Fellow Anguillians, I address you again so soon because the Chief Minister refuses to address the issue of bank resolution. We have postulated that the state of the indigenous banks is of grave concern to all Anguillians, and the people need to be informed of this issue and the solution for resolution. This was echoed by the Honourable Palmavon Webster in her ‘Open letter to the Honourable Chief Minister’ earlier this week, where she stated, “The banking crisis is currently a principal topic of concern to Anguillians, and yet they have received no clear information on the discussions. They are left in the dark while their financial fate is being determined for them”.
The current administration would have us believe that the banking issue is a mere inconvenience and ‘that there is no need for alarm at this time’. They, and their surrogate, tasked with spreading misinformation, want us to accept that all will be made better with getting rid of the Eastern Caribbean Central Bank (ECCB). This superficial thinking that the problem will fix itself is what led to the banks failing in the first place. Now they leak possible scenarios such as use of the Social Security Fund and the Government Pensions Fund to bail out the banks so as to gauge public reaction.
I cannot stress more emphatically that the people of Anguilla are not prepared, nor willing, to carry a burden which is unfair, and which can cripple the economy for many generations. The mounting appeal for an amicable resolution, as voiced by attorney Thomas Astaphan, Q.C. and radio veteran Iwandai, makes it imperative that the administration address the banking crisis, and its solution, by urgent referendum.
The ECCB intervention since August 12, 2013 has helped to prevent insolvency of NBA and CCB, protect depositors and creditors, and ensure stability of the banking system in Anguilla and the Eastern Caribbean Currency Union (ECCU). The ECCB serves an important function in the region. It is not only a bank regulator, but assists with fiscal and economic policy development, statistical support, debt management and debt monitoring, as well as support and training for civil service and banking personnel. The ECCB maintains a line of credit for the Government of Anguilla as well as the other member nations. The members of the Monetary Council are allowed to draw on each other’s line of credit, an arrangement which benefitted Anguilla in the past.
It is perplexing that a nation with so few people as Anguilla could get to a position where the ECCB, supported by the Ministry of Finance of the Government of Anguilla, the UK Foreign and Commonwealth Office (FCO), the World Bank, and the International Monetary Fund (IMF) would need to take over the two indigenous banks, dismiss all the directors, and two years later, still be trying to unravel the harmful practices which caused the banking crisis. This is even more distressing when we realize that NBA and CCB are responsible for the monetary deposits of over 75% of Anguilla’s banking sector and that most of the depositors affected are honest, hardworking Anguillians.
The UK Government and the former Minister of Finance, the Honourable Hubert Hughes, concurred that, along with a report on the state of the banks and a resolution strategy, there should be a forensic study to examine the root cause of this crisis so that it would not be repeated. Further that these findings should be made public so as to inform the people of Anguilla. This audit was deemed of utmost importance, so much so that it was agreed that it would be funded by the Department for International Development (DFID).
It must be clearly stated that resolving the banking crisis in Anguilla is crucial and urgent. It is the opinion of sound-thinking Anguillians that this situation must take into consideration not only the national importance it deserves but that Her Majesty’s Government do what they ought to do when Overseas Territories run into trouble. As an Overseas Territory, Anguilla has the first charge on British Aid. However, recently, the British Government donated £75 million to independent Caribbean countries but gave zero to Anguilla. The people of Anguilla demand answers to questions being asked. How do you intend to protect the depositors at NBA and CCB? Will you impose new and/or increased taxes on the people of Anguilla? Will you support cuts in the civil service? There should be no inappropriate use of the Social Security Fund and the Government Pensions Fund without a referendum. The British Government should do for Anguilla what it did for the Irish banks, – and that was a complete bailout.
It is time to silence those who seek to confuse the people of Anguilla with shifting all the blame to the ECCB while covering for their friends, family, former directors, and themselves. It is high time for the Government of Anguilla to give a concrete and credible response to the masses who are concerned about their savings and their banks, and are demanding accountability. In so doing, the Chief Minister must make the following guarantees to the people of Anguilla:
1. The banking report and the forensic report will be made available to the public since nearly all Anguillians have their money in the two indigenous banks and they have a right to know what went wrong with the banks.
2. They will be no new or increased taxes, including a land tax, imposed on the residents of Anguilla to bail out NBA and CCB.
3. The Social Security Fund, which serves as a safety net for many sick, unemployed, retired or poor Anguillians, will not be used to bail out the banks.
4. All of the deposits in the banks are safe and will be protected.
5. There must be a referendum on any decision to pull Anguilla away from the ECCB because no one man/woman or seven men/women should have the authority to take that step.
In the absence of such assurances, or any dialogue, it is a normal reaction for the public to become alarmed and agitated when abnormalities and uncertainty are the order of the day. So Honourable Chief Minister, there is need for alarm at this time. Thank you. May God continue to Bless Anguilla.
June 30, 2015
(Published without editing by The Anguillian newspaper.)
