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**Mahela** » 2013-01-26 13:57

Somehow the government of Antigua is to be blamed for a domestic bank's failure to file it's audited financial reports on time? Really people? VC Bird was on to something when he said that Antigua isn't a reading public. Domestic banks are not controlled/moni tored by the central government. They are monitored by the ECCB. This problem with ACB is because they are not up to date with their audited finances. In a few month's they'll be having their AGM for the 2012 financial year. ECCB conducts yearly audits of ALL domestic banks. So the ECCB KNOWS that ACB is not up to date with its financial reports and that's why their broker/trader license was revoked.

**Watchful** » 2013-01-26 07:46

There is no excuse for bad management and poor decision making. The ACB management not only owe it's shareholders an explanation, but an apology as well as their resignations.Th e government must also bear some blame, for their lack of monitoring of these institutions and downright ineptitude in such matters.

**Piky Head** » 2013-01-26 07:30

Strange, the bank which is always a leading contender suddenly slacking off and the slacker now pasting their statement for a long lime after a few changes at the top........ hmmm

**John French II** » 2013-01-25 20:40

Notes From A Native Son Of The Rock! By Jove! Politics makes strange bedfellows.
Don't be so hard on the Senator. How can he be diametrically opposed to the New Comrade Leader. He has softened his position. In the Past he was hurling Thunderbolts. Now he has fallen in line behind the New Comrade Leader. He has not secured the nomination and does not wish to suffer a similar fate as VCB III - Quote:

"Not on my ticket. Not on any ALP ticket lead by Gaston Brown, he can't run. He wont even reach as far as a Primary. He can't run. I would invite him to run as an independent (candidate)." Browne said. 22 January 2013

The Gang of Four is just waiting for an indiscretion by the Red Rabble Rouser Senator. Back to the days of the Doc, the maximum leader "when I talk no damn dog bark" - Quote:

I am no dictator, but when I pass an order, Mr. Speaker, this matter must go no further. I have nothing more to say. And it must be done my way. Come on, come on, meeting done for the day. This land is mine, I am the boss. What I say goes and who vex loss - Mighty Sparrow

You missed my line of ACB's gentle directive (push) by Sir Dwight.
Go Well! Respect!

**Island time!** » 2013-01-25 17:59

In the Caribbean we make laws and impose penalties which everyone knows can't be enforced. So I don't send the ECCB financials on time. Go ahead and fine me $10,000. And then charge me $500 a day penalty. How long will it take to start a run on the bank, upset the VOTERS who can't get their money and cause serious problems for the the very Honerable politicians who have to have another five years. To play the game in these islands you have to understand that everything works on Island Time...... When I am damn good and ready!

**fnpsr** » 2013-01-25 16:03

It seems to me that GB left out some important information. I wonder what could that be! Well, a reliable source has told me that the real player, in the whole scheme, is Barclays. The source has indicated that Barclays has bought T&T Bank. Notice that in all of the confusion, the big banks have remained quiet. They are working quietly behind the scenes. In GB’s article, I believe that T &T bank is a “strawman”!

Recall also, that in GB’s article, he indicated something to the effect that ABIB cannot be saved. Now, it is clear to me when you posed the question. “Could this be part of the strategy by Sir Dwight to try to force ACB into the "Consolidation Net" against their will?” The answer in my mind is a resounding yes. That is why, the ECCB, who has been complicit in accepting late reports, all of a sudden, is evicting ACB. In my view this is to make room for the big boys. Stay tuned!!

This is something, I believe that CA should explore.

Question: are your politicians tell you the truth?

“Let’s fix the little things before we attempt to fix the big things.”

**fnpsr** » 2013-01-25 16:01

Analyst writes, “Doesn't anyone find it remotely strange that ACB who has presented financials up to 2011 (2012 will be presented in the first quarter of 2013), and management accounts for 2012 has had it's license revoked, but yet ABI who has not presented financials since 2009 and has been taken over by the ECCB STILL has a license???????? ????? Think on that for a second. Could this be part of the strategy by Sir Dwight to try to force ACB into the "Consolidation Net" against their will?

Analyst, you are onto something. Do you remember sometime back, GB wrote an article calling for the consolidation of ABIB and ACB, in which, the Government would have pumped $450 million into ACB, and then form a company to handle the toxic assets? Is this the same $450 the government purportedly owes ABIB? Additionally, GB surmised that if the proposed consolidation with ACB could not be pulled off, then they wold look to ECAB to form the alliance. GB went on to say if that subsequent proposal did not work, then T&T Bank would stand ready to absorb ABIB?

