St Kitts-Nevis-Anguilla National Bank Sues Antigua For $60 Million

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Prime Minister Gaston Browne reports that the St Kitts-Nevis-Anguilla National Bank (SKNA) is imposing a $60 million lawsuit against the government for not protecting their deposit.

“Just [Wednesday] I’ve given instructions to the Attorney General and the Solicitor General to defend it, because SKNA in St Kitts is claiming that we should’ve protected their deposit, too, or their investment, and we said, no,” explained Browne.

“We now have a suit of about $60 million against us from the St Kitts National Bank, and there are others within the region… other banks… who claim that they had to invest monies in ABIB… claims that we have chosen not to honour,” Browne further explained.

The lawsuit, which the government plans to defend, stems from a loan taken in 2009 under the United Progressive Party (UPP) administration amounting to more than $160 million with the then-ABI Bank, which apparently was partly funded by the SKNA.

According to Browne, the government’s policy was, at that time, to protect “depositor” funds, not “inter-bank deposits” nor investments into the now-defunct ABI Bank.

“We are saying that we do not accept that liability. There is no legal basis on which they can succeed. That is how we feel and we will defend it,” said Browne.

“The bank went belly-up. The loan was transferred to ECAB [Eastern Caribbean Amalgamated Bank] and now government is paying that loan of $160 million,” the finance minister explained.

Browne added that, “If, on top of that, we have to go and add another $60 million dollars, that cannot be fair to us.”

In 2016, the Antigua Barbuda Labour Party government made an initial injection of $51 million, with the promise of a total injection of up to $300 million, as it sought to secure depositor funds while it transferred the performing assets of the ABI Bank to ECAB.

The prime minister said that he is also aware of the claims being made by other institutions as well, and if they are successful in their pending claims, “the liability to resolve the ABI Bank could rise” from $300 million to $400 million.

Even though the government is willing to defend the case, Browne revealed that there was an offer made to settle the matter with SKNA.

However the offer was rejected, and the government has since taken the offer off the table.

“At one point, we had said to them, in the interest of camaraderie, considering that we are all part of the Eastern Caribbean Currency Union, we would have accepted a liability of half – 50 percent – and they refused,” Browne stated.

 

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12 COMMENTS

    • Sounds like, somebody “F’d Up” some of the money, cannot account for them(the loan), now poor people MUST pay for the wicked, cruel and selfish deeds, of those charged with managing the Nations affairs.
      This is why, it’s IMPERATIVE that ALL GOVERNMENT DEPARTMENTS, be audited by Independent firms, every three years, regardless, of which political party is the Ruling Arm of the Government.
      Then, as you indicated in a previous post, regarding the “Sexual Harassment Allegations,” at the Public Works Department; “Let the chips fall where they may!” And, punish Sungoo or Lungoo to Ras. Dem a kill Poor People wid dem skulduggery!

      • DEFENDING THE INDEFENSIBLE

        Not sure what the hell ‘…gud fren’ Ras Smood trying to ‘…insinuate or suggest,’ but this news story is not about ‘….somebody ‘F’ Up’ some of the money’ (First line of comment).

        No Ras Boy. Na-a-ah then!

        It is about the ‘…SKNB instituting of a Law Suit’ for ‘…non-protection of Depositors Funds.’

        Looked at from civil litigation, the Depositor would be arguing ‘…Gross Negligence’ on the part of the local governing authority.
        Not a darn Banker, and not advancing arguments on Banking procedures. No Sah.

        As a former Banker, Prime Minister Gaston Browne has cleverly making a distinction with;

        (a) …Depositors Funds; and

        (b) …Inter-banking Deposits.’

        Researched the latter (b) and the darn thing says;

        Inter Banking Deposit is;

        (i) …A Deposit that one Bank holds for another bank’ (institutionalized arrangements).’

        (ii) …The Correspondent Bank is one for which the Deposit is held; and

        (iii) …Each Bank holds a ‘…Due To’ Account under the name of the other’ [Wikipedia].

        Different to ‘…Depositors Funds’ where individuals deposit their monies and the Banks hold such monies for them.

        Seems illogical that ‘…Protection for one’ places other Depositors, including ‘…Inter Banks Deposits’ at ‘…negligent serious risks.’

        Looking at this news story purely from;

        (a) …A legal; and

        (b) …Obligatory perspectives.’

        Really don’t see how the hell the;

        (i) ‘…Attorney General; and

        (ii) …Solicitor General’ could crawl out ah dis ‘wan’ (new word).

        This is particularly so, when the Government has a ‘…Watch Dog Authority’ called the ‘…Financial Services Regulatory Commission (FSRC).

        The function of such ‘…Authority’ is not only to see how the darn ‘…Financial Institutions’ conduct their operations or behaves, but also to see that ‘…Depositors Money’ is not;

        (a) ‘…Fished out (Fraud);

        (b) …Dished out (Reckless/dubious or unsecured Loans); or

        (c) …Allowed to crawl out of the Banks with their darn ‘…bellies up’ [ANR: Paragraph 6].

        Darn ‘Bellies’ would be left empty and Depositors would be doing nothing but ‘…complaining and crying like heel too.

