Harajchi continues to fight the 2001 decision by then Central Bank governor, Julian Francis, to revoke the bank’s license.
Suisse Security Bank appealed to the Privy Council from the decision of the Bahamas Court of Appeal, which on June 29, 2004, affirmed the 2003 judgment of Supreme Court judge the Hon. Mr. Justice Austin Davis.
In April 2003, Justice Davis dismissed the bank’s appeal from the decision of the governor revoking its license.
On August 11, 2005, the Hon. Mrs. Justice Vera Watkins heard the Central Bank’s application by summons filed on March 4, 2005 to wind up Suisse Security Bank.
The Central Bank sought to have the winding-up petition set down for hearing, but Suisse Security’s attorney opposed that application.
The attorney applied by summons filed on April 4, 2005 to have the hearing of the winding-up petition stayed pending the outcome of Suisse Security’s appeal in the Privy Council
Justice Watkins adjourned the matter sine die to consider the arguments presented on behalf of the Central Bank and Suisse Security.
The judge handed down her ruling, dated October 18, 2005, refusing the Central Bank’s application to have its winding up petition set down for hearing because of the imminent approach of the hearing of Suisse Security’s appeal to the Privy Council.
The judge granted a stay of the hearing of the petition until after Suisse Security’s appeal in the Privy Council is determined.
The Bahama Journal has in the past reported that depositors were growing increasingly angry by the fact that the matter has been dragging on for so long.
When it filed its appeal to the Court of Appeal, Suisse Security wanted the Court to determine that Supreme Court Justice Longley erred in holding that the governor’s power to suspend and revoke SSBT’s license was exercised in accordance with the Bank and Trust Companies Act 2000.
The bank argued that under law, it should have received notice about the revocation and should have been afforded the opportunity to state its objection in writing. But the court said this was not necessary, as pointed out by the Central Bank, because of certain practical reasons, including preventing loss to depositors and a run on the bank.
Mr. Harajchi has been a controversial figure, particularly since his license was revoked.
In 2004, he launched a blistering attack on the Christie Administration, inferring that he financially helped Prime Minister Perry Christie while he was leader of the Official Opposition, and claiming that he contributed a substantial amount of money to the PLP’s 2002 election campaign.
The Bahama Journal
