Fellow Anguillans & Residents of Anguilla,
The Eastern Caribbean Central Bank assumed Control of the Caribbean Commercial Bank (CCB) and the National Bank of Anguilla Ltd (NBA) on 15 August 2013. This action was approved by the Honourable Chief Minister and Minister of Finance, Mr. Hubert Hubert Hughes, who is also a member of the ECCB’s Monetary Council and the Ministerial Sub-committee on Banking. It was these two organs of the ECCB that took the decision to assume control of the two indigenous banks on Anguilla. And, according to the Chief Minister, it was only done after “due consideration and representations” by the Government”.
The Governor of the ECCB, Sir Dwight Venner, gave the following reasons for the ECCB taking control of the banks:
1. The economies of the Eastern Caribbean Currency Union (ECCU) are mainly dependent for their growth on two sectors, tourism and construction;
2. The global crisis has had a major impact on these sectors;
3. Growth in Anguilla has virtually collapsed, falling from an average of 15.8 per cent between 2005 and 2007 to an average contraction of 5.5 per cent for the period 2008-2012; and
4. The banks have seen their non-performing loans escalate to levels beyond the guidelines set by the Central Bank and this in turn has resulted in the banks not meeting their capital requirements.
Sir Dwight also made it known, that “over the last two years, the banks have been under very close supervision by the ECCB. The Central Bank has had several onsite inspections of the two institutions and their Directors and Managements have visited the headquarters of the ECCB for consultations”. Take note that this was from 2011.
Chief Minister Hughes in support of Sir Dwight’s position on the reasons for the take over, in his address on the actions of the ECCB, made it clear that “the global economic and financial crisis has hit the country’s major sectors, tourism and construction and this has had a significant impact on the performance of loans to these sectors. The banks have been facing a number of challenges including: poor earnings performance, declining asset quality, high levels of non-performing loans, weak corporate governance and the inability of their managements to reverse the situation”.
Anguilla’s Governor Christina Scott confirmed the same reasons for the take over in her remarks when she said:
“The impact of the global crisis on the main pillars of the Anguillan economy, namely tourism and construction, has been marked. This has had a serious “knock on” effect on the entire banking sector, and in particular our indigenous banks”.
From the statements of the Governor of the ECCB Sir Dwight Venner; Chief Minister Hughes; and Governor Scott, it is clear that actions of the ECCB in relation to the two indigenous banks was as a result of the global economic situation and its impact on the Anguilla’s economy.
Despite these clearly stated presentations, in record time the “spin doctors” and the “propagandists” on Anguilla got to work. In their usual manner they employed LIES, BLAME AND DEFAMATION to try to fool the Anguillian community and the world into believing that the take over of the Banks resulted from the action of a few persons who they carefully selected. These “spin doctors” tried to imply that the takeover had absolutely nothing to do with the impact of the global economic situation on Anguilla.
These LIARS, BLAMERS and DEFAMERS, did their work in the most cowardly manner — sneakily throwing their stones and hiding their hands. They “cut and pasted” documents which they circulated without signature and without any indication of who wrote them. They made their comments on Facebook and other social media under fictitious names — so that their true identity could not be known. All this was done in this manner because they knew that what they wrote could land them in court because of the willful and malicious LIES and the DEFAMATORY STATEMENTS they made about a number persons. These cowards carried out their dastardly acts in a manner befitting a criminal mentality, that is, without shame or remorse.
These callous and cowardly acts were designed to be destructive and should therefore give us all much cause for concern. Concern because a number of persons carelessly believe what they hear (without even reading the documents) and then join in the circulation of these trashy documents without even trying to determine their origin or the accuracy of their contents. Persons from the highest levels in the House of Assembly down to the ordinary folk on the villages all joined in the circulation these false documents therefore helping to spread the LIES and DEFAMATORY STATEMENTS they contain.
