by Adrian Gibson
First published in The Tribune on Friday, November 24, 2006 under the byline, Young Man’s View.
THERE is something awfully fishy about a government minister stashing away thousands of dollars in US currency.
In the November 17, 2006 edition of The Tribune, a former driver of Financial Services minister Vincent Peet admitted that he had stolen $10,000 from a black travel-size bag in the minister’s bedroom closet in November of 2003.
He claimed that the bag was half full of US $100 bills and that he had entered a private deal with the police and Mr Peet that allowed him to repay the stolen money in installments. The chauffeur also claimed that he had paid back $7,000 of the $10,000 to date.
In the November 21, 2006, edition of The Tribune the minister, in his response to further questions posed by the FNM, maintained that the issue of the stolen money was simple and straightforward and a matter of police record.
Mr Peet said: “In November 2003, I had converted to US currency $12,000 to pay my daughter’s university tuition from Atlanta, Georgia.” “When I then went to collect the funds to take to my daughter, I was devastated to find some $10,000 missing”, he said.
Can you imagine the Financial Services minister having so little faith in the banking system of the Bahamas that he keeps “university” funds in a closet?
A Bahamian—who happens to be a government minister—has confessed to being in possession of more than $10,000 in US currency and, he has not disclosed whether or not he got exchange control approval!
According to the Central Bank of the Bahamas Act of 2000, no Bahamian is permitted to have any foreign currency without the approval of the Central Bank.
In order to receive approval certain standards must be met and certain forms must be completed. Therefore, for the minister to be in possession of such a large amount of US currency to “pay (his) daughter’s tuition”, surely he must have completed a Central Bank request form that specifically addresses tuition payments, right? Consequently, the form must be in the Central Bank’s files, correct?
In the Bahamas, legitimately obtaining US currency, or that of any other country, requires an applicant to follow certain strict procedures that also include fee payments.
Firstly, an applicant must apply to the Central Bank for approval and upon receiving approval, visit their local bank/s, where the applicant may obtain funds for a fee (bank) that fluctuates—depending upon the rate of exchange at that time.
Due to the fact that Mr Peet claimed that he discovered the theft when he “went to collect the funds to take to (his) daughter”, it is not unreasonable to assume that he may have indicated his plan to take the funds overseas to his daughter.
If the minister intended to travel with $12,000 in US currency, he must have presented his ticket, a passport and a duplicate copy of the Central Bank’s stamped approval form to his local bank, right? Further, in the dissemination of US currency, each bank has a limit, some banks only allowing customers $2,500 US dollars.
As it relates to traveling, no Bahamian is allowed to pass US Customs and Immigration with more than $9999, whether these funds are in US or Bahamian currency, without declaring it. US Customs procedures require travelers to complete a declaration form (which stays on file), indicating the source of the funds because anyone traveling with more than the set amount and not declaring will have committed an offence against US law —an offence punishable by fines of $50,000 or five years imprisonment. In addition to attaining US Customs clearance, a traveler is likely to be required to present a notice from the Central Bank.
It is not proper public policy to have large sums of monies stuffed away in a bedroom closet. Even more, it is highly unusual that someone would stockpile their daughter’s tuition in an alleged black bag in a dark corner. It is even more bizarre when it is the current minister if financial services and investments!
Usually, universities/colleges do not accept large cash payments! Can you picture Vincent Peet at a college’s business officer’s desk counting money?
What kind of college/university accepts thousands in cash for school fees? I thought that colleges accepted cheques, drafts, credit cards or wire transfers—but a bag of cold, hard cash is new to me!
I am aware that most local lawyers—Mr Peet is one of them—have a US clients account. If Mr Peet does in fact have such an account, shouldn’t he have simply written a cheque? Whilst a US clients account does not allow for the withdrawal of US currency, they deal in negotiable instruments such as letters of credit, manager’s cheques, bankers draft, certified cheques and money orders. Therefore, couldn’t Mr Peet have pursued such an avenue instead opening himself up to an “invasion of (his) privacy” and a loaded closet?
It is imperative that each bank in the Bahamas files a report when more than US$10,000 is withdrawn or deposited, that is, in accordance with the Anti-Money Laundering Act. If Mr Peet did obtain his funds from a financial institution, documentation must be on file.
Furthermore, since thousands of $100 bills in US currency was stolen from Mr Peet’s house, was this matter reported by the police to the Bahamas Financial Intelligence Unit? Based on the law, a suspicious theft involving foreign currency should have been reported to BFIU!
I have no doubt that if thousands of $100 bills in US currency was found in the average Bahamian’s closet—and if he had no legitimate reason for having it there—the police would have arrested him and confiscated the “bag”. Even more, at the jail, this individual would probably have been beleaguered until he told where the funds were derived, that is, if they failed to produce proof of transaction.
Did the police conduct a complete investigation or is it that if a minister has these monies it’s acceptable?
Instead of stashing thousands of US dollars in his closet, why didn’t the present financial services minister deposit the foreign currency in a bank, which in turn would go to the account of the country’s foreign reserves and increase it?
Is Vincent Peet prepared to say where the monies came from? And, how did the driver know the layout of the bedroom so well that he knew the precise location of the bedroom closet and that cash was stashed there?
As a corporate lawyer, shouldn’t Mr Peet be familiar with the laws governing financial transactions?
It appears that certain members of the current PLP government apparently haven’t familiarized themselves with the laws of the Bahamas well enough—since or prior to winning the 2002 election. Is it possible that certain parliamentarians do not study revised laws or haven’t been conscious of the FNM’s tightening of the certain laws governing our society/economy—particularly that which relates to financial transactions?
At the 1984 Commission of Inquiry, Sir Lynden Pindling was grilled as to the correctness of many of his transactions. One such transaction was a $16,000 deposit made by him on December 21, 1982—similar to Mr Peet’s stashed money, it involved US $100 bills.
Since 1984 was the year of my birth, I’ve come to learn that the last time a high ranking PLP was involved in an affair involving US money, his (Pindling’s) explanation was that the monies were bestowed upon him by lovestruck, poor constituents.
I suggest all parliamentarians familiarize themselves with the Bahamas financial laws—the Central Bank’s website could be their first stop.
As this “new” PLP government bounces from scandal to scandal, I think it’s fair to say “the boys are back in town”.
