The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Bank of The Bahamas’ managing director yesterday pledged that lending policies have been tightened significantly since it secured a $34,000 loan on a vehicle it already knew was stolen.

Kenrick Brathwaite acknowledged to Tribune Business that “there were a lot of things that should have given red flags” over the two loans it extended to Denalee Penn-Mackey, principal of the Evergreen Mortuary funeral homes, to enable her to purchase two vehicles (see other article HERE).

Justice Indra Charles, in an August 20, 2021, Supreme Court verdict, revealed that the BISX-listed institution failed to inform the funeral home chief that the first vehicle had been stolen in Florida a year before and allowed her to go through with the purchase.

She subsequently bought a second vehicle from the same person who had sold her the stolen automobile. Another loan from Bank of The Bahamas was obtained for the second vehicle’s purchase, but the funeral home chief only had use of them for 18 months before both were seized by Bahamas Customs for non-payment of due import tariffs.

Responding to these events, which occurred in 2010 well before he or the current management team and Board took office, Mr Brathwaite said Bank of The Bahamas now required all potential borrowers acquiring vehicles from overseas to obtain Carfax reports on the subject automobile’s history as well as conduct investigations on the vehicle’s title.

“In a lot of cases it’s because people don’t understand the risk. We’ve introduced a lot of new policies and procedures to enhance risk assessment,” he told this newspaper. “In this case [Mrs Penn-Mackey’s], there were a lot of things that should have given red flags, but if the policies are not in place, persons will say it’s not necessary.

“We’ve enhanced our policies, especially around purchasing vehicles from abroad, and I am more comfortable in this instance, whether it’s in our best interests or the customer’s best interests, whoever, that we protect everybody. It is unlikely to happen now.”

Mr Brathwaite said he was confident Bank of The Bahamas staff will ask questions if a Carfax report shows a vehicle as stolen, or it cannot determine its history over the past two years. “When you take short cuts in risk assessment and policies, there are always things that come up,” he told Tribune Business.

“I take no comfort from this being a legacy issue; it’s still my bank. Before this case came to light we knew a lot of things had to be done, and we put things in place to make sure they were. We’ve put a lot of things in place to help us better assess and make wise decisions.

“We’ve come a long way, but there is still a way to go yet. We’re working towards a goal, and have a lot of things in place to make this bank stronger not only for today but the longer term.”

While Mrs Penn-Mackey initiated legal action against Bank of The Bahamas, the Supreme Court found in the latter’s favour on the basis that she should have conducted her own investigation to determine whether there was good and marketable title to both vehicles having pledged that they were “free and clear of all liens and encumbrances” as part of the loan terms.

As a result, the Evergreen Mortuary principal has been ordered to pay Bank of The Bahamas some $64,370 in principal on the outstanding auto loans. And, with Justice Charles imposing interest at 14 percent per annum (just over $9,000) for a nine-year plus period between March 2012 and August 2021, Mrs Penn-Mackey will have to pay more in interest - over $81,000 - than principal that is due.

Mrs Penn-Mackey yesterday said she planned to appeal the Supreme Court’s verdict, saying “definitely will be, definitely will be”. She referred this newspaper to her attorney, Yvette McCartney-Meredith, who said she was still analysing Justice Charles’ verdict and would then give her client a legal opinion on the merits of an appeal.