The main article of propaganda to which I refer to is a six-page document entitled “Mismanagement, Abuse, Intimidation and Corruption Prompts Bank Take over on Anguilla”. On the face of it this sounds like a catchy title for a well-researched newspaper report. But on the contrary the paper is simply BLAMING others for the takeover of the Banks. And through its contents of LIES & HALF TRUTHS it proceeds to defame many innocent persons. While that paper may have been prepared to promote a specific agenda, it must also be seen as a paper that is ANTI- LOCAL INVESTMENT. Because it paints the picture that Anguillians who take the risk and initiative to borrow and invest in their country are mere vagabonds and thieves. Again the most worrying aspect about all of this is that a number of Anguillians have bought in to this baseless concept “hook, line and sinker”, believing every single word without even questioning the sources.
My presentation here is not to defend anyone in particular. I am sure that those persons mentioned in the paper are quite capable of defending themselves and in their own time and in their own manner. But let me make it very clear that if any Board member or members of these local banks were involved in any illegal practices, then they should be prosecuted to the fullest extent of the relevant law. To go a bit further, any illegal action perpetrated through the banks whether by politicians, civil servants, board members or any citizen or resident of Anguilla must likewise be equally dealt with under the law. This must also include any Board Member or Members who separately or collectively used their privileged positions for personal benefit at the expense of the shareholders and customers. The EECB will no doubt report on any findings of impropriety in this regard in due time — if they do exist.
However, the point that I am making to all Anguillians is that “it is OK to invest in your country”. There is no sin in being ambitious. We all hold fast to and believe it when we say: “Anguilla is for Anguillians”. The only way Anguilla will continue to be owned by Anguillians is if we have Anguillans who are prepared to take the risk to invest in this our native land. By investing we are contributing to our national development.
A case in point, those persons who invested their hard earned money in ANGLEC must be highly commended and congratulated for doing so. Yes! It was and is ok to invest. It was their investment that jump-started the positive growth in Anguilla’s Economy. It was an investment that can arguably be considered to have resulted in every other development that took place in Anguilla during the period 2004 – 2008. We all will recall that prior to the sale of ANGLEC shares to the public, ANGLEC was fully owned by the GoA. As result of the sale, 1128 Anguillians got the opportunity to directly own a part of that utility. These 1128 shareholders account for 17% of the shares in ANGLEC. Seven of Anguilla’s major businesses own another 4% of the shares. And Anguillians as a collective indirectly own the rest of the Utility through the GoA, the Social Security Board and the local banks’ shareholdings.
We will also recall that the sale was made to facilitate the Wallblake Expansion Project and in particular the rehabilitation and resettlement aspect of the project. But in addition, that project was, first and foremost, an incentive for a number of expatriate companies and individuals to invest in Anguilla. As result of the investment made in ANGLEC by Anguillians and Angullian businesses, over 50 families benefited directly either through the construction of homes or through purchase of their property. Yes as result of the investment in ANGLEC, over 60 local contractors and sub-contractors gained employment and earned a living for themselves and their families. The heavy equipment operators and local hardware suppliers all directly benefitted from the investment in the ANGLEC. Yes! That is why it is ok to invest. This money that the contractors, subcontractors, heavy equipment operators and suppliers received also circulated throughout Anguilla and resulted in the positive growth in our economy. So yes, the risk takers, those who invested in ANGLEC made it happen for Anguilla. The AUF Government of the day and the Board of ANGLEC must be commended for their foresight and for implementing the decision to divest those shares. We owe all those who bought shares a world of gratitude.
In this context, persons like Mr. Sutcliffe Hodge, the largest single share holder with a hundred thousand (100 000) shares, followed by Mr. Marcel Fahie, Mr. Federick Harrigan, Mr. Wayne Hughes and Ms. Noreen Hodge with forty thousand (40, 000), thirty three (33 000), thirty (30 000) and twenty eight (28 000) shares respectively must not be vilified and scorned but rather greatly appreciated for their individual investments in ANGLEC in the same way as persons who bought the minimum of 100 shares. So too must be MAICO, JW Proctors, NICO and Anguilla Printers, four locally owned and operated enterprises that also invested substantially in ANGLEC. All of this is public information to which, like me, everyone can have access. There is therefore no need to hide like cowards behind the blogs cowering from the threat of a lawsuit simply because you want to exaggerate or fabricate the facts about some one.
