STATEMENT OF THE POLITICAL LEADER ON THE INVESTIGATION INTO THE ALLEGATIONS OF IMPROPRIETY AGAINST KENRICK FULLERTON

1. In or about April 2005, Fullerton established a limited liability company, Insurance Brokers of Grenada Limited (IBGL), with himself as sole Director and chief executive to carry on the insurance brokerage business.

2. Before establishing the said company he had been employed as an insurance agent with Trans Nemwill Insurance, where he worked for nine (9) years.

3. The brokerage business involved arranging insurance coverage for persons seeking insurance coverage with any of the insurance companies operating in Grenada. In return for receiving the insurance business from Fullerton, the insurer will pay to Fullerton, a ten (10) percent commission on the premiums paid by the person seeking to be insured. The responsibility for collecting the insurance premium from the person to be insured resided with the Broker, Fullerton.

4. Through separate arrangements worked out with each insurance company, the companies will provide coverage to the person to be insured once Fullerton provided the insurer with written notification of the agreement of the person to be insured by the insurer and confirmation of satisfactory arrangements been made between Fullerton and the insured person in respect of the payment of the premiums.

5. It was understood and agreed between Fullerton and the insurance companies that payment of the premiums in respect of any policy issued will take place between 45 and 90 days from the date of issue of the policy. It is for Fullerton and not the insurance company to ensure payment by the insured person within the time agreed to between Fullerton and the insurer. Failure to remit payment to the insurer whether by Fullerton or the insured within the agreed or arranged time will entitle the insurer to terminate the policy.

6. It is well established that in many instances insured persons do not pay their premiums in full within the prescribed 45 to 90 days. Indeed, many persons pay either on a quarterly or monthly basis.

7. Fullerton was able to attract a substantial clientele within a very short period of time. In fact, by the time the investigation had begun, he had secured over 300 clients. It appears however, that Fullerton, either as result of lack of business capacity, experience, judgment or commitment was unable to develop and maintain adequate and proper management, accounting and recording systems and controls necessary for the efficient and transparent operation of the business.

These limitations were no doubt compounded by the rapid rate of growth of the business, the fact that Fullerton himself was engaged in the daily cut and thrust of political life and the fact that he was not in a position to hire assistance with the necessary skill and expertise to compensate for his frequent absence from the office.

8. The committee established to inquire into the allegations of impropriety by Mr. Fullerton has conducted a very thorough investigation into this matter. It interviewed several persons including representatives of the six (6) insurance companies with which IBGL conducted business, several persons who were reportedly affected by his business dealings, as well as several insurance brokers so as to better understand and appreciate industry standards and practices.

9. Most importantly, the committee also conducted several interviews with Mr. Fullerton during which its members had full and unimpeded access to the company's books and records.

10. The committee found that in a few instances, there was tardiness on the part of Mr. Fullerton in transmitting the documentation prepared and the monies collected on behalf of insured persons to the insurance companies.

11. It also found that in many instances, Mr. Fullerton failed to vigorously pursue persons on whose behalf he had arranged insurance to ensure that they pay up the balances owing on their premiums.

12. These shortcomings are undoubtedly unacceptable since they had the potential to compromise the insurance status of his customers.

13. Mr. Fullerton has readily accepted the inherent dangers posed by such shortcomings both for his clients and for his business and reputation.

14. Moreover, he recognizes that while the allegations giving rise to this investigation may be regarded as standard practices within the industry, he must, as a politician and representative of the people, hold himself to a higher standard at all times.

15. On the basis of this investigation the committee concluded that while the manner in which Mr. Fullerton conducted his operations and some of his business practices were unsatisfactory, they found nothing that would allow them to conclude that there was misappropriation of funds, fraudulent conduct or an intention to deprive persons of their monies or property on the part of Mr. Fullerton.

16. In the circumstances, we of the NDC continue to have the fullest confidence in Kenny Fullerton. We stand solidly behind him and shall continue to support him.

17. The committee established to investigate this matter has recommended that the party immediately take steps to assist Mr. Fullerton in strengthening his business and managerial capacity as well as improving his management, accounting, recording systems and controls.

We embrace these recommendations and shall be taking steps in this regard shortly. 18. We remain firm in the view that Mr. Fullerton is a man of immense talent and has the potential to make a significant contribution to the development of this country.

We hope that he shall be able to do so in the name of the National Democratic Congress.

April 25, 2006