As questions rage over the extent of government involvement in the crisis-hit Bank of Asia, Premier Natalio “Sowande” Wheatley has lashed out at what he called “slanderous” claims regarding a mystery deposit of $5 million of public money in the financial institution shortly before it went into provisional liquidation last month.
Mr. Wheatley refused to answer several questions regarding the failing bank at a press conference Monday, insisting that the Internal Audit Department should first be allowed to complete its ongoing investigation into the matter.
However, the premier did condemn what he called “false claims” regarding the deposit of $5 million of government funds into the bank, which he confirmed had occurred earlier this year.
The premier, for instance, said Opposition Leader Myron Walwyn was wrong to state recently that the government’s account at the institution was created this year.
Who directed the deposit?
Mr. Wheatley then defended his junior minister of financial services and economic development against related allegations.
“There’s also another claim that Honourable Lorna Smith directed a payment of that $5 million,” he said. “That’s completely false, and that’s actually quite slanderous.”
Pressed if he knew who had authorised the $5 million deposit, Mr. Wheatley only said he wanted to let the auditors do their job before commenting further.
But he also repeated his previous claim that he did not know about the deposit before it was made.
Asked if this lack of knowledge could suggest that he did not have a sufficient grip in his other role as finance minister, the premier replied, “I wouldn’t say that, but there are always improvements that can be made as to how the ministry is administered.”
Mr. Wheatley insisted that the internal auditors would get to the truth of the matter.
“There are some questions as to what were the circumstances surrounding that $5 million being deposited, and in full transparency we had an independent entity — which the internal auditors are — investigate,” the premier explained. “And of course the results will be shared with the public and with our stakeholders to improve the situation if we find that there are things which needed to be done better.”
Not hiding
Mr. Wheatley added that the probe was launched to ensure that the deposit and any other government involvement with the bank had followed established protocols
“This audit does not reflect wrongdoing, but demonstrates my government’s commitment to transparency, accountability and due diligence,” he said.
The premier also rejected any notion that he was hiding behind the internal audit in order to avoid answering specific questions.
“I don’t think audits are anything that you hide behind in my view,” he said. “Audits are things that are extremely detailed.”
The premier insisted the investigation is independent of government.
“Statements have been made that I am investigating myself: That is certainly not the case,” he said. “And for me, that doesn’t speak to the integrity of our internal auditors. They call it as they see it without fear or favour.”
Media attack
The premier also launched a blistering attack on sections of the media.
“There have been a number of things circulated in the media which are slanderous, libellous and damaging to the reputation of the territory, and I ask that we refrain from these unethical practices,” he said.
The premier said he understood the public’s “anxiety” about the situation at the bank, but he insisted the Financial Services Commission and the Virgin Islands Deposit Insurance Corporation are “actively managing the situation.”
However, public bodies have been quiet on the issue since the sudden announcement on May 29 that the VIDIC had started winding down the bank with the support of the FSC.
Mr. Walwyn did not respond to a request for comment as of Beacon press time yesterday afternoon.
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