So ANGLEC in effect started the positive growth in Anguilla from 2004, which continued up until the global recession began to affect us. It should be noted that during this period, the AUF Government was able to deliver EC$ 70 million in road construction; 9 million in school construction; 13 million in seaport development; 50 million in training; 20 million in land acquisition for the future; 70 million in airport expansion and relocation; and 65 million in reserves just to name a few areas. That is a total of almost EC$300 million in direct public sector development. But in addition, we were able to attract almost a billion US dollars in foreign direct investment. All this was not achieved by accident — it was by a studied approach designed to make our island the best that it could be with the resources with which God has blessed us. As well as the industry, ingenuity, civility and pride that has brought us respect as a people at home and abroad over the years. In a few words — the Anguillian dream. It must be a part of our national mantra, namely, to work effectively, invest wisely and get ahead.
Tourism is the mainstay of Anguilla’s Economy being the largest revenue earner both directly and indirectly. If we truly believe in the Anguilla is for Anguillians, then we must agree that Anguillians are to invest in this sector too. This is what the Anguilla dream is all about. Positioning ourselves to achieve what is good for Anguilla and Anguillians. So Yes! It is right for Anguillians to invest in this sector as well. This being the case, we should celebrate those persons who have taken the risk with and through the help of the local banks to invest in tourism development. The fact that some of these projects are floundering can be attributed to the downturn in the global economy. The FLAG Project owned by a billionaire also fell victim to the same economic crisis. Had these projects been completed, Anguilla today would have been in a different situation.
Mr. Quincy Gumbs through the help from local banks invested in a much needed convention hotel. Mr. Gumbs had a vision for Anguilla and its development and he sought to realize that dream. Dr. Franklin Hughes invested in a World Class Boutique Hotel; Mr. Sheridan Smith in Luxury Condos, Mr. Tracey Busby and Mr. Kirk Hughes in small hotel developments. These are just some of the many Anguillians who invested in the tourism sector. We all should be proud of them and continue to lift them up in our prayers that their business will weather these hard economic times. These investments all provided employment during the construction phase and now during their daily operations. Yes! it is ok to invest!
Many of our local lawyers returned home and set up their business, they were not content to simply work for someone else’s firm. Justice John Benjamin QC; Mr. Keithly Lake and Mrs. Josephine Connor-Gumbs not only set up law firms but they constructed their own offices and facilities. They provided employment during construction and now as the business operates. Investment is all about, taking advantage of available opportunities and through this, providing opportunities for others. So it is ok to invest! And it is even more patriotic when we utilize the financing available through our locally owned banks.
We should not condemn the local banks for seeking to help these local investors. It was the same local banks that helped over 80% of us to own homes, vehicles and other small businesses. If it is ok to help us with the smaller loans! It must also be seen as ok to help those who took bigger risks with larger loans.
At this juncture I must hasten to say that while it is ok to invest, one is also required to satisfy oneself that the investment will be a profitable one. The Banks must also be satisfied that the funds provided for such investments are directed to projects or individuals capable of servicing the loans. Having said that it must also be recognized that there are issues that are outside the control of both the investor and bank that could result in a seemingly good investment going bad. The downturn in the world economy and its sluggish recovery is one such factor.
So while ECCB continues to control the operations of the local banks, we should refocus on the reality of the situation and what lead to the take over. Those who seek to mislead and fool the public with their lies and propaganda must be seen for what they are — COWARDS. If what you have written is the truth, then provide the public with the evidence and proudly, like me and others, allow your name to be published next to your article. There can be absolutely nothing to fear if you just simply tell the truth.
