Caribbean Development Bank President Hyginus 'Gene' Leon Resigns Amid Internal Investigation

Hyginus 'Gene' Leon, the President of the Caribbean Development Bank (CDB) based in Barbados, has resigned with immediate effect on April 24, 2023. Leon's resignation comes after he was sent on administrative leave in January as part of an ongoing internal administrative process at the bank.

According to a letter sent by Leon's lawyers at the St. Lucia-based law firm Fosters, Leon believes he will never receive fair treatment at the regional financial institution. The lawyers state that the CDB has lost all trust and confidence in Leon, leading him to make the "extremely difficult decision" to resign from his elected position as the Bank's President.

The CDB has remained silent on the circumstances surrounding the decision to send Leon on leave, with acting president Isaac Solomon only confirming that there was an "internal administrative process involving the president." Leon's suspension ended on April 14, but he was denied access to the bank and his work devices when he tried to return to work the following day.

Leon's lawyers have criticized the investigation process as "unconventional" and not following due process. They argue that the initiation and continuation of the investigation into Leon was in violation of the bank's own charter, policies, rules, and regulations. The lawyers consider the process to be null and void.

Why this matters: The resignation of the CDB President amid an internal investigation raises concerns about governance and transparency at the regional development bank. As a key financial institution providing support to Caribbean nations, the leadership and integrity of the CDB are critical for the region's economic development and stability.

Leon was elected as the sixth president of the CDB in January 2021 for a five-year term, succeeding Dr. Warren Smith who retired in 2021 after serving as president for 10 years. Leon's lawyers have given the CDB until May 4 to negotiate an amicable separation, and they have indicated that they will move to the courts in Barbados or any other appropriate jurisdiction to enforce Leon's legal and constitutional rights if necessary.

In a statement, Leon's lawyers said, "The Bank has lost all trust and confidence in Mr. Leon, and the Board of Governors failed to prevent the continued violations of the Bank's charter, policies, rules, and regulations with regard to its elected President." The CDB has not provided any further details or comments on the matter.

Key Takeaways

• CDB President Hyginus 'Gene' Leon resigns with immediate effect on April 24, 2023.
• Leon was sent on administrative leave in January due to an internal administrative process.
• Leon's lawyers criticize the investigation process as "unconventional" and violating the bank's charter.
• The resignation raises concerns about governance and transparency at the regional development bank.
• Leon's lawyers demand an amicable separation, threatening legal action if necessary.