January 28, 2020
Ms. Sharmaine Francois
Chief Executive Officer
National Commercial Bank of Anguilla
The Valley, Anguilla AI-2640
Open Letter Re: NCBA Management Accounts
Dear Ms. Francois:
It is with great interest that we are indeed looking forward to receiving the National Commercial Bank of Anguilla’s (NCBA) financial report in the form of Management Accounts today, January 28, 2020, as has been communicated. More importantly, as a 100% government-owned financial institution, it is imperative that the general public of Anguilla be made privy to the audited financial position of the NCBA as we seek to ensure we have a robust and viable financial entity for years to come.
As a duly licensed and regulated financial institution operating in the island of Anguilla and in the jurisdiction of the Eastern Caribbean Currency Union, NCBA has a mandate to provide audited financial accounts within three (3) months of the end of each fiscal year. Accordingly, from all indications it appears that the NCBA is currently in violation of the Banking Act with respect to the requirement to provide audited statement of accounts for the financial years ended October 31, 2016, October 31, 2017, and October 31, 2018.
This is in accordance with the Banking Act 2015, Part VI Audit and Information, Section 69 Audited Financial Statements,
(3) A licensed financial institution or a licensed financial holding company shall within three months of the end of its financial year:
(a) publish in the Gazette or on the company website, and in a local newspaper; and
(b) exhibit in a conspicuous place in each of its offices, a true and full yearly statement of its accounts and a consolidated balance sheet of all its operations…
It is further noted that there must have been some provisions and accommodations made by the ECCB to allow for an exception in accordance with the same Section 69 Audited Financial Statements;
(5) Where any licensed financial institution or any licensed financial holding company fails to comply with the requirements of subsections (1) to (4) within three months of the end of its financial year, it is liable to a penalty of fifty thousand dollars and three thousand dollars for every day of the default except 54 when an extension to the period has been granted by the Central Bank pursuant to section 91.
Given the time that has elapsed, it is also imperative that such exception if it has been made for the various fiscal years referenced, also be made available to the public as a show of good faith and to restore public confidence in our financial system.
Furthermore, it is expedient that in order to be able to determine the true financial performance of the NCBA over the period commencing April 25, 2016 through to present; the general public must be presented with a ‘true and full’ audited or otherwise certified statement as to the quantum of the ‘select portfolios’ of the CCB and NBA that were acquired by NCBA as was quoted in the letter from the Chairman to the customers of CCB and NBA in May 2016.
As you may be aware, the National Bank of Anguilla Limited (NBA) and the Caribbean Commercial Bank (CCB) were placed in Receivership on April 22, 2016 and select portfolios of the respective entities were concurrently acquired by the National Commercial Bank of Anguilla Limited (NCBA).
Notwithstanding the foregoing, we look forward to receiving the Management Accounts as promised and we also look forward to engaging public dialogue with the Chief Financial Officer to discuss the performance of the financial institution. This has been long awaited as we try to understand the implications of the Resolution. It is anticipated that in order to allow informed dialogue and complete transparency, the referenced accounts will be made available via the Gazette or the NCBA website and published in this week’s issue of the local newspaper.
Thank you for supporting transparency, accountability and good governance.
Sincerely,
Ellis Lorenzo Webster
Leader, Anguilla Progressive Movement
cc. Honourable Victor Banks, Premier
His Excellency Tim Foy, Governor
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