THE businessman at the centre of Bermuda's biggest discrimination case has spoken of his seven-year ordeal for the first time.And entrepreneur Harold Darrell claims the reason his complaint to the Human Rights Commission against the Bank of Bermuda
THE businessman at the centre of Bermuda's biggest discrimination case has spoken of his seven-year ordeal for the first time.And entrepreneur Harold Darrell claims the reason his complaint to the Human Rights Commission against the Bank of Bermuda is still dragging on is because Government plotted with bank officials to stonewall the process and put him out of business.
A number of witnesses have signed court affidavits backing Mr. Darrell's claim that elected officials conspired with bank directors to have his complaint against the Bank of Bermuda blocked, despite an internal bank investigation into his case which found that he had been unfairly treated. One bank officer admitted in court that she had breached client confidentiality — the basis for Mr. Darrell's complaint — and thus weakened his position in business negotiations. Despite that admission, the bank still insists that no breach occurred.
And Mr. Darrell alleges that, rather than "right the wrong that has been perpetuated on me by senior members of the bank", officials in both the bank and Government placed hurdles in his path in an attempt to shut his business — The Hardell Group — down.
Legal documents obtained by the Mid-Ocean News reveal that former Community Affairs Minister Terry Lister was accused of ordering the HRC to dismiss Mr. Darrell's complaint before it had been heard.
The HRC subsequently reopened the case after a lengthy legal battle — but it has yet to be heard nearly seven years after Mr. Darrell filed the original complaint.
Mr. Darrell also claims Government Ministers Renée Webb and Ewart Brown deliberately stalled plans by Hardell Entertainment to broadcast a television service at the airport by incorrectly claiming that he needed a licence — a process that took several years to be resolved.
The businessman also claims that Dr. Brown, as Transport Minister, pulled the plug on Hardell's advertising contract at the airport, replacing the company with Bermuda Airport Advertising, which is owned by Dr. Brown's cousin.
And he claimed it took several years and another lengthy legal battle before another branch of his business empire — Hardell Cable Television — was granted a licence to operate by the Ministry of Telecommunications. He also had to take legal action against the Bermuda Hospitals Board over a disputed contract to provide TV at the hospital.
Mr. Darrell lodged a complaint with the HRC in October 2000, arguing that the bank had discriminated against him on the grounds of his race by deliberately leaking confidential information about his financial debts to the Bermuda Broadcasting Company. At the same time he filed a writ against the bank claiming it breached client confidentiality.
But the protracted dispute began with a similar allegation when Mr. Darrell sold property to the Bermuda Housing Corporation in the early 1990s. Although his Middletown apartment block was valued by the BHC at approximately $1.9 million, Mr. Darrell agreed to a quick sale of $1.25 million in order to pay off a loan he had with the bank.
Mr. Darrell claims that, although a verbal agreement was made, the BHC reneged on the deal at the 11th hour, offering instead to buy the property for around $1 million. The businessman later discovered that BHC chairman Ward Young had met with bank executives who revealed confidential details about his financial debts — details which Mr. Darrell claims gave the BHC an unfair bargaining advantage.
“I was willing to sell the property at that price because I needed to raise capital,” Mr. Darrell said.
“I made the deal because it was a win-win situation for both of us. It cleared me of my debts and it also worked for the BHC. But then at the last minute Ward Young said he wasn’t prepared to buy the property for $1.25 million — he was only willing to pay $950,000.”
Mr. Darrell claims he was forced to sell at the lower price after bank executive Stephen Smith threatened to call in his loans. He then discovered that Mr. Smith was also representing the BHC in the deal — a fact that Mr. Smith readily acknowledged.
“I found out that my personal banking details were sent to the BHC,” Mr. Darrell said.
“I saw Stephen Smith and asked him how the BHC had managed to get hold of my information. He told me that he had accidentally sent it to them because he was representing both parties. The BHC needed a loan from the bank in order to buy my property. I believe he and Ward Young screwed me out of $300,000.”
Mr. Darrell claims that Mr. Young, who was also member of the governing United Bermuda Party at the time, had earlier attempted to persuade him to join the party — an invitation Mr. Darrell declined because of his strong Progressive Labour Party roots.
The final sale agreement left Mr. Darrell with a debt to the bank of around $260,000. However, in 1995 he refused to make any further repayments until the bank agreed to investigate his claim that he was treated unfairly.
Alan Richardson, the bank’s vice-president of Retail Clients, eventually agreed to give Mr. Darrell more time to pay back the debt after the businessman revealed he was about to finalise two business ventures — an in-house, video-on-demand movie service at the Sonesta Beach Hotel, and the securing of a telecommunications licence to operate a subscription wireless television service.
He had also secured a provisional agreement with the Bermuda Broadcasting Company, in which the broadcasting giant agreed to buy 30 per cent of Mr. Darrell’s company for $3.2 million.
However, Mr. Darrell claims that deal was scuppered in June 1996 after the BBC approached the bank requesting a loan for the buy-in.
“We had the deal on the table and everything was agreed but then [BBC chairman] Fernance Perry came back from his meeting with the bank and told BBC CEO Rick Richardson he was no longer interested — even though they needed the deal to survive,” Mr. Darrell said.
“I was told by Rick that somebody at the bank was putting out my personal information again — so basically the bank has wronged me twice. I was out of pocket now by $2.4 million.”
Mr. Darrell claims that the BBC’s chairman was advised by the bank to postpone the deal in the belief that Hardell would eventually be forced into liquidation because of outstanding debts with the bank and could then be snapped up for a much lower price.
