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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » June 8th, 2015, 9:23 pm

Clico still owes Govt $12.83b

Collapsed insurance giant Clico still owes Government $12.83 billion, Minister in the Ministry of Finance and Economy Rudy Indarsingh said yesterday.

He was answering a question filed by Chaguanas West MP Jack Warner in the House of Representatives.

However Indarsingh, citing secrecy provisions of the Central Bank Act, refused to answer the question of which CLICO assets had been sold, at what price and to whom they were sold.

Mr Speaker, according to the Central Bank of Trinidad and Tobago, it is barred under strict confidentiality, which falls under Section 56 of the Central Bank Act Chapter 79:02 as it touches and concerns the affairs of CLICO, an institution registered under the Insurance Act Ch. 84:01 (falling under the secrecy provisions) from revealing such information,? he said. He added that the Central Bank will ?when appropriate, in the due performance of its objects under the CBA, disclose the information on the sale of the other assets?.

He said the one sale that can be disclosed was the sale of Methanol Holdings Trinidad Ltd (MHTL) to the minority shareholder Consolidated Energy Ltd (CEL), which was done on an Order of the International Court of Arbitration for US $1.75 billion.

Warner asked Indarsingh to read the clause of the Central Bank Act dealing with secrecy.

The Minister said he did not have the clause but he could get it at a later date for Warner.

Source: http://web.trinidadexpress.com/article/ ... /150509769

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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » June 8th, 2015, 9:25 pm

CLICO set to repay former directors ...but no $$ for Gita Sakal

They were classed as "related parties" when Colonial Life Insurance Company (CLICO) went bust in 2009.

Now that CLICO's liquid again, the company has allocated $48.5 million to repay the policies of ten former directors and their companies.

However, the money will be paid without interest from 2009.

All except for former CL Financial (CLF) corporate secretary Gita Sakal.

The Sunday Express understands that Sakal will not be paid for her policies because the Central Bank has written to CLICO telling it to withhold payment because of an ongoing civil matter.

The Sunday Express also learned that the Central Bank sought legal advice before it issued the letter.

The directors include people who were summoned to Sir Anthony Colman's commission of enquiry into CLICO to be cross-examined on how the company had found itself in an illiquid position but opted to pay a $2,000 fine instead of giving evidence. Sakal, however, did answer her summons and appeared before the CoE.

The related parties payout is included in the $950 million which was allocated to pay 1,500 policyholders who were entitled to it now that the company has turned around.

After the company ran into cash-flow problems in 2009, CLICO fell under the purview of the Central Bank according to the Section 44D of the Central Bank Act.

Former finance minister Karen Nunez-Tesheira said in Parliament in March 2009 of the bailout of the insurance giant: "The 'bailout', as it has been called was a guarantee to the third-party depositors of (CLICO Investment Bank); to the third-party pensioners; the third-party policyholders of CLICO and British American and indeed, as aforementioned, constituents of all the Members of both sides of this honourable House; a guarantee that their life savings and their pensions were safeguarded and that the contagion risk to other financial institutions and indeed the potential collapse of the entire economy was averted. If there was no guarantee, these people would have gotten nothing."

"I wish to repeat that third-party depositors do not include CIB directors, CIB senior managers or their spouses. Third-party policyholders do not include the directors and senior managers of CLICO and their spouses; they are excluded. More than that, I say it again that the assets of CLICO and CL Financial are first liable to pay off CLICO's debts and not the taxpayers' funds. How could the actions of this Government be properly described as a CL Financial bailout?

"...This decision with respect to the directors and senior management and their spouses is in accordance with international practice so as to ensure that persons who were involved in the decision-making process in the affected institution do not benefit from Government guarantees, as they are deemed to be responsible for its state of affairs," she had said on March 27, 2009.

When the Sunday Express questioned Finance Minister Larry Howai on the matter last week, he said that a decision had been taken to put the money in a trust fund.

Central Bank Governor Jwala Rambarran e-mailed the Sunday Express this comment: "The Central Bank is bound by its strict confidentiality provisions under section 56 of the Central Bank Act, Chap 79:02 and is particularly prohibited from disclosing information relating to the customers of an insurance company registered under the Insurance Act."

In March, Rambarran announced that CLICO had repaid the Government $4 billion for its bailout six years ago. The Government said it has spent about $19 billion on the bailout.

