Fired CEO takes ADB to court

THE recent firing of Agricultural Development Bank (ADB) chief executive officer Seebalack Singh, for his refusal to sanction the bank’s $4.5 million investment in CLICO became the subject of a High Court hearing on Wednesday.

In an application for judicial review of the ADB board’s decision to fire him on January 23, Singh contended that he opposed the million dollar investment because it was contrary to the laws governing the functioning of the ADB. When the case was called yesterday in the San Fernando High Court, Justice David Myers heard allegations of victimization by the ruling People’s National Movement (PNM) against Singh. The allegation was made by Singh’s attorney Dr Fenton Ramsahoye QC, who submitted that Singh’s dismissal was a case of political corruption. “And Singh was fired for trying to prevent the corruption and for refusing to participate in it,” Ramsahoye, who is leading attorney Anand Ramlogan, told the judge.

In his application for judicial review, Singh said a new ADB board was appointed on June 2002. At a board meeting in October, a decision was taken to invest the money because Clico was offering the highest rate of return at the time. Singh said he pointed out to the new board chairman that the previous board had withdrawn an investment with CLICO due to the fact that the Auditor General had criticised the investment. Despite this advice, Singh said, the board instructed him to meet with one of the ADB’s directors with a view to implementing the decision. Singh pointed out that a particular board member was also a CLICO sales representative and that member was present at the meeting when the decision was taken to invest. “I expressed concern about investing the bank’s money in an insurance company and in particular, in any life insurance product,” he said. Singh referred to the Auditor General’s report and Ministry of Finance’s criticisms of investing in CLICO’s life insurance products.

Singh said he was instructed by ADB chairman Hubert Alleyne to give the $4.5 million cheque to the director. He did so. Singh said a legal opinion was sought and the ADB was advised that the investment was illegal. Singh said on November 20, 2002, he was instructed by Alleyne to proceed on annual vacation leave with immediate effect “to facilitate an investigation into my alleged failure to implement the decision of the board”. On December 27, Singh was informed by the board that he neglected his duty as CEO when he failed to implement the board’s decision. He subsequently received a letter terminating his contract. Singh is contending that the decision to terminate him was conducted in bad faith for the improper purpose of making an illegal investment. The case comes up for hearing again on April 16.