WILL WE SEE FURTHER ARRESTS FOR CONTEMPT OF COURT IN THE NEVIS OFFSHORE BANK SCANDAL?

BONI's James Simpson

As we approach the twenty-ninth day of October, which was designated by the High Court in Nevis as the date payments are due on the 222-page Omnibus Judgment entered against HAMILTON RESERVE BANK (HRB) and the BANK OF NEW INNOVATION (BONI) on September 15, in the unfolding Nevis offshore banking scandal, legal observers are wondering aloud whether the current sitting Justice will see fit to find senior executives at either or both banks responsible for Contempt of Court for failure to obey the terms of the judgment, and have them detained and imprisoned.

The possibility has arisen because, last year JAMES SIMPSON, the acting CEO and Director of BONI was jailed for several days on the grounds of Contempt of Court. While the Court of Appeals later held to be error, on procedural due process grounds, not on the merits. The appellate court ruled that none of the required conditions precedent to arrest had been followed. This raises the question whether the High Court will choose to meticulously follow the law in any future similar action. Simpson has been making noise about filing suit for damages, but there are valid questions regarding Sovereign Immunity, blocking his ability to file such a suit.

Given that many of the senior figures of both banks reside outside Saint Kitts & Nevis, the individuals which most observers believe are responsible for the victims' losses cannot be detained, although the Justice did ask for a criminal investigation to be initiated, including parties who are abroad. Right now, we await the 9A.M. Atlantic Time 29/10 deadline, to see what action the Court takes to enforce its mandate.