PUZZLING PROBE

A legal dispute may be on the horizon between Anthony Shaw and the Paul B. Scott-chaired Development Bank of Jamaica Limited (DBJ) after the state entity requested that he proceed on leave as it investigates “a breach of governance” at the institution.

Shaw, who began a three-year contract at the Government’s main development financing institution, has been off the job for more than two months awaiting the outcome of the probe, his attorney Douglas Leys confirmed with The Gleaner.

However, according to the attorney, Shaw was never made aware of any breach of governance issue and that it has not been made clear by the bank how the investigation concerns his client, who declined to comment on the matter when contacted by The Gleaner.

Leys said Shaw received a letter from the company stating that he should not regard the investigation as impugning or establishing anything against him and that it was a general investigation.

“That is why we are all puzzled as to why he was requested to go on leave,” said Leys.

“Certainly, with the way the DBJ is behaving and their stance thus far, in that he’s not sure when he will resume, litigation will be inevitable if that stance doesn’t change soon,” he added. “But we are certainly contemplating because of the uncertainty and length of his leave request.”

The Gleaner contacted Scott on Tuesday, however he declined to comment on the matter.

DBJ did not respond to Gleaner questions sent via email, except to say that it had no comment to make.

“Thank you for your queries to the DBJ. However, at this time, we have no comment to make on the matter,” stated Claudette White, manager, corporate communication and public relations at DBJ.

Efforts to reach acting Managing Director David Wan for comment were unsuccessful as calls to his cell phone went unanswered.

Neither did he respond to a request for comment via WhatsApp.

The Gleaner has learnt that one of the issues being looked at reportedly involves the administrative handling of the conditions of a loan to a government-owned entity.

However, a Gleaner source has argued that the investigation was a cover for “politics being played” amid a discovery that Shaw, a business executive and chartered accountant, who returned to the island from Barbados approximately two years ago, is close friends with a senior member of the opposition People’s National Party.

During an August 15 staff meeting, it was announced that Wan, the general manager of credit enhancement facility, would act in Shaw’s absence, according to a newsletter seen by The Gleaner.

The newsletter stated, without going into any details, that Wan told staff that an investigation had begun to look into a breach of governance at the bank.

It further added that speculation ensued on what could have happened but it was settled “the very next day” with an email to staff from Wan advising that there was no indication of financial impropriety.

“Further to the staff meeting held on August 15, I wish to dispel any possible misunderstanding that may have arisen, by advising that there is absolutely no indication of financial impropriety in the review currently under way,” Wan is quoted in the newsletter as saying.

Still, Leys said both he and Shaw were surprised to learn of any governance breach, noting that it was brought to their attention via a publicly disseminated news report.

“This uncertainty is causing, I would venture to say, a lot of mental anguish and more so with the publication which, again, is equally surprising because when he proceeded on leave, the understanding was that this would be a confidential request,” said Leys.

“We’re surprised to see that it is now in the public domain because it was requested of him that he maintains the confidentiality like the rest of the DBJ’s senior management. So, we’re equally surprised that they have put it in the public domain.”

kimone.francis@gleanerjm.com