**Morris** » 2013-01-25 15:55

Thanks for your meticulous dissection of the senator's ridiculous statements. You have peeled back the onion a little to reveal the danger that lurks beneath. Much respect!

**tenman** » 2013-01-25 15:24

Observer though not stated officially, the main share holder is now the government of Antigua & Barbuda. Lovell is a statement some months ago made it clear that they wanted the money injected in ABI to be used as an equity purchase

..

**fnpsr** » 2013-01-25 15:22

The economist is smart. There is no shame in saying I don't know!! However, that is a horse of a different color. I will give her a pass.

"Let's fix the little things before we attempt to fix the big things."

**tenman** » 2013-01-25 15:21

Anon where would you get the idea that a company could excuse it not submitting its audited financials for some 2 years, because a company it has shares in did not? By the way according to the Banking act, the company is not simply a few months behind, but it should have published its 2012 audited statements since the end of Jan 2012 (Its financial year ends Sept 30).

..

**fnpsr** » 2013-01-25 15:14

The prominent banker further stated, “This fact could be credited to the number of local businesses who actually trade on the ECSE – a number that is startlingly low when compared to other countries throughout the Caribbean.” Hello!! One of the main reasons, Mr. Prominent Banker, why the number of businesses in Antigua, that actually trade on the ECSE, is startling low, when compared to other countries throughout the Caribbean, is because they do not want to divulge financial information and or comply with rules and regulations.

On the other hand, in other countries in the region, the numbers are higher, because they are willing to comply with the relevant requirement of providing timely audited financial statements. This is something that Antigua can learn from.

Would you be willing to have this prominent banker manage your money?

“Let’s fix the little things with RWE before we attempt to fix the big things.”

**fnpsr** » 2013-01-25 15:13

I am really baffled when I read comments from persons who are supposed to be an authority on an issue. With reference to ACB’s eviction from the ECSE for failing to produce Audited Financial Statement, here is what a “prominent banker” said, “the question of whether or not the country benefits much from being on the Exchange is one that the industry must examine.” What a ridiculous statement! The question is not whether or not the country benefits from being on the Exchange, but rather how doe**ion of ACB from the ECSE reflect on the banking institutions in Antigua and how does that portray Antigua in the region and the world at large, when a bank is not compliant?

The prominent banker went on to say, “one of the reasons local banks might not find it a priority to be on time with the ECSE could be the limited volume of business it generates in the overall scope of the banks’ activities. So because the Bank does limited business, they don't have to comply? Is that what I think the prominent banker is saying? So, because I don’t drive my car every day, does this mean I don’t have to have insurance?

**fnpsr** » 2013-01-25 14:27

The Senator claims that ACB does not see its eviction from the ECSE as a “big thing” and that it has little effect on ACB because “all they do is trade government bonds anyway, and government has reduced the level of business it sends to them due to their unwillingness to guarantee.” It is a big thing, because (1) ACB cannot now presently trade, (2) the government has lost one of its sources for trading, (2) the only other bank that can trade is a failed bank, under the control of the ECCB. Since the government has reduced its level of trading with ACB, do they know something that the general public does not know?

I have just performed an anatomy of the Senator’s thinking and mentality. This my friends is your leader, duly elected or appointed to represent you. Would you buy a use car from this man?

“Let’s fix the little things with RWE before we attempt to fix the big things.”

**fnpsr** » 2013-01-25 14:25

The Senator believes that “It is a cultural issue, and reflects on poor management at ACB, who clearly [doesn’t] see the incentives of getting it (audited statements submitted) done on time.” May be it is time to change the culture and demand that all banks adhere to the requirements.

The Senator accepted from the ACB that “the matter is not being treated with any sense of urgency.” No sense of urgency? The Senator should be the cheerleader to ensure that the ACB comply, at a minimum, with the local laws. We are dealing with people’s money. How does one know that what the Bank says is accurate, if there are no audited financial statements.

**fnpsr** » 2013-01-25 14:24

The Senator said, “From what I understand, traders have requirements, and what ACB told me is that they failed to submit their audited accounts.” Give me a break! As economist commentator and a government official, the Senator should not have to told that traders have requirements. Furthermore, since the bank had defaulted in the past, they should have been properly supervised.

