Ex-ADB head denies Clico investment plan

Former chairman of the Agricultural Development Bank (ADB), Hubert Alleyne, denied yesterday that the bank had taken a decision to invest $4.5 million in a Clico fund. He also said  if  the bank’s fired CEO Seebalack Singh said the Board had taken a decision to invest in Clico, he would be lying. However, Singh’s attorney, Anand Ramlogan, quoted from the minutes of a Board meeting of  October 6, 2002, signed by Alleyne, which categorically stated that the Board did take a decision to “invest” the $4.5 million with Clico. In response to a number of questions put to Alleyne by Ramlogan, the former chairman’s replies varied from “I can’t say or I cannot answer that question.” However, these responses came when Ramlogan wanted a yes or no answer. During further cross-examination by Ramlogan, Alleyne denied that his Board would authorise an illegal investment. Singh is seeking judicial review against a decision of the Board to fire him on the grounds of neglecting to obey the Board’s instructions, misrepresenting a decision of the Board, and distributing private and confidential documents of the bank when he sought legal opinion on the Board’s decision to invest.

He is claiming that the decision to invest with Clico was illegal and ultra vires. Alleyne admitted that the minutes of the meeting he exhibited in his affidavit was not the corrected version of the minutes which is done at the following meeting. Asked by Ramlogan whether it was his practising procedure as chairman to review draft minutes before being circulated to Board members, Alleyne responded, “I can’t answer the question yes or no.” Alleyne explained that minutes of the previous meeting are read for correction and or omission, and that is done to ensure that the minutes reflect the decisions and deliberations of the Board.  However, he pointed out that when he became chairman, the Board agreed that the minutes will only reflect the decisions of the Board. He agreed with Ramlogan that the minutes were an important document that ensures transparency, but when asked if there was an important matter relating to transparency on how the Board conducts the business of the bank, if that ought to be noted. Alleyne replied, “I can’t say.” He was emphatic, however, that if the CEO or any other member had a dissenting view, it would be recorded in the minutes.