Libellous KN article has potential to destabilise Guyana’s financial sector

…says Bank of Guyana

By Michael Younge

The strength and security of Guyana’s banking system – which is the linchpin of the country’s financial sector – was placed under great threat on Wednesday following the publication of a spurious and misleading article in the Kaieteur News which sought to implicate the Central Bank, Republic Bank and a local businessman in questionable activities linked to money laundering.

The daily tabloid reported that the Government’s State Asset Recovery Unit (SARU) is probing a “local bank” which was accused of money laundering going back to 2011 following apparent non-action on the part of the Bank of Guyana and the then People’s Progressive Party/Civic (PPP/C) Administration.

The article also alleged that the owner of GuyTrac Haresh Narine, also known as “Chinee”, had deposited the sum of Gy$82,068, 617 in a Republic Bank Account which ended up in an account of a now sitting Minister of Government.

The newspaper, which has a long tradition of publishing falsities and pursuing personal vendettas against local businessmen and persons not supportive of the now ruling political party, referred to statements allegedly made by the Governor General of the Central Bank and SARU Head, Dr Clive Thomas in relation to the matter.

But before the dust could settle, the Bank of Guyana condemned the article which it said had the “potential to destabilise the financial sector in Guyana”.

When contacted, Governor Dr Gobind Ganga declined to offer any comment on the article to this newspaper outside what was released in the Bank’s official statement as he believed it sufficiently addressed the concerns of stakeholders.

Soon after, the Central Bank explained that Republic Bank which was identified by the newspaper was not guilty of any wrongdoing in the matter and, therefore, was not in breach of any laws which govern its operations.

The Central Bank admitted that it had received a complaint in relation to the matter and, thereafter, mounted a full investigation which vindicated the local bank.

Republic Bank’s statement

Republic Bank (Guyana) Limited has rejected the assertion that it engaged in money laundering activities. The Bank, in a statement on Wednesday evening, said it viewed the suggestion that it was engaged in money laundering as “malicious, libellous and unfounded”.

In particular, the Bank denied that any deposit of cash or cash equivalents was made to the referenced account by the named party on June 16, 2011 or any other date.

The Bank said that in light of the Kaieteur News article, which sought to tarnish its reputation and question its adherence to sound banking principles, it would take all necessary steps, including reviewing legal options to address these false allegations, to protect its reputation and the interests of all stakeholders.

“Not me” – Chinee

Meanwhile, the businessman who was named in the article has since strongly denied involvement and any knowledge of the entire incident reported by the tabloid.

He said that he never deposited monies amounting to over Gy$82 million in his account or any other person’s account for that matter.

“Not me. That’s a lie. I would be glad if somebody could give that kind of money now. The only money I deposit in my account are monies in relation to my business that have to do with supplies,” he revealed.

Narine said that he was surprised that the newspaper could be so bold to link him to money laundering and other acts of wrong doing, as he was never contacted by the local authorities or banks in relation to such matters.

“Nobody never contacted me on this matter…no SARU or no bank person…I do not know what Glenn Lall and the Kaieteur News are talking about,” he maintained.

The businessman said it was important for him to set the record straight as the content of the article had the potential to put his life and his family’s lives at risk. It could have negative impacts on his business relations in and out of Guyana.

This newspaper understands that the sitting Minister who made complaints about the money reportedly ending up in his account has responsibility for the Ministry of Communities under the new Government.

Attempts to contact SARU’s Head for a comment and confirmation that it was still actively probing the case, regardless of the Central Bank’s findings, proved futile.