PM’s brother puts back $250,000 in BLA

Gregory “Bruds” Gonsalves heeded the call of his younger brother, and on Monday, opened a special deposit account of $250,000 at the embattled St Vincent Building and Loan Association (SVBLA).{{more}}

This was confirmed to SEARCHLIGHT by Gregory’s wife.

Gregory is the brother of Prime Minister Dr Ralph Gonsalves, who on the same day the account was opened, had reiterated his call to investors in the SVBLA, who may have withdrawn money, to consider returning it to the financial institution. The prime minister also appealed to those who may already have given notice to withdraw, to reconsider their decision.

“Mr Speaker, this is an institution with 21,000 Vincentians — the fact that it’s had a series of challenges I don’t need to go over the ground which necessitated the Financial Services Authority (FSA) entering the picture as an active participant in assuming management and control of the institution,” Gonsalves explained, as he addressed Parliament.

He pointed out that the BLA was an important financial institution for the well-being of the country.

“And we have to think in broad terms to provide the FSA with the degree of confidence in their work — they are doing an excellent job and I urge those who have withdrawn sums to put back in all or part thereof and those who have given notice to withdraw to reconsider that notice,” Gonsalves told Parliament.

Monday’s call was a follow up to one made earlier, in which the prime minister urged all former shareholders and depositors who may have removed their money from the SVBLA to put it back.

“So, anybody that is hearing me and they have taken out their money to put all or part back,” Gonsalves said at the press conference on February 25.

Among those to whom the prime minister appealed were his brothers Gregory and Alban.

Leader of the Opposition Arnhim Eustace had disclosed that $1 million in the name of the prime minister’s mother had been withdrawn from the SVBLA last year.

The prime minister later explained that he was unaware of the October 1, 2012 withdrawal and that the account was in the name of his mother and two of his brothers.

The Financial Services Authority (FSA) took over management and control of the SVBLA on February 1, after a two-week run on the Association, following the publication of a letter which expressed concern about the management and financial health of the 71-year-old institution.

The run on the Association seems not to have abated, as a press release from the FSA on March 4 said the “continued run on the organization” had left them with “no alternative but to revise and modify some Rules of the Association” in order to limit damage being done due to an “excessive demand for funds”.