Dear Editor,
By now it should be clear that Scotiabank Guyana and eight other Caribbean territories have been bought/acquired by Republic Financial Holdings Ltd, a Trinidad-based company and the transfer/integration is being held back by regulatory requirements and consensus. People, both staff and citizens are seeing this as a shock. Some may be saying that this is business as usual and it’s how the corporate world works. What is being overlooked is the significance this has to the Guyanese economy and people.
There are a few who happen to glance at the underlying strategy and are asking important questions as to why would Scotiabank do this. Why would the bank sell assets significantly under the market value? Why sell to RBL and not another foreign bank trying to enter the Caribbean market? Surely first world banks would have paid more for such a profitable opportunity. Why leave Guyana when they are on the verge of significant oil revenues?
To answer this, you need to use the age-old cliché of follow the money. Who has the most to gain from this acquisition? Who were the players involved in the negotiation of this deal, specifically for Guyana? How is this going to impact business and the economy?
If you dissect the acquisition into small bits, it is clear that the ultimate winners of this is the Twin Island Republic of Trinidad & Tobago. When the acquisition is completed, RBL Guyana will own more than 50% of the banking market for the entire Guyana. Think about that for a second. All your loans, credit, debt and other facilities will be controlled by RBL and in turn all the profit generated will be moved from Guyana and enter Trinidad.
The Private Sector of Guyana is already highly controlled by Trinidadian entities, which means again Trinidadian businesses locally will be doing further business with a Trinidadian owned bank. Additionally, when the oil money starts to flow, most of those monies will more than likely be channeled through RBL. The Guyanese people will be further cut out of the possibility of having the “better life” promised as money generated from the local economy keeps going to Trinidad.
Who were the key players involved in the acquisition that we know of? From the Guyana end, both Scotiabank and RBL Guyana are headed by Trinidadians. At the Trinidad end, more Trinidadians. Is this all coincidence? What about the government and hierarchy of Trinidad, who by the way are going through a serious economic recession at present, did they have knowledge? Is this their way of attempting to control Guyana’s oil sector? Again, follow the money and the answers always becomes clear as day.
Interestingly enough, the government of Antigua & Barbuda has taken a strong stance against the acquisition. They are insisting that Scotiabank sell to a “local bank” more than likely to save themselves from what will happen to Guyana, i.e. the further drain of wealth from the country.
What will our Guyanese government do? As is, they themselves have begun to ask questions but will they take a similar stance and see past the smoke and mirrors Trinidad has erected? What will the Ministry responsible for Labour do? Will they advocate for Scotiabank staff who do not want to be a part of this transition fiasco to get their well-earned and deserved severance? What about the customers who do not want to move their facilities to RBL or the customers who Scotiabank have convinced over the years to move their facilities from RBL to Scotiabank, what are they supposed to do? What about specialty products like Mastercard or Scotia’s Internet banking, what competitive alternatives are available to our loyal customers?
Only time will tell but the wise know that money always supersedes what is right and just. Fortunately, integrity is something that money can’t buy and we Scotiabankers are full of integrity. This opinion is being shared so that the People of Guyana can begin to ask questions of their own. One People, One Nation, One Destiny. What impacts us at Scotiabank will impact us all.
Yours faithfully,
(Name and address supplied)
