Lead attorney for Suisse Security Bank & Trust, Philip “Brave” Davis on Thursday levied more charges against Governor of the Central Bank Julian Francis, claiming that Mr Francis abused his power and acted in bad faith when he revoked the Chairman of Suisse Security, Mohammed Harajchi’s bank licence.
Mr. Davis was continuing his opening arguments, clearing the way for the Governor’s attorneys to tell the court their side of the story.
Mr Davis said his client was ambushed by Governor Francis, who he said did not give any indication to the bank that he was considering revoking its licence.
Mr Davis said while Mr Francis exercised his legal authority, he should have done it in accordance with natural justice, otherwise, any decision made is annulled.
Suisse Security Bank and Trust had its banking licence revoked two years ago, after Mr Francis said that he was of the opinion that the bank was conducting business in a manner that was detrimental to the public’s interest, and to the interest of its depositors and other creditors.
Mr Harajchi claimed that Mr Francis revoked his licence after he refused the governor’s request for a personal favour, but the Central Bank Governor had maintained that Suisse Security had failed to adhere to certain prudential requirements.
Those requirements were especially important in 2001 just months after the government passed a package of financial services laws.
Mr Davis questioned whether Governor Francis’ power to suspend and revoke Suisse Security’s bank licence, was temporarily suspended by an injunction granted on March 2, 2001.
He said if it was, then it is clear that Mr Francis acted unlawfully by intending to suspend and revoke the bank’s licence, as his power to do so had been suspended by the injunction.
He also questioned whether the Governor failed to give adequate reasons prior to the revocation of Suisse Security’s bank licence.
Mr Davis said that although Suisse Security met with the governor in a meeting on February 19, 2001, and Mr Francis made his intention known to suspend the bank’s licence, at no time did he say that a penalty might be imposed if concerns he had were not addressed.
Mr Davis said his client was at least entitled to be informed of such a penalty, and said Mr Francis cannot just assume that Mr Harajchi would know. Lawyers for the Central Bank were scheduled to start opening arguments Friday afternoon.
The Bahama Journal
