- NEWSDAY.CO.TT - A la Une - 26/Aug 04:14

Another First Citizens fumble

REPORTS of the sudden and unexplained submission of a letter of resignation from First Citizens’ Group Financial Holdings CEO Karen Darbasie seem to mark the end of one chapter in her professional life. But they also open yet another chapter in the long history of First Citizens, a state entity that has too often been caught in the crosshairs of politics. As first reported in this newspaper, Ms Darbasie submitted correspondence to corporation sole, Finance Minister Davendranath Tancoo. The circumstances leading to this remain officially unexplained. Our efforts to seek clarification from Anthony Smart, head of the board of directors of First Citizens Group Financial Holdings, were met with a terse, “no comment.” But “no comment” soon blossomed into full-fledged assurances elsewhere to shareholders, who were reportedly notified that the official in question had indeed left the post, not in accordance with resignation but vacation. An SEC notice of April 4 had announced the appointment, one month before the general election, of Jason Julien as the new group CEO to replace Ms Darbasie “upon her retirement,” and that transition would be effected now. In other words, nothing to see here; it’s business as usual. Except it’s not. Mr Tancoo, in cryptic remarks to this newspaper seeking much-needed clarification, said there will be “fallout” from the UNC government’s move to address the forex crisis. Separately, scandalous questions have arisen stemming from Minister in the Office of the Prime Minister Darrell Allahar’s July 1 Senate contribution to the mid-year review in which he alleged a former prime minister had emailed First Citizens over the purchase of US dollars. At least two other ministers have thus far been named in a series of behind-the-scenes dealings. All of it, in the shadow of the Prime Minister’s recent political platform jabs at First Citizens, Republic Bank and EximBank and the government’s replacement, without official reasons, of Dr Alvin Hilaire as Central Bank governor. The latter is now subject to litigation. The current situation may well head that way, too. The heavy price of these developments is twofold. Stocks plunged following word of Ms Darbasie’s letter. Markets dislike it when retirements are abruptly pulled forward. Investors see through spin, whether corporate or political, and read between the lines. But the circumstances of the CEO’s correspondence are one thing; the way both the bank and the government handled a week of headlines and questioning is another. With so many rumours yet to be put to rest, neither quarter has inspired confidence. If forex and politics are at the root of this ever-widening incident, that would be even more reason for greater transparency, particularly given the bank’s chequered history in relation to IPOs and past high-profile departures. We call for clarity. The post Another First Citizens fumble appeared first on Trinidad and Tobago Newsday.