Dear Editor,
Republic Bank (Guyana) Limited (RBGL) recently concluded its 2024 financial year on September 30, 2024, and celebrated its 40th Annual General Meeting on December 9, 2024. The Bank announced a record after-tax profit of $7.26 billion, an impressive 47.9% increase over its 2023 performance.
However, amid the celebrations, a persistent issue continues to shadow the Bank. This issue stems from a lawsuit filed on May 15, 2012, by the Directors of Precision Woodworking (the Company) against RBGL in relation to unlawfully appointing a receiver and breaching a commitment made on June 30, 2011. The commitment involved rescheduling the Company’s debt after the sale of one of its properties, with the proceeds applied toward the Company’s indebtedness to the Bank. The Bank has refused repayment of the debt, and their receiver has refused to show us accounts of his administration since his installation more than thirteen years ago. The receiver has also not filed accounts of his administration with the Registrar, all the while enjoying the confidence of the Bank.
The handling of this matter has revealed systemic failures in justice and governance. A Motion was filed with the Court of Appeal on March 7, 2022—uncontested by RBGL and its appointed receiver, Kashir Khan (“Bulkans file motion for expedited hearing at Court of Appeal,” Kaieteur News, March 13, 2022). Despite this, nearly nine years elapsed before the Commercial Court issued a decision—a decision that contravened a prior Full Court Order on the same matter.
Between January 2017 and January 2024, at least 14 articles and letters have been published on this issue. Despite the widespread public criticism, RBGL, the judiciary, and key public officials have remained silent.
As for RBGL itself, our experience has shown that the Bank’s professed commitment to certain values is not reflected in its actions. A glaring example of this hypocrisy can be found in the Bank’s 2024 Annual Report. In the Statement of Corporate Governance Practices, Chairman Nigel Baptiste claims that the Bank adheres to the recommendations of Supervision Guideline No. 8 on Corporate Governance issued by the Bank of Guyana.
One such recommendation is that “it is highly desirable that the chairperson of the board should be an independent director” and that “a CEO should not be appointed chairperson of the board.” However, Mr. Baptiste, while not the CEO of RBGL, is the President and CEO of the Republic Group (Republic Financial Holdings Limited), RBGL’s parent company. If this is not a cynical attempt at compliance, what is?
Moreover, the guideline states that “to provide for renewal, the chairperson’s term of office should not exceed five years.” Yet, Mr. Baptiste has served as Chairman since 2013—twelve consecutive years—and while not reported has possibly been reappointed for a thirteenth term.
Editor, while Republic Bank celebrates its record profits, it continues practices that contradict its professed values. I will await the day when Republic Bank is made to take responsibility for its actions.
Sincerely
Ronald Bulkan
Joint Managing Director
Precision Woodworking Limited