By KHRISNA VIRGIL
Tribune Staff Reporter
kvirgil@tribunemedia.net
THE Opposition is demanding that Prime Minister Perry Christie, who has responsibility for the Finance portfolio, address the rising concerns over the condition of the Bank of The Bahamas (BOB).
Finance FNM shadow minister Peter Turnquest yesterday said there are growing concerns about the management and lending practices of the troubled bank, which reported a loss of $3.5m for the first time in 20 years. Another loss of $1.9m for the first quarter of fiscal 2014, has also been reported, Mr Turnquest said.
The uncertainty of the financial institution has led shareholders, Mr Turnquest said, to sell BOB shares. However, there are no buyers, he claimed.
“The constant drip of eye-raising stories about Bank of The Bahamas,” he said, “have raised public concerns and anger to a level that now deserves a formal response in Parliament by the Minister of Finance.
“At the heart of the reports are whistleblower leaks that highlight the significant dollar value of loans and overdrafts extended to prominent members of the Progressive Liberal Party Cabinet, parliamentary team and high profile supporters of the PLP.”
“The details in the press reports to date have not been confirmed by BOB, but there are major public concerns about whether special favours were given to politically connected insiders and whether those special favours have contributed to BOB’s current financial position of repeated losses.”
Mr Turnquest said that the Christie administration must take note of BOB’s poor financial performance and the implications to those with invested interests in the bank.
“The financial services industry and the National Insurance Board recently invested another $35 million in this institution. Doubts about whether there is meaningful independence from an intensely intrusive government are very high and must be put to rest in a transparent manner. As of January 15, 2014 investors were lining up to sell BOB shares relative to other banks,” Mr Turnquest said.
Comments
ThisIsOurs 10 years, 3 months ago
When were these loans granted? Before or after May 7 2012?
35million from NIB???? To cover the bad loans from these people? Loans they will never even be asked to pay. No loan officer will harass them, no police will show up at their door to allow movers to take their furniture or the wrecker to take their car, the bank won't take their house...the loan will simply be written off.
NIB?? I asked just this morning why Shane Gibson would have been given responsibility for such a cash rich organization...why don't they just pull up to the front door and drive away with bags of cash? Don't forget to wear the black eye masks
B_I_D___ 10 years, 3 months ago
I have heard from reliable sources that BOB's days are numbered and that they are in serious financial trouble...now...reliable vs factual, I cannot guarantee...so call it hearsay if you want.
thomas 10 years, 3 months ago
S O S
proudloudandfnm 10 years, 3 months ago
Well al of us here in Freeport watched Universal Distributors operate for 2 years without so much as a peanut sold. Going price for rent on that warehouse is $65,000.00 per month. BOB sent a liquidator to Freeport to close the business down, that too is common knowledge. So what kind of collateral did they have from the PLP MP's? Or was that just a favor we the people of the Bahamas did for the PLP MP's?
hj 10 years, 3 months ago
I believe PC is the minister responsible for BOB. Now I know that finance is not really his field ( he has demonstrated this again and again) but perhaps he could answer a really simple question. Were any unsecured loans were given during his administration and to whom?
Honestman 10 years, 3 months ago
Don't expect an answer anytime soon. In any case, I think we all know the answer!!
hj 10 years, 3 months ago
You are right I never expected an answer anyway,but then again a silence in that matter is an answer by itself
nationbuilder 10 years, 3 months ago
notice the press has not done one single bit of investigation into any of this though it has been known for some time now - i wonder why. nothing of actual significance gets investigated in this country by the media, just useless banter that makes headlines
concernedcitizen 10 years, 3 months ago
Its the Developement bank circa 2014
ThisIsOurs 10 years, 3 months ago
How can someone rack up 28million in debt at a commercial bank? I can see you making that kind of loss if you play a high stakes poker game or you invest in some risky option and end up on the wrong side of the trade. But at a regular commercial bank? How is that possible? At minimum there should be an asset that should be covering the greater percentage of the debt. How is this possible.?
Regular consumers are having their money stolen from a bank. We rail about Canadian banks taking profits back to Canada, but what is this? Then, our pension money that we pay religiously to NIB is being stolen to subsidize their lifestyles. They placed someone in charge, who is known for their light fingers, just to make sure it all goes seamlessly. We have a bunch of gamblers sitting in the House and they're using our money to make high stakes bets, then they direct the loan shark to tax us again to make up the shortfall.
proudloudandfnm 10 years, 3 months ago
Rory/Sickman/captain Bahamas, I'm curious. DO you ever offer any solutions? Or are you just an azzhole that can't say or do anything positive? I mean seriously. You haven't changed on lil bit. Still the most negative non contributing piece of dog nanny on the internet.... Dude! Get a woman or something. All that negativity is gonna kill ya sour ass....
proudloudandfnm 10 years, 3 months ago
Sicko!!!! Man I miss you! No one else on the entire internet is easier to piss off. Happy News Year to you man, hopefully you'll find a woman this year so you can move outta ya ma's house and live a normal life. Um never mind... Forgot who I was talking to their for a second.... Enjoy your miserable existence man.. Lord knows you've earned it.....
Baha10 10 years, 3 months ago
I suppose the gist of all this is that BoB is going down, so presumably there will be run on the Bank tomorrow, assuming of course those in the know have not already cleared out the vault. Should be an interesting week, albeit another sad event to celebrate 40 years of self governance.
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