(Trinidad Express) Planning Minister Bhoe Tewarie yesterday said he met privately with Central Bank Governor Ewart Williams to discuss the financial difficulties facing CL Financial because he felt executive chairman Lawrence Duprey would not give a “true picture” of what was going on.
Tewarie took the witness stand at the commission of enquiry into the collapse of CL Financial and the Hindu Credit Union (HCU) at the Winsure Building located along Richmond Street in Port of Spain.
Tewarie served as a non-executive member of the CL Financial board of directors for more than 15 years before his eventual resignation in April 2009.
When group financial director Michael Carballo presented the conglomerate’s 2007 financial position during a 2008 board meeting, Tewarie said he realised the group was in dire straits.
“I really did not know what to do, things were unravelling fast. It was a pretty bleak picture except for the increasing assets,” Tewarie said.
Tewarie said he raised his concern at the CL Financial board meeting but was shot down by Duprey and corporate secretary Gita Sakal.
Tewarie said he was told by Duprey and Sakal, “Bhoe, you do not understand the business model. This is not something to be alarmed about, do not be too bothered.”
Tewarie said he opted to discuss the issue with Williams with whom he shared a working relationship at of the University of the West Indies (UWI).
Tewarie was the principal of UWI while Williams was the chairman of the university’s council.
“I was planning to speak to the Governor (Williams) and I did not tell the board I did speak to the Governor,” Tewarie said yesterday.
Tewarie’s first of two meetings with Williams took place on December 23, 2008.
One month later on January 30, 2009 a Memorandum of Understanding was signed with the former People’s National Movement (PNM) government for a billion-dollar bailout of CL Financial.
Tewarie said he had several telephone conversations with Williams before their second meeting on March 20, 2009.
“One of the things I had to wrestle with was, whether me as a non-executive director should go in unilaterally to speak to Governor of the Central Bank on this matter and whether I would be betraying my role as a board member undermining the chairman of the board. I had to wrestle with that for a while,” Tewarie said.
“Given the ways (board) meetings were going and what I was seeing I felt that the important thing to decide on the basis of the bigger picture and the bigger danger and on that basis I met with the Governor of the Central Bank,” Tewarie said.
Queen’s Counsel Peter Carter, lead counsel to the enquiry, asked Tewarie whether he had taken any advice “or did you rely on your own ethical judgment”.
“I went on my own, I never spoke to anyone about it,” Tewarie said.
“Was anybody else present at either of these two meetings? ” Sir Anthony Colman, sole commissioner to the enquiry, asked Tewarie.
“No, but the secretary at Central Bank would know that I made the appointment and the Governor would be aware,” Tewarie said.
Neither Williams nor Tewarie took any notes at either of the meetings.
“I think my going there, I got a sense that (Williams) felt that he should have a greater sense of urgency,” Tewarie said.
Tewarie said he held the discussions with Williams although he knew Duprey was already “having discussions with the Central Bank”.
“I felt that the chairman (Duprey) would not give him (Williams) a true picture of what the situation was and I felt that the Governor operating as he did from the Central Bank of the country needed to have a clearer picture of what the implications were if he did not already,” Tewarie said.
Tewarie said he felt “isolated” because of the situation.
“It was very troubling to me, it was very difficult to do anything in the situation. That could tell you my psychological state, I felt isolated,” Tewarie said.
Tewarie said he was advised by Williams to stay on the CL Financial board.
“He advised me to stay on the board and try to do what I can to contain the chairman,” Tewarie said.
Tewarie resigned for the CL Financial board on April 8, 2009.
“I really felt that the board could not determine what the chairman would do. The second thing was that after the last two meetings it became clear that what had traditionally been a harmonious relationship between the corporate secretary ( Sakal) and the chairman (Duprey) was now one that was becoming extremely contentious and antagonistic. Thirdly, I did not feel as a non-executive director given everything that had happened and the fact that so much information had been kept from board members and every new day we were getting information that we should have had years ago. I felt that this was just too much,” Tewarie said.
“I really lost confidence totally in my ability to influence the process and secondly in the chairman and the board itself,” Tewarie said.
Tewarie is scheduled to take the witness stand again today where he will be cross-examined first by Senior Counsel Russell Martineau, attorney for PricewaterhouseCoopers.
