The Tribune

By AVA TURNQUEST

Tribune Staff Reporter

aturnquest@tribunemedia.net

FNM Shadow Minister for Finance K Peter Turnquest said he plans to call for a select committee to probe “significant concerns” over management and lending practices at the Bank of the Bahamas.

Underscoring the need for a transparent inquiry into leaks that allege prominent PLP members and supporters were given preferential loans and overdrafts, Mr Turnquest said a review must be conducted to determine whether political mismanagement may have contributed to BOB’s current financial position of repeated losses, and growing public uncertainty.

Mr Turnquest said: “It’s obvious that there are significant concerns at the bank. We at this particular point don’t know all the details, and I am going to call for a select committee to look into that.

“I believe that not only is there a governance issue, but also a bank supervision issue, which may indicate an even bigger problem and so we need to get to the bottom of it to ensure that investors and depositors are protected.”

Following claims that the BOB had issued multi-million dollar, unsecured sums to politically-connected supporters of the PLP - much of which is in default, the Bank of the Bahamas International launched a probe last month to uncover whether there were any breaches in confidentiality.

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 was not unique and that it is poised to see a return to profitability.

Earlier this month, Prime Minister Perry Christie reaffirmed 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.”