Sandra C. A. Ferguson

C/O P.O. Box 750

St. George¹s

Grenada.

July 18th 2006

Dear Ms. Ferguson,

As Chief Operations Officer (COO) of Capital Bank International Ltd, I have been directed to respond to your letter to the CEO which contained numerous unfounded allegations and inaccuracies which appeared in Grenada Today Newspaper in their July 8th and July 15th publications.

In your letter you portrayed our noble organisation as a one man show and our CEO as ³Chief cook and bottle washer² as you put it - How Preposterous!

For your information Ms. Ferguson, the Capbank Family has grown into a strong and reputable financial group, Capital Bank International Group

(CBIG) providing over three hundred (300) jobs to our young and talented Grenadians.

The Bank itself starting from its modest beginnings with one branch and five employees including the De Bourg¹s has grown to over eleven (11) branches all across Grenada, Carriacou and Petite Martinique with a staff consisting of over one hundred (100) employees.

The top management of the bank consists of the following management personnel - (1) CEO- Chief Executive Officer, (2) CFO- Chief Financial Officer, (3) COO- Chief Operations Officer (4) CSO- Chief Security Officer

(5) Manager Of Human Resources and Administration (6) Manager- Management Information Systems (7) Manager- Strategic Planning and Marketing (8) Manager of Recoveries. Additionally each of the eleven branches is headed by a branch manager.

Well Sandra if this represents a one man show then that man has to be SUPERMAN! In fact Sandra we have more chiefs than you know!

Now for the allegations contained in your letter. First of all you made a number of damaging statements based on unfounded allegations and then proceed to ask questions at the end of your letter - How upside down can you be? Should you not first seek clarification and then write?

Maybe I am asking too much because you would have to be a normal, rational and sane person to follow my logic!!

Validity of License

Capbank was granted a commercial banking license in 1988 by the late H.A.

Blaize the then Prime Minister and Minister of Finance after meeting all of the requirements for the grant of a license.

There was no offshore banking and the ECCB agreement did not exist at the time. On the coming into being of the ECCB, the Banking Act was amended to give a regulatory role to the ECCB.

In that amended act, provisions were made for ALL licensed banks operating before the coming into being of the new law to be deemed to have been granted a license under the new act and a certificate of continuance be issued by the Minister of Finance.

All the Banks operating in Grenada received such a license. In the case of Capbank we received our continuance license in 1996; therefore Capbank holds a valid license and does not need to have it validated by the Governor of the ECCB, as you purported!

Not withstanding the provisions of the Banking Act, in 1998 the Government of Grenada on the request of the Governor of the Central Bank approved an audit by the ECCB of the documentation supporting the issuance of the license certificate to Capital Bank.

At the completion of the audit the Central Bank wrote, ³We are satisfied that the license was duly issued², and proceeded to exercise their right to audit the bank under section 20 of the banking act as a licensed financial institution.

Audit & Compliance

Every year the financial records of Capital Bank are audited by an independent auditor.

Since its inception, Capbank has presented nine (9) audited financial statements to the Governor of the Central Bank and the Minister of Finance as required by the Banking Act.

These statements have all been accepted without queries to the best of my knowledge.

Indeed since 1998 the ECCB on its own and through international auditors like Price Waterhouse Coopers and Ernest and Young have conducted eight (8) audits and examinations of the records of Capital Bank.

None of these independent auditors recommended the revocation of the license of Capital Bank International, because there was no evidence to support such action.

Dwight Venner Affidavit

Dwight Venner¹s affidavit is loaded with malice, spite and dishonesty!! None of his statements can be supported by facts.

In fact, Dwight Venner himself abandoned his own affidavit after submitting it to the court. Was this window dressing? Instead he had his lawyers pursue the matter in court on the grounds of his immunity from prosecution!

In other words Mr. Venner did not want to be accountable for his own actions! Therefore, his affidavit was never tried in court; Dwight escaped cross examination and abandoned the allegations contained therein moments after it was written!!

Now Sandra, you are walking down dangerous roads to resurrect what Dwight Venner himself could not defend. Check Yourself! However, since it was somehow placed in the courts record this is what the Chief Justice had to say about it because it was never tried.

³If what Mr. Venner is saying is indeed true then these are the exact same reasons to warrant the revocation of the license².

Why did Dwight Venner not follow the process in the law for the revocation of the license? Answer - There is no legal basis for a revocation. Now don¹t tell me that he asked the Minister to revoke the license and politics made him not do it.

Because the Chief Justice addressed that as well when he wrote- ³Even if the Minister of Finance failed to act, the Governor in his own right has access to the court to enforce the revocation².

Then why did Dwight Venner not exercise his right under the law? Answer - There is no documented evidence to support his allegations!

Sandra any blind man can see that if Dwight¹s statements could stand scrutiny in court there would be no need for you to peddle his dirty wares in 2006!!

Dishonesty & Manipulation

The facts are as follows:

(1) Since 1998 Dwight Venner knew and accepted that the bank holds a valid license and has been auditing the Bank under section 20 of the act as a licensed commercial bank.

(2) The Law clearly states : ³The rules are unequivocal in its requirement that all duly licensed Banks shall be members of the Clearing House facilities²

(3) Dwight Venner knows that his allegations are unfounded. Furthermore, he knows that the so-called breaches cannot be a basis for excluding the Bank from its rights to the Clearing House.

Instead, the Bank must be given its operating rights and if there were indeed breaches a reasonable time must be given to correct the breaches before its rights could be denied. Furthermore only the court can deny those rights.

(4) The Government of Grenada as the licensing authority and the Chief Banker in Grenada wrote to the Governor clearing the Bank¹s license and its eligibility to access the clearing facility.

(5) The Bank has proved its financial viability over the past 10 years - the Bank¹s records speak for itself.

Therefore it is totally dishonest and manipulatory of Dwight Venner after failing to prove any breaches in the bank¹s operations to again query the license and blatantly refuse to obey the law. Is Dwight Venner above the laws of our land?

OH YES- We have taken the matter back to court and are now awaiting the judgment of the court which was deferred by the judge since February 2006 .

The laws of Grenada must be respected by all!! Are you supporting law breakers Sandra?

Anthony Moore

Chief Operations Officer (COO)

Capital Bank International Ltd