From Caribbean News Now

ST JOHN’S, Antigua — The ruling Antigua and Barbuda Labour Party (ABLP) has called on the leader of the parliamentary opposition, former prime minister Baldwin Spencer, and the current political leader of the opposition United Progressive Party (UPP), Harold Lovell, to explain their role in a second banking scandal that occurred under their administration from 2004 to 2014.

The ABLP noted that, in his New Year’s message, as leader of the three-person parliamentary opposition, Spencer talked of “banking scandals” putting a “negative world spotlight” on Antigua and Barbuda.

In reminding Spencer that he was prime minister and foreign minister when the first international banking scandal occurred in relation to Allen Stanford and during the period of the recently exposed Meinl Bank money laundering operations, the ABLP said that both “banking scandals” occurred under his leadership.

The ABLP has called for disclosure by Spencer and Lovell of any and all links to the Brazil Odebrecht saga now occupying international headlines, including the purchase of Meinl Bank in 2010.

The ABLP said it believes that Spencer must have had discussions with Luiz Franca prior to appointing him as honorary consul to Brazil. Franca was one of three Brazilians who fronted the purchase of Meinl Bank in 2010. He continued as managing director during his appointment by Spencer as honorary consul in Brazil. He was also known to have a close relationship with Lovell, having collaborated with him on several projects.

According to a Brazilian newspaper account of a trial in Brazil, Vinicius Borin, one of Franca’s associates, said that Antigua Overseas Bank was the first bank used by Franca to facilitate bribes on behalf of Odebrecht, before he, Franca and Marco Bilinski fronted the purchase of Meinl Bank.

The ABLP noted that this purchase was known to Lovell as then minister of finance.

“Spencer has a public duty to explain why he appointed Franca and the relationship between him, Franca and Harold Lovell, particularly as it been alleged that hundreds of billions of dollars were laundered through Meinl Bank while Spencer was prime minister and foreign minister, Lovell was finance minister and Franca was, at one and the same time, their honorary consul to Brazil and the managing director of Meinl Bank,” the ABLP said.

The ABLP noted that, in normal circumstances, any unusual transactions over US$10,000 attracts suspicious activity reports by a bank’s compliance officer and these matters would be drawn to the attention of the appropriate authorities for action. Yet, under Spencer and Lovell’s watch, hundreds of millions of dollars were laundered by Meinl Bank under Franca’s supervision without an eyebrow being raised.

The ABLP demanded an explanation of Lovell’s role with the Brazilian firm, Andrade Gutierrez, and its executives who were arrested for their participation in the Odebrecht scandal.

“How was the connection to Andrade Gutierrez established? Why did Lovell and the UPP government give the firm a contract to add 1,000 feet to the runway of VC Bird International Airport at an inflated cost of EC$270 million. Was it Lovell who subsequently issued US$100 million in bonds at the exorbitant rate of 13% to pay Gutierrez? Was there a tender process for the contract of EC$270 million or were any bribes or other monies paid in awarding the contract? Further, did Lovell meet for several hours with Luiz Suarez and Olivio Rodriguez, who are at the centre of the Oldebrecht scandal, as asserted in the Brazilian court documents? If so, what was the nature of their discussions?” the ABLP asked.

The ABLP also called on Lovell to explain the nature of his relationship with Kleinfeld and other associates of Oldebrecht, including if any monies were paid to him from these entities.

IMAGE: Former prime minister Baldwin Spencer (L), and UPP political leader, Harold Lovell

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