FNM calls PLP’s claims against Holowesko ‘bogus’
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com
The Free National Movement (FNM) yesterday branded as ‘bogus’ the claims made by the Progressive Liberal Party (PLP) that professional money manager Mark Holowesko is involved in a conflict of interest as a member of the new Bahamas Telecommunications Company (BTC) board.
Holowesko is a government representative on the board of BTC, which was recently privatized. The government sold 51 percent of the shares to Cable and Wireless Communications (CWC).
Franklin Templeton Investment Funds lists Holowesko as a member of its board of directors.
Franklin Templeton holds shares in Cable and Wireless.
The PLP suggested that Holowesko is in a conflict of interest and questioned whose interests he will serve as a board member.
But the FNM said yesterday, “The opposition’s erroneous claim that Mr. Holowesko’s appointment involved a conflict of interest has been refuted in detail by the internationally well-regarded investment manager who noted that none of the funds he manages has shares in Cable and Wireless.
“With its typical lack of due diligence and sloppiness, the opposition even got wrong the actual investment fund on which Mr. Holowesko serves as a director.
“The FNM notes with great curiosity that these bogus claims of a conflict of interest were made by none other than PLP Chairman Bradley Roberts. The Bahamian people will appreciate this irony.”
Holowesko, who also strongly denied any conflict when he spoke to The Nassau Guardian recently, reiterated in a statement yesterday that he does not receive compensation from the Franklin Templeton group for his service as a board member for its European funds.
He explained: “The Franklin Templeton (FT) Investment Funds are Luxembourg based funds that operate under the SICAV (Societe d’ investissement a capital variable) umbrella. There are over 30 of these FT funds under this SICAV umbrella.
“The funds are separate legal entities that employ investment managers to manage the investment activities of each fund. I am a director of these funds, but I am not an employee or a director of any of these management companies.
“The investment managers hired for these funds are a variety of FT companies within the FT group of companies (again, none of which I am employed by, sit on the board, nor do I have any involvement or day-to-day investment activity).
“Some of the managers of these funds are investment companies in the US, some in Europe and some in Asia. Each of these funds holds dozens of securities, selected by the manager without prior knowledge or consultation with the directors.
“At any point in time it is not possible for me to know what investments are held in the various funds, nor is it my role to do so.
“With over 30 funds, and anywhere from 50 to 150 investments each, there are several thousand positions under the umbrella.
“At the end of December (last reporting period), the FT legal department has confirmed that some of these funds (four) held shares in Cable and Wireless. The decision to buy or sell these shares is not under my direction or control, and I do not participate at all with the investment manager in the evaluation of any of the shares.”
Holowesko stressed again that he played no role in the BTC/CWC deal and is in no way connected to CWC.
4/27/2011
thenassauguardian
A political blog about Bahamian politics in The Bahamas, Bahamian Politicans - and the entire Bahamas political lot. Bahamian Blogger Dennis Dames keeps you updated on the political news and views throughout the islands of The Bahamas without fear or favor. Bahamian Politicians and the Bahamian Political Arena: Updates one Post at a time on Bahamas Politics and Bahamas Politicans; and their local, regional and international policies and perspectives.