The Senator “chided” the bank for its non-compliance. Chided the Bank? shouldn’t the Senator be upset and demand that heads roll?

The Senator blames the government. Isn’t he part of the government. And as a senator, isn’t he complicit in the non-compliance?

The Senator believes that there is a general “slackness”. Are you kidding me? Isn’t he part of the problem? Isn’t it his duty and obligation to ensure there is no “slackness”.

The Senator said, “We are not accustomed to strict enforcement like in North America.” When you are looking for outside investors, they want to know that banks adhere to all compliance requirements. I believe that you should strive for strict enforcement. Make your rules and enforce it!

**fnpsr** » 2013-01-25 14:23

One of the main reasons for “Audited Financial Statements,” is to independently very what the company has told us in the form of published financial statements. Moreover many rely on the Audited Financial Statements to make informed decisions.

I am really surprised at the lack of concern by the Senator and the ease in which he accepted the responses from the bank officials. The senator accepted the eviction of
ACB from the ECSE as “no big thing”. Yes it is a big thing! The ECSE is saying two things. (1) you have not complied with our rules (2) they do not have any faith in ACB’s operations because its books have not been independently verified and certified.

According to the Senator, “the bank’s management had admitted to him that ACB had defaulted once again in submitting the accounts information on time.” Why didn’t the know this? Since the Bank had defaulted before why was it not on a watch list to ensure it would not default again?

**ANON** » 2013-01-25 12:22

Before the Central Bank took over the management of the ABIB "we" had the same culture at the top. Financial statements were years behind. Not just months. And if you can remember ACB could not present its own as it was inter-related to ABIB through investments. Of course with the ECCB in control of the bank they cannot default on such basic policy.

Sure you got yr facts straight?

**Johnny** » 2013-01-25 12:10

I think this was generally a good story but CA took a bad angle. It should have been that ACB is flippant about the loss of its licence, or senator says culture of noncompliance plagues Antiguan banks

**Observer..** » 2013-01-25 12:06

Quite interesting development. Who is the board of the NEW ABIB and who are the shareholders? But you see we do not get any help from our legal professionals questioning these things from a legal prespective. or not even our accounting professionals. Too much cheese in their mouth. I have always accused our professionals for never contributing to the discussions on certain issues with their intelligence and intellect. they are always silence on these things. Even on the budget. Selfish set of people.

**Morris** » 2013-01-25 11:39

You are absolutely right sir, this is definitely "not a major issue." To be honest, it is an embar** ment. Procrastination and failure to take responsibility seem to be integral components of the collective DNA in ANU so don't put all the blame squarely at the feet of the gov't. Even though there may be lack of enforcement from the gov't, where is the accountability and integrity that the bank officials are expected to have?

**tenman** » 2013-01-25 11:20

Banking act 2005 on the issue of failure to publish yearly financials after 4 months of year ended Section 19:
Quote:

(9) A licensed financial institution which fails to comply with a request under subsection (1)(b) commits an offence and is liable on summary conviction to fine not exceeding ten thousand dollars for each such failure.
(10) If any financial institution fails to comply with the requirements of subsection (6), (7) or (8) within four months of the end of its financial year, it shall be liable to a penalty of five hundred dollars for every day of such default except when an extension of the period has been granted by the Central Bank pursuant to section 24.

Section 24:
Quote:

24. At the request of a financial institution, the Central Bank may extend, from time to time, any period within which such financial institution is, in accordance with the provisions of this Act, obliged to furnish any document or information

..

**tenman** » 2013-01-25 11:04

Wondering isn't ABIB now managed by the Central Bank? Why would it submit a report to itself? The information I have been given by the bank is before the take over by central bank, its audited statements, after 20009, had been in the Central bank's hands. It the Central bank because of some concern which held it back from publishing the info. I think your question should be why has the bank not published its financials. I am not even sure that once a bank is taken over by the central bank that its required to publish its yearly financials

..

**Analyst** » 2013-01-25 11:02

I'm almost certain that ABI has not submitted financials since 2009. This doesnt make it right for ACB to be behind, but I know for sure that they have presented 2011 in December along with 2012 Management Accounts.

Additionally, if you check ACB's financials over the past two years, they have written down all of their investments in Jolly Beach and ABI to zero, and they still posted profits in the double-digit millions, and 2012 is expected to be the same. This bank has been performing better than almost EVERY indigenous bank in the currency union...check it.

