08/02/2013 07:18
Dubai Financial Group, the largest private shareholder of Cyprus Popular Bank, criticized strongly the new Board of Directors of the bank.
In a letter to the Cypriot state and the competent authorities, acting CEO of Dubai Group, Fadel Al Ali expressed disagreement with the latest developments in CPB, stressing that they do not serve the best interests of the shareholders.
It is with great sadness that I write to you for the current composition of the Board of Directors of CPB and how the CPB is managed, Mr. Al Ali said in a letter dated January 22, 2013.
Dubai Financial Group was the largest shareholder of the bank before its nationalization, which reduced its stake from 19% to 1.4%. Mr. Al Ali is a member of the Board together with members appointed by the state.
Given that the government has a stake of 84% in the Bank, the letter noted, we expected the new board members to have served the best interests of the shareholders.
However, we have noticed that during their term of office and as CPB is facing growing challenges, their approach is bureaucratic and lacks the necessary entrepreneurship and focus that a bank needs to operate, the letter added.
Similar observations about the developments in the bank have been made by both the trade union of its employees and its customers, who believe there is a long delay in making effective decisions.
Instead of addressing the key commercial issues and challenges, such as the strategic direction of the bank, the retrieving of its name, the rebuilding of confidence among customers and the shrinkage of its activities, the new Board is fully engaged with the micromanagement of the human resources, trade unions and legal actions, it said.
To address these concerns, the Board has appointed a multitude of expensive foreign consultants at great expense and without substantial benefits so far.
We bring these issues to your attention urgently and preserving our rights in case our concerns are not addressed and, as a result, we observe further impairment of the share value.
The new Board was appointed in June at the nationalization of the Bank, through a process involving the Ministry of Finance, the Central Bank and party representatives in the House Finance Committee.
In a letter to the Cypriot state and the competent authorities, acting CEO of Dubai Group, Fadel Al Ali expressed disagreement with the latest developments in CPB, stressing that they do not serve the best interests of the shareholders.
It is with great sadness that I write to you for the current composition of the Board of Directors of CPB and how the CPB is managed, Mr. Al Ali said in a letter dated January 22, 2013.
Dubai Financial Group was the largest shareholder of the bank before its nationalization, which reduced its stake from 19% to 1.4%. Mr. Al Ali is a member of the Board together with members appointed by the state.
Given that the government has a stake of 84% in the Bank, the letter noted, we expected the new board members to have served the best interests of the shareholders.
However, we have noticed that during their term of office and as CPB is facing growing challenges, their approach is bureaucratic and lacks the necessary entrepreneurship and focus that a bank needs to operate, the letter added.
Similar observations about the developments in the bank have been made by both the trade union of its employees and its customers, who believe there is a long delay in making effective decisions.
Instead of addressing the key commercial issues and challenges, such as the strategic direction of the bank, the retrieving of its name, the rebuilding of confidence among customers and the shrinkage of its activities, the new Board is fully engaged with the micromanagement of the human resources, trade unions and legal actions, it said.
To address these concerns, the Board has appointed a multitude of expensive foreign consultants at great expense and without substantial benefits so far.
We bring these issues to your attention urgently and preserving our rights in case our concerns are not addressed and, as a result, we observe further impairment of the share value.
The new Board was appointed in June at the nationalization of the Bank, through a process involving the Ministry of Finance, the Central Bank and party representatives in the House Finance Committee.
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