Suisse Security Bank and Trust Limited Appeal The Revocation of Their License by The Central Bank of The Bahamas

Bank Causes Distress

By Candia Dames

Nassau, The Bahamas

candiadames@hotmail.com

20/01/2004

...one of the failings of The Bahamas, as a premier financial services jurisdiction is that parties usually are unable to have their cases heard "in a timely fashion."

The country's financial services sector is receiving a black eye in the international arena with scores of depositors and creditors of Suisse Security Bank and Trust Limited demanding that they receive the millions of dollars they had in the institution.

Their money is being held up as a court matter drags on nearly three years after Central Bank Governor Julian Francis revoked the bank's license on the ground that Suisse Security was carrying on its business in a manner detrimental to the public's interest and the interests of its depositors and other creditors.

The Journal has now learnt that parties involved in the matter are becoming increasingly frustrated over what they perceive to be "the lackadaisical attitude of the court" and a significant backlog of cases in the system that is "slowing down the process of justice."

Meanwhile, Raymond Winder, provisional liquidator in the matter, continues to be inundated by requests from angry clients who are unable to receive any money because the legal matter is still ongoing.

For more than two years, he has faced the task of informing the creditors and depositors that their funds remain frozen.

In one of his reports to the Supreme Court, this one dated August 2002, Mr. Winder said that, "As provisional liquidator I continue to receive an abundance of telephone calls from depositors and creditors of the Bank."

Following the governor's action on April 2, 2001 to revoke the bank's license, Suisse Security filed a notice in the Supreme Court challenging the revocation order.

Last April, Justice Austin Davis dismissed the bank's case, but the bank appealed the decision.

Suisse Security officials responded to last April's ruling saying that it was "most disappointing and an outrage."

The Central Bank, meanwhile, in its response, said it was "pleased that the statutory appeal brought against its decision to revoke the bank and trust license of Suisse Security Bank and Trust Limited (SSBT) has now been decided.  The Bank is satisfied with the decision relating to the appeal."

But no date has been set yet for the appeal.

"We are awaiting a date from the court," said Mr. Winder, a Certified Public Accountant and partner in Deloitte & Touche.  He added Monday that his powers as a liquidator were limited given that the matter has not yet been resolved.

But Mr. Winder pointed out that he could not make any further comments given that the case is before the courts.

As provisional liquidator, he has the power to take possession of, collect, and protect the assets of the bank, but not to distribute those funds until further order.

His task has clearly not been an easy one.

In the report mentioned earlier, Mr. Winder said that, "On the morning of April 9, 2001, prior to receiving the Order of my appointment of Provisional Liquidator, I learned that Messrs. Michel Harajchi, Derek Ryan, Christopher Lunn and Wendell Ferguson had broken into and gained access to the Bank's premises."

He also said at the time that former officials of the bank had reactivated their web page, informing that they could be contacted for updates on what was happening at the bank.

 A source close to the case expressed frustration Monday that the matter has not yet been heard on appeal.  But he spoke anonymously because of the status of the case.

"This sheds a terrible light on [the jurisdiction]," he said.  "The matter is just sitting there."

The source also noted that one of the failings of The Bahamas, as a premier financial services jurisdiction is that parties usually are unable to have their cases heard "in a timely fashion."

Throughout the proceedings, the bank's chairman, Mohammed Harajchi, has said that he plans to reopen his institution, insisting that Governor Francis erred in his decision to shut the bank down.

The Role of The Government and Opposition in Trade Unions & Industrial Disputes in The Bahamas

The Politics of Trade Unions & Industrial Disputes in The Bahamas 

Trade Unions & Industrial Disputes – Part 2

By Apostle Cedric Moss
Nassau, The Bahamas

It was my intent to conclude my commentary on this subject today.  However, having decided to say more than I initially intended, the Lord willing, I will conclude next week.

At the time of this writing, January 12, 2004, negotiations between The Bahamas Hotel Catering & Allied Workers Union (BHC) and The Bahamas Hotel Employers Association (BHEA) continue and we continue to pray that they are concluded soon in a just manner for all.

