Dear Editor,
Reference is made to an article in which the organization chart of the proposed development bank is presented (https://villagevoicenews.com/2026/06/12/guyana-development-bank-to-provide-mentorship-technical-support-president-ali/#google_vignette ). One of the implausible features observed in the organization chart shown below is the control and authority that is vested in the Board of Directors (BOD), when compared with the control and authority of the Chief Executive Officer (CEO). For example, the BOD, and not the CEO, has direct management control of the credit officers and technical officers in the proposed bank. See lines A and B in the organization chart.
As a result, the CEO is excluded from direct management and supervision of the credit and technical officers; and by an ill-conceived design, the CEO only has direct management and supervision responsibilities of the Financial Analyst (Line C). Consequently, the main implication of this structure is that the CEO is purposely excluded from the credit directives and decisions of the bank. In fact, this arrangement devalues the role of the CEO, who has no management oversight of the credit operations; for in this structure, it appears that the BOD are full-time staff employees of the Development Bank. What can also be inferred from this structure is that the BOD has usurped the role and function of the CEO. This is indeed a strange arrangement; for a typical Board Meeting is convened once per month, while daily management of the Bank is vested in the role and function of the CEO. This is certainly not the case in this organization chart.
More unorthodox is the observation that the BOD in the Organization Chart, working through the technical officers, has control over commercial banks and lending agencies. This linkage is not credible, because commercial banks are privately owned and managed businesses; and they do not take instructions from the BOD. Instead, commercial banks are supervised by the Bank of Guyana; and they should not be in the organization chart of the Development Bank. Another shortcoming of the proposed organization chart is that it does not show the other important departments that must be included in the organization chart. Hence, this organization chart is incomplete.
It should be emphasized that a credible BOD as well as the CEO must be comprised of individuals who:
- Achieved a high level of success in their chosen fields, including economic, business, and academic experience. Additionally, the BOD and the CEO must have experience in credit approval and loan portfolio management, while credit training for credit staff must be completed before lending commences;
- Will make decisions based on their economic, management, and professional experience;
- Have uncompromised integrity, and have avoided any conflict of interest;
- Will organize a robust project appraisal and project supervision system that is supported by a credible financial system that generates timely and credible financial, accounting, and credit reports;
- Will reject any loan application or other documents that advance a client’s social, racial, religious, or political affiliation;
- Will only approve loan applications for economic projects that are financially viable and supports the economic development of Guyana;
- Will delegate the day-to-day management of the Development Bank to the CEO, who in turn will report all operational matters, including audit reports, to the Board, the Minister of Finance, and to whomever the Board directs; but ensures the confidentiality of the information provided by applicants and borrowers;
- Will approve the employment, operational, and credit policies of the Development Bank;
- Will meet once per month or more frequently, if required by the Board Chairman;
- Will approve loan-lending authority to the CEO for loans no higher than $???; for Senior Managers for loans no higher than $???; and Regional Managers no higher than $???. Loan rejection will follow the same level of loan approval authority, while loan amounts above the loan approval and rejection level of the CEO will be decided by the BOD;
- Will build a diversified credit portfolio, with different economic activities across the regions in agriculture, manufacturing, fishing, forestry, mining, and services; and
- Will ensure that all the documentation required by the Auditor General is delivered in a timely manner.
Follow-up work is certainly necessary.
Yours truly,
Dr. C. Kenrick Hunte
Professor and Former Ambassador
