Her Excellency Christina Scott,
The Governor,
Governor’s Office
OldTa,
Anguilla
Dear Governor,
Concerns regarding the HMG!GOA!ECCB plans for the Indigenous Banks
Almost a year and a half ago the (Eastern Caribbean Central Bank (ECCB) with the agreement of the Anguilla Government took over the operations of our two indigenous banks, namely, the National Bank of Anguilla (NBA) and Caribbean Commercial Bank (CCB). The banks had been struggling for over seven years from the effects of the global financial crisis that had seen the demise of thousands of businesses and hundreds of both small and giant financial institutions around the region and world.
The effects that impacted the banks the most were liquidity and the inability of its customers to service their loans due to the world wide financial collapse and as a consequence the Anguilla economy. In all his pronouncements before the intervention, the Governor of the ECCB, never cited mismanagement as the reason for situation, the economy “fell off a cliff’. In his press release as well as that of the Chairman of the Monetary Council, Dr. Kenny Anthony, mismanagement was not given as a reason for the takeover.
Post the intervention and after some weeks however, the Chief Minister Mr. Hughes began to tout mismanagement as one of the main reasons for the troubles and the ECCB take-over of the banks. It appears that such statements were and are chiefly designed to advance an agenda that is not in the best interests of the indigenous banks or Anguilla as a whole.
There is a rumor now circulating that the Chief Minister and his AUM Government are in negotiations with the ECCB and the British Government to urgently sign an agreement, before the upcoming general elections, that could result in a major change in the ownership profile and operations of the banks. This is indeed a cause for grave concern.
Our concerns stems from a number issues we have on the two fronts listed below:
The ECCB
• The ECCB has failed to communicate on a regular basis the progress being made in resolving the issues at the Banks to the people of Anguilla.
• The ECCB has yet to provide a full report on the financial position of the Banks before the intervention.
• There is no report on the financial position of the Banks post the intervention.
• There have been no reports to the shareholders since the intervention.
The Chief Minister
• The Chief Minister has failed to communicate on a regular basis the progress being made in resolving the issues at the Banks to the people of Anguilla.
• The Chief Minister has never supported the local ownership of Banks.
• The Chief Minister has never patronized the local banks.
• Long before the intervention the Chief Minister was known to launch negative attacks on the large shareholders of the banks.
• Long before the intervention and during his last election campaign the Chief Minister launched negative attacks on Boards and Management of the banks.
• The Chief Minister appointed Mr. Thomas W. R. Astaphan to the Chairmanship of the Anguilla Social Security Board. Please note that the Anguilla Social Security Board is the largest depositor at the indigenous banks. The Board under the leadership of Mr. Astaphan th-ereupon proceeded to threaten to withdraw and then in fact withdrew deposits from Banks despite the warning of the British Governor regarding destabilization of the banking system.
• The Chief Minister was the first person to make allegations of mismanagement as the reason for the intervention of the ECCB.
We cannot see how as critical an issue as the future of these two important local institutions could be decided at this juncture without full disclosure of information by the ECCB and the Government and the full knowledge of shareholders, depositors and the people of Anguilla. These institutions have been vital to the overall development of Anguilla over the years and the challenges we now face demand a positive resolution of these issues so as to secure our future.
It is also extremely important that a major decision of this nature not be made without the knowledge or input of all members of the HoA and the people of Anguilla. Especially given the fact that elections are due within the next five months and could conceivably result in a change of government.
We would not expect that the British Government or the ECCB would be engaged in rushing an agreement on as critical a matter as the future of the two local banks in the current charged political electioneering environment.
We therefore call upon you in the interest of good governance and transparency to give us some indication of what is happening with the indigenous banks as well as the assurance that these rumours are totally unfounded.
Thanks in advance for your usual cooperation in these matters.
Yours truly,
Evans McNiel Rogers
Leader of the Opposition
Othlyn O. Vanterpool
Member of the House of Assembly
(Published without editing by The Anguillian newspaper.)
