Bank of Bahamas managing director Paul McWeeney.
By AVA TURNQUEST
Tribune Staff Reporter
aturnquest@tribunemedia.net
INVESTIGATORS have “some good leads” in their probe into suspected breaches of confidentiality at the Bank of the Bahamas, the bank’s managing director, Paul McWeeney, said yesterday.
Mr McWeeney declined to comment on claims that there have been mass withdrawals at the bank due to uncertainty over its fiscal performance, adding that he felt the biggest concern for the institution at this time was the investigation being undertaken by the Data Protection Commissioner.
Prime Minister Perry Christie yesterday restated the government’s support for the bank as the 65 per cent majority owner, assuring “its customers and the general public that their money is safe and secure”.
In a press statement, Mr Christie said: “There is absolutely no reason for any fear or concern on that score. The bank is sound and solid. The bank has consistently received unqualified audit reports from its external auditors and like all other banks is closely regulated by the Central Bank of The Bahamas to ensure conformity with regulatory requirements and international standards and practices.”
It is the second statement in recent weeks to provide assurances over the bank’s fiscal stability.
Bank of the Bahamas (BOB) launched a probe last month to uncover whether there were any breaches in confidentiality following reports that alleged that the bank had given preferential treatment to politically connected clients.
In a statement, the bank said it felt compelled to respond because media reports had, it said, presented a “highly distorted, incomplete and inaccurate picture of the true facts.”
It added that the bank’s loss of $3.5 million last year, the first in 20 years, was not unique and that it is poised to see a return to profitability.
In an interview with The Tribune yesterday, Mr McWeeney said: “We’re not the only bank that has lost money, I don’t think the concern is that, I think the biggest concern is the breach of confidentiality, that is what people are concerned about. The matter has been turned over to the Data Commissioner.”
Mr McWeeney said the institution will have to wait for the outcome of the Data Commissioner’s investigation before attempting to mitigate any potential damage to public confidence.
Yesterday, Attorney General Allyson Maynard-Gibson declined to comment on whether the Financial Investigation Unit will investigate fiscal practices at the Bank of the Bahamas, stating that she was not familiar with the claims.
When asked whether or not there was an investigation currently underway, Mrs Maynard-Gibson said: “I would not be able to comment on that either, that is a matter for the police.”
Comments
nationbuilder 10 years, 2 months ago
A loss for them has not happened in 20 years, but it's "not unique" for them. Okay.
proudloudandfnm 10 years, 2 months ago
Well I guess giving Obie and Pleasant all that money for nothing has finally bitten them in their butts.. Next time don't go lending two non professionals 2 million plus with no security. I would never bank with BOB just because of that. Never seen a bank act so irresponsibly.....
proudloudandfnm 10 years, 2 months ago
I have 30 years experience in my field. Went to a bank with property owned outright in Nassau and in Exuma, property worth well over a million. Had a good business plan and client contracts. Bank wouldn't even talk to me. Yet those two dunces with no experience and no nothing could walk in and get 2 million with no security? Please. Close it down now, get our money out of it and let this go on into history. Why in God's name our government owns a friggin bank is beyond me...
JohnDoe 10 years, 2 months ago
Excellent question! I was watching and waiting to see how long it would have taken for someone to ask this question. The government does not even do business with its own bank.... go figure! There is absolutely no commercial rationale for the government owning this bank and instead of talk nonsense about BTC and rambling about VAT this asset should be sold at once.
ThisIsOurs 10 years, 2 months ago
Why in God's name our government owns a friggin bank is beyond me...
Sounds like you just gave the answer....
banker 10 years, 2 months ago
How many weeks has it been since the breech of privacy? And they got good leads? Sounds like diddley-squat to me.
Mayaguana34 10 years, 2 months ago
Gulf Union..Gulf Union ..Gulf Union - The 'connected clients' get there funds out before the collapse and the guys with a couple of grand got fifteen cents on the dollar - Same thing happened in Turks the other day - My money been gone
John 10 years, 2 months ago
What gets me is the bank says they "did not do nuttin wrong", and that the loans were given in accordance with standard lending practices, yet they fioring people left, right and center. Usually one does not hear about these things when the economy is good, because the bank sweeps it under the rug and shareholders still manage to get dividends, but in a lean economy, like now, everyone sees this big bulge of dirt poking out from under the rug....unfortunately things may get worse before they get better!
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