…defends locking down customers in building

DESPITE paying $59M owed former Chief Executive Officer (CEO) of the New Building Society (NBS) Maurice Arjoon on Tuesday following the move by Arjoon’s lawyers to levy on the bank’s property, NBS Wednesday said it will take measures to safeguard the GY$59M in pension benefits paid by cheque to Arjoon.

“While the Society paid over the said sum to avoid a confrontation, it will be taking steps to safeguard that sum, given the fact that the matter will continue in court until a final resolution,” the bank said in a statement. Arjoon along with two other senior officers of the NBS were fired back in 2007 for allegedly conspiring to defraud the bank of $69M. Arjoon had sued NBS in 2011 for wrongful dismissal and after six years in the court system, the High Court ruled last year that he should be compensated all his benefits which totalled $79 as he was wrongfully dismissed.

Justice Brassington Reynolds had ruled that a total of $79, 282, 801 be paid over to Arjoon. NBS had attempted to stay the ruling. However, recently, Justice Rishi Persaud ordered that only $59M of the original judgment handed down last year be paid to Arjoon. NBS defended its decision to “lock down” its main office on Tuesday, following the arrival of court marshals, police and the representatives of Maurice Arjoon, the Bank’s former Chief Executive Officer (CEO) to levy on the bank’s property.

The bank said that on Tuesday at around 12:30hrs, a group of men arrived at the back entrance of the Society’s Office and opened the door of a Nissan Vehicle, owned by the Society and driven by an employee. The said employee was reportedly ordered out of the vehicle and the keys were forcibly taken away. NBS described the entrance of court marshals onto the bank’s premises as “the storming of its Chief Office by unknown individuals,” who later identified themselves as marshals of the Supreme Court, lawyers and relatives of Arjoon.

At the same time, the bank’s board of directors said persons were seen coming out of a vehicle with building-breaking equipment outside of the Society’s building perimeter. “This caused some panic among employees of the Society, who thought that a robbery was about to take place.”

This the bank said resulted in several of its cashiers moving away from their posts and “the management quickly took a decision to lock down the entity.” It was reportedly after the ranks of the Guyana Police Force (GPF) arrived, that management of the bank was informed that the persons who took possession of the vehicle, and were in and around the building located on North Road and Avenue of the Republic were court marshals.

Given the alleged fear and the absence of a court order, the bank’s management said it took a decision to safeguard the money while allowing customers an opportunity to leave the bank through one of its entrances. “The NBS at no time prevented persons from leaving the office and in an effort to ensure the safety of cash, there was some inconvenience,” the statement said.

However, some persons who were locked in told reporters on Tuesday that they were prevented from leaving the bank’s premises for about two hours by officials of the institution. The bank contends that due to the lack of a court order, “the management took the right decision to protect the interest of the Society, its staff and customers.”

The board of directors stated that the marshals and others “came in unidentified like ‘thieves in the night’” and in an unprofessional manner that resulted in panic, chaos and misunderstanding. This notwithstanding, the bank said should it be “properly served with any instrument or order of the court” it would readily comply with the said instructions.

On Jan 4, 2018, the NBS as well as the other appellants, including Trust Company (Guyana) Limited received a court order directing that the sum of $59,033,281be paid over to Arjoon. That sum represented the former NBS CEO’s pension benefits. “This benefit should have been paid from the Pension Scheme funds held by the Trust Company (Guyana) Limited assuming it was the final award,” NBS stated. The decision of the High Court was appealed on January 9, 2018 and a request was made for the Court of Appeal to set the order aside. Deliberations are yet to begin at the Court of Appeal on the matter.

But despite the fact that the matter has been appealed and no court order was produced to the bank, the bank took a decision to pay to Arjoon through his lawyers and representatives the $59M after they secured an order to levy on the bank’s properties.
The money paid over to Arjoon came from the bank’s funds and now the bank said it has to await a refund from the Trust Company (Custodial Trustees) of the Pension Scheme.
“Assuming that they were correct to levy for the Pension Benefits, this payment ought to have been made from the Pension Scheme Funds and not the NBS assets. The Society will therefore seek to redress this illegal and improper conduct of Mr. Arjoon’s representatives, his Lawyers and the Marshals,” The statement added.

Meanwhile, the financial institution said what it regards as the unprofessional conduct of the Marshals will be communicated to their superiors for an inquiry to be held. Additionally, the large presence of police officers, some of whom were “armed with high-powered rifles, makes it appear that they may have been apparently under the instructions of someone or persons bent on embarrassing the Society”.

NBS said it will also seek to have a “proper explanation” from the appropriate authorities on the seizure and impounding of one of its motor vehicles. That aside, the bank said that the delay and detention of its three security personnel and managers as a result of the lock down is of concern because the bank was left exposed.

That aside, the financial institution said it remained silent on the matter in a bid to respect the sub judice rule despite the many “speculative reports and accusations” surrounding the dismissal of Arjoon and two other former employees of the bank.

NBS denied that political motives were responsible for the dismissals and noted that the three senior officers’ dismissal “had nothing to do with the Berbice Bridge or the intervention of any government officials at that time.”

“The Board of Directors of the Society at that time unanimously agreed to the dismissal of the three officers for serious infractions, including gross misconduct and negligent performance of their duties,” the statement said. The payment of $69M by the trio “in an unauthorised manner and under highly suspicious circumstances caused the Society to suffer a loss by re-imbursing the account holder via a court order in the sum of $71M.”

Additionally, the bank contends that its investment in the Berbice Bridge “is a very lucrative one and has been proven to be a correct decision” and labelled the claim by Arjoon and the duo a “mere smoke screen to garner public sympathy and to cover up their failure to follow standard operating procedures in the performance of their duties.”
The financial institution said it will remain steadfast to defend its interest.