The Caribbean Development Bank (CDB) Tuesday remained mum on the resignation of its president, Dr Hyginus ‘Gene’ Leon, who has also threatened to file a lawsuit against the region’s premier financial institution.
In a one line reply to the Caribbean Media Corporation (CMC) for a response to Leon’s “immediate resignation,’ the CDB simply stated “The bank has no comment at this time”.
According to a three-page letter sent to the CDB by the St Lucia-based law firm, FOSTERS, Leon is of the opinion that “he will never be treated fairly” after he had been sent on administrative leave in January.
“It is also evident that the bank has lost all trust and confidence in our client by the failure of the board of governors to prevent the continued violations of its charter, policies, rules and regulations with regard to its elected president.
“Our client has therefore made the extremely difficult decision to resign his elected position of the president of the bank with immediate effect,” the law firm wrote.
The lawyers have given the regional financial institution until May 4 “to negotiate an amicable separation” indicating also that their correspondence should be viewed “as our client’s pre action protocol letter” regarding the entire situation.
In the three-page letter, Dated April 21, and headlined “Re Dr Hyginus ‘Gene’ Leon, Resignation and Constructive Dismissal”, a copy of which has been obtained by CMC, the law firm said it would be moving to the courts in Barbados “or any other jurisdiction more appropriate, to enforce our client’s legal and constitutional rights”.
“My view has been, having reviewed everything in depth with regards to the bank, how it is run, read all of its policies, it would seem that the bank has not followed its own policies,” attorney Peter Foster KC said.
“There are specific policy requirements regarding the investigation of a president and very simply that if one of these committees…if they have found through whistle blowing report to them and there is some information requiring an investigation they are supposed to escalate that to the board of directors through another sub-committee…
“With that initial report, the board of directors would then have to consider whether or not there is sufficient in that whistle blower report to escalate it to the board of governors and the board of governors would have to meet and then make a determination.”
Foster said “none of that was done” and Leon was sent on leave unceremoniously by a three-member committee and everybody staying quiet after that.
In January, it was disclosed that Leon, had been sent on administrative leave until April this year, as “an ongoing administrative process” continued at the region’s premier financial institution.
The CDB has remained mum on the circumstances surrounding the decision to send the St Lucian-born economist on administrative leave, with the acting president Isaac Solomon, confirming at a bank news conference in February that “there is an internal administrative process involving the president”.
In February, Antigua and Barbuda Prime Minister Gaston Browne, who was attending the Caribbean Community (Caricom) summit in Guyana, said concerns had been raised about the method used to send Leon on administrative leave.
“…At some point we will have to address the issue of the procedures and the fact that subordinates within an institution can literally take disciplinary action against their superior without even consulting with the directors or the governors of the bank.”
In their letter, the lawyers wrote that “On the 16th of April 2024, 40 hours after our client’s leave expired, our client received a letter of notification of leave extension signed by the chairman of the OAC, but stating that it was from ‘the board of directors of the bank (currently carrying out the functions of the OAC with respect to the investigation.”
