September 23 is the date set for hearing in the local high court of a dispute between the financially-plagued Capital Bank International Ltd and the Eastern Caribbean Central Bank (ECCB) on the validity of its banking license.
After more than 10 years of waiting for the court matter to commence, the bank's owner Finton De Bourg said that Grenadians will finally get to know the full truth behind the CapBank issue.
De Bourg appeared on the popular "Sundays with George Grant" radio programme and sought to justify the bank's operations over the years and more recently the unavailability of funds to pay depositors.
Several persons have claimed that they cannot access their monies in the bank and used the opportunity to voice their frustrations to De Bourg during the programme.
One caller accused De Bourg of not wanting to accept responsibility for the people's money and that from the onset nothing was transparent in the dealings of CapBank.
Another caller blasted former Prime Minister and Minister of Finance, Dr. Keith Mitchell for granting the Bank the license to operate without the approval of the ECCB.
One caller told De Bourg openly that he does not seem to understand the stress that depositors are undergoing and "we want we money, stop beating us around the bush".
A caller who claimed to be a former employee of CapBank said that the financial house was never solid and that loans were constantly approved but there was no money to pay out.
In response, De Bourg blasted one of the callers saying: "If government saw the need to give the bank the license who are you to question it".
He blamed the ECCB for the situation presently facing the bank by dragging its feet on the case that was brought against it several years ago, saying they are the ones holding up the depositors.
Capbank was placed into Receivership about six months ago by the then New National Party (NNP) administration of former Prime Minister Mitchell.
Accountant, David A Holukoff, Managing Director of Kroll Associates UK Limited (Grenada Branch), an international risk management company, was appointed as the Receiver to protect the interest of depositors.
However, De Bourg said that since that development, not one depositor has benefitted from the move.
Earlier this year, the Bank brought a motion before the high court challenging the receiver's appointment and was handed judgement in its favour.
However the government immediately appealed the ruling and in the process has also sought a stay of the Court's ruling which leaves the Receiver in control of the Bank.
A subsequent attempt by the bank to have the appointment set aside was dismissed by the High Court in early March.
In April, the then Minister of finance filed a petition in Court for the reorganisation of CapBank, and expressions of interest have reportedly been received from several potential investors.
However due to Court-imposed restrictions, the investors were not provided with an opportunity to conduct an on-site review of the bank, thus no firm offers or letters of intent were received.
The ECCB continues to prevent Capital Bank from accessing the Clearing House Facility which is necessary for the Bank's operations on the grounds that it does not have a valid banking licence.
However despite the ECCB's warnings the Bank was granted a license on February 13, 1996 under the Mitchell regime.
The Bank commenced commercial banking operations on April 01, 1997, offering local domestic banking as well as international banking services from its headquarters on Grenville and Deponthieu Streets in St George's.
The Bank's problems deteriorated In late 2007 when depositors and employees of CapBank began experiencing problems when attempting to withdraw their savings and receiving their salaries.
De Bourg has consistently denied the ECCB's claim saying that his bank has a valid banking licence from the Grenada government.
In the hype of Grenada's general election, former prime minister Mitchell promised depositors that his administration will pay all depositors with five hundred dollars or less.
However the NNP leadership was voted out of office on July 08 and the new National Democratic Congress government is yet to make a pronouncement on this promise.
The NDC administration has disclosed that it will proceed with the notice of revocation of the Banking license of the Bank as started by the Mitchell administration.
However, according to Corporate Communications Officer in the Ministry of Finance, Petra Joseph, the new administration is still in the process of reviewing the matter.
De Bourg said that he has requested an urgent meeting with the new Minister of Finance, Nazim Burke and is ready, willing and able to deal with all issues view a view to bringing the matter to full closure.
