ADB IN TURMOIL

TAXPAYER-OWNED Agricultural Development Bank (ADB) is in turmoil after the forced resignation of its Chief Executive Officer, the absence of directors’ meetings, and questions about million-dollar investments.

CEO Sheivan Ramnath, an appointee of the Kamla Persad-Bissessar Administration, recently quit after “years of pressure” from the Board of Directors named by the Dr. Keith Rowley Government, according to well-placed sources.

“They made his life miserable,” one informed source said.

Wendy Samsundar-Beharry has since been acting as CEO, but there are allegations of a lack of transparency and documentation in her appointment.

A memo to staff from company Chairman Sekou Mark advised of Ramnath’s resignation and the appointment of Samsundar-Beharry as interim CEO, but these matters were reportedly not discussed at a formal board meeting.

There is “much disagreement” among directors, the sources said, and, as a result, board meetings are seldom convened.

There are also concerns about Mark heading both the Finance and Investments, and Credit Committees.

Mark is Chief Investment Officer of Unit Trust Corporation, which reported a 27.7 per cent — $20 million – dip in income in 2022 compared to the previous year.

Corporate attorneys said there is “an obvious conflict of interest” in Mark chairing the ADB committees while being a UTC investment officer.

“That is a no-no in the corporate world,” one financial expert said.

Insiders at the 55-year-old bank have also urged Corporate Secretary Junior Nagassar to take a close look at company spending in the midst of “open discord” among directors and alleged lack of transparency in financial dealings.

Senior company officials have recommended that Nagassar ensures that taxpayers’ money is not used as a slush fund for the People’s National Movement during the current local government election campaign.

Officials claimed there is an absence of proper procurement procedures with respect to the purchase of certain goods and services.

Concerned officials implored Nagassar to ensure that his close working relationship with senior directors does not deter him from monitoring financial activities.

Reports are that relations between Chairman Mark and Deputy Chairman Randall Mohammed have become sour.

Mark could not be reached, but Mohammed stressed that he is carrying out his fiduciary duties.

He said he is committed to ensuring “transparency with the guidelines and policies” of the company.

He stated: “If someone takes offence, that is not my business; I am just doing what I am supposed to do.”

Other ADB directors are Ronald Chan, Kerry Ann Harrison, Marcus Sun Kow, William Benjamin, and Stephanie Toolsie.

In 2012, an audit of the company found that major financial irregularities had occurred between 2004 and 2010.

It was revealed that there were $120 million in losses, $41 million in arrears and bad loans, $50 million in legal fees to a single legal firm, and the purchase of $5 million worth of office furniture. 

An ADB office was rented at a total cost of $5 million, an unqualified personal assistant was hired at a monthly salary of $30,000, and there was a $63,000 credit card scandal.

The audit also uncovered examples of nepotism.

The findings were turned over to Food Production Minister Devant Maharaj and ADB Chairman Rudy Maharaj.

At that time, there were also allegations of certain directors being involved in operational matters.

ADB specialises in assisting the farming and agro-processing industries but has long been associated with non-performing loans and financial irregularities.

Chairman Maharaj said in 2010 that the bank had served as a “slush fund” and “cash cow” for certain unnamed people.