ADB could be scandalised, attorney warns

ATTORNEY Elton Prescott  told Justice Amrika Tiwary-Reddy that whether the board of directors of the Agricultural Development Bank (ADB) wanted to make an alleged illegal investment of $4.5M in a Clico fund is not a material consideration in a judicial review case brought by the bank’s former CEO, Seebalack  Singh,  who was fired for refusing to carry out the  transaction. Prescott warned that for the court to make such a finding would scandalise the bank. Prescott, who is representing the bank and is assisted by Phillip Lamont, made the point while urging the judge to strike out several paragraphs in Singh’s affidavits and that of the  bank’s former cooperative financial manager Feona Lue-Ping-Wa. Lue-Ping-Wa was also fired.

Prescott’s argument is that the issue for review is the allegation of Singh’s misconduct — neglecting to carry out the board’s instructions to invest the money — and whether the board had the authority to fire Singh. The main issue here is procedure, he contended. He said Singh is not entitled to prove that the decision of the board to invest is ultra vires and even if the court finds it was ultra vires, it could only make a pronouncement. Senior Counsel, Dr Fenton Ramsahoye, who is representing Singh, urged the judge not to strike out the paragraphs. He alleged that  $4.5 million of the bank’s  fund was misused  by entering into an alleged illegal transaction with Clico because the investment is not permitted by the ADB Act and it was done with the knowledge  that the Auditor General had previously criticised a similar investment with Clico which was cancelled and money withdrawn.

Justice Tiwary-Reddy made it clear that these assertions were mere allegations and she had not yet made a finding on them. Ramsahoye, assisted by Anand Ramlogan, told the Port-of-Spain Third Civil Court that the affidavits set out the facts of the case and the court is entitled to know the facts and circumstances in which the Board ordered the investment which led to Singh’s dismissal. Justice Tiwary-Reddy will rule on the application when hearing resumes today.