Outspoken attorney-at-law, Anselm Clouden who almost single-handedly took on the financially-strapped Capital Bank International Limited has called on Prime Minister Dr. Keith Mitchell to ensure that a criminal investigation is conducted into the operations of the bank.
CapBank which is owned and operated by City Businessman Finton De Bourg went into Receivership last week Friday through a Court Order obtained by the Ministry of Finance headed by Prime Minister Mitchell.
Clouden said that as a legal representative for a depositor at the bank he is duty bound to call on the Prime Minister to appoint a special prosecutor to conduct a criminal investigation to determine the extent of "wrong doing" at the financial institution.
He suggested that the probe should include members of the local Financial Intelligent Unit (FIU) of the Royal Grenada Police Force, and Scotland Yard from the United Kingdom.
The lawyer said that controversial Jamaican attorney, Hugh Wildman, himself a director of FIU should not be the person to be appointed as the special prosecutor.
"Mr. Wildman is not suitable for this appointment because he is also on the Board of Directors of the FIU and it may lead to a possible conflict of interest," he told reporters.
Clouden charged that there is some measure of fraudulent dealings with respect to the conduct of business at the bank.
Managing Director of Kroll Associates UK Limited (Grenada Branch), David Holukoff has been appointed by the Minister of Finance, Dr. Mitchell as the Receiver of Capital Bank.
Holukoff is the husband of former President of the Senate, Leslie-ann Seon.
According to Clouden, there is need for systems to be put in place in anticipation of financial wrong-doing at Capbank.
"As the Receiver gathers the information with respect to the depositors' monies, there is now a fierce, urgent need to have the fraud squad, the FIU, and the Scotland Yard, possibly the FBI invited to assist the FIU in ascertaining the extent of wrong doing with the conduct of Capital Bank International," he said.
Clouden stated that if the fraud squad with their forensic knowledge can track and trace the depositors' money, then it should be made available to them.
GRENADA TODAY was told that when the Receiver took over the bank on Friday, the paultry sum of EC$3000.00 was found in the vault at Capbank's branches in St. George's and Gouyave.
Permanent Secretary in the Ministry of Finance, Timothy Antoine has disclosed that approximately forty million dollars were known to have been deposited by Grenadians at home and abroad with Capbank Antoine's father, Algernon, was a manager of Capital Bank's outlet in Victoria, St. Mark's.
Capbank is said to have been badly affected by several persons who have defaulted on generous loans granted to them over the years.
Clouden also accused Wildman of giving erroneous advice to Dr. Mitchell as Minister of Finance with respect to the appointment of a Receiver.
Wildman said the Receiver was appointed in accordance with Section 43 of the Banking Act 2005 which speaks to duly licensed banks.
Clouden reiterated his claim that Capital Bank is not a duly licensed bank and as such it does not fall under the rubric of the Banking Act of Grenada 2005.
The city lawyer backed his claim with a letter dated December 7, 2007, coming from Sir Dwight Venner, Governor of the Eastern Caribbean Central Bank (ECCB) which said in part, "Please be advised that the Eastern Caribbean Central Bank is involved as a defendant in a pending suit instituted in the High Court of Justice in Grenada by Capital Bank International Limited. It is a matter of record in the proceedings that the ECCB maintains that Capital Bank is not duly licensed...." Clouden indicated that to invoke the provisions of Section 43 of the Banking Act, can only be done upon the recommendation of the ECCB.
Section 43 of the Banking Act 2005 reads in part, "the minister, acting upon the recommendation of the Central Bank may appoint a Receiver for any financial institution..." Clouden said: "Capital Bank is not a member of the ECCB, so the ECCB could not have so recommended to the minister (of finance)".
The attorney added that in further consultation with the ECCB late Monday afternoon he was informed through correspondence from the legal advisor of ECCB, Ms. Esco Henry that the Central Bank was not joined as a party to the application brought before the local High Court by Dr. Mitchell for the appointment of the Receiver.
Clouden said that as an Officer of the Court he has to make it known that the local court was mislead since it ordered that, "a representative of the Eastern Caribbean Central Bank shall observe the conduct of the Receivership and the discharge of the duties of the Receiver under this order." "The court of Grenada has been misled, and this is alarming," he told reporters.
