Central Bank chief explains financial transactions
Next to take the hotseat was Governor of the Central Bank, Sydney Campbell, to walk the Senators through the securitization process as well as to explain the Bank’s role in handling monies and transfers between various institutions including the SSB and the Royal Merchant Bank of Trinidad and Tobago.
Sydney Campbell, Governor, Central Bank
“Through the process of the securitization, the proceeds from the securitization were indeed passed through the Central Bank. So the Central Bank, because it is by law the banker for the Government, it received the hard currency that was received from the securitization programme and therefore we gave the undertaking that in order to meet the future obligation, commitment, the debt servicing commitment that the Central Bank would give the guarantee that we would make sure that we factor it into our cash flow management in terms of our foreign exchange needs for the country.”
“The instruction came to us from the Social Security Board, to pay and it reads, Social Security Board hereby authorize you to transfer all future proceeds from tranche sales with Royal Merchant Bank from the securitization programme current account 211406, to the St. James National Building Society account 812445081, at Hibernia National Bank of New Orleans whenever its received by the Central Bank. This was the instruction from Social Security Board to pay the U.S. dollars for which St. James participated in tranche of the securitization programme. I have another instruction which followed the one that I read, which was in April and there=s another one here with similar instructions for us to pay to St. James at Hibernia Bank, U.S. five million, three hundred and twelve thousand, four hundred and seventeen point one nine ($5,312,417.19) U.S. dollars in respect of the securitization.”
Godwin Hulse, Chairman, Senate Select Committee
“So that was a direct payment from the Royal Merchant Bank funnelled through you to St. James account in New Orleans on the instructions of the Social Security Board?”
Sydney Campbell
“Social Security Board, as we understood it, got these mortgages from St. James, it was put into the pool for securitization and when the proceeds were deceived from Royal Merchant Bank, we were instructed by Social Security Board to pay St. James through its corresponding account directly in U.S. dollars out of the proceeds.”
“The first one is for five million–this is in U.S. dollars–five million, three hundred and twelve thousand, four hundred and seventeen point one nine ($5,312,417.19). It is dated for March twenty-fourth 2000. The second one is for four million, three hundred and forty-nine thousand, four hundred and forty-two point two two ($4,349,442.22) U.S. dollars and this is dated the eighteenth of April 2000.”
Godwin Hulse
“Mr. Governor was there any instructions as to which projects as part of the securitization programme those proceeds relate?”
Sydney Campbell
“No, no, we wouldn’t be able to identify the project or the specific loans. These were only instructions with respect to the proceeds that Social Security Board was supposed to receive.”
