken statements from several officials of mortgage lender, New Building Society (NBS), with a view to determining whether criminal charges will be laid for Tuesday’s standoff.
Several customers, a Court Marshal, lawyer and a police rank, were among persons locked in at NBS head office on Avenue of the Republic, and have given statements to investigators.
A number of managers, including females, and at least three security guards, were detained Wednesday evening and released around 10pm as police tried to determine who issued the order for the doors to be closed.
The doors were closed shortly after midday when a Court Marshal, lawyer and police turned up to levy on properties of NBS following a judge’s ruling last month. The judge ordered that former Chief Executive Officer (CEO), Maurice Arjoon, be paid $59M, some $20M down from the total sum that was ordered to be paid by the High Court judge, Brassington Reynolds, had ruled mid-last year in the original lawsuit.
NBS filed actions to stall the judgment but Justice Rishi Persaud, decided last month that the former executive must be paid.
After NBS failed to hand over the monies and instead reportedly filed to appeal, Justice Persaud’s decision, lawyers for Arjoon moved in with Court Marshals on Wednesday, leading to several hours of stand-off with persons being locked in the bank.
Lawyers for Arjoon believe that the actions of NBS were designed to stop the levy proceedings.
However, by then Court Marshals had managed to seize one SUV- a Nissan X-Trail.
Yesterday, ‘A’ Division Commander, Marlon Chapman, disclosed that the NBS managers and security guards were all placed on bail Tuesday night and that “investigations” were continuing.
Police officials said Tuesday that from all indications, NBS broke the laws when it stopped the Court Marshals from levying on assets owned by the institution.
NBS also allegedly broke the law by keeping persons against their will in the property. NBS on Tuesday, amid pressure and advice, issued the check for $59,033, 281 to Gina Arjoon-Hira, daughter of the former CEO.
Both the daughter and her husband, attorney-at-law, Ganesh Hira, who was taking the actions on behalf of his in-law, were among those locked in by NBS.
Yesterday, however, a defiant NBS made it clear that its actions were because they feared that a robbery was about to happen and therefore took precautions to secure its cash.
It has since signalled intentions to freeze the monies that it paid Arjoon. But that might easier be said than done.
The monies have already been transferred to another bank, officials said.
Arjoon and his two managers, Kent Vincent, and Kissoon Baldeo, were arrested and charged in 2007 for allegedly stealing $69M from a client’s account. NBS later fired them.
However, they were cleared by the court. An Ombudsman report later questioned the causes for the charges.
Arjoon filed a lawsuit claiming his benefits and pension. Arjoon himself claimed that he and the managers were framed for not allowing a $2B investment in the Berbice River Bridge, a transaction he said would have been illegal for NBS.
The court matter dragged on for a decade with NBS remaining defiant.
The three managers have signalled an intention to pursue damages also with Vincent’s matter currently engaging the High Court.
Baldeo has moved to New Jersey, US. All three men have complained of the shame and suffering during the last decade.

This is the statement that was issued by NBS yesterday, defending its actions Tuesday:
The New Building Society Limited (NBS) would like to offer clarification on issues surrounding the storming of its Chief Office by unknown individuals, later identified as marshals of the Supreme Court, lawyers and relatives for Mr. Maurice Arjoon, former CEO of the Society.
At around 12:30 p.m. on Tuesday, January 23, 2018, a group of men came to the back entrance of the Society’s Office and opened the door of a Nissan Vehicle, owned by the Society and driven by an employee. They ordered the employee out of the vehicle and forcibly took the keys and took possession of the said vehicle.
At the same time, persons were seen coming out of a vehicle with building breaking equipment outside of the Society’s building perimeter. This caused some panic among employees of the Society who thought that a robbery was about to take place. Several cashiers moved away from their posts and the management quickly took a decision to lock down the entity. Subsequently, members of the Guyana Police Force arrived and management was informed that the persons who took possession of the vehicle and were in and around the Head Office were marshals of the Supreme Court.
In the midst of the commotion and the absence of a court order being produced, the management took a decision to safeguard the cash while giving customers an opportunity to orderly leave the bank through one entrance. The NBS at no time prevented persons from leaving the office and in an effort to ensure the safety of cash, there was some inconvenience.
Given the manner in which this operation was conducted and the absence, even up to this point in time, of the Court Order, it is our view that the management took the right decision to protect the interest of the Society, its staff and customers.
The marshals and others came in unidentified like ‘thieves in the night’ in an unprofessional manner that resulted in the panic, chaos and misunderstanding.
The Society wishes to let it be known that if properly served with any instrument or order of the court, we would readily comply with such an order or instructions.
When our lawyers came to the scene, and in spite of us still not receiving a court order, the Society took the decision to make the payment to Mr. Arjoon. This was from the Society’s funds while we await a refund from the Trust Company (Custodial Trustees) of the Pension Scheme.
The Society wishes to state the following:
– The unprofessional conduct of the Marshals will be communicated to their superiors for an inquiry to be held
– The large presence of police officers, some of whom were armed with high powered rifles, makes it appear that they may have been apparently under the instructions of someone or persons bent on embarrassing the Society
– The further delay and detention of our Security and Managers after the impasse must be viewed with concern as the Security of the premises was left exposed
– On Jan 04, 2018 the Society as well as the other appellants , including Trust Company (Guyana) Limited received a court order directing that the sum of $59,033,281.00 be paid over to Mr. Arjoon representing his pension benefits. This benefit should have been paid from the Pension Scheme funds, held by the Trust Company (Guyana) Limited assuming it was the final award.
– The Lawyers for the Society and Trust Company appealed that decision on Jan 09, 2018 and requested the Court of Appeal to set aside that order
– The Court has not deliberated on this matter as yet. However, Lawyers for Mr. Arjoon moved to secure an Order to Levy on the Society’s properties. While the Society paid over the said sum to avoid a confrontation, it will be taking steps to safeguard that sum given the fact that the matter will continue in Court until a final resolution.
– Assuming that they were correct to levy for the Pension Benefits, this payment ought to have been made from the Pension Scheme Funds and not the NBS assets. The Society will therefore seek to redress this illegal and improper conduct of Mr. Arjoon’s representatives, his Lawyers and the Marshals.
– The Society will also seek to have a proper explanation from the appropriate authorities concerning the seizure and impounding of one of its motor vehicles.

The Society remained quiet while this matter was in court over the years giving due respect to the sub judice rule, notwithstanding the many speculative reports and accusations not borne out by the facts surrounding the dismissals of Arjoon and others.
Political motives were mentioned ad nauseam as the reasons for their dismissals. However, the dismissals of the three senior officers had nothing to do with the Berbice Bridge or the intervention of any Government officials at that time.
The Board of Directors of the Society at that time unanimously agreed to the dismissal of the three officers for serious infractions, including gross misconduct and negligent performance of their duties. The payment of $69M by these officials in an unauthorised manner and under highly suspicious circumstances caused the Society to suffer a loss by re-imbursing the account holder via a court order in the sum of $71M
The Society’s investment in the Berbice Bridge is a very lucrative one and has been proven to be a correct decision. The claim therefore by Mr. Arjoon and others must be seen as a mere smoke screen to garner public sympathy and to cover up their failure to follow standard operating procedures in the performance of their duties.
The Society will remain steadfast as a responsible financial institution to defend its interest.
January 24, 2018.

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