Wheatley hopeful for Bank of Asia buyer, Continue reading “Wheatley hopeful for Bank of Asia buyer”

The questions surrounding the collapse of the Bank of Asia — and the $5 million of taxpayers’ money deposited in it shortly before it went into liquidation last year — could soon be answered, Premier Natalio “Sowande” Wheatley has told the Beacon.

The financial institution’s troubles have cast a shadow over the government, with leaders staying tight-lipped as questions swirl over who knew what and when.

Now, Mr. Wheatley has told this newspaper that a new buyer may be ready to take over the bank, and he believes the $5 million of taxpayer funds could be recuperated.

“As I understand it, the Bank of Asia is going through a process of liquidation, and a buyer, as I understand it, has been identified,” he said during an interview last week. “I couldn’t say any more than that until things are finalised. But of course that is one of the things that we are hopeful about.”

He did not identify the potential buyer but said the government is “hopeful” that the deal will see taxpayers get back the $5 million of public funds deposited in the bank.

During the March 10 interview, Mr. Wheatley also declined again to say if he knew who had authorised the $5 million injection into the bank as it headed for liquidation.

The premier, who is also the finance minister, has stated previously that it was not him or Financial Services and Economic Development Junior Minister Lorna Smith.

But he has repeatedly declined to answer questions on whether he knows who did sign off on the deposit.

He has also denied he is sitting on findings from the Internal Audit Department’s completed report into the bank’s failure.

“I will examine the report carefully,” he told the Beacon last week. “I will speak with the financial secretary, who can advise me on how we can communicate the contents of the report.”

The VI government routinely withholds taxpayer-funded IAD reports from the public.

However, the auditor general also undertook a separate Bank of Asia probe, which Governor Daniel Pruce said last month was still under way.

Unlike IAD reports, the auditor general’s reports are typically tabled in the House of Assembly and released to the public.

Deposit insurance

Mr. Wheatley added that external overseers have been key in keeping a grip on the Bank of Asia situation.

“The [VI] Deposit Insurance Corporation has been very responsible in handling the process,” he said. “And I think the decision to have a deposit insurance was proven to be a sound one, because they have really managed the process well.”

The VIDIC was barely a year old when it announced on May 29 that it had triggered the process of winding down the Bank of Asia with the support of the BVI Financial Services Commission.

The following month, however, inaugural VIDIC CEO Lisa Violet stepped down after about a year in the position, and no replacement has been announced since then.