The BMA - Internal discussions re Custodian Life

The transcripts below were provided by a 3rd party investigative agency scrutinising the BMA re breaches in international counter-terrorism preventative measures.

As part of this intelligence monitoring, many discussions regarding Custodian Life were recorded, involving Susan David-Crockwell and Gerald Gakundi.

The full transcripts were provided to the JPL's in March 2024, in order to push the case for an Insurance Appeal hearing, mandated by law - the JPL's immediately sided with the BMA and became hostile in their subsequent dealings with Custodian Life.

Transcript Excerpts

23/7/22 - Susan Davis-Crockwell states "Shanna Lespere (Deputy CEO, BMA), I really don't feel that's an accurate observation I agree with Greg on the remuneration point the company is fundamentally sound."

25/7/22 - Nial Farrell "Yes, CL has appealed, Susan mentioned to Ricardo (MD, BMA) Friday they had reached out."

9/8/22 - Susan Davis Crockwell states that "CL is fundamentally sound with a strong balance sheet to Shanna Lespere," and "As I have previously said CL is fundamentally sound, with a strong balance sheet which I said to Shanna this morning." and "No hopefully we can avoid that escalation and I really don't think we are prepared, it will need further resource allocation."

16/8/22 - Gerald Gakundi says "As I said in the meeting this morning the current CL position is unsustainable and finding an equitable solution is undoubtedly the best option for us as well."

25/10/22 - Susan Davis Crockwell states "On your CL and X (another Company) point I agree fully that the authority would rather not have any public conflict, Shanna and Craig (CEO, BMA) agree. and "Yes to be swerved."

30/11/22 - Gerald Gakundi says "This could go down that route but I'm really hoping we can avoid it be a complete headache for custodian and the authority. Susan Davis Crockwell says: I need to reread the custodian letter and speak with Gerald and Vette and "Phrased that way we could look bad."

17/1/23 -Susan Davis-Crockwell says to Dina "I agree we need to tread carefully with CL they are determined." and "I think Martin (Martin Maringi) and Ralf (Ralf Kuerzdoefer, Deputy Director Supervision) are adamant but it's the longer position." and "I'm not sure what a tribunal process for this would look like neither is Jeferino (Jeferino dos Santos, Chief Actuary, Bermuda Monetary Authority) I have heard him say it."

10/2/23 - Susan Davis-Crockwell says "yes exactly awful imagine losing."

20/2/23 - Gerald Gakundi says "and your view of CL modelling?" and "ok but as you can appreciate it's the public standing of the authority in someone else's hands to some degree." and "yes ultimately it's our decision I know but all the legal variables you mention make me uncomfortable." and "let me speak to Susan." and "yes she is losing sleep over CL."

13/3/23 - Susan Davis-Crockwell says "yes as you know this whole Custodian saga has stretched resources and patience I have so had enough." and "it's so difficult getting good staffing sick of trying and everyone saying the same thing over and over again." and "I just want Custodian to bugger off we have eight unresolved cases as you know it's appalling."

10/4/23 - Susan Davis-Crockwell says "I keep asking Martin how we move forward with CL as he seems dug in Dina to be honest." and "exactly it can't go on forever and I think supervision know that."

12/6/23 - Gerald Gakundi says "I just wanted to update you really on my Friday meeting with Craig (Craig Swan)." and "No no he was ok he was concerned this CL delay would make us look divided which I have said to Susan as you know." and "agreed to a point we can blame it on Custodians refusal and obstruction but not all of it I don't think anyway." and "yes agreed" and "your same page then?" and "yes it's my nature as well ok caution is the key word."

2/7/23 - Susan Davis Crockwell says: "completely consumed by Custodian and others yes." and "it's all so boring really." and "glad to get the Custodian case closed either way if I am honest it's really dragged on." and "yes it's all part of the direction from above and island reputation bla bla so dull." and "I'm not sure I guess you have to pay commission but let's not forget who is paying." and "exactly and you don't want that out in the public domain with us looking like we approve or don't care." and "it's all just so political at the moment the pipeline of cases is getting longer every day"

21/7/23 - Gerald Gakundi says: "Custodian as well don't forget." and "the authority cannot come across like that it will weaken the overall case don't you think?" and "Ben (Adamason, lawyer for BMA) is nervous, I can tell or at least cautious on this point."

Summary

It is clear from these transcripts that the BMA recognised early that CL was financially sound, and they had over-reacted - the subsequent exercise was primarily focussed on damage control re BMA's reputation, and that of Bermuda. The BMA lacked resources, did not know how to respond to CL's statutory demand for an insurance appeal, and simply delayed any process until they could force a court petition for provisional liquidation (due to CL's non-filing of accounts - KPMG resigned when the BMA issued its orders in early 2022, yet the deadline for filing audited accounts had not even occurred when they reacted...)