- NEWSDAY.CO.TT - A la Une - 30/Aug 03:27

Beckles: Government must explain its interest in First Citizens

OPPOSITION Leader Pennelope Beckles says the PNM will be putting questions to the government to explain its interest in the affairs of First Citizens bank. Speaking with reporters after the funeral of former government minister Dr Lenny Saith, on August 28, Beckles said, "I can't say if it is a witch hunt but once you get political interference in a financial institution, you are going to have impact," She added, "As a fact, when you look at there were three indigenous banks that went through and then you had the formation of FCB, which obviously has been doing very well, we must ask ourselves, what is it that is going on with FCB that has this great interest of the government." Beckles said, "I am sure very soon...you see they have appointed a board. So if you have appointed a board, obviously it's like many of the others...whether it's the Central Bank governor...whether it is what has happened with Miss (Karen Darbasie). We just have to wait and see. Asked about claims made by the UNC in opposition about the PNM favouring certain people in terms of foreign exchange (forex) allocation and if the UNC was attempting to do something similar now that it is the government, Beckles said, "Well, I am sure through the Parliament, we are going to file our appropriate questions." She added, "I mean we take note that there are questions that have been filed (in the Parliament), they have been rejected. We haven't really been able to have all our questions come before the Parliament. Beckles said, "You can be assured that when Parliament opens, we will be asking all those kinds of questions so that we would let the population know exactly what is going. We look forward to them (government) answering us." At a news conference at the Opposition Leader's Office in Port of Spain on August 25, Beckles said, "Under the Companies Act the board of directors of FCB is solely responsible for matters relating to employment at the bank. This government is giving onto itself power that it does not possess.” “Corporation Sole is not an employer,” Beckles said. “We know that under the financial institutions act and under the securities act the government does not have the power to do what they are doing. “The CEO is not an employee of the state and therefore (she) cannot tender her resignation to the state." She made this comment to Darbasie's recent pre-retirement leave as First Citizens Group CEO, amid initial reports she had resigned. It has also been reported she was asked to resign. On August 22, in response to questions about Darbasie's status and government's investigations into the use and distribution of forex, Finance Minister Davendranath Tancoo said, "Will there be fallout? Yes. Because we will be focused simultaneously on enhanced and multiple streams of forex generation and a transparent distribution." He added, "Obviously then, those who have benefited from the skewed system facilitated by the PNM, those engaged in money laundering or others hoarding foreign currency, will complain loudest.” Tancoo said then government is looking at “several options” to deal with the forex crisis. At an event in Penal on August 27, Prime Minister Kamla Persad-Bissessar confirmed government was investigating some matters at First Citizens. “As far as I am aware, the government does not get involved in matters of that area. A new board will be appointed shortly. I do not want to say any more about FCB because I do not want to prejudice any investigations that are ongoing with respect to matters that were going on in FCB,” she said. In a notice published on August 29, the First Citizens Group (of which the bank is a part), said First Citizens Holdings Ltd (FCH) is a "private company fully owned by the Minister of Finance (as incorporated by Act of Parliament), otherwise known as 'Corporation Sole'. The group said FCH holds 60.11 per cent of the shares in First Citizens Group Financial Holdings Ltd (FCGH) which is "the public company which has been listed on the TT Stock Exchange since October 15, 2021 and began trading on October 18, 2021. FCGH is the group's financial holding company and is regulated by the Central Bank. The company is licensed under the Financial Institutions Act. The group said, "A special meeting of the shareholders of FCGH will be convened at the appointed time which would allow the shareholders to consider and elect directors of FCGFH." On August 27, Tancoo presented instruments of appointment to Shankar Bidaisee, Prof Sterling Frost, Crystelle Smith, Prakash Dhanrajh, Sandy Roopchand, Jo-Anne Boodoosingh, Nichelle Granderson and Javan Lewis as new directors of the FCH board. Bidaisee and Frost are chairman and deputy chairman respectively. The post Beckles: Government must explain its interest in First Citizens appeared first on Trinidad and Tobago Newsday.