Interdicted NBS managers fired

Nearly three months since being charged with conspiracy to defraud, three senior New Building Society (NBS) managers in Guyana were Tuesday dismissed and the society’s board has cited dereliction of duty, negligence and serious misconduct.

A lawyer for two of the managers Director/Secretary Maurice Arjoon and Assistant Mortgage Manager, Kissoon Baldeo is contending that the dismissals are unlawful and repugnant to natural justice and so will be challenged in the court.

The letters, he said, were signed by acting chairman of the board, Dr. Nanda Gopaul.

Attorney at law Anil Nandlall told Stabroek News that his clients received the letters Tuesday afternoon and noted too it was most likely that the other manager Kent Vincent [Operations Manager] also received his.

Senior Counsel Bernard De Santos and Basil Williams are the other attorneys for the defence in this matter.

Nandlall told this newspaper that the dismissal letter referred to the account under scrutiny held by Bibi Khan with account number S 4745. It was from this account that unauthorized withdrawals were supposedly made resulting in the loss of funds to the society in excess of $69M.

According to Nandlall the letter stated too that "following investigations on the part of the society and procedures in which you decided not to participate, the society and board have taken a decision to summarily dismiss you with immediate effect for serious misconduct." The three men had boycotted last week’s disciplinary hearing which was called by the NBS.

Nandlall quoted from Arjoon’s letter which also stated: "Refunds of your contribution to the pension scheme, based on its rules will be settled by the trustees after your indebtedness to the society is determined."

The dismissal letters also thanked the men for their service to the society, the attorney said.

Nandlall said he was still deliberating on the mode by which he would launch his challenge. However, he told Stabroek News that more fundamental, was that the letter of dismissal omitted to deal with "millions of dollars of pension and other benefits and which ought to go to Arjoon after 30 years of service."

Nandlall added that it was quite unfortunate and regrettable that the society’s board would see it fit to deal with employees who have rendered approximately 60 years of excellent service in such a manner.

He has promised a prompt challenge to the board’s decision, adding that he felt that its decision to invite the men to a hearing last week was a façade.

"Had my clients participated they would have only permitted the board’s record to reflect their presence," Nandall said.

Arjoon of 1-2 La Fleur Road, Eccles; Assistant Mortgage Manager Baldeo, 38, of 86 Zeeburg, West Coast Demerara and Operations Manager Vincent of 1247 Canje Pheasant Lane, South Ruimveldt were read charges of conspiracy to defraud an NBS customer on June 1.

The charges alleged that on November 1 last year, Arjoon and Vincent conspired with each other and other persons to effect a withdrawal of $15 million from a Save and Prosper account in the name of Bibi S. Khan. Two cheques were drawn from the account: one for $10,225,000 in the name of M. Kryshundayal and one for $4,775,000 in the name of Compton Chase.

On November 17 last year, Baldeo and Vincent allegedly conspired together and with others to withdraw $22.6 million from the same Save and Prosper account of Khan also in two cheques. One cheque was written for $20.5 million in the name of M Hussain and the other for $2,164,000 in the name of Compton Chase.

On November 20, last year Baldeo and Vincent allegedly conspired with others to effect a withdrawal of $20.5 million from the same account in the name of Khan in two cheques. One cheque was written for $10.2 million in the name of M. Hussain and the other for $10.3 million in the name of Danniram.

On December 8, last year Arjoon and Vincent allegedly conspired with each other to effect a withdrawal of $32,230,384 from the same account in the name of Khan; one cheque being for $14,430,384 in the name of G. Ramoutar and the second for $17.8 million in the name of Danniram, thereby defrauding the said Khan of the money.

When De Santos and colleagues argued in defence of their clients, they pointed out that none of them had previous allegations leveled against them. They also told the court that the men had co-operated with the police and were only implicated because their signatures were on the over-$1M cheques which contributed to the alleged unlawful withdrawals made from the B. Khan account.

They were successful in securing bail for the men which was set at $2M by Magistrate Gordon Gilhuys.

The Board of Directors, following the charges had sent the three senior managers on administrative leave and in a statement had said that it had put interim management arrangements in place to continue the smooth operations of the NBS and assured the public that the situation in no way affected the interests of members of the society. It added that the integrity, security and soundness of the financial resources of the institution remained intact.

The board then wrote the men interdicting them from duty and inviting them to a hearing to explain why disciplinary action, including dismissal should not be taken against them.

However, the men, through their attorneys, approached the court challenging the move to convene a disciplinary hearing. The court subsequently ruled in favor of NBS and a new disciplinary hearing, boycotted by the three men, was convened. Explaining why the men did not attend, Nandlall said that the board did not explain in detail and in writing the allegations being made against them nor were they given time to respond.

As a result the board went ahead and made the decision to sack the men.

(Stabroek News)