By Robert A Emmanuel
One of the country’s oldest banks, Global Bank of Commerce, is facing questions over hurricane recovery funds apparently unable to be accessed by the government – and millions more being fought for by Jolly Harbour resident Jack Stroll.
Yesterday, Prime Minister Gaston Browne and Information Minister Melford Nicholas responded to queries over US$1 million deposited into an account at the bank by the Steve Morgan Foundation in 2017 intended to assist with Barbuda’s recovery from Hurricane Irma. A Foundation spokeswoman told Observer the British charity was “deeply upset” its donation had still not reached its intended recipients.
Barbuda MP Trevor Walker’s demands for an audited report on the Barbuda recovery funds have been echoed by the new Barbuda Council Chairman, Devon Warner, who said he would take the issue to the Governor General and call for a commission of inquiry to be launched if no answers were provided.
On Wednesday night, the Prime Minister confirmed the money had indeed not been sent to Barbuda.
“The government never received the US$1 million that was deposited in the Morgan Trust account with [Global]… This was due to financial difficulties the bank was experiencing,” he told Observer.
“We subsequently advised Mr Morgan that we would seek to make arrangements for the government to transfer US$1 million to Global to assist with their liquidity, to settle the transfer from Morgan’s account to fund the Barbuda Luis Hill housing project. The US$1 million was remitted and credited to the government’s account with Global as agreed,” he explained.
However, the government was subsequently advised by Global that it could not effect the transfer as its corresponding bank had been placed into receivership, Browne continued.
“Whereas our government bears no liability for the Morgan deposit, the proceeds of which were never paid to the government, the Cabinet has instructed the Financial Secretary to make US$1 million available to construct homes at Luis Hill in Barbuda, the credit for which should be extended to the Morgan Trust,” Browne added.
During the post-Cabinet press briefing yesterday, Minister Nicholas echoed similar comments as the Prime Minister, while noting the government will be meeting with the Barbuda lands adjudicator today.
“We will have a meeting with the adjudicator…at the Attorney General’s Office, and hopefully the adjudication process can start almost immediately next week, so that we can move ahead with and accelerate those developments on Barbuda,” he reported.
Meanwhile, more questions remain for the government from Stroll who continues his fight to access up to US$10 million of his own money from Global Bank.
St Mary’s South MP Kelvin Simon told Observer that he had delivered a letter to the Prime Minister’s Office yesterday, requesting on behalf of Stroll—his constituent—that Browne, in his capacity as Finance Minister, intervene “with full transparency and accountability” into the matter.
Speaking to Observer media, Simon stated, “I think that I needed to intervene on this matter [because it is] very unjust what they’re trying to do to Mr Stroll.”
Canadian-born Stroll, who has initiated legal action against the bank, has been living in Antigua – where he first visited in 1997 – for nearly two decades. He has been trying to retrieve US$8-10 million from Global since November 2020, he said.
Stroll revealed that he became concerned about the bank’s financial stability after other high-profile Global clients apparently reported difficulty accessing their money. He said he had subsequently tried to wire millions to Canada for safety.
During a phone conversation with Observer yesterday, Stroll claimed that the Prime Minister knew about the situation before it unfolded.
“He knew I couldn’t get my money out of the bank; it didn’t have to go to the courts,” he said.
In a lawsuit brought against the government last year, Stroll submitted to the court numerous emails sent to the Prime Minister where he detailed the bank’s apparent financial difficulties.
In their counterclaim seen by our newsroom, Stroll and his attorneys said that at all material times the government was made aware of the financial difficulties of the bank, given its debt.
Much has been written about this story including the fact that Global’s CEO Brian Stuart-Young—a position he has held for 25 years—was also the Chairman of Caribbean Union Bank (CUB) during the government’s takeover of CUB in 2018.
Stroll said that he felt “truly disgusted” by the fact that he continues to be unable to access his funds.
“I am not going to let up until I get my money – that’s for sure,” he vowed. “I love this country, or else I wouldn’t be living here, but this is going to hurt the good people of Antigua and Barbuda.”
In an email from the bank dated December 29 2023, which Observer has seen, Stuart-Young claimed that the bank has satisfied nearly half of the money Stroll seeks and “is committed to completing the balance as soon as possible”.
“Global Bank of Commerce assures you that it has never denied or attempted to deny its obligation to meet your withdrawal demands,” the email read.
“Global Bank of Commerce also wishes to point out that it is a duly licensed financial institution and operates within the provisions of the law,” it added.
Stroll asserts that while he has received some amounts of money requested, it’s not close to half and that, rather than getting his funds in small, staggered amounts, he wants the balance in full, and fast.
Stuart-Young has not responded to multiple requests from Observer for comment.