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Court orders former Chairman to repay EC$2.251m.

Court orders former Chairman to repay EC$2.251m.


The National Commercial Bank (NCB) has won judgement against its former Chairman, Desmond Morgan, in the amount of EC$2.25 million for money owed to that financial institution.{{more}}

Morgan, who is also the proprietor of Blue Skye Communication (SVG) Ltd., resides at Calder, and is the husband of Attorney General Judith Jones-Morgan.

Opposition Leader Arnhim Eustace on the ‘New Times’ radio programme said that he was happy to see that the bank was taking action on the matter.

“I am happy that the bank is making an effort to get back its money,” Eustace said.

“What the bank is doing is, it is doing its job,” Eustace said.

In the High Court writ, dated May 19, 2010, the money to be paid by Blue Skye Communication (SVG) Ltd. and Morgan to the bank include $2,001,143.09 which is the amount claimed; $179,906.02 which is interest at 9 per cent on the sum of $1,530,551.29 from August 25,2009, to April 12, 2010; $23,946.53 which is interest at 10.5 per cent on the sum of $225,000.00 over the same period and a further 10 percent interest on the sum of $225,580.00 from August 25, 2009, to April 12, 2010, along with other miscellaneous fees, all of which totals $2,251,991.62.

The statement of claim filed by the National Commercial Bank on November 20, 2009, stated that the Morgan and Blue Skye Communications were “written to several times about the unsatisfactory state of the accounts and despite repeated promises to regularize the accounts, the Defendants are failing and or refusing to have the matter resolved, the last letter being on the 8th day of May, 2009….”

According to the claim form, the accounts in question are: loan account number 1879/08 in the amount of $1,530,551.29; DDA number 200765 in the amount of $225,000; Loan account number 20020094 in the amount of $225,580 and 4C’s credit card in the amount of $20,011.80.

The claim form also said that the Defendants also made several promises to settle the accounts, “but so far they have failed and or refused to make satisfactory arrangements to settle the account”.

Eustace said a request made on March 17, 2009, by Morgan for an extension on a loan was denied.

According to Eustace, a letter dated May 8, 2009, from Bernard Hamilton, Manager of the Credit Administration at the NCB, said that Morgan’s request was denied based on the fact that the loan was deemed delinquent and had been classified as non-performing.

Furthermore, according to information included in the response, Hamilton indicated that “None of the conditions of lending stipulated in the letter have been met by the company (Blue Skye).”

The Opposition Leader referred to another piece of correspondence between NCB’s solicitors and Morgan, dated August 31, 2009 stating that all previous attempts to have the matter resolved had proven futile and the lawyers had gone as far as to threaten legal action against Morgan if the matter was not resolved.

According to Eustace, there is a point of conflict in that Morgan is the husband of Attorney General Judith Jones-Morgan, the government’s legal advisor and the NCB is fully owned by the government.

“This matter is an example of what should not happen,” Eustace said.

No defence was submitted by the defendants in this matter.

Morgan’s woes were first made public in 2009 when employees who worked at Blue Skye Communication claimed that they were owed over $100,000 in wages.

Morgan was replaced as the Chairman of the National Commercial Bank in December 2008 after which he was appointed Chairman of the Bridges Roads and General Services Authority (BRAGSA).(DD)