About Sickouts

I recall several weeks ago listening to the news reports covering the Bahamasair sickout, the resulting pay cuts and the protests by the union regarding those pay cuts.  I listened in sheer amazement as I heard a union official admit they staged a sickout and at the same time complained that their pay should not have been cut.  That does not add up!  Clearly, companies have the right to cut the salaries of employees who stay off from work when they (or dependents, if allowed) are not sick, even if it is one or two days for which they are not required to produce a doctors certificate evidencing their sickness.  This right to cut is especially evident when they or their representatives publicly acknowledge that a sickout was staged.

Sick days are for the specific purpose for which they are earmarked…sickness, and not for making a point to management in union negotiations or for any other purpose.  The tragedy of such actions is that workers are paid for work they did not do, adding to the company’s actual losses suffered and future losses coming from disgruntled customers as a result of the sick out.  Hopefully, that correct and courageous action of the Board of Bahamasair (to cut the pay of those involved in the sickout) will go a long way in discouraging this practice in our nation.

Sadly, many employees feel as though sick days are their entitlement, whether they are sick or not, and some ensure that they “use up” their sick days in a given year, sometimes to do things sick people can’t or shouldn’t do.

Christians & Industrial Disputes

It is reasonable to conclude that in a nation like The Bahamas, many Christians are involved in industrial disputes, on both the union and management sides.  However, whether on the side of union or management, Christians have to ensure that their allegiance is first to Christ and His Kingdom, and not the union or management constituency they are a part of or represent.  For example, Christians ought not to condone or participate in go slows, sickouts and similar practices because they misrepresent the values of the Kingdom of God.  Likewise, those who follow Christ and serve in management or on management negotiation teams should not victimize and intimidate workers or unjustly withhold fair compensation because such actions misrepresent the values of the Kingdom of God to which they owe their primary citizenship.  Christians on both sides must abstain from practices that are contrary to the Kingdom way.

Role of Government

When negotiations in some high profile industrial disputes stalemate, governments generally intervene as we are seeing in the case of BHC and BHEA.  While it is important for them to intervene, it is also important for them to speak candidly to both sides.  If in the government’s view one side is being unreasonable or unfair or if both are, it should be pointed out clearly and candidly.  Please note: I am not implying that the government is not doing this in the present dispute…I don’t know.  I state it generally because the unfortunate reality is that far too many governments wrongly pander towards workers for votes or towards powerful investors for jobs - and at times lack the courage to take the right position for fear of political fall out.

Governments are elected to lead in the country’s best interest and not their party’s best interest, even if it means offending large amounts of voters in powerful trade unions or large investor cartels.  One thing is certain: opting for the easy political road in disputes does not solve problems.  It merely defers and compounds the problem, which will have to be dealt with eventually at a higher cost.  So our prayers are with the government to lead in this matter in our national best interest.

Role of the Opposition

Clearly, this industrial dispute between BHC and BHEA is a prime example of an issue which the government and opposition should be able be bipartisan about and visibly work together on.  Sadly, this does not seem to be the case as was evidenced in the FNM’s objection to Prime Minister Christie’s public apology to President Thabo Embeki and their call for him to now apologize to the workers.  While they may be sincerely convicted about their position, it seems to me they were playing politics and seeking to curry favour with workers for obvious reasons.  That, in my view, was not helpful, especially considering the gravity of this situation.

First of all, President Embeki was in a sense the guest of all Bahamian citizens and residents, and the apology ought to have been public because the inconvenience and embarrassment were public.  I wonder if those objecting to the Prime Minister’s public apology would feel the same way if they had invited a guest to their home for a few days and one of two family members involved in a domestic dispute acted in a manner that unnecessarily inconvenienced their guest and embarrassed them.  I know I’m speculating but I think they would promptly apologize to the guest in front of those present (and further discipline the family member when the guest leaves).  Doing so would honour the guest, enable all present to know such conduct is unacceptable and hopefully ensure it does not happen again.

So, I urge the Opposition to take a bipartisan approach to the BHC and BHEA negotiations and other issues that are not political but national.

Apostle Cedric Moss serves as Senior Pastor at Kingdom Life World Outreach Centre. Commentary and feedback may be directed to: apostle@kingdom-life.org.