Menu Close

Union Executives Questioned Over $5 Million Loan

Basil Mckenzie, the Bahamas Hotel and Allied Workers Union (BHAWU) Assistant Treasurer, said a group of top union executives secured the alleged loan from the Bank of The Bahamas more than three weeks ago, without the knowledge of several other executives and most of the more than 5,000 members.

Speaking in a recent interview with The Guardian, Mr McKenzie fingered BHAWU President Pat Bain, General Secretary Leo Douglas and Treasurer Arimintha Butler for taking out the “unconstitutional loan.”

“The guys went to the bank behind our back and borrowed $ 5 million,” said Mr McKenzie, who has worked for the union for more than 30 years and is responsible for making all cash deposits. “Before, every time we go to the bank (borrow money), all of us know and we have to sign. We know nothing about this deal. I have been told by an outsider on the street that we borrowed $5 million.”

Furthermore, Mr McKenzie said, the three executives had recently begun operating independent of the executive council and contrary to the constitution. Important financial decisions were being made without wide consultation, he added.

“The executives have no regard for the constitution; they do as they like and to who they like and please.”

He said the wanton mismanagement was responsible for a present deficit of $1.6 million, being repaid at $30,000 per month. “But that’s through negligence…”

Claiming that the loan represented a huge conflict of interest because Mr Bain is a Bank of The Bahamas board director, Mr McKenzie said the bank should never have given the alleged loan without an executive council resolution.

He added, however, that a constitutionally mandated monthly executive council meeting had not occurred since February.

Assistant Treasurer Raymond Wright, who along with Trustee Roy Colebrook and Executive Board Member Anwar Taylor, accompanied Mr McKenzie during The Guardian interview, said slight of hand had been used to obtain necessary signatures for the alleged loan.

He alleged that the executives “skated around” established protocol when they bypassed Mr Colebrook and had a Freeport-based treasurer sign for the loan.

Mr Colebrook said he and other executives had been relegated to “rubber stamps” while Mr Bain, Mr Douglas, Mrs Butler and Vice President Cubelle Rolle made all the decisions.

At least one union shop steward (union representative on property), he added, was fired in a union meeting last week, after he asked questions regarding the alleged loan. Another shop steward was reportedly dismissed for asking about monthly executive council meetings.

Meanwhile, the complainants have reportedly taken their concerns to the general membership, and secured the needed signatures for a special called general meeting to address the alleged loan.

Mr McKenzie and Mr Colebrook have also forwarded a letter to Mr Douglas, demanding that details of the alleged loan be revealed. They have threatened legal action if their questions are not answered.

When asked about the alleged loan, Mr Douglas told The Guardian: ” We never borrowed $5 million from the Bank of The Bahamas. We run a business and we have always dealt with our banks – Bank of The Bahamas and other banks.”

He also categorically dismissed claims of mismanagement of union money by any executives and attributed the claims to “union politics.”

The Secretary General said he believed the group made the charges to “create mischief” in anticipation of next year’s tri-annual elections.

He warned that any executive officer who failed to satisfactorily perform duties “shall be dealt with by the executive,” adding that Mr McKenzie, Mr Colebrook, Mr Taylor and Mr Wright “may be edging now for the end of the rope.”

Members had already expressed a desire to oust the four, said Mr Douglas. “That probably will be the next end of them.”

He confirmed the dismissal of the two shop stewards, but claimed they were let go for failing to act in the union’s best interest.

BHAWU President Pat Bain declined comment on the issue and deferred to Vice President Cubelle Rolle as he (Mr Bain) was “out sick.” Mr Rolle said the men made the claims because they felt Mr Bain’s illness was an opportune time to “make mischief.”

He too warned the four executives saying they were “walking the road to destruction.”

Both Mr Rolle and Mr Douglas who declined to comment on the union’s financial situation, said they were disappointed that BHAWU business had been dragged into the media and expressed a fear that the matter would have a negative effect on the organisation.

Mr Wright countered that union business would not have to be made public had executives operated with transparency.

By Raymond Kongwa, Nassau Guardian Staff Reporter

Posted in Headlines

Related Posts