Mr. Darrell said he spent the next four years asking the bank to investigate his claim that he was unfairly treated and suffered severe financial hardship. An investigation was eventually conducted by the bank’s Alan Richardson, which, according to Mr. Darrell, concluded that the businessman had been treated unfairly. Bank officer Sharon Kirby admitted that she had spoken to a third party about Mr. Darrell’s outstanding loan, thus breaching client confidentiality.
However, rather than officially acknowledge any wrongdoing, the bank asked Mr. Darrell to find a new business partner to invest in Hardell in order for the wireless cable TV arm of his operation to go ahead.
At this point Mr. Darrell submitted a complaint to the Human Rights Commission, claiming he was the victim of discrimination and filed a writ against the bank for breach of confidentiality.
In an August 2000 letter to Alan Richardson, Mr. Darrell said: “I find it reprehensible that after approximately four years of waiting, after the Bank of Bermuda removed my ability to launch my wireless cable TV service, after the bank leaked my personal and confidential information to persons outside the bank, after the bank advised an interested investor to hold off investing in my wireless cable TV company, after the bank virtually destroyed my professional reputation here on the island, especially in the sensitive telecommunications sector, and after receiving assurances, promises and guarantees from both you in person and Mr. Barry Shailer, you have the gall to ask me to go back into the marketplace to seek another investor while the bank attaches no blame to itself.
“Having been fooled by false promises and assurances from Mr. Barry Shailer [executive vice-president of Retail Banking and Administration] who has said he would welcome to hear from any witnesses who could corroborate my allegation against the bank but refused to allow me to present them, I took relief from your acknowledgement to me that, and I quote, ‘You have been wronged by two persons in this bank’. It is now clear to me that promises made by the Bank of Bermuda’s senior executives are indeed worthless.
“In November of last year you and I spoke on the telephone and you asked me what was it I wanted from the bank and I told you that (1) I wanted the bank to hold an inquiry into my allegation; (2) that I be allowed to present my witnesses to corroborate my allegation; (3) that should my allegations prove to be right, the bank would put me back in the position I was before the breach of the bank’s confidentiality policy by persons in the bank, and (4) to restore my credibility in the bank and the business community. In return I agreed that, should it be proven that my allegations were groundless, I would withdraw my complaint and settle my outstanding debt with the bank. Having agreed to these terms the bank now wants me to go back into the very business community where it has virtually destroyed my professional reputation and find a partner before it is prepared to right the wrong that has been perpetuated on me by senior members of the bank. This is not only a disappointing response, it is unacceptable.”
In keeping with his agreement Mr. Darrell secured funding from a separate financial institution in the event that, if the bank’s investigation went against him, he could settle his debt with the bank.
Two months later, in his ten-page submission filed with the HRC in October 2000, Mr. Darrell declared: “I did everything humanly possible to have the bank address my complaints properly. I submitted written complaints, summaries and other letters. I met with Mr. Pottle who, although he ignored my complaint, told me that I was not a bad credit risk and that my arrangement with Alan Richardson had not jeopardised my standing in the bank. I met with Mr. Pottle’s immediate manager, Mr. Shailer, who refused to allow me to present my witnesses to corroborate my allegations. Even after refusing to service my loan (in the hope that would force a discussion of my matters), submitting Hardell’s business plan, and [lawyer] Delroy Duncan and I meeting with the bank’s CEO, Henry Smith, the bank still did nothing.
“Therefore, it is my contention that there is a conspiracy by Mr. Henry Smith, the bank’s CEO, president and board member, Mr. Barry Shailer, the bank’s executive vice-president of Retail Banking and Administration, Mr. Bruce Pottle, general manager of Commercial Banking, and Mr. Joel Brown, manager of Commercial Lending, to block the advancement of black Bermudian entrepreneurs like me. Having exhausted all other rationale, what else could cause me to have to endure this level of contempt by the bank other than the fact that I am a black Bermudian businessman?”
Although bank officer Sharon Kirby signed a sworn affidavit that she had breached the bank’s confidentiality policy, Mr. Darrell withdrew his lawsuit against the bank.
However, his Human Rights case is still waiting to go before a Board of Inquiry — nearly seven years after it was first filed.
Yesterday, Mr. Darrell said he did not know what the current status of his complaint was, but alleged that the bank had used a number of spoiling tactics to have a hearing repeatedly postponed — and was doing so with Government’s backing
“To this date we still don’t know where we are,” Mr. Darrell told the Mid-Ocean New>.
“This started off because of institutional racism on the part of the bank but it’s now also about a total abuse of power as well. People like Terry Lister, Renée Webb and Ewart Brown used their positions of power to effect things.
“Ewart Brown may go on about fearing a return to the days of the ‘40 Thieves’ but he and his brother Phil Butterfield — the bank’s current CEO — are actually doing the work of the 40 Thieves now.”
Yesterday, the Bank of Bermuda declared that, as far as it was concerned, the matter was closed.
The bank’s General Counsel, Sonja Salmon, said: “Bank of Bermuda has no outstanding matters to respond to in relation to Mr. Harold Darrell. Mr Darrell withdrew his civil claim for breach of confidentiality against the Bank of Bermuda in October 2005 and the Bank obtained judgement for the debts owing. On October 30 2006, the Human Rights Tribunal dismissed Mr Darrell’s claim against the former chief executive officer and Board of Directors of the Bank of Bermuda.”
HRC executive officer Ayo Johnson said he could not comment on individual cases.