It is nothing short of DEFAMATION and an outright LIE to write and spread that the ANGLEC building is leased from Mr. Marcel Fahie, when it fact the building is on leased from its owner Mr. Urban Richardson, an Anguillian residing in Slough. It is an LIE to say that a Mr. Scott Revell is a long-standing colleague of Victor Banks and a client of Cora Richardson-Hodge. I just barely recollected after some investigation that I was introduced to and met Mr. Revell on one occasion earlier this year on a matter having to do with alternative energy. Mrs. Cora Richardson- Hodge has never met or seen Mr. Revell and in fact never heard of him until the fabrication in the paper. It is yet another LIE to say that the AUF acquired a large campaign loan of several millions of dollars from NBA. The same AUF who in the last election campaign was alleged to have received over $12m from the developers to finance its campaign in 2010. The ONLY loan that the AUF has with ANY Bank is a US$30,000 loan which was taken out on August 2012 to pay off creditors like Ron’s Sign Shop; Cheddie’s Carvings and other Anguillians for services rendered during the 2010 campaign as well as Quantum Services Ltd for outstanding rent of office space and to undertake work at its new office location. The loan is fully collaterised by a piece of land valued at several times the amount and owned by me. The party continues to make its monthly payments. The information and evidence on all of this is readily available.
These and the many lies and half truth contained in the document must be seen and treated for what they are. That is, propaganda aimed at blaming others with the view of making the case against the AUF next election. They would tell you that the reason why nothing was achieved was because they had to clean up the corruption first, and now that this has been done give them a chance the run Anguilla for yet another five years. The fact is that the author(s) of the document and those who continue to spread it are trying to fool you in to believing its content. They are only LIARS, BLAMERS and DEFAMERS who are proven incompetents and persons bankrupt of ideas that cannot and will not be able to restore stability and growth to Anguilla. As a people we must let them know that we recognize the campaign of deceit for what it is and will not be fooled any longer.
These same liars and propagandists would like for you to believe that being trained and educated means being an elite; that being ambitious means that you are an elite; that working effectively and becoming a success means being an elite; that having pride in yourself and your surroundings mean being an elite; that taking a risk and investing in national development means you are an elite, and in fact that being an elite is a crime. I am here to remind you that being trained and educated and ambitious and taking risk and investing are all part of the Anguillian dream. The same Anguillian dream our heroes and heroines fought for in 1967. So continue to thrive to achieve the Angullian dream. The freedom fighters are proud of you. Anguilla is proud of you. You should be proud of yourself. Not every investment reaps rewards, but always remember if at first you don’t succeed, try again. NEVER SAY FAIL. Anguilla is for all Angullians – you deserve your share.
So promise yourself you will stay focus. Focus on the Anguilla dream and your personal dreams. Don’t let LIARS; BLAMERS; and DEFAMERS distract you from your goals and your vision. Always remember that their behaviour is based on hate; greed; selfishness; and a lust for power at any cost. Many of them believe that only they are entitled to be prosperous in Anguilla. In their quest to achieve this they will defame any one’s character with lies — and blame everyone else for their own incompetence.
In a letter to the Chief Minister dated August 31, 2013, Mr. Lee Rizzuto, owner of CuisinArt Golf Resort & Spa gave the Chief Minister the following advice: “Your continuous focus on my business operation and not properly governing your administration is a key concern for me as an Investor in Anguilla.” What an indictment for a sitting Government!
The question must now be, if our government was capable of turning the country around as promised, would we be in this position today? The answer and the reasons for the inability of the AUM/APP Government to turn Anguilla around is an address for another place and time. But you can be certain that it cannot be the fault of the AUF, the Governor or Hon. Edison Baird. This AUM/APP Government has the power to get the job done! According to Mr. Rizzuto they simply need to “focus properly”.
May God Bless you all and May God Bless Anguilla!
I thank you!
Editor’s Note:
The above substitutes for Mr. Banks regular column.
(Published without editing by The Anguillian newspaper.)
