SVG

Should BLA collapse, ex-managers could be answerable in court

KINGSTOWN, St. Vincent, Feb. 15, IWN – Shareholders and depositors in the beleaguered Building & Loan Association could have a legal case against the former managers of the institution if it were to go under.

Prime Minister and Minister of Finance, Dr. Ralph Gonsalves, said Tuesday that he does not think that BLA, which experienced a run on withdrawals in January and is being managed by the Financial Services Authority (FSA), would collapse.

But Gonsalves, who is also a lawyer, said if people were to lose money, they might have legal recourse against former managers of the building society.

“I am sure, speaking not as a goatskin lawyer, but as a man who has been around the law, professionally … for 30-odd years, I feel sure that if people were to lose money through Building & Loan, they should be able to go, successfully, against managers and board members,” he said at a press conference.

Asked if he would encourage lawsuits against the former manager and directors if persons lose money, Gonsalves said:

“I don’t think they are going to lose money, because, you have to have a lost. A fella behave wrongly on a civil matter, the issue only arises if you suffer damage,” he said.

“… I am not sure about criminal liability — but if there is anything that is done that amounts to criminal liability; but the question of acting negligently, I would say that it would give rise to actions in tort, that you have a fiduciary responsibility and you don’t act properly.

“For instance, how could you not appreciate that you need to follow the rules in relation to withdrawals, especially when you are saying that there is a run? That should put you on notice, on alert,” Gonsalves said.

He told the media that after a Jan. 18 letter by Ministry of Finance economist Luke Browne that asked if the institution was about to collapse, the BLA allowed depositors to withdraw special deposits in ways that contravene its rules.

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Discussion

3 thoughts on “Should BLA collapse, ex-managers could be answerable in court

  1. I AGREE THAT BOARD MEMBERS AND MANAGERS SHOULD FACE A COURT, AND I THINK LUKE BROWNE AND RALPH GONSALVES AND THE GOVERNMENT SHOULD ALSO FACE THE COURT.

    When Gonsalves mother Ms Francis withdrew her million or so, did she wait three months? if she didn’t did she forfeit interest? or did she just get the lot no questions or restrictions? Its very relevant.

    Posted by Peter | February 15, 2013, 09:20
  2. I am just waiting for the spite to start against Earl Crichton, the gagging by spite. Of course unless it already started.

    Posted by Peter | February 15, 2013, 09:25
  3. Peter my summary of Gonsalves is that if he says he is going to increase taxes or build another jail,I will believe him. Any thing inregards to how SVG will get money to build infrastructure I will nerver believe that man again. Gonsalves did not tell vincentians the truth about how he would get all that money to furnish all those big projects he planned to set up on our beautiful island. I lost my trust in him and for all the other stuff he was involved in that didn’t seemed to have a ring of truth around them. If a man demonstrated behaviour that represent misleading and false,then why should people believe that man. Vincentians had never knew that SVG Govt Collaterals and business would be sold out to foreign shareholders. People has the right to know up front the situation before matters take place. But more will happen, those who shout for joy now will shout with tears later. Peter, before all these modern inventions the people had to use their brains,now most vincentian have no brains,their brains are implanted in these computerized equipments.
    It is very sad.

    Posted by profdasilva | February 19, 2013, 01:40

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