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Run on BLA in 2009 drained $10 million

Pedestrians walk in front of the Building & Loan Association Building in Kingstown on Thursday, Feb. 7. Prime Minister Dr. Ralph Gonsalves announced Monday that there was a $10 million run on the institution in 2009.

Pedestrians walk in front of the Building & Loan Association Building in Kingstown on Thursday, Feb. 7. Prime Minister Dr. Ralph Gonsalves announced Monday that there was a $10 million run on the institution in 2009.

KINGSTOWN, St. Vincent, Feb. 11, IWN — There was a $10 million run on the Building & Loan Association (BLA) in 2009, Prime Minister Dr Ralph Gonsalves said Monday.

Gonsalves’ comments came days after chair of the Financial Services Authority; Leon Snagg, said on radio on Thursday that oversight institutions conducted reviews of BLA in 2009, 2010, 2011, and 2012 — years before the FSA take-over on Feb. 1.

“In 2009, as the reports show, there was a run of about $10 million on Building & Loan,” Gonsalves said on WE FM’s “Shake-up” as he responded to an announcement by Opposition Leader Arnhim Eustace that Gonsalves’ relatives withdrew some $1 million from BLA last October.

Gonsalves said that his brothers, who hold the account jointly with his 93-year-old mother, withdrew the money based on the advise of a then BLA director.

He said the $10 million run in 2009 might have come after a difference of opinion among BLA directors.

“Because, apparently, some fellas had gone to an annual general meeting and were hoping for reform and didn’t get any and they decide, and other people, say ‘Listen man, we tekking (taking) out we money,” said Gonsalves, who is also Minister of Finance.

Gonsalves, however, said he will not inquire about who withdrew money and how much was withdrawn.

“That’s not my business,” he said as he challenged the unidentified whistle-blower who leaked to Eustace the information about Gonsalves’ brothers’ transaction in October

“I want that person to tell the public while they were on Building & Loan, what is the size of their account there, how much they owe and whether they had been servicing,” Gonsalves said.

“I reasonable suspect [who the whistle-blower is], given the relationship between the person concerned and Eustace.

“But I don’t want to get into the politics of that. I just want to say Eustace is lowdown and nasty to drag my mother into this. All because he wants to tarnish my reputation…” Gonsalves said in reference to Eustace’s disclosure of the transaction involving Gonsalves’ brothers.

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Discussion

3 thoughts on “Run on BLA in 2009 drained $10 million

  1. The NDP, ETERNALLY, it seems, SUFFERS from FOOT IN MOUTH DISEASE.

    This is why I do not get CAUGHT UP in their NONSENSE, because I know they always PLAY CHEAP POLITICS with EVERYTHING. Moreover, they NEVER TELL you the WHOLE STORY.

    This is why I will always say that Eustace and the NDP are not FIT to MANAGE a MAUBY SHOP much less GOVERN a COUNTRY.

    Posted by VINCYPOWA | February 12, 2013, 10:08
  2. VINCYPOWA, cheap politics, you have the audacity to mention cheap politics. Why not tell the people about how you are a paid collaborator. Tell the people how you are paid to say white is black or black is white, if it helps shield Gonsalves from the truth in case the truth hurts him.

    Keeping in mind that PM Gonsalves told us he is a liar, no I did not make that up, he told us whilst in parliament that he sometimes tells lies. Its recorded in Hansard, there for history to judge forever.

    Now when he tells us he never discussed or advised his mother or family to withdraw their money from BLA. Can we believe him or is he telling us lies. If he did discuss it with his family that is tantamount to giving them a pecuniary advantage over other investors.

    I do not think that Gonsalves or the government directly caused the present BLA situation, that was management failure, past and present. But there has been a more than serious failure of the governments legal and fiduciary control over Building and Loan, just as they failed British American and CLICO. Failure to have in place proper controls, or guarantee deposits, to insure and ensure that investors get their money or a good portion of their money from a government controlled fund if the company fails [such is law and a legal requirement of the government] .
    I am amazed that investors in BA and CL didn’t sue the government in a joint action.

    Gonsalves as minister of finance has failed in his duty to the people, anyone with an ounce of decency would resign.

    Its not what they have done, its the way they did it, that has people thinking there was something conspiratorial about it.

    There is a cloud of darkness and doubt over the whole thing from 2009 to PM Gonsalves mothers cash withdrawal, to Luke Browne’s letter, to the FSA take over, now to the disgraceful disclosure by Gonsalves [for his own purposes], of the secret files of the ministry of finance and BLA. A disclosure that seals the fate of BLA as a failed association, with no regard to small investors.

    As I wrote once before, Marxist control requires that the rich and middle class be destroyed, because it is only with total control over poor people that it can work. BA and CL destroyed half of our middle class, BLA will destroy the rest.

    The latest Marxist ALBA document from the ALBA conference, signed and accepted by Gonsalves, talks and advocates income redistribution, and on numerous occasions talks in terms of ALBA-TCP fulfilling a process of political, economic, social and cultural integration based on the guiding principles of cooperation, production complementary and solidarity. What I believe is the beginning of surrendering our sovereignty to ALBA, it even speaks of an ALBA parliament.
    http://i-witness-news.com/2013/02/09/letter-have-caribbean-alba-countries-published-this/

    It seems to me that everything and anything financial that Gonsalves touches, or even nods or winks at, is doomed to failure.

    Posted by Peter | February 13, 2013, 23:09

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