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The Deputy Governor of the Central Bank Kareem Michael stepped down last Wednesday, and immediately stepped into the shoes of the liquidator of Choice Bank Limited.  

That’s after the previous liquidator, chartered accountant Cedric Flowers’s one year contract ended in early July - and it was not renewed.  

But, there are questions as to whether it is a conflict for Michael - who was the Deputy Governor of  Financial Supervision and Compliance - to continue the liquidation.  After all, it is the Central Bank which revoked the licence for Choice Bank Limited 13 months ago.  That was defined as a non compliance issue - which Michael's tittle suggests he was in charge of at the time of the revocation and, in the normal course, he would have been expected to be part of the decision-making in revoking the license for a non complying bank.  

So, by becoming liquidator - is he playing two sides of the same issue?

Not according to the Central Bank’s Governor.  Audrey Joy Grant told us via text message, quote, “The Minister of Finance approved the revocation of Choice Bank Limited’s licence from a series of critical noncompliance with the law based on the recommendation of the Central Bank’s Board of Directors.â€￾ End quote.  

She adds that the Central Bank has the authority to appoint as Liquidator a qualified person from the private sector or from its staff. Her message then states, quote, “Given Mr. Michael’s expertise and knowledge of banking supervision, he is most suited for the role of Liquidator. This decision was supported by legal opinion from 2 local firms.â€￾

A press release adds quote, "He possesses the knowledge and experience required to bring the liquidation to an effective close.â€￾  Of course, we don’t know that Michael has led a liquidation before and this is the first liquidation of a bank in memory - which is considered complicated.  One year after the revocation of Choice Bank’s license, he becomes the third liquidator appointed, and the process is quite far from completion - we are told.  Michael ends his stint as Deputy Governor after 19 months.