The board of the majority state-owned financial institution First Citizens took a decision last night to terminate its chief risk officer, Phillip Rahaman, following weeks of controversy over his acquisition of 659,588 shares worth $14.5 million at the company's Initial Public Offering last year.
Rahaman sold 634,588 shares of his block of shares on January 14, netting a profit on that transaction of over $12 million. He would also have received $718,950.92 as dividends on the initial purchase of shares, which would have pushed his total profit on the transaction to close to $13 million.
While the precise reason for the termination has not been disclosed, a highly placed First Citizens source told the Guardian last Thursday that the company's internal audit of the transaction uncovered some evidence that the board felt required an official response from Rahaman.
When a Guardian journalist called First Citizens CEO Larry Nath this morning seeking verification of the board's decision, the newspaper was told that the CEO was in a meeting and would return the call.
Rahaman was said to be out of office today. The person who answered the telephone in his office was unable to say when he was expected back in office.
Finance Minister Larry Howai did not immediately return a text message seeking confirmation of Rahaman's termination.
Guardian sources have confirmed that investigations by the Securities and Exchange Commission, the Stock Exchange, the Central Bank and by the company's external auditor, PwC, who were commissioned by the Ministry of Finance, are all ongoing.
More details here as they come to hand and read the full story in tomorrow's Guardian.