FORMER CHAIRMAN of the Development Bank of Jamaica (DBJ), Dr Carlton Davis, says the board of the institution had never lost sight of its fiduciary responsibilities and matters relating to conflict of interest.

Davis went on the offensive following a claim by Contractor General Greg Christie that former members of the DBJ board breached their duty as directors of the bank.

"I find the contractor general's characterisations unacceptable and offensive. Our law has allowed him enormous power to do most of what he wants to do and his judgements are not subject to judicial review," Davis said yesterday in a letter to The Gleaner. "It will be a sad day if his characterisations, however unfair they are, become ex cathedra," he said.

Wise decisions

Davis said the board had made decisions which balanced fiduciary considerations with the potential benefits of a venture, linked to another board member, Aubyn Hill.

Christie had accused Davis and Hill, along with other former board members, of sanctioning the lease of a property, managed by DBJ, to a company owned by Hill.

But Davis said some members of the former board did not see a particular difficulty with the arrangement, especially if the DBJ were a partner in the venture.

He described the lease of the property to Hill as a "long story", noting that it began with a proposal by Hill for DBJ to participate in a micro-financing, a venture he was contemplating setting up.

Davis said the DBJ was interested in the venture because of two main considerations.

For poorer citizens

"First, we had been discussing ways and means DBJ could increase its influence on development beyond, the more or less "routine" loans through the approved financial institutions, People's Cooperative Banks and directly to firms or persons; and to have a portfolio for our poorer citizens," he said.

According to him, the second consideration was that the Washington-based multilateral agency international Finance Corporation (IFC) was a potential partner in the venture.

"We thought that the participation of IFC would give the project credibility and I know that this factor made some members of the Board more comfortable about participation," he added.

Yesterday, Hill told The Gleaner he would not comment on the matter and would possibly issue a statement after consulting his lawyer.