Just when Anguilla’s two indigenous commercial banks should have been released from their temporary takeover, if all was well with the forced arrangement, the Eastern Caribbean Central Bank (ECCB) announced that it is continuing its control of their operations. The initial undertaking was scheduled for six months and was due to expire at the end of this month.
But the ECCB issued a News Release from its headquarters in Basseterre, St Kitts, on Tuesday, February 11, 2014 stating that “it has become necessary to extend the period of conservatorship as some of the conditions which occasioned the intervention still exist.” The announcement came the day after a shareholders’ meeting – which called on Anguillians to take action to reclaim the running of their own banks.
The full text of the ECCB News Release is as follows: “On 12 August 2013, the ECCB assumed exclusive control of Caribbean Commercial Bank (Anguilla) Ltd (CCB) and National Bank of Anguilla (NBA) and placed both institutions into conservatorship. Since then the ECCB has been in regular consultation with the Government of Anguilla, the British Government, the International Monetary Fund and the World Bank regarding the conservatorship. The ECCB with the assistance of
the Conservator, Mr Martin Dinning, has focused its efforts on conducting comprehensive assessments of the institutions. The valuations of the physical assets have been completed and external audits of the financial statements of both institutions by the international adding firm, KPMG are on-going. Upon conclusion of the external audits an independent valuation of each bank will be undertaken pursuant to Article 5B 1(vi) of the ECCB Agreement.
“After consultation with, and on the approval of the Chairman of the Monetary Council, the Honourable Dr Kenny Anthony, the ECCB hereby advises that it has become necessary to extend the period of conservatorship as some of the conditions which occasioned the intervention still exist. This means that the ECCB will remain in control of both institutions and accordingly, the tenure of Mr Dinning has been extended along with support staff from the ECCB.
“Prior to the end of the conservatorship, the final structure, ownership and operations of the two institutions will be determined by the Government of Anguilla, British Government and the Eastern Caribbean Central Bank Monetary Council. Discussions will also be held with interested parties in keeping with protocol.
“A forensic audit will be conducted to determine the circumstances at the banks that caused the ECCBs intervention. The report of this audit will be submitted to the Government of Anguilla, the Eastern Caribbean Central Bank Monetary Council and the British Government for their consideration of any civil or criminal action that may be deemed necessary.
“The ECCB expresses its sincere thanks to the customers of both banks and to the people of Anguilla for their understanding and patience as we carry out this difficult and painful exercise.”
