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Suriname: Gajadien: “CBvS has failed as a regulator”

In the capacity of chairman of the Committee of Rapporteurs, Asiskumar Gajadien gave the Central Bank of Suriname (CBvS) as supervisory body a hefty sweep of the pan when discussing the draft law approving the amendment to the Money Transaction Offices Supervision Act 2012.

According to the committee chairman, the institute has failed to properly supervise banks when granting credit. According to the Banking Law, this is one of the primary tasks. In his speech he referred to the CBvS annual report of 2015, which shows that things were going badly at the parent bank. Gajadien expressed the hope that changed policy insights will bring about order within the financial sector.

He wondered where the supervision of the parent bank had gone, after what he calls a mega corruption scandal at the Surinamese Post Savings Bank (SPSB). He speaks of a black page in financial history. The DNA member therefore argues for legal regulations that regulate all money transactions in the insurance and banking sector, as well as in exchange and transaction offices.

In the same breath, he mentioned the purchase of a plane under the previous government for an indigenous village. According to him, the device was purchased from Finance resources for US $ 280,000. He stated that the device is worth less. “Where was your supervision,” he said, referring to the parent bank. He outlined a situation at the SPSB, where people could withdraw money from the bank and the amount was debited without being paid back.

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