NASSAU, BAHAMAS — Bank of The Bahamas has reversed a $6.9 million legal provision following the conclusion of a long-running legal challenge that cleared the way for the bank to remove the liability from its books, according to its annual financial statements for the year ended June 30, 2025.
The reversal stems from a case first recorded in fiscal year 2019, when the bank made a $6.9 million provision related to a default judgment and associated damages. The matter arose from loan-related litigation involving former Cabinet Minister Damian Gomez.
A default judgment was set aside in 2020, and in 2022 the Supreme Court dismissed an appeal by the plaintiffs. A further attempt to challenge the ruling in 2023 was later withdrawn. In February 2025, the plaintiffs again abandoned their renewed challenge after failing to obtain the requisite court certification.
“The Plaintiffs thereafter during fiscal year 2024 filed an application to obtain the certificate in an attempt to pursue the appeal against the bank once again, which was also subsequently withdrawn in February 2025 and the Bank then reversed the previously recorded provision of $6.9 million,” the financial report stated.
The bank noted that appropriate provisions have been maintained for all other legal matters and emphasized that litigation risk is inherent in the banking business. “Management considers that adequate provision has been made in these financial statements for any loss that might ultimately be determined,” the report added.
