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NEWS
December 1-7, 2018
TURKS AND CAICOS WEEKLY NEWS
Husband and wife cops sent on leave following allegation
Scotiabank, which has operated in the Caribbean since 1889, says it plans to refocus its business in the region by selling a number of insurance and banking operations.
Scotiabank to pull out of nine Caribbean countries in major regional shake-up BY OLIVIA ROSE THE BANK of Nova Scotia on Tuesday (November 27) announced that it has struck a deal to sell its banking assets in nine Caribbean countries – but not the TCI. This comes as the lender continues to narrow down the number of international markets in which it operates. It agreed to sell its operations in Anguilla, Antigua, Dominica, Grenada, Guyana, St Kitts and Nevis, St Lucia, St Maarten, and St Vincent and the Grenadines. The recent report further stated that larger markets in Latin America are still very much part of its plans. The massive downsizing comes although the bank’s profit from its international banking unit grew at a greater rate than that of its Canadian business over the past year. Canada’s third-biggest lender reported adjusted earnings per share of $1.77 in the quarter ended October 31, compared with $1.65 a year ago. Scotiabank president and CEO Brian Porter who announced the bank’s intentions to exit more than 20 countries globally noted that: “Exiting these non-core operations is consistent with a strategy that began five years ago to sharpen our focus, increase scale in core geographies and businesses, improve earnings quality and reduce risk to the bank.” Trinidad and Tobago-based
Republic Financial Holdings (RFHL) has already announced its intention to acquire Scotiabank’s Caribbean businesses. Republic Financial Holdings, which is the parent company for Republic Bank, said in a press release on Tuesday (November 27) that the purchase price is $123 million. The $123 million represents a $25 million consideration for the total shareholding of Scotiabank Anguilla and a premium of $98 million over net asset value for operations in the remaining eight countries. This price does not include any amounts required to capitalise the branches post-closing according to Ronald F deC Harford, chairman of RFHL, who said: “This acquisition represents another major milestone for the Republic Group. “As we grow and acquire significant positions in our existing markets, it is important that we continue to broaden our footprint, regionally and internationally. “This agreement, which is subject to all regulatory approvals, affords us the opportunity to reach more clients in the Eastern Caribbean and Guyana, two markets we are familiar with, and build new relationships in St Maarten. “We are confident that our expanded presence or entrance in those markets will redound to the benefit of Scotiabank’s clients and employees as well as Republic’s existing stakeholders.”
CORRECTION WE WOULD like to apologise for error in a news article published in the November 24-30, 2018, issue of the Weekly News. The item - which can be found on page 14, headlined ‘Skippings calls on ‘incompetent’ Gov’t to fix mouldy parliament building’ - incorrectly identified Skippings’ political party as the PPP, where it should have stated PDA Progressive Democratic Alliance. We apologise for any inconvenience caused.
Leader of the PDA, Oswald Skippings
Additionally, Scotiabank announced Tuesday that its subsidiaries in Jamaica and Trinidad and Tobago have agreed to sell their insurance operations to Barbadosbased Sagicor Financial Corporation, which would also underwrite insurance products for Scotiabank’s banking subsidiaries through a 20year distribution agreement. Scotiabank said these transactions would not be material, but that they would increase its common equity tier one capital ratio, a measure of financial strength, by around 10 basis points when they close. “Due to increasing regulatory complexity and the need for continued investment in technology to support our regulatory requirements, we made the decision to focus the bank’s efforts on those markets with significant scale in which we can make the greatest difference for our customers,” said Ignacio Deschamps, the head of international banking at Scotiabank. The bank also closed its Grand Turk and Grace Bay branches earlier this year as part of a scheme to “consolidate” its facilities. This move led to the implementation of a banking facility which houses more services under one roof at the head office at ScotiaCentre on Cherokee Road in Providenciales. Back in June 2018 Premier Sharlene Cartwright Robinson said the decision was “rather unfortunate” and “could not come at a worse time” for the territory. Although the Government had expressed concerns about the staff and customers with hopes of being able to “avert” the changes the bank’s decision was final. The head office, which currently houses the retail branch, corporate and commercial banking and the managing director’s offices, will become the new home for the full suite of services by year end. Scotiabank has been on a bit of an acquisition binge over the past year, expanding its wealth management operations as well as in Latin America, where it is forecasting that growth in some countries will outpace Canada. The bank has operated in the Caribbean since 1889 plan to refocus its business in the region by selling a number of insurance and banking operations.
TWO police officers of the Royal TCI Police Force have been taken off of active duty following allegations of an illegal nature being made against them. Information reaching the Weekly News is that the couple, both of whom live and work in Grand Turk, are being accused of harbouring an illegal immigrant. Following the allegations they were both placed on administrative leave as of Wednesday, November 21, and an investigation was launched.
In a press statement this week, Acting Police Commissioner Trevor Botting stated: “We take allegations against police officers very seriously and it is right that the officers are removed from operational duties whilst an investigation is carried out.” He added that the decision to place the officers on administrative leave should in no way suggest any presumed wrongdoing on the officers’ part. Investigations into the allegations are ongoing.
CABINET MEETING SUMMARY THE EU ambassador’s visit, the Home Owner’s Policy, and the South Bank Resort and Marina Project were discussed at the latest meeting of the Cabinet on Monday, November 19. Governor John Freeman chaired the 26th meeting at the Hilly Ewing Building in Providenciales. All ministers were present except Hon. Karen Malcolm, Minister of Education, Youth, Culture and Library Services. At this meeting Cabinet: -Agreed to the ‘Treatment of All-Inclusive Resorts’ paper to advance the Hotel, Restaurant and Tourism (Taxation) (Amnesty) Bill 2018 to the House of Assembly. -Received a paper presented by the Hon. Premier Sharlene Cartwright Robinson, as Minister of Finance, on the draft consultancy report on the redevelopment and modernisation of South Dock, Providenciales. Cabinet noted the recommendations of the board of directors of the TCI Ports Authority in relation to the report. -Approved the appointment of Ricardo D Gardiner as the Opposition’s Appointed Member on the Local Government Review and Modernisation Committee. -Approved the draft Home Owner’s Policy which includes incentives to first time and existing homeowners to be implemented with effect from April 1, 2019. -Approved the appointment of the Commissioner of Labour as the Registrar of Trade Unions in accordance with Section 5 of the Trade Unions Ordinance. -Agreed to the Jury (Amendment) Bill 2018 for advancement to the House of Assembly. -Received as update from the premier on the TCI National Disaster Recovery Task Force on the work of the task force. -Advised the governor to agree to execute the framework agreement on compensations for compulsory acquisition of land by the Government. -Noted the financial performance of the TCI Statutory Bodies for the period April to June 2018 as reported by the Accountant General in the First Quarter Financial Report 2018/19 submitted in accordance with Section 148 (1) of the Public Finance Management Regulations. -Agreed for Invest TCI and the Attorney General’s Chambers to commence negotiations, on a conditional basis, between TCIG and Windward Long Bay on the proposed South Bank Resort and Marina Project. -Approved a draft TCIG Increment Policy paper governing the implementation of increments for the TCI Public Service. -Received an update from the premier and the Ministry of Finance on the critical work outstanding with regards to the EU Code of Conduct Group: the COCG’s response to TCIG’s latest correspondence, policy decisions made and the upcoming legislation to be presented to Cabinet. -Received an update from Deputy Governor Anya Williams on the visit of the EU Ambassador visit last week.