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The Legal Battle Between Lenworth Harris and the Development Bank of St. Kitts & Nevis: Transparency and Accountability in Focus





Basseterre, St. Kitts (PMO) – The dismissal of Lenworth Harris as the General Manager of the St. Kitts and Nevis Development Bank continues to spark national debate, now heightened by Prime Minister Hon. Dr. Terrance Drew's call for the upcoming court case to be televised. Scheduled for January 29, 2025, the trial will delve into allegations of financial mismanagement and misuse of public funds during Harris’s tenure.

“This trial must be televised. Transparency is vital to democracy, and the people deserve to know what occurred with their money,” Prime Minister Drew stated emphatically during the wrap-up of the 2025 Appropriation Bill debate.

Circumstances Leading to the Dismissal

On January 26, 2013, reports surfaced that Harris had been escorted from his office by police and a senior government official. Harris dismissed the rumors, asserting that “people don’t fire people who are doing a good job.” However, the timing raised eyebrows, as it followed the removal of his brother, Timothy Harris, as a Minister in the Labour Party administration on January 25, 2013.

In November 2023, Prime Minister Drew confirmed in the National Assembly that Harris had filed a wrongful dismissal lawsuit against the Development Bank.

What Is a Wrongful Dismissal Lawsuit?

A wrongful dismissal lawsuit arises when an employee claims their termination was not conducted in accordance with the terms of their employment contract or governing labor laws. In such cases, the employee may argue they were terminated without just cause, adequate notice, or due process. Remedies sought typically include financial compensation, reinstatement, or other reparations depending on the specific circumstances.

Harris alleges that his termination violated legal and contractual obligations. However, the Development Bank has countered these claims, filing its own lawsuit seeking accountability for financial losses under his management.

Forensic Audit Findings

A forensic audit by the Canadian firm MNP LLP unveiled troubling financial irregularities during Harris’s leadership, including:

• Misuse of $74 million in government loans.

• Questionable expenditures linked to the purchase of Southwell House.

• Missing records for significant transactions, leaving millions of dollars unaccounted for.

“The audit uncovered that millions of dollars went unaccounted for, with no proper oversight or governance in place,” Prime Minister Drew revealed.

Adding to the controversy, the previous administration halted external audits of the Development Bank starting in 2018, a move Prime Minister Drew described as a “deliberate act that compromised transparency and accountability.” He criticized the decision, stating that it created “black holes for funds to disappear,” leading to significant financial distress for the Bank.

Broader Implications of Mismanagement

Dr. Drew emphasized the devastating impact of mismanagement on the Development Bank, which serves as a financial lifeline for students, small businesses, and ordinary citizens. “The bank was unable to meet its financial obligations, both in the short and long term. This level of negligence endangered one of our most critical institutions,” he said.

To address these systemic issues, the Drew-led administration has launched strategic initiatives to strengthen oversight and governance across public financial institutions. These include:

• Mandatory external audits.

• Improved reporting mechanisms.

• Stricter compliance with financial regulations.

“We are determined to restore integrity to our public institutions. The lessons from this case will guide us in ensuring such breaches never happen again,” Dr. Drew declared.

The Role of Nepotism in Public Debate

The trial has also reignited discussions about nepotism, given Harris’s familial ties to former Prime Minister Timothy Harris. Critics have long accused Timothy Harris of favoring family members in public appointments. However, in April 2019, Timothy Harris defended his brother, citing his qualifications, including a Bachelor of Science in Management, an MBA, and FCCA certification.

Despite these qualifications, the allegations of financial mismanagement during Lenworth Harris’s tenure have intensified scrutiny, raising broader concerns about transparency and accountability in public institutions.

Call for Transparency in the Courtroom

Prime Minister Drew has urged media outlets and citizens to closely follow the upcoming trial. He has emphasized that televising the proceedings will provide citizens with firsthand insight into the allegations and counterclaims.

“This is not just about uncovering corruption; it is about protecting the people’s money and rebuilding trust in our financial institutions. The Development Bank is for the people, and its funds should benefit the people, not disappear into black holes of mismanagement,” the Prime Minister stated.

Conclusion

The court case will address Lenworth Harris’s claims of wrongful dismissal and the Development Bank’s counterclaim seeking accountability for financial losses. Scheduled for January 29, 2025, this highly anticipated trial promises to be a litmus test for the nation’s commitment to transparency and good governance.

As the legal battle unfolds, citizens will look to the televised proceedings to shed light on the truth and set a precedent for accountability in public financial management. This case is not just about resolving past controversies—it is about safeguarding the integrity of St. Kitts and Nevis’s institutions for the future.


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