Attorney Says SFXCU was Denied Due Process

Dean Barrow

According to SFXCU’s attorney, the administrator is being paid handsomely at the credit union’s expense.  Barrow says the Central Bank appointed manager receives a monthly salary upwards of sixteen thousand dollars.  He also says that the institution was denied due process prior to the registrar’s decision to install an administrator.

Dean Barrow, SC, Attorney-at-law

“The regulator, the registrar must be very certain that there is no other option because you cannot easily displace the results of a franchise exercised by the membership, by the owners of the credit union.  So that’s number one.  And number two, the costs of the administration is borne by the funds of the credit union.  So, if I recollect correctly, the administrator was being paid or is being paid something like sixteen thousand dollars per month, apart from expenses.  Now we were never able to find out what the expenses were and what quantum of reimbursement or what quantum of financial allocation was given on top of the sixteen thousand per month to the administrator.  But if you’re going to saddle the credit union with this extremely costly exercise of administration, again, as regulator, you need to be absolutely sure that that is your only option and our people feel strongly that it was not the registrar’s option.  There are, so we are saying, that appointment is disproportionate.  We are also saying that the credit union was not afforded due process, that the registrar was going back and forth with the board and the management, true, but at no point did he say, “You know what, you people refuse to straighten up and fly right.  I am telling you, I am going to appoint an administrator, unless you can show me why I should not.”