Several former First Citizens senior managers are now talking to the police, in an independent probe into the FCB/IPO share issue, Opposition Leader Dr Keith Rowley said yesterday.
Rowley shared the information in Parliament yesterday as he piloted a motion of no confidence against Finance Minister Larry Howai.
The motion was based on a preamble that “it is an established fact that the best indication of what could happen in the future is to observe what happened in the past,” and claimed Howai came under “serious allegations for insider trading” during his past tenure as First Citizens CEO.
The motion stated that since Government was moving to further dispose of state enterprises, “thereby opening the possibility of further insider trading,” the House should note the allegations and express lack of confidence in Howai.
Rowley said the concerns were serious due to the “path travelled” by Howai, who was once with FCB and has now come “full circle” to being minister in charge of the Treasury and the state bank. He said the motion’s purpose was to determine whether an opportunity had existed earlier for Howai to be involved in insider trading (in the TCL/Cemex share matter ) and the handling of shares.
Rowley said if Howai could show that he wasn’t, the motion would have clarified the “fog” on the matter, but if not, “we’d have a problem.”
He also noted that Howai had received almost $12 million when he left FCB and later entered the Cabinet, where he was now in charge of state assets and the bank, but a scandal hit FCB regarding the 2014 IPO share issue. How Howai reacted to this was also relevant, Rowley added.
As the basis for his questions, Rowley said he was using an unsigned document which was sent to him, adding its contents alluded to reports which he knew existed. He said he would ask Howai questions on that.
People’s Partnership (PP) House Leader Dr Roodal Moonilal queried Rowley’s use of this document to build his case, but House Speaker Wade Mark said Rowley was free to employ it in the motion but had to take responsibility and ownership.
Rowley said the document in his possession was the legal opinion of Henry Ford QC.
Saying Cemex tried in 2002 to buy TCL shares, Rowley asked Howai if during his tenure at FCB he would have recognised the Regulation and Surveillance report of the Securities and Exchange Commission (SEC) prepared in response to allegations that people were trading Cemex shares in violation of SEC rules.
He cited paragraph 23 of the report, stating, “It appeared that Howai placed order for the purchase of TCL shares since his name was recorded on the TT Stock Exchange order sheet.”
He also noted other contents, alleging that Howai, in January 2002, signed a notice on price-sensitive information acknowledging that the information he was discussing with Cemex was price sensitive and that his knowledge of the information would deem him an insider. (GA)