CIDB Shake Up

Thursday, May 27, 2004

The Cayman Islands Development Bank (CIDB) has had a second high-level executive leave the financial institution this month, this time with the departure of Deputy Manager Patrick Musaib-Ali.

Three weeks ago, then Chairman of the Cayman Islands Development Bank (CIDB), Andre Iton, resigned his position, saying he was frustrated that the Board of Directors was not in a position to make the institution the kind of establishment it had set out to be.

Reliable sources indicate that Mr Musaib-Ali, who had been with the CIDB for four years, recently had a dispute with top management at the bank over loan procedures, which led to his resignation.

Reports have indicated that the CIDB has significant money available for lending, and might not be able to place enough loans by the end of its fiscal year in June to avoid ending up with a surplus of loan funds.

Leader of Government Business and Minister of Commerce, the Hon McKeeva Bush, confirmed the recent events. “As told to me by my Permanent Secretary (Charles Clifford), Mr Musaib-Ali resigned on 11 May, giving three months notice. His resignation was accepted, and on 14 May, he was paid in lieu of notice.”

The two top-level departures have left the institution unsettled, according to reliable sources, so much so that other members of staff are considering leaving the CIDB.

Minister Bush, however, said that measures have already been taken to put the CIDB back on the right track. “Based on a recent decision by the Board of Directors, there is now a mandate to restructure and streamline operations to allow the Development Bank to fulfill its business plan,” he said.

The changes will not occur right away, however, Mr Bush indicated. “We’ve been advised to delay the restructuring until after the computerisation of the bank, which is scheduled to occur by the end of June.”

Although the CIDB appears to have some issues right now, Mr Bush said it is progressing. “It has made significant strides in what it has done,” he said. “In March of 2001, it had a loan profile of $2.1 million. Based on 10-year projections now, it will break even in 2006/2007 with a loan portfolio of $25 million.”

Mr Bush said that the CIDB provides a vital service to the country. “Many young Caymanians have been able to realise their goal of owning their own business because of the Development Bank, when they wouldn’t have been able to do that through the private lending institutions here,” he said. “It supports Cayman’s entrepreneurial spirit.”

Back...

Click here for reader comments...