Finance Minister Larry Howai said yesterday the on going investigation into the multi-million dollar purchase and resale of over 600,000 First Citizens Initial Public Offering (IPO) shares by its former chief risk officer Phillip Rahaman, "involves more than just the bank, its employees and directors."In response to questions e-mailed by the Trinidad Guardian, Howai said even after he receives the final PwC audit tomorrow, there is still "some way to go in this entire process."
"That work needs to be reviewed by the Attorney General and work continues by CBTT (Central Bank of Trinidad and Tobago) and the SEC (Securities and Exchange Commission)," he said.Howai said he has also received "advice" that the ministry needed to be "careful regarding its utterances" in order to "avoid compromising the case that we are building."A PwC draft report has already been handed over to the AG, who is currently reviewing that information.
The board of the bank met last week and dismissed Rahaman, saying that they had "lost confidence" in his ability to continue with his duties at the bank."All of the various investigations will need to be brought together in the end in pursuing a comprehensive case against anyone who may have been guilty of breach in the Securities Act," he said.Howai said the allocation formula that was the foundation of the banks IPO has already been "restructured."
"A draft prospectus is with the SEC for the next IPO and I am preparing a note to take to Cabinet to obtain approval. We would probably also have a more extensive consultation process in this regard," he said.Howai described the recent fallout as " painful" but said it had a salutary effect."I am confident that the right action will be taken in the end," he said.Howai said he expects the relevant authorities will be more vigilant, the players will be more guarded and the capital market will probably work more effectively".
He added, this matter should not affect subsequent IPOs "once we take appropriate measures to prevent similar occurrences."Having said that though, Howai confirmed that this current investigation is far from over."We still have some way to go in this entire process even after the PWC report," he said.