The Minister of Finance on Friday obtained a Court Order pursuant to the provisions of the Banking Act and the Companies Act of the laws of Grenada, appointing David A Holukoff, Receiver of Capital Bank International Limited effective 3:55 p.m. on 15th February, 2008.
Mr. Holukoff is the Managing Director of Kroll Associates UK Limited (Grenada Branch), an international risk management company.
This order comes after the failure of Capital Bank in recent months to honour withdrawal requests by its customers, raising questions about the solvency of Capital Bank.
The failure of the Bank to honour withdrawal requests has resulted in at least one law suit being filed against the Bank.
Acting on legal advice, the Minister of Finance took action to safeguard the interests of depositors, and to preserve confidence in the integrity of the banking system in Grenada.
In an application to the Court, Timothy Antoine, the Permanent Secretary in the Ministry of Finance declared in his affidavit: that the insurance policy of Capital Bank was cancelled for non payment of the premium; that the Monetary Council at its meeting on 8th February, 2008 noted the significant deterioration in the situation concerning Capital Bank; and that the Ministry of Finance had received calls from many depositors expressing concerns about their inability to make withdrawals from the Bank.
It was also disclosed that Capital Bank is in contravention of certain provisions of the Companies Act. The application was heard before Madam Justice Clare Henry.
The Receiver, David Holukoff, is a Chartered Accountant and a Certified Fraud Examiner who has been working in the Eastern Caribbean on numerous complex off-shore banking and financial institution matters, including business restructuring, insolvency, asset tracing, and litigation support.
Capital Bank and all its branches are now under the control of the Receiver with the assistance of the Financial Intelligence Unit of the Royal Grenada Police Force.
A notice from the Minister of Finance of the appointment of the Receiver was posted on the premises of the Bank's Headquarters at Grand Anse, St. George's.
