Saturday, February 24, 2018

Howai responds

In a statement issued yesterday, Finance Minister Larry Howai noted: “The minister has been advised that Mr Rahaman has demitted office but notes that the various investigations will continue to determine whether other and further actions need to be taken.”

Howai noted that the PWC report was expected today and Cabinet will be apprised of the results during its weekly meeting tomorrow.

“The actions to be taken consequent on the report will be determined thereafter,” he said.

Rahaman’s share acquisition and sale have come under scrutiny, given the volume which he was allowed to acquire during the bank’s Initial Public Offering (IPO) on September 6, 2013, when the Government divested 19.3 per cent of its stake in the bank.

Of the 48.5 million shares, 15 per cent was allocated to employees. First Citizens employees could acquire up to a maximum of 5,000 shares at a ten per cent discount of $19.80 (while the public was sold shares at $22) at a zero per cent interest loan.

Rahaman spent $14.5 million to acquire the 659,588 shares from the undersubscribed employee bucket.

There was an oversubscription in the public bucket by nine times.

The bank’s chief executive, Larry Nath, acquired 215,000 shares.