PM Browne says ECAB directors are to resume talks towards conversion of shares

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Craig J. Walter Chairman Board of Directors

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Prime Minister Gaston Browne is again attempting to put public pressure on the directors of the Eastern Caribbean Amalgamated Bank (ECAB) to allow the government to retain ordinary shares in the financial institution.

He said the board had given a commitment to allow the government to increase its shares even while they were trying to acquire Scotiabank Antigua. Browne told Observer, had that commitment not been given, the government would have encouraged the Antigua Commercial Bank (ACB) to buy out the Canadian bank instead.

“They continue to frustrate the government for years now,” Browne said on a local radio station on the weekend, adding that the directors are “behaving like they are authorities unto themselves”.

“We were the ones who gave the bank the opportunity to get scaled up, to get Scotiabank branch, to making ECAB the largest bank on the island and between the management and the directorship they continue to treat the government with contempt,” he asserted.

ECAB is currently one of the largest indigenous banks in Antigua and Barbuda, and the government has 25 percent preferential ownership, which gives it first claim on distribution of profits but restricts it to voting only on resolutions which directly affect its rights.

However, more than three years ago, the administration wrote to the board of directors asking to convert those shares to ordinary shares, which would allow the government to claim full voting rights in the decision-making process. In 2021, Browne told Observer that his government intended to sell citizens some of its ownership in the local bank when it converts to ordinary shares.

Together with ACB which owns 15 percent of ECAB, Antiguan and Barbudan shareholders will then account for 40 percent of shares and voting power in the institution thereby increasing domestic ownership.

“This is an issue of increasing the Antigua and Barbuda share in the bank and if we felt that there was not the opportunity to increase the Antiguan share then we would have placed those assets into ACB because ACB is owned practically 100 percent by Antiguans and Barbudans,” Browne told Observer.

The prime minister, as he did last year after ECAB’s acquisition of Scotiabank, accused the directors of deliberately delaying the conversion. He claimed that they were allowing the profits to increase yearly so that the value of their shares can increase which, in turn, would reduce the government’s share value in ECAB.

“I think what they’re trying to do is to increase the retained earnings of the bank so that they can whittle down the shares of the Antigua and Barbuda government,” he said.

The prime minister also lashed out at the Chairman of ECAB’s board, Craig J Walter, an Antiguan and Barbudan citizen who he accused of helping to stymie the conversion process.

Browne said he expected that Antiguan directors would “act with a little more alacrity and push to get these things done expeditiously”.

“You’ve been given sufficient time and I believe that your actions are deliberate,” he stated.

There are plans to list ECAB on the Eastern Caribbean Stock Exchange, thereby exposing it to a wider selection of investors and financing.

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8 COMMENTS

  1. If you the Directors of ECAB were to convert those shares. I am pulling my funds out of that Bank. If you people do not have the backbones and balls to stand up to Gaston Browne and his bullying mentality. My three cents would be pulled from your Bank immediately, if not sooner. If you were to convert those shares. He would have total control of the Bank as Prime Minister and Minister of Finance. As it stands now. ECAB is not processing any Canadian Drafts and Checks. Did the Bank lose its Corresponding Banking Privileges with Canada? We the Customers of ECAB in my opinion should be told the reasons,not speculating.DO NOT BEND OVER LIKE SPINELESS PEOPLE AND LET GASTON BROWNE AND OR ANYONE ELSE RUN ROUGHSHOD OVER YOU,BOARD OF DIRECTORS AT ECAB.I WOULD PATIENTLY AWAIT THAT FINAL OUTCOME.

    • Take your little $2000 xcd out the funding bank …..anybody cares? You sound like a dawn fool….if Antigua and Barbuda’s people tax money went in the bank, why should us be treated any different with our Capital funds?
      This is why Antigua and Barbuda needs Gaston Browne as PM again………

      • OK GASTON

        PRETENDING TO BE JACK

        YOU ARE ALL OVER THE PLACE, APPEARING TO MAKE YOURSELF RELEVANT, EVERY MINUTE USING THE VOID LEFT DURING CARNIVAL BY OTHERS FOR CAMPAIGNING

      • @ Jack: If you knew the amount of cash I have in that Bank. You would not be running your mouth as if you have Diarrhea. You have no ideas about finances as it pertains to the situation at ECAB and those shares.You need Gaston Browne.As a National of Antigua and Barbuda.I do not need Gaston Browne for one damn thing.He could go to Shirley Heights and jump for all I care.

  2. I don’t want to shame anyone but I an holding this government responsible for outstanding monies they have for workers no empathy just have the workers waiting until

  3. ECAB should stand their ground. Government shouldn’t be involved like this in any business, particularly banking. Especially with a leader who publicly shares financial data of private citizens and businesses.

  4. ANR for a while now Lovell has responded to the PM about this conversion and I’m waiting for you to publish his response so I can tear it apart. He says the most stupendous things in that clip. But I guess by not posting it you are also saving him the embarrassment

  5. ANR I am waiting on you to publish what Lovell had to say about the Prime Minister calling out ECAB Chairman to convert the preferential shares of the government. Are you protecting him? And sparing him the embarrassment that I will give him. Lovell always makes statements on the radio without allowing the public to call in. But usually, you, ANR are always quick to publish everything he says. What is your reason for not doing so this time around?

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