I'm sorry, but this seems like a big conspiracy against ACB to me to discredit the bank in the eyes of those who's knowledge comes from sensational media and loud politicians.

**Observer..** » 2013-01-25 11:01

. External auditors should also be held accountable for their role is submitting late audited financials unless they can point to the board decisions as the reason for that. They report to the board of directors and are appointed by the board. ACB’s board has many top professionals some in the accounting field so nothing new to them at all. And they should hold themselves to a much higher standard than others. I really wonder when we can cut through this bad cultural behavior and have people being made accountable for their stewardship when in leading position. Because I can tell you line staff are fired promptly for non-performing. But Chairs of Boards and Directors seems to be untouchable in whatever it is they do. Even for bringing a very prosperous bank to its death. No director yet questioned or charged. Shame shame shame.

**Observer..** » 2013-01-25 11:00

Before the Central Bank took over the management of the ABIB we had the same culture at the top. Financial statements were years behind. Not just months. And if you can remember ACB could not present its own as it was inter-related to ABIB through investments. Of course with the ECCB in control of the bank they cannot default on such basic policy. Not as he regulator. But as Weston says it is a culture, starting with the government. And although there are penalties in place for financial institutions who break that law. The penalties don’t seem to be stiff enough to deter them. And by the way it comes back to accountability. Neither management nor the Board are taking responsibility or held accountable for such breaches. No one is relieved from their post. And believe me the line staff is and has put all their sweat in ensuring books are kept up to date on a daily basis. Usually the sticking points are about certain financial representations of certain transactions.

**Analyst** » 2013-01-25 10:52

You are absolutely right. I'm certain that the Management, shareholders, and the Board are adamant that the bank will not be consolidated into Sir Dwights vision.

**Analyst** » 2013-01-25 10:50

Retained earnings and strong management the reasons that this bank has remained strong despite the financial crisis. I can appreciate that shareholders want more cash now, but buying shares in an organisation is a long term investment where the shareholder gets their returns over a period of time. If they want cash now then do what persons do in other markets...sell their shares.

**Wondering** » 2013-01-25 10:32

HAS ABI SUBMITTED AUDITED FINANCIAL STATAEMENTS FOR 2012 TO THE ECSE? ALL YOU EXPERTS & CARIBARENA, DO SOME RESEARCH & LET US KNOW WHAT IS REALLY GOING ON!

**Anon** » 2013-01-25 10:30

You have it right!! The Governor has an agenda, so for all the shareholders who want larger dividends, think on how that can weaken the bank and make it susceptible to the planned takeover!!

**PPP** » 2013-01-25 10:07

The banking system in Antigua is rotten. This bank keeps a large reserve of their retained earrings and only pays shareholders a minute amount. We have seen that the strike with ABIB was based on a change in their retirement plan. I guess the shareholders who put their money in ACB shares did that without looking for it as a Retirement Plan. Now that ACB has so much dollar reserves 'Why do they not pay the Shareholders more?' Do shareholders need to STRIKE?
We need to start looking at re-writing all the LAWS in Antigua and Barbuda.

**Analyst** » 2013-01-25 09:54

ACB has been the flagship financial institution in Antigua for YEARS. They recent presented their 2011 financials, and also management accounts for 2012 to their shareholders and the ECCB. This bank has never been in financial difficulties. Doesn't anyone find it remotely strange that ACB who has presented financials up to 2011 (2012 will be presented in the first quarter of 2013), and management accounts for 2012 has had it's license revoked, but yet ABI who has not presented financials since 2009 and has been taken over by the ECCB STILL has a license???????? ????? Think on that for a second. Could this be part of the strategy by Sir Dwight to try to force ACB into the "Consolidation Net" against their will?

My two cents.

**Enquiring Minds** » 2013-01-25 09:47

One of the saddest things is that as Weston play the political blame game people are out there who will be gullible enough to believe. Heaven help us.

**Herby** » 2013-01-25 09:45

My child just took $5 dollars from my purse. I chided him, enquiring in the process as to why he did it. Like what Weston probably would have said, he asked of me not to blame him but blame the goverment for creating a culture of taking thing** belong to them.

To whom is society accountable and for what do we accept blame?

**Duncy Bat** » 2013-01-25 09:25

Shareholders need to shake up the board. How can such an oversight body which suppose to have "top savy financial persons" as board members and this is allowed. Missa Ryan I would hate to think you can condone such....

