WICB Confirms Financial Loss on Stock Market

The West Indies Cricket Board (WICB), today confirmed that it suffered losses totalling in excess of US $500,000 from two investments made on the US Stock Market. The investments were made with Wall Street bank - Merrill Lynch & Co. - and were made without the board's proper authority. The investments were made on behalf of the WICB by Chief Financial Officer, Richard Jodhan and Executive Secretary, Andrew Sealy. The second investment was made while the CFO was acting as CEO.

In a detailed release on the two investments - one for US $496,000 in January, 2000 and the other of US $3 000 000 in September, 2000 - the WICB confirmed that both Messrs (Richard) Jodhan and (Andrew) Sealy did not have the "independent resolutions for making the investment which would have specifically given power and authority to the CFO and Executive Secretary to execute the final investment documents."

The Board's release continued by saying "consultation with the Executive Committee was necessary based on the CFO's own recommendation for full consideration of the investment options and details."

According to the WICB release, the initial investment (US $496,000) was not challenged until almost a year after the fact. On the matter of the second investment (US $3 000 000), the board said it "found that there was no independent Board resolution giving Messrs Jodhan and Sealy authority to make that specific investment of US$3 000 000, nor was there an independent resolution authorising the borrowing."

The WICB also said that Merrill Lynch "had not required a Board resolution for the investment but accepted the authorisation of Messrs Jodhan and Sealy (who were two of the four signatories to the Merrill Lynch account) as having the requisite power and authority."

According to the WICB, "The Board has investigated the matter thoroughly and obtained legal advice." The release continued by saying that the Board is now "completely satisfied that there was no impropriety and specifically no evidence of falsification of Board resolutions and that Messrs. Jodhan and Sealy, while ill-advised were acting in good faith."

In accepting responsibility, the Board has mandated that a Financial Procedures Manual be developed as a matter of urgency. The Board also confirmed that the matter was "brought to the attention of the Board under Mr. Rousseau's chairmanship but the Board had not considered any disciplinary action. Moreover, both Messrs Jodhan and Sealy for unrelated reasons were leaving the organisation."

News of these investments came shortly after former president, Pat Rousseau left office last month. Rousseau upon resigning, fired a few salvos and challenged the WICB to produce the Minutes from the Board meeting which gave the CFO permission to invest the funds on the stock market.