– for ‘dereliction of duty, negligence, and serious misconduct’

(Following is the full text of a Letter sent yesterday to this newspaper for publication by Hon. Minister of LabourDr. Nanda K. Gopaul on the NBS fiasco surrounding the dismissal of Mr. Arjoon and other NBS managers, and the just released Ombudsman’s report)

THERE seems to be a lot of spin, political and otherwise, on the Ombudsman’s report on a complaint by Mr. Maurice Arjoonagainst his prosecution as a result of a fraud committed at the New Building Society in 2006.

Reports emanating from the media would give one the impression as if senior Government functionaries, including former President Bharrat Jagdeo, had a hand in some form of victimisation against Mr. Arjoon.
I wish to categorically state that had there been a proper investigation done and persons who have been accused of certain wrong doings given an opportunity to be heard, it would have been revealed that all the accusations made by Mr. Arjoon are baseless. Further, at no time did I see anywhere in the report that the accusations by Mr. Arjune against anyone outside of the Director of Public Prosecution’s office was upheld by the Ombudsman.

On January 30, 2014 I was requested by the Head of the Presidential Secretariat to respond to a letter from the Ombudsman to explain, “whether Dr. N.K. Gopaul did call Mr. Arjoon as alleged and what did he tell him.”
My response to that letter dated February 7, 2014 is reproduced hereunder:

“Dr. Roger Luncheon
Head of the Presidential Secretariat
Office of the President
Shiv Chanderpal Drive,
Bourda Georgetown.
Dear Dr. Luncheon,
Re: Correspondence from Ombudsman concerning complaints by
Mr. Maurice Arjoon

Your memorandum dated 30th January, 2014 on the above subject refers.
I would be grateful if you will pass this correspondence to His Honour Hon. Justice Winston Moore, Ombudsman of Guyana on the complaints made by Mr. Maurice Arjoon former C.E.O. of New Building Society.
1. The issue of dismissal of Mr. Arjoon is currently before Hon. Justice Reynolds in the High Court. The plaintiff, Mr. Arjoon is claiming wrongful dismissal and is currently on the witness stand.

2. I deny ever making any threatening telephone calls to Mr. Arjoon on any matter whatsoever.
3. Mr. Arjoon and I, along with other Board members, shared a very cordial relationship up to the time of his dismissal and even socialised together on several occasions after the initial Berbice Bridge Investment.
4. The NBS Board accepts the decision of its members and invested the sum of $350M on the Berbice River Bridge based on a decision by the Board. No bitterness or rancour amongst members prevailed during or after the deliberations on this matter. Threats could therefore not have been made to Mr. Arjoon while a harmonious relationship continued.
5. Long after the departure of Mr. Arjoon from NBS, the society made further investment in the Berbice River Bridge through the purchase of bonds owned by CLICO. It was the most lucrative investment ever made by NBS and was never in violation of the rules of the society or the Financial Institutions Act.
6. At no point in time during any investment over the last decade was there any risk to the society’s financial well-being. In fact, since 2008 the society grew by leaps and bounds increasing its asset base, its funds, liquidity and profit margin by record level. We also constructed and now occupy a modern state-of-the-art billion dollar “Chief Office”(Headquarters) at North Road and Avenue of the Republic.
7. Almost all of the allegations contained in the documentation attached by His Honour, from Mr. Arjoon were subject to Public debate, newspaper reports and or Legal inquiry. I along with the directors of NBS deny them all including the issue of payment of a special prosecutor by the society. We did not aid, encourage, support or finance the charges laid against Mr. Arjoon and others.
8. The wrongful prosecution case brought by Mr. Arjoon against the DPP was dismissed in the High Court.
9. Mr. Arjoon was not dismissed for fraud but for serious misconduct. He approved successive large payments from one member’s account via a false Power of Attorney, without the presence of a passbook and other relevant documentation, and without the necessary checks and balances in violation of several of the Society’s rules and procedures. This caused the society to have had to refund the member an amount in the vicinity of $74M, which was illegally withdrawn from the account, following litigation by that member. This decision of the Board to dismiss Mr. Arjoon and others was a unanimous one. The Board then comprised of Messrs. Moen McDoom S.C. (Chairman), N.K.Gopaul(Vice chairman), Leon Rockcliffe, David Yhann Jnr, Steven Bovell, and SeepaulNarine(Members)
10. Since this matter is sub-judice, I am not inclined to go into further detail but would kindly urge that the complaint be disregarded on this basis and on my denial of ever behaving at anytime in an unprofessional manner to Mr. Arjoon.
11. I would be pleased to offer any additional information should it be required.
Yours Sincerely,
Hon. Dr. Nanda K. Gopaul M.P
Minister of Labour”
From the foregoing, it would seem clear that there was absolutely no acrimony over the investment in the Berbice River Bridge and that Directors of NBS had hired the services of Mr. Ramon Gaskin to advise on this matter. Following a meeting with Mr. Gaskin and the Board of Directors at NBS, a decision was taken by the Board to invest the sum of $350 million on the Bridge.
There was no Government pressure on anyone and I can say clearly that in as much as others felt before the decision was taken that more could have been invested, there was absolutely no “bitterness” or “rancor” amongst members as stated in my response.
The dismissal of Mr. Arjoonhas no relevance to the investment in the bridge project. In fact, it will be shown and established that had the Society invested more on the Bridge, it would have been to a greater benefit to the society and its members.

Mr. Arjoon’s advice therefore cannot be deemed to be advice saving the Society from any reckless investment. As stated, Mr. Arjoon’s dismissal is a completely different matter altogether and I list here the text of his dismissal dated August 14, 2007 so that members of the public can see clearly what the spin doctors in the media are seeking to do.

“Dear Mr. Arjoon,
As you are aware unauthorised withdrawals took place from Ac #….. in the name of BibiShamila Khan amounting to the loss of funds to the Society in excess of $69M, due to fraud, dereliction of duty, negligence and/or serious misconduct.
Following investigations on the part of the Society and procedures in which you decided not to personally participate, the Society’s Board has taken a decision to summarily dismiss you as Director/Secretary of the Society with immediate effect for serious misconduct.
Refund of your contributions to the Pension Scheme based on its Rules will be settled by the Trustees after your indebtedness to the Society is determined.

Thank you for your past services to the Society.

Yours faithfully,
Dr. Nanda K. Gopaul
Chairman (ag).”

Let me repeat that at no point in time was there any interference on the part of any director to influence any decision made to either charge Mr. Arjoon criminally or to accuse Mr. Arjoon of committing fraud.
The Board is firmly of the view that Mr. Arjoon and the other senior managers who were dismissed, were dismissed for “dereliction of duty, negligence, and serious misconduct.”
We stand by that decision.