Log In

Reset Password
BERMUDA | RSS PODCAST

Burgess calls on bank to reveal why accounts were closed

David Burt, the Premier (Photograph by Blaire Simmons)

A senior government MP believes Butterfield Bank should go public on why it has “kicked out” two Progressive Labour Party premiers from their accounts.

The comments came after it emerged David Burt appears to no longer have financial accounts at the bank.

Speaking in the House of Assembly last Friday, Derrick Burgess, the Deputy Speaker of the House, compared the situation of PLP premiers to that of right-wing British politician Nigel Farage.

Mr Farage, a pivotal advocate in the Brexit campaign, which led to Britain narrowly voting to quit the European Union, has attracted attention after he said that one of the world’s most prestigious banks, Coutts, had shut down his accounts.

Erroneously describing Mr Farage as a British MP, Mr Burgess referred to his own comments in February when he stated that two PLP premiers where being “kicked out” of Butterfield.

Mr Burgess told the House of Assembly: “I know that I made a statement about banks here one time.

“In the mother country, in England, MP Nigel Farage, he has been kicked out of the bank — in England!

“And some of the reasons they are giving is … he made controversial statements as an MP.

“What is not controversial? It depends how the press write it up. Some are saying it is because of his political views.

“Some are saying it is because he did not have enough money to remain there because it is one of those banks that you at least have to have a $1 million mortgage, or savings of $3 million.

“So, what the MPs in England are doing is talking about the possibility of putting conditions on banking permits, so if you do that, you have got to make public why you are kicking this person, that person, out.

“This is what they are talking about in England.”

The UK Treasury announced last week that banks would have to explain why they were shutting an account under new rules it would enforce. Previously they have not had to provide a rationale for doing so.

Speaking on Sunday, Mr Burgess told The Royal Gazette: “Whoever they have kicked out, they should say why.

“The MPs in England are saying that and I agree with them. You just can’t kick people out without saying why.”

Referring to his comments in February about two PLP premiers having their Butterfield accounts closed, Mr Burgess said: “I would never name who was kicked out of the bank. I would never do that.”

Mr Burgess’s remarks came after Mr Burt has repeatedly refused to explain why his Butterfield Bank account was no longer operational.

The Royal Gazette understands the people Mr Burgess originally referred to were given three months’ notice by Butterfield Bank that their personal accounts would be terminated on February 15.

It was further understood that other accounts, such as corporate ones and asset management facilities, would take longer to wind down.

Mr Burgess told MPs that Butterfield had terminated the accounts of four people, including two PLP premiers, without giving them a proper reason.

Referring to Butterfield, he told the House of Assembly earlier this year: “They are now kicking people out of the bank. And sending them letters — you have got ’til February to get out, and really giving no reason.”

He added: “Those four people that I know of include two premiers of this country.

“It is not right, and I am talking about premiers in the Progressive Labour Party. I don’t know if this has affected others on the other side [One Bermuda Alliance].”

Despite questions being put to Mr Burt himself, the Government’s information service, and the PLP, no explanation for the situation has been offered.

Alex Scott, who was PLP premier between 2003 and 2006, said the situation did not involve him.

A Butterfield spokesman said: “Butterfield conducts ongoing reviews to ensure client compliance with applicable laws, international regulatory standards and our risk parameters.

“Any decision to terminate an account is consistent with Butterfield’s general terms and conditions, and within the bank’s contractual rights.”

The Government was contacted for comment.