Executive Chairman of the financially-plagued Capital Bank International, Finton De Bourg has launched a scathing attack on the Eastern Caribbean Central Bank (ECCB) and its Governor, Sir Dwight Venner.
Addressing the media on the revocation of Capbank's license, De Bourg charged that every effort was made on the part of ECCB to effect a closure of his bank.
The revocation of the bank's license took effect last week Thursday following a notice to this effect by former Minister of Finance, ex-Prime Minister Dr. Keith Mitchell on May 26.
In seeking to explain the financial predicament of Capbank, De Bourg said that the financial institution found it difficult to get international deposits "because of the blacklisting that is being done by the ECCB."
He spoke about the ECCB denying it access to its Clearing House Facility which forced the bank to find alternative ways to cash its cheques. "We have always maintained that the bank is subjected to the control and monitor of the ECCB. The ECCB has always carried out its function from since 1997 when the bank opened its doors", he said.
"They have conducted several onsite examinations by their own technical people... and not withstanding all of these examinations which have shown that the bank is fully compliant with the Banking Act.. the ECCB continued to deny the bank access to the clearing house facility which is a right under its license," he added.
According to De Bourg, he became convinced in 1991 that Sir Dwight was taking a personal attitude towards Capbank and was not interested in regularising the situation. De Bourg was first issued a banking license in 1988 under the Herbert Blaize Administration to operate what was then called the People's Bank.
However, the license was revoked during the 1990-95 rule of the National Democratic Congress (NDC) of Prime Minister Sir Nicholas Brathwaite. In 1996, the New National Party (NNP) administration of Dr. Mitchell provided De Bourg with a continuance license under the new Banking Act for Capbank to operate a business.
De Bourg has consistently maintained over the years in the face of objections from the ECCB that "as far as we are concerned, we hold a valid license".
The Capbank's Executive Chairman noted that from October last year there was an intense campaign against the bank to force a run among depositors.
"The run continued on the bank, and eventually, on 15th February 2008 the run caused us not to be able to meet depositors' request and other financial obligations because of the liquidity which resulted in the appointment of a Receiver (David Holukoff) by the then government," he said.
Holukoff has again been retained by the new administration of Prime Minister, Tillman Thomas as the Receiver following the revocation of the banking license.