**Wonder Bird** » 2013-01-25 09:22

He believes it is the government’s fault for creating a “culture” of noncompliance in the financial industry.

Is the gentleman serious is pointificating such a cause and effect. Everything is being blamed at the feet of the government. It is the board and management fault of ACB. Irrespective whether they now consider it a thrivial issues, such an occurrence continue to show the inabilities of individuals who are at the helm of institutions both in the public and private sector. Everywhere there are just too many square pegs in round whole.

The shareholders of this institution should demand serious answers from board and management. Whether or it is a thrivial issue as they see it, history will show that ACB was the first institution to having its license suspended. I wonder how they measure up in meeting the demands of their correspondent banks.

**fire** » 2013-01-25 08:59

Mr. G**ens strikes again? I remember a conversation I had with a professional who recounted an encountered with the good old executive manager auditing from that institution. In pointing out to the good old Mr. that what he was doing was being done incorrectly and inefficiently, the senior auditor indicated that he has being doing it that way for ages.

Can you believe the attitude of some of these professionals, who by the way manages other people's assets and gets paid over eleven th******* dollars to do that?

**Anon** » 2013-01-25 08:34

"...media reports that ACB had been evicted from the Eastern Caribbean Securities Exchange (ECSE) for CONSISTENTLY failing to meet the annual deadline for submitting audited financial statements, in keeping with international norms."

Consistently? Has this been confirmed?
Also, did Weston or Caribarena check to see when did ABIB last publish audited financial statements?

**John French II** » 2013-01-25 08:12

Notes From A Native Son Of The Rock! Friends Why are You afraid? CountryWomen, You have so little faith! CountryMen, Let not your Hearts be Troubled! Rastas, We shall Provide the Requisite Documents at a Time and Choosing of Our Own! Forget Rules & Regulations! That's How We Roll on The Rock!
Finding: On October 19, 2012 ACB lost its Brokerage License on The Easter Caribbean Securities Exchange. Some Three Months Ago! They were only dealing in Government Treasury Bills and Bonds. Only a handful of Nationals actively traded in such Financial Securities.
Directive: If you wish to purchase such Financial Securities ABIB (Say What?) ABIB will gladly be your Broker.
Antigua & Barbuda Companies not listed!
ACB will be gently directed by Sir Dwight to get its Audited Financial Statements in order sometime in the Future. Case Closed!.
Has GoAB been able to get its Audited Statements Up To date or are they still Working ** Backward? You Definitely Will See 2011 & 2012's before the Election. The others maybe with the Next Government. Why Worry? Be Happy!
Only In Antigua & Barbuda You Say!
Oh Gad! Pray Fuh Mi Picknees!

**Cuban Frog** » 2013-01-25 07:58

Yo apoyo occidental para el Parlamento! Espero que se ejecuta de la ALP!

**skyewill** » 2013-01-25 07:30

The Finance ministry is wrong and ACB should be fined. It is not ok! What else is OK?
there is a general slackness. Government don’t make a fuss, stakeholders don’t make a fuss and the people don’t either,” Weston said, ON EVERYTHING!! Treasurary, police, Hospital, all the ministries, all the departments, APUA, and private business. TOP to Bottom every body slack. Western just figured out your crime problem and all the other problems Antigua have. All boils down to slackness for the top trickling down.

**tenman** » 2013-01-25 06:31

Our very own laws (banking act 2005 section 19 (6) www.laws.gov.ag/acts/2005/a2005-14.pdf make it clear that banks must submit and publish their statements no more than 4 months after the year ends. Persons in the past have suggested that ACB was better managed than ABIB, but my feeling is that its pure luck why ACB has not been taken over by the central bank. The bank over the years has suffered from a lackadaisical attitude when it comes to dealing with its responsibilitie s. I know of instances where secured loans have been given out without the proper legal charges being done.

..

**Antiguan Abroad** » 2013-01-25 03:18

The only sure way to assure compliance is for the banking institutions to face stiff fines and other penalties (civil and even criminal) for non-compliance. The "general slackness" the gentleman speaks of is a serious issue, especially for a financial institution in control people's money. If there are no timely audited reports, how can shareholders and depositors have confidence that there has been no malfeasance in the management of their money? Where is the accountability here? Who is in charge or who takes responsibility? Does management not get paid to assure these timelines are met? Even with audited reports, as we have seen from the Stanford debacle, there is room for corruption and criminal behavior. If I was a depositor or investor in a bank like this, I would be very worried.

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