Nearly a week after independent MP Tennyson Wells claimed in the House of Assembly that Colina Financial Advisors Ltd. (CFAL) may be putting the pension fund of Bahamas Telecommunications Company workers at risk, Colina has hit back at Mr. Wells, indicating that he was irresponsible in making those comments.
The company said in a statement to the press that as a member of the House, a long-standing attorney, and a former attorney general, Mr. Wells “would no doubt be loath to make (those comments) in any other forum.”
“He ought to know better, as those against whom he speaks cannot defend themselves in that place,” the statement said. “As such, he ought not to make such statements unless he is prepared to do so in a forum with consequences.”
Last Wednesday, Mr. Wells claimed that “an inordinate portion of BTC’s pension fund may be committed for the purchase of City Markets”, a company that has little property in this country.
“I believe that City Markets should be owned and bought by Bahamians, but I do not believe, Mr. Speaker, that a few should be allowed to benefit and purchase City Markets at the expense of thousands of pension fund owners in what could be a very risky and expensive business venture,” he said.
Mr. Wells said he had received reports that the Colina Financial Group, which manages BTC’s pension fund, plans to allow the use of that fund for the purchase of City Markets.
“I am saying to the government and particularly the Minister of Finance, be very careful and I myself am personally warning the pension funds, don’t allow their monies to be put at risk,” he said.
But Colina took exception to those comments saying that Mr. Wells should not make such statements unless he is prepared to do so in a forum with consequences.
“Mr. Wells, as a representative of the Bahamian people, ought not without cause or jurisdiction make wild allegations and attack the credibility of financial institutions and the credibility of the financial industry,” the Colina statement said.
The MP said in the House that Colina and “some of these other companies around ought to be very careful” that they are not breaching pension rules “whatever those rules are”.
Pierre Dupuch, another independent MP, raised concerns similar to those of Mr. Wells.
“We apparently do not have controls or regulations in place to control some bandits that seem to be out on the road,” Mr. Dupuch said.
“I’m not going to go very far with the situation with Colina simply because I have some personal issues with them, but I am warning the government and I would be the second one to publicly warn the government, it is your responsibility, it is your obligation to protect the workers of these pension funds that are out there.”
He added, “Thousands and thousands of people are expecting to collect sometime down the road. It is your obligation to make moves today to stop what I understand is going on. If it is true, it is dangerous. It is serious and you must as a government take a stand now, not tomorrow, not the next day, but now to stop it.”
While not referring to Mr. Dupuch, the Colina statement said that CFAL has always strongly advocated pension legislation and indeed did so while Mr. Wells was attorney general.
“He did not see fit then to introduce such legislation and obviously he still does not see fit now to take positive steps to advocate this type of legislation,” the statement said.
“He is content to merely make outlandish allegations for what can only be seen as his own personal agenda.”
Earlier this month, Winn-Dixie Stores, Inc., which is trying to emerge from bankruptcy, announced that it will sell all of its 12 supermarkets in the Bahamas to BK Foods Ltd. for $50 million.
Nine of the supermarkets are under the City Markets banner and three are under the Winn-Dixie banner.
The company had reported that a wholly-owned subsidiary of Winn-Dixie reached a definitive agreement to sell its majority stake in Bahamas Supermarkets Limited to BK Foods, whose directors include businessmen Jerome Fitzgerald and Mark Finlayson.
In its statement, Colina said, “We consider Mr. Wells’ statements totally irresponsible concerning CFAL and the BTC pension fund in connection with Winn Dixie’s announcement. One has to question his true intention in attempting to frighten pension holders in general and the BTC pensioners in particular.
“Mr. Wells’ statements undermine the confidence that the public has in all financial institutions in the Bahamas.”
The statement notes that CFAL has been managing the BTC pension fund for more than three years, and this pension fund is only one of many pension funds that the company manages.
It adds that CFAL’s pension funds are all segregated, which is not common in the local industry. The statement said there are independent trustees, strict investment guidelines and risk management procedures.
“CFAL manages all of its pension funds based on established investment guidelines, internal risk management and international standards in keeping with our responsibility to our clients, our community and our profession,” the statement said.
“CFAL takes this responsibility very seriously and will continue to act to protect the best interests of all its stakeholders.”
By: Candia Dames, The Bahama Journal
