One of Grenada's most experienced former civil servants Experienced had warned Prime Minister, Dr. Keith Mitchell of the danger of accepting money in the form of political contributions from those Offshore Banks operating in the country.

Prime Minister Mitchell and others

Eight years after the warning was given by Lauriston Wilson on March 30, 1999, Dr. Mitchell and his ruling New National party (NNP) administration have ben exposed for accepting large financial contributions from the collapsed First International Bank of Grenada (FIBG).

Wilson, a former Director General of Finance who operates his own accounting firm told Prime Minister Mitchell that these political contributions or donations "tend to make the Offshore Bankers feel that they can do as they please, and hold the Prime Minster and the country to ransom".

"The Prime Minister (Keith Mitchell) replied that he generally did not know who contributed or donated money to the party and nobody could hold him or the country to ransom. In any event, he always put Grenada first in all his dealings".

The above ae the contents of a telephone conversation between  Dr. Mitchell and Wilson which forms part of the records of a case involving First Bank that was filed in the island's Supreme Court Registry.

GRENADA TODAY was able to access the court documents for public scrutiny:

Dr. Mitchell telephoned the home of Mr. Lauriston F. Wilson, Jr,. Managing Partner, at approximately 8:35 a.m on March 30, 1999, leaving a message on the voice mail to the effect that he needed to speak to him urgently about a letter which he had sent to him on the offshore sector on Monday, March 29, 1999.

Mr. Wilson telephoned the Prime Minister at approximately 9:55 a.m as soon as he had returned from Grand Anse Beach. The Prime Minister asked Mr. Wilson whether he wanted to give him a Heart Attack, as the above-mentioned letter had contained some shocking information.

In response, Mr. Wilson indicated that he had a professional obligation to advise him of his observations. Mr. Wilson also took the opportunity to warn the Prime Minister again about sharing such sensitive information with Mr. Michael Creft, the Registrar, Offshore Financial Services.

He informed him that he had learned how he had excoriated Mr. Brink and Mr. Creft on Saturday, March 27, 1999, for the violations of the Offshore Banking Act. Indeed Mr. Wilson advised the Prime Minister that he had heard that he, the Prime Minister had "behaved real bad" with Brink and Creft.

The Prime Minister confirmed this to Mr. Wilson, indicating that he always put the country first. The Prime Minister also informed Mr. Wilson that he had enquired of Mr. Brink why he had changed his name from Gilbert Ziegler to Van Brink. Mr. Brink replied that celebrities usually change their name in the USA and there was therefore nothing wrong with his name change.

The Prime Minister responded that he refused to buy that argument, having lived himself in the USA. However, he admonished Mr. Brink not to have any further dealings with him, until he had straightened himself.

The Prime Minister also enquired of Mr. Brink about the Audit being carried out by Wilson & Co. The Prime Minister advised Mr. Wilson that Mr. Brink blamed Wilson & Co. repeatedly for the delay of the Audit. In connection with the 1998 audit of First Bank, Mr. Wilson advised the Prime Minister that Mr. Brink wanted Lauriston Wilson and Peter Wilson to fly to some unstated destinations in the USA to examine vouchers and verify documents.

Wilson and Co's reaction was that, apart from the fact that it was administratively inconvenient for us to  do so, it was less expensive to bring the vouchers and documents to Grenada for checking, since the Bank was a Grenadian registered Company and all its vouchers and documents should reside in Grenada.

Mr. Wilson intimated to the Prime Minister that the fact that Mr. Brink wanted to expunge every shed of evidence from the Office of Wilson & Co. is an indication that he has something to hide. The Prime Minister advised Mr. Wilson not to give Mr. Brink the information he requested, as he agreed with Mr. Wilson that the material should be submitted to the Government of Grenada in the context of Article 13 of the Second Schedule of the Offshore Banking Act; 1996 (Act No. 39 of 1996)

Mr. Wilson informed the Prime Minister that another indication of the Money Laundering activity is the fact that the Bank claimed to be paying as high as 300% per annum interest to its customers.

There is no legitimate business in the world that could afford to pay such high rates of interest. The operations of the Bank that were shrouded in secrecy and mystery, were therefore questionable and suspect.

The Prime Minister advised Mr. Wilson that he had political difficulty in getting rid of Mr. Michael Creft as Registrar, offshore financial services. Because the New National Party executive considered Mr. Creft to be a loyal party member and because he, the Prime Minister had a weak reputation of hiring people and dumping them, he was in an extremely awkward position.

The Prime Minister indicated to Mr. Wilson that he would implement immediately one of the recommendations contasined in Wilson & Co,. Letter dated March 26, 1999, regarding the creation of a supervisory body over the Registrar, Offshore financial services.

The Prime Minister also informed Mr. Wilson that he could not dismiss Mr. Michael Creft from the post of Registrar, offshore financial services, because he does not have a Œsmoking gun". When Mr. Wilson advised him that he possessed a lot of sensitive information that was indicative of a "Smoking Gun", the Prime Minister promised to arrange a meeting with Mr. Wilson at a subsequent date for the purpose of reviewing the material.

Mr. Wilson warned the Prime Minister of the danger of accepting Money from these Offshore Bankers for the New National party. These political contributions or donations tend to make the Offshore Bankers feel that they can do as they please, and hold the Prime Minster and the country to ransom.

The Prime Minister replied that he generally did not know who contributed or donated money to the party and nobody could hold him or the country to ransom. In any event, he always put Grenada first in all him dealings.

Mr. Wilson also informed the Prime Minister that contrary to section 3 (3) of the offshore Bank Act 1996 (Act No. 39 of 1996) allowing for the delegation by Mr. Creft of his duties to a Staff member of the Ministry of Finance, Granite Registry Services Ltd, a locally incorporated international business company, operated by foreigners resident in Grenada was designated by the Registrar, Offshore financial Services to undertake "Due Diligence" reviews of applicants for Offshore Banking Licence, Trust Licence and IBCs such an arrangement was highly questionable in terms of transparency, accountability and integrity.

Mr. Wilson warned the Prime Minister that the should not disclose to Mr. Creft the substance of his discussions with Mr. Wilson, as the latter had a strong suspicion that Mr. Creft was reporting everything to Mr. Brink. That weakness could subvert any proper investigation of First International Bank of Grenada Ltd.

Finally, Mr. Wilson advised the Prime Minister of an incident in Trinidad earlier this year where Miss Marion Suite offered on behalf of First Bank TT $50 million for a recording Studio that was in Receivership.

The value of the Studio was TT$12 million. The offer by First Bank of approximately 4.2 times the value of the Recording Studio raised serious concerns in Trinidad as to the nature of the operations of Offshore Banks in Grenada.

The telephone conversation between the Prime Minister and Mr. Wilson, which lasted approximately thirty (30) minutes, ended with the Prime Minister undertaking to call Mr. Wilson for a subsequent meeting/discussion.