PAN Oceanic Bank (POB) – the nation’s third commercial bank – is believed to have sacked all its directors in the first major corporate shake-up since POB was established three years ago.

The pre-Christmas move was reportedly given the stamp of approval by the bank’s sole shareholder and investors in a meeting held in Singapore during the final week of last December.

But the move could backfire on the Bank.

Sources said POB is seeking legal advice as the sackings of the directors have ignited flights of legal challenges between the bank and individuals.

POB Board Secretary Gideon Zoleveke jnr yesterday confirmed the POB met in Singapore prior to Christmas.

Mr Zoleveke said the meeting in Singapore was ordered by the sole shareholder and investors, directing POB to sort out certain issues.

But Mr Zoleveke added, “I am not at liberty to make further comments.”

It is understood there are regulatory issues as well, which the Central Bank of Solomon Islands (CBSI) has asked POB to sort out.

POB is doing this and is hopeful that these matters would be sorted out by the end of the month.

“As a bank it is business as usual. What is going on at the Board level would not affect the normal operations of the bank,” one source said.

According to those familiar with the matter, the shake-up at the top echelon of the bank’s corporate ladder is to do with “jostling for shareholders position.”

On one hand there are those who want to see the one shareholder arrangement broken up.

On the other there are those who want to see the present arrangement continue.

Others point to the success of POB as an investor for what is going on.

“The bank has been very successful and so everyone wants a piece of it,” one insider said.

POB entered the banking sector here after Westpac Bank was forced out by the anti-logging lobby, citing the Australia-New Zealand-owned bank was encouraging logging activities in Solomon Islands by taking large deposits from logging companies.

Westpac has since sold its interests to Bank South Pacific (BSP).

POB had seven directors on its Board. It is not clear whether they have been replaced.

Among the former board members were former Government’s Legal Draftsman, Ranjit Hewagama and former Chief Executive Officer of Solomon Airlines, Ron Sumsum.

The chairman, Mr Upali de Silva, is a retired banker from Sri Lanka with some 40 years in the banking industry.

He has held the position since the bank opened its door for business in Honiara on July 11, 2014.

It is a locally incorporated commercial bank, under the CBSI full licence granted April 22, 2014 under the Companies Act of Solomon Islands 2009.

One of the issues the bank has confronted since its inception was that it did not have an international corresponding bank, a link so vital for international banking transactions.

As a result, overseas transfers would take at least two weeks. It is not clear whether the problem has now been resolved.