        We will fight them though.

        Nothing beats a darn trial, but failure.

        Might very well be fighting a darn losing battle too.

        • MANAGEMENT TURBULENCE – CAMARADERIE SOLUTIONS

          Looked at from the ‘…Punjab National Bank (PNB) experience [Indian Government-owned], though that ‘…Financial Institution’ appeared not to have collapsed or fell down with its darn ‘…Belly Up’ (PM Browne), the ‘…ABI’ seemed to have encountered ‘…Management Turbulence’ and eventually dropped out of operations.

          The darn ‘…people and institution’ that shall have been held ‘…responsible and accountable’ are;

          (i) …The Board of Directors; and the

          (ii) …Oversight Governing Authority, FSRC;

          Now, when ‘…Ras Smood’ starts to ‘tawk’ ’bout ‘…Let the chips fall where they may,’ two possible things;

          (i) …Seems not to be irie; and

          (ii) …Seems to be on a darn different page to PM Browne.

          May have been looking suspiciously at the ‘…ABI’s Board of Directors.’

          They seem darn lucky to escape, ‘…Criminal Prosecutions or to have been declared ‘…Fugitives From Justice,’ had they skipped town to the ‘…Indian Continent.’

          In the case of the ‘…PNB,’ a darn ‘…alleged fraudster’ was reported by ‘…Indian authorities’ to be ‘…hiding some darn where in this region with a sizeable chunk of ‘…Indian Tuna.’

          Though not real fish, can buy real fish at the Market.

          Trying as hard as they could, still can’t seem to pull the darn net in.

          Net hooked up on some darn ‘…legal thing.’

          Really can’t accuse ‘…Duncy Bat’ all the time of ‘…dunciness.’ No Sah.

          He is indeed a ‘…gud fren,’ and so too is the darn ‘…Ras Smood.’

          Though not quarter as smart as ‘…Prime Minister Gaston Browne,’ Duncy’ is a darn bright ‘Bat’ as well.

          Indirectly, one say dat the darn ‘…ABI Directors’ len out some ah the Deposits to some darn Government.’

          The ‘Bat’ somehow believes that ‘…dubious and/or unsecured loans’ may have contributed to the demise of ‘ABI.’

          In the ‘…SKNB Inter-Banking Deposit Saga,’ he wanted ‘…Camaraderie Solutions’ [ANR: Last Paragraph: News Story].’

          SKNB says ‘…Hell No!; …Want all we Deposits.’

          The ‘Bat’ remembers something; that elusive felon who ‘…allegedly snatched some darn thing’ from ‘…Carlisle Bay Resort’ [OMG: July 6, 2018].

          Up to dis dey, not ah darn soul know way he ‘…garn wid it; …did wid it; or …doing wid it.’

          • This issue is about mismanagement, no?
            What I am insinuating, is that it’s time for those responsible for such “mismanagement” be brought up on charges, and prosecuted.
            These “white collar” crimes are forever, costing the State.
            When is enough, enough?

      • RAS WORD INVENTOR

        Do like your two newly invented words ‘ Ras Smood;’

        (i) …Rassishness;

        (ii) …RASpect.

        Not sure of the meaning of the first word, but will ensure that our ‘…gud fren Duncy Bat’ do not ask his brother ‘…Rock Head,’ any darn ‘…Rassishness’ about the ‘…RASpectable Ras Smood,’ whatever the hell it means.

        Not sure if these words sound ‘…rite or gud,’ but still nice words ‘…Ras Smood.’

        For balance, though, ‘…Non with the word ‘…Rassishness’ to them, and me too.

        Even if feeling ‘…Irie High,’ got to come ‘…RASpectfully Smood.’

        Tell you what. The next school to be built shall be called ‘…Irie High.’

        • Pompey, why are you evading the question?
          Again, this is about mismanagement, lack of oversight by the relevant authorities in this case, the FSRC, not so?
          Then again, when are these “white collar” criminals which are costing tax payers millions of dollars going to held accountable for their known actions, and be prosecuted?
          When is enough, going to be enough, wen cack hab teeth, cow jump over de moon?

          And, but the way, smoking is being replaced by Vaping. You should invest in a Vape Shop. Just don’t sell no “flit-pumps” as vaping pumps.

  1. Why everything has to be so politicized? Yes the loan was taken under the UPP Administration but government is continuous. With respect to the suit by the SKNA National Bank, I believe that the Respondent should really be ABIB or /ECAB and not the government, unless the government initially guaranteed the liabilities of ABIB/ECAB. We will await the position of the Court.

    • CONTINUOUS GOVERNMENT

      You know ‘gud fren’ CT,’ even when one endeavors to enlighten, some darn ‘…Goon’ (not a new word: In the Dictionary), often tries to make it look ugly.

      Absolutely correct ‘CT.’

      Would be ‘gud’ to read the ‘…SKNB Claims.’

      Now ‘…Public knowledge; Public Document; and …Public interest.’

      Sure you might be able to source ‘…High Court Documentation.’

  2. You borrow money the lender expects to be repaid.
    That being said I’ve noticed the PM likes to receive money from any source
    For projects that never get done.
    But he is never giving $ back.

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