INSIDE GRENADA FEBRUARY 18, 2008 Sisters and Brothers! Today, I feel duty bound to address you as the Chief Executive Officer of Capital Bank International on the recent happenings, and the current actions taken against the bank by the Prime Minister and Minister of Finance, Dr. The Right Honorable Keith Mitchell, where the bank was entered into with undue force, to install Receiver Management, for reasons caused by the authorities themselves, and not by the bank's management. But before I begin, let me warn you my Grenadian people about the greedy individuals in our midst who have constantly been in the press. Some of them are angry because they cannot, and will never be allowed into our establishment to fleece the workers; others are furious because Capital Bank will not allow them to get their hands on other peoples' savings until they have satisfied due process. These individuals do not care about this country, about private investment; have not brought a single job to this country, care less about the bread and butter needs of our people. Where are all the jobs we have lost to Barbados? Where are the Call Centers? Narrow personal ambitions, greed, and envy of the accomplishments of George Finton Debourg control them. As a people we Grenadians must reject such behavior. Let us promote goodwill in our country. Let us promote development so that jobs can be created for our people. Sisters and brothers, this action taken by the Prime Minister came as no surprise to us. Capital Bank has a claim against the Government of Grenada, and the Central Bank for $ 60.3 Million. But rather than come to court, the authorities have engaged in delaying a court date for the past 6 years, while Capbank continues to loose millions in income. Indeed, a senior member of Government told two of CapBank's officers, that the problem could only be solved if the bank were destroyed. It mattered not that this will affect over 150 families with their children, in this weak economy. But what was most disgraceful and shameful was the manner in which the action was carried out. Sisters and Brothers, as a hard working entrepreneur of 27 years of service to this nation in the field of business, I must say that I felt violated. But I am strong under God! I am also comforted by the famous saying that a successful man is one who can take the stones thrown at him, and builds a solid foundation. Sisters and brothers permit me to give you a brief history into the matter. CapBank was issued its license by the late HA Blaize in 1988, and in 1996, a certificate was issued as mandated by the Banking Act as applied to all banks having a license before 1993, when a new banking act was enacted. Since then, Capital Bank has been under attack from Sir Dwight Venner, the Governor of the Central Bank, who refused to grant CapBank entry into the Clearing House, but insisted that our license be revoked without just cause, and without due process. CapBank tried for four years to settle the matter amicably, or to find out what Sir Dwight Venner really wanted. All to no avail. The IMF, as early as 2001, recommended that an audit be done after which, CapBank be given a period to address any breaches that may be found. Upon addressing the breaches, the bank must be allowed into the Clearing House; but if the bank failed to repair the breaches, then the license would be revoked. In fact Capital Bank has submitted to a total of 15 Audits, Examinations, Exercises – some mandated by Law; some commissioned by the ECCB, and some initiated by the Government of Grenada. In each case, because the audits did not say what Dwight Venner wanted – the revocation of the license – the Central Bank rejected all recommendations from international auditors like Pricewater House Coopers, and Ernst and Young, and from the bank's external auditors, Wilson and Co. who as late as October 2007, called on the Central Bank to admit Capbank into the Clearing House. Capital Bank was forced to take the ECCB and the Government of Grenada to court in 2001 for wrongful exclusion from the Clearing Facility. Rather than the government substantiating his actions with hard evidence before the court, Sir Dwight Venner claimed immunity from prosecution. The Supreme Court upheld the submission. Cap bank then appealed to the OECS Court of Appeals and the judgment was overturned. But a new cause not brought before the court was created and sent back to Case Management. The cause was whether the Minister breached his consultative requirement with the ECCB. But this had nothing to do with Capital Bank. In fact the Justices said it was a concealed dispute between the ECCB and the Minister of Finance. And this has been in Case Management for the past 6 years. Then on Oct 26, 2007, Anselm Clouden publicly attacked the bank purportedly demanding $1 million on behalf of a customer whose funds were not due until 2010. In fact, Capital Bank has turned over to the Criminal Investigation Department, the complete file on this matter, evidencing the application of duress, fraudulent tampering of the account by an associate, conflicting reports made to the police, submitted to the court, and to CapBank's management. Meanwhile Clouden continued his angry tirade over a period of 4 months, causing uneasiness among Capbank's depositors forcing a run on the bank for millions of dollars. But, while this to some extent may have propelled the Prime Ministers actions, the real reason for the governments action is their dyer need for money. The IMF, has been withholding a sizable draw down from the government, pending the resolution, of the Capbank matter. But, neither the Government nor the ECCB, wanted to settle because of Capbank's Claim for 60.3Million Dollars in damages. So, they both employed a technique to orchestrate a liquidity squeeze forcing CapBank to fail to meet some of its customers, caused by a run which was outside the control of management. And the hands of the management was tied; very much like a mother who hides her child's notebook, then spanks the child for not doing its homework. But my Grenadian people, it was 10 years in which ordinary Grenadians, were well served by this bank. Thousands of you got your first loan from Capital Bank. But, they continued to squeeze and punish Capital Bank for Ten Years, while they ran to the aid of foreign banks and others. But, Capbank continues to serve the poor people in River Sallee, Victoria, St David and Windward, where no other bank will go, because they feel the people there cannot afford banking services. I must warn you also, that the authorities attempted to orchestrate a take over of Capbank, by foreigners. My God! What will Grenadians own? They have sold our mountains, our beaches, our businesses, our banks… And the last truly homegrown bank is constantly under attack. The final approach was worked out with all sides to wage a media attack upon Mr. De Bourg, whip up public support, then attack the bank. So, this latest action came as no surprise: It was politically calculated to destroy the CEO of the Bank, enter the bank, install auditors, prepare a report, and submit it to the IMF to get some money. But Sisters and Brothers, this money will do untold damage to Grenada, because the means will never justify the ends. This action is not about depositors funds, because, the bank has been calling on Government and the ECCB to protect depositors and local investors for TEN YEARS by giving the bank its rights under the law. Has Government suddenly awakened? THIS IS ABOUT SELF PRESERVATION at the expense of us all. Because, they know, they have been given every year, our audited financial statement which shows our bank has assets of $69 million. We hold $40 million in deposits of which $33 million is in loans and 16 million in investments. EVERY CENT of DEPOSITORS moneys is accounted for. I doubt that those who dare stand in judgment of Capital Bank can account for moneys entrusted to them, can stand the scrutiny that we have stood from all and sundry, including USAID, over the past 10 years. So they called in a receiver, who will report to the court in ten days, but I am confident that the management of the bank will be vindicated. I remain steadfast in my conviction that real change in the banking system is a national priority. And I am committed to going forward with my mission, covered under the blood of Jesus All I ask, My Sisters and Brothers is your continued support and prayers. In this national undertaking. God Bless you all.