Dear Editor,
For the longest while I remained quiet, but a very keen observer about the goings on in relation to the New Building Society, especially in the print media.
I think it is time I break my silence on this matter because of a disturbing trend I see emerging, courtesy of a couple of individuals and entities. On every occasion during the lead-up to the Society’s AGMs as well as at other times this group, especially Mr Ram, under the guise of representing the interest of members, spurts an assortment of assessments and predictions about the Society. Even though they proclaim that the Society is solid and their intention is not to cause harm, yet their doings are counter-productive and have the potential of being destructive. While some of their observations and comments have merit, others carry the potential of inflicting irreparable harm on the largest mortgage institution in Guyana. One recent outburst is currently engaging the attention of the court. I cannot begin to emphasise the significant role NBS has played and continues to play in the housing sector of this nation, hence if any serious damage is done to it, whether deliberate or inadvertent, the implications could be enormous.
Despite these pronouncements the Society keeps recording attractive annual profits, which are deliberately minimized to ensure its members get the best deal possible, ie they enjoy the highest rates of interest on their savings and pay the lowest rates on mortgages. Based on the 2008 Annual Report, the Society’s reserves approach $5B, while its liquidity can comfortably handle even unusually high levels of demand from its investors.
Members of the Society ought to be concerned that these irresponsible comments are being made against the backdrop of the world slowly emerging from a financial meltdown causing people to be understandably sensitive. To illustrate my point further, recently Forbes Magazine disclosed that almost all individuals on its Forbes 400 list (a list of the 400 richest Americans) had suffered a contraction in their fortunes over the last twelve months. Further, with the recent CLICO collapse fresh in everyone’s memory, especially that of their investors, some people could react and swarm a financial institution for their investments even if it is only based on a rumour. Not too long ago I recall some statements about a financial institution appearing on an internet blog that caused quite a stir in the local financial circles.
Further, since Mr Ram is the auditor of a major financial institution he should immediately do one of the following: Cease to analyse and criticize any financial institution because it is a clear conflict of interest or cease to audit the books of that institution which would then clear the way for him to analyse and responsibly criticize any financial institution.
Again, I need to stress that NBS’s financial statistics show that it is as sound as any financial institution in the country.
I, and I am sure the large majority of the members, would like to see the Building Society grow from strength to strength so that, through its concept of mutuality, all of its members can continue to benefit handsomely in a way which is not necessarily guaranteed elsewhere.
Yours faithfully,
Michael Ramdeen
