NBS wrongful dismissal suit…

Apr 10, 2019 News

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Lawyer questions Nanda Gopaul about alleged procedural breaches
Director of the New Building Society (NBS), Dr. Nanda Gopaul, faced several questions over procedural breaches, which he says, formed the grounds for the dismissal of former NBS Manager, Kent Vincent.
Gopaul returned to the stand yesterday for further cross examination in the case for which the former Manager is claiming over $500M in damages from NBS for wrongful dismissal.
Former Chief Executive Officer (CEO), Maurice Arjoon, who had similarly sued the entity, claimed that he and his managers (Vincent among them), were set up and charged at the direction of former President Bharrat Jagdeo, after he (Arjoon) refused to sink almost $2B of NBS money into the construction of the Berbice River Bridge.
The CEO had claimed that the lending of NBS money in that manner would have been highly illegal, breaching financial laws.
Arjoon, Vincent and fellow Manager, Kissoon Baldeo, faced charges of conspiracy to defraud the NBS of $69M, back in 2007. The charges were eventually dropped due to lack of evidence. Arjoon has won a $79M award against the society in a civil suit.
The second challenge (Vincent’s) against NBS is ongoing at the High Court before Chief Justice (Ag) Roxane George. At his first appearance last week, the witness was asked a series of questions about the procedure taken by senior officials, former Chief Executive Officer, Mr Arjoon, Mr. Vincent and other managers.
Gopaul had admitted that Arjoon had run “a tight ship” and that the board never had reason to write to the CEO on any matters prior to the case.
He claimed that approval of the senior officials in relation to certain documents (particularly the use of Power of Attorney) was “highly irregular.” The witness said too that, in his view, the transaction should not have taken place in this circumstance. In his witness statement, Gopaul had claimed that Vincent, who was at the time an NBS branch manager, should have taken certain steps to prevent the use of fraudulent powers of attorney.
“In early 2000 through to 2007, NBS formally required all senior officers to ensure that a power of attorney must be personally verified with the deeds registry, as well as contact made with the principal at the address and telephone number on file, to ensure that the principal indeed issued the power. At no time could any other contact information be used, as this would weaken NBS’s security systems. If we were unable to verify the principal using the contact information in file, the transaction would be suspended.”
“NBS required all officers to retain copies of powers of attorney, which were used for withdrawals, and to verify in writing that those powers were verified at the registry.
But as the trial continued yesterday, Gopaul admitted that members of the Board at NBS were satisfied that the procedure was followed and the documents provided were authentic. Senior Counsel Robin Stoby, representing Vincent, asked a series of questions as it relates to the authenticity of documents provided for the transaction.
To which Gopaul responded that the documents were accepted by the Board in 2007. He noted that the same year, a police investigation was launched into the NBS Managers’ handling of an account belonging to Bibi Khan. Khan, who was overseas at the time, had purportedly granted authorization by way of Power-of-Attorney for withdrawals to the tune of some $69M to be made from her account. However, information subsequently surfaced to suggest otherwise.
While under questioning, Dr. Gopaul was confronted with a letter signed by “Mr. Doobay,” of Ontario who questioned the authenticity of the document used to conduct the transaction.
By that time, the steps were taken by the board to suspend the three managers, Vincent included. Taking the witness back to January 2007, the attorney asked whether Vincent was sent home on the basis of the letter written by Doobay.
“Was Mr. Vincent dismissed because of the letter from Mr. Doobay? And this letter by Mr. Doobay, how do you know it is authentic?” the attorney asked.
The witness responded, “I spoke to him and I know his signature?”
He later clarified that it was not due to the letter that NBS dismissed Vincent. He claimed that it was because the former manager failed to follow the bylaws and the manuals of the company.
“Yes, but can you point to which bylaws were breached?” Stoby asked.
The witness began to answer the question, but then said that he could not recall.
“It is in my witness statement,” Gopaul replied.
He admitted however that the board had moved to dismiss the Managers while the criminal investigation was ongoing.

 

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