NEW FINANCIAL SCANDALS AT ADB

THERE are raging concerns about “questionable payments” of large sums of money and a lack of proper tendering procedures at the Agricultural Development Bank (ADB).

The controversial payments are being made while the public-owned bank is without a properly constituted Board of Directors.

Chairman Sekou Mark and Vice Chairman Randall Mohammed are the only current ADB Directors after the two-year terms of office of five colleagues expired on November 22.

The former Directors are Ronald Chan, Kerry Ann Harrison, Marcus Sun Kow, William Benjamin, and Stephanie Toolsie.

The Agricultural Development Bank Act states that “four members of the board shall form a quorum…”

The terms of Mark and Mohammd expire in February.

There is an Acting Chief Executive Officer Wendy Samsundar-Beharry, after the Board earlier forced out CEO Sheivan Ramnath, an appointee of the Kamla Persad-Bissessar administration.

Meetings of the Board were reportedly acrimonious, and areas of disagreement included Mark chairing the committees on Finance and Investments, and Credit.

Mark was also Chief Investment Officer of Unit Trust Corporation (UTC), until his resignation, effective November 30.

The company is currently without a Corporate Secretary following the November 5 resignation of Junior Nagassar, to become a magistrate.

ADB reportedly racked up a loss of $14 million for the fiscal year that ended last September, according to top-level company sources.

The sources voiced distress about the bank’s financial dealings.

Corporate Manager – Finance and Administration Gleason Garraway raised concerns about “questionable payments” to three service providers, as approved by the Board of Directors on October 18, 2023.

The payments were for Chancery Chambers, whose key attorney is Michael Quamina, for $101,250, Clay Hackett for $67,500, and Pricewaterhouse Coopers for $94,376.31.

An internal memo from on November 3 from Samsundar-Beharry to Garraway said the payments pertained to “commencement of disciplinary proceedings and preparation of notification of disciplinary charges against four bank employees.”

Garraway expressed his misgivings in writing at the back of the Acting CEO’s instruction.

He said: “This invoice is to be processed with concern per due process, concern per the selection criteria and the lack of a contract with a priced cost or a budget attached to this initiative.

“I am concerned that the process has just commenced and the future costs associated will be not economical given the questionable procurement of these services.

“The process commenced in the procurement of these services with disregard to proper procurement practice, namely the comparison of methodology to an outlined scope and quoted prices from other suppliers of these services. I am concerned.”

Garraway’s response was dated November 8, 2023.

Chancery Chambers is not listed in ADB’s panel of attorneys.

Quamina is Chair of State-owned Heritage Petroleum Co. Ltd.

He was among 17 attorneys conferred silk earlier this year by President Christine Kangaloo.

Ironically, the ADB has an elaborate published list of “planned procurement activities – 2023-2024.” 

Accumulated loss for 2004 to 2010 had amounted to $120 million, and there were claims that the bank was used as a “slush fund” and “cash cow.”

An audit found that $50 million in legal fees was paid to a law firm, $5 million for the purchase of office furniture, $41 million in “arrears and bad loans” and various other dubious payments.

“The ADB was a cash cow, they employed their own people and found ways to give out loans for their own,” then-Chairman Rudy Maharaj said after the 2012 audit.

There is also much anxiety at ADB over several operational matters.

Several farmers were inconvenienced after the Tobago branch was recently closed for two successive days due to a malfunctioning air conditioning system.

Certain employees employed during the Persad-Bissessar political tenure are reportedly anxious about losing their jobs in the face of continued financial losses.