Labour Minister Dr Nanda Gopaul on Friday rejected charges by the former New Building Society (NBS) Chief Executive Officer Maurice Arjoon that his dismissal from the institution was instigated by former President Bharrat Jagdeo over the question of financing for the Berbice Bridge.
Arjoon and two managers had been dismissed from NBS in 2007 over a $69 million fraud at the institution and were subsequently charged with conspiracy to defraud the institution.
In a statement Gopaul was responding to a report by Ombudsman, former Justice Winston Moore on a complaint lodged by Arjoon over his dismissal and prosecution. In his report which was seen by Stabroek News, Moore said that a grave injustice had been done to Arjoon and fellow managers Kent Vincent and Kissoon Baldeo as he could find no evidence that any of the three was involved in fraud pertaining to the withdrawal of $69 million from the account of an NBS client.
Moore in his report also cited a statement in Arjoon’s complaint that he was warned by Gopaul that Jagdeo would “deal” with him as he had guided the board of NBS towards investing less in the bridge than the former president had wanted.
The allegation that he had warned Arjoon was put to Gopaul earlier this year by Moore via the Head of the Presidential Secretariat. Gopaul denied the allegation and this was included in Moore’s report.
On Friday, Gopaul expanded on the matter.
“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.
This report implicates a number of persons whom were never afforded an opportunity to respond to the allegations made against them and therefore, it violates the principles of natural justice and most basic requirements of fairness and due process,” Gopaul, who was acting Chairman of the NBS at the time of the dismissal and also Permanent Secretary in the Office of the President, said.
Gopaul also challenged the Ombuds-man’s jurisdiction in the matter.
“Importantly, the learned Ombuds-man does not have the mandate and jurisdiction to review the decision of a private company to dismiss its employees. The fact that the company was not even consulted simply compounds the wrong,” Gopaul declared.
The Ombudsman had stated that he had jurisdiction in the matter as Arjoon had complained about the actions of public officials against him.
Even worse, Gopaul said was that the Ombudsman had embarked upon an inquiry to review a dismissal and to make findings on it when that very matter is the subject of active litigation filed by Arjoon in the High Court. The report therefore, has been done in complete disregard of the sub-judice principle, Gopaul argued.
He said that legal advice is currently being sought on what actions can be taken to challenge this most unfortunate report.
Gopaul noted that on January 30, 2014, he was requested by the Head of the Presidential Secretariat, Dr Roger Luncheon to respond to a letter from the Ombudsman to explain, “whether Dr NK Gopaul did all Mr Arjoon alleged and what did he tell him”.
Gopaul said he replied by letter dated February 7, 2014 in which he said among other things: “I deny ever making any threatening telephone calls to Mr Arjoon on any matter whatsoever.”
He added that the NBS Board had accepted the decision of its members and invested the sum of $350 million in the Berbice River Bridge based on a decision by the Board. Arjoon had said that Jagdeo was expecting an investment of $2 billion.
“No bitterness or rancor 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,” Gopaul said.
He added that long after the departure of Arjoon from NBS, the society made a further investment in the Berbice River Bridge through the purchase of bonds owned by CLICO (Guyana).
“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,” Gopaul said. NBS’s purchase of the CLICO bonds had raised controversy as it came at a time when CLICO was apparently trying to assure investors here that it was financially sound even though its Trinidad parent company had to be bailed out by the Trinidad government. CLICO (Guyana) collapsed shortly thereafter.
Gopaul’s letter to Luncheon also said that at no point during any investment over the last decade was there any risk to the society’s financial well-being.
“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,” Gopaul asserted.
He noted that the wrongful prosecution case brought by Arjoon against the DPP was dismissed in the High Court.
Gopaul also pointed out that Arjoon was not dismissed from NBS for fraud but for serious misconduct. He cited his letter of dismissal to Arjoon which stated “serious misconduct” as the cause.
“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 $74 million, 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 SC (Chairman), NK Gopaul (Vice chairman), Leon Rockcliffe, David Yhann Jnr, Steven Bovell, and Seepaul Narine (Members)”.
Though Arjoon and the other two managers were dismissed by NBS for serious misconduct they were charged by the police with conspiracy to defraud.
Gopaul added that since this matter is sub-judice, he was 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.”
