AG Asked To Consider Legal Action Pertaining To Antigua and Barbuda Development Bank

The Cabinet has asked the Attorney General to have his Chambers give consideration to commencing legal action against those who caused the Antigua and Barbuda Development Bank (ABDB) to lose more than $13 million dollars, taken from the Medical Benefits Scheme (MBS). The former Finance Minister and the former Chairman of the ABDB Board were the two officials who brought the MBS money and the two failed projects to the ABDB for funding, in which the Bank was made both lender and borrower of the funds. When the two projects failed, the ABDB could pursue no person or entity because the financial arrangements had been so structured that no liability could attach to the borrower. The money was essentially thrown away corruptly, the Cabinet concluded. Today, the ABDB requires nearly $25 million dollars in new capitalization if it is to stay afloat, since it does not possess a sufficient amount of assets and capital to generate resources that could take it beyond March 2020. The challenge is being addressed by Cabinet before the crisis collapses the institution.  

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