By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
Bank of the Bahamas newly-apointed chairman has assured minority shareholders that politically-connected loan delinquents will be "treated like any other customer", adding that the Board will not interfere with management.
Wayne Aranha, who led discussion on the troubled BISX-listed institution's fate at Wednesday night's annual general meeting (AGM), said: "We are going to empower management to run it and expect them to be accountable.
"I don't expect calls coming to me concerning the affairs of the bank. I do not expect directors to be instructing management to do things. I think there has to be a clear separation between the owners, the Board and management. I have been given assurance that we will be allowed to act as directors."
Controversy has swirled as to whether bad loans to politically exposed persons (PEPs) played a key role in Bank of the Bahamas' collapse into the October 2014 taxpayer-financed 'bail out'. Mr Aranha told shareholders: "If a PEP is a customer and he is delinquent, he will be treated just as any other customer."
PEPs are persons who hold, or have connections - such as family links - to officials or politicians holding public office. The former government repeatedly denied that loans to 'politically exposed persons' or PEPs were involved in Bank of the Bahamas' demise.
Mr Aranha added that a comprehensive transformation strategy is already underway and, while there is no specific plan yet, the new Board will give the necessary focus to issues such as credit policies, compliance and cost control.
"We can't operate a bank with regulators breathing down our necks. The only way to get regulators to stop is by compliance. We are going to try as quickly as we can to address the various regulations and guidelines," said Mr Aranha.
Comments
jus2cents 6 years, 8 months ago
"Bob Chair: Political Delinquents Cannot Expect Any Favours" - Duh, well yeah! FFS!!! NO Political Favors EVER and Forever!!
Well_mudda_take_sic 6 years, 8 months ago
The new Chairman of BoB has cutely elected to remain silent about whether past corrupt lending practices involving politically exposed persons, including their family members, political friends, business cronies and lovers, are being properly investigated by management and/or contracted forensic audit specialists as an integral part of the recovery processes for seriously delinquent material amounts advanced under credit facilities without sufficient security that appear to have been fraudulently obtained.
Perhaps the new Chairman of BoB should be reminded that we, the people, were promised time and time again by Minnis during the FNM election campaign that his government would set the gold standard for transparency and also let the chips fall where they may when it comes to holding senior government officials (both past and present) fully accountable and responsible for any serious abuse of public office and the public trust. There comes a point where former (or present) public officials who have committed serious crimes through the abuse of their public office should no longer be entitled to enjoy the benefit of bank privacy.
killemwitdakno 6 years, 8 months ago
They ought to know which economic stimulating categories need loans.
I think you're going to need mgmt to be headquartered elsewhere making approvals in order to stick to anti PEP policy. Maybe at one of the embassies.
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