Rambarran had said CLICO would pay Government a further $3 billion in lieu of cash through the transfer of CLICO's shareholdings in Angostura Holdings Ltd; CL World Brands Ltd and Home Construction Ltd, bringing to $7 billion its repayment to government. That, he had said this would represent 40 per cent of what CLICO owes Government.

The Central Bank has been in the market for a buyer for CLICO since it scrapped plans to establish a rebranded company, Atrius.

Source: http://www.trinidadexpress.com/20150530 ... gita-sakal

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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » June 8th, 2015, 9:27 pm

Permell: Halt payments to former CLICO directors

The CLICO Policyholder's Group has expressed outrage at the move by CLICO to pay the policies of ten former directors and their companies.

The group's president, Peter Permell, yesterday called on the Central Bank and Minister of Finance to immediately stop the payments.

According to an Express report yesterday, CLICO has allocated $48.5 to be paid to the directors.

The money will be paid without interest from 2009.

The Express reported that the only director who will not be paid will be CL Financial (CLF) corporate secretary Gita Sakal because the Central Bank has instructed CLICO to withhold payment because of an ongoing civil matter.

"If what is being reported by the Sunday Express is accurate, the CLICO Policyholders Group (CPG) is not only flabbergasted, we are appalled as this has to be the height of insanity," said Permell yesterday. "For it begs the question: how in good Heaven's name could anyone, in their right mind, particularly the Central Bank Governor and the Minister of Finance, allow ten individuals, comprising former CLICO directors and senior management along [with] their private companies, to be paid any money, let alone $48.5 million ahead of the 15,000 bona fide 'assenting' third-party policyholders who were promised but are yet to be made whole?" he added.

Permell stated: "Our feedback is that many policyholders are beginning to feel betrayed since these CLICO directors are persons who would have contributed in one way or the other by their mismanagement, negligence, inaction or being complicit in the collapse of CLICO in 2009; and in some instances against whom legal action has been initiated, never appeared before the CLICO commission of enquiry and to whom Salmon letters outlining the case against them would have already been sent."

He said assenting policyholders are the 15,000 patriots who cooperated with the Government and the Central Bank by accepting the Government's offer of zero-coupon bonds and CLICO Investment Fund units in 2012 and, in so doing, helped save the financial sector from contagion and systemic risk.

"The CPG is therefore calling on the Central Bank Governor and the Minister of Finance to place an immediate halt to all payments to related parties, and to move post haste to ensure that the balance due from CLICO to all 'assenting' policyholders is paid prior to the upcoming general elections."

The Express understands the directors to be paid include those who opted to pay a $2,000 fine instead of testifying before Sir Anthony Colman's commission of enquiry into CLICO.

Source: http://www.trinidadexpress.com/20150531 ... -directors

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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » June 8th, 2015, 9:28 pm

Rambarran: CLICO trauma nearing end

Six years after the collapse of Colonial Life Insurance Company Ltd (CLICO), the company’s creditors and policy holders will finally have relief from their “traumatic experience”, according to Central Bank Governor Jwala Rambarran.

Rambarran was speaking at the Fourth Monetary Policy Forum, hosted by the San Juan Business Association (SJBA), at Angostura Compound in Laventille, yesterday.

The Governor said CLICO had made its first payment of just over $4 billion to its single largest creditor—the Trinidad and Tobago Government—and is currently processing around $950 million to some 1,500 policy holders who have endured “unimaginable hurt and pain”.

He said both creditors are receiving an equal 85 per cent payout in the first distribution, while the remaining 15 per cent will be paid in two subsequent distributions, pending the sale of certain CLICO assets.

In the coming year, Rambarran said, Government stands to receive some $10 billion from CLICO which can be used to reduce public debt, over half of which was incurred due to the CLICO bailout.

However, Rambarran declined to comment on the outrage of the CLICO Policy Holders Group (CPHG) that several former CLICO directors are included in the $950 million payout.

A reported $48.5 million has been allocated to repay the policies of ten former directors and their companies.

The CPHG has been calling for the payments to be immediately halted until all other policy holders are paid as they believe the former directors contributed to the CLICO collapse through mismanagement, negligence or inaction.

Questioned on the issue, Rambarran said it was a matter of privacy and he would not make a public statement.

“I will not be commenting on the dealings between an insurance company and its customer,” he said.

Rambarran also maintained that there is currently no shortage of US dollars in Trinidad and Tobago’s foreign exchange market.

He said while there had been a shortfall of almost $1 billion to meet the foreign exchange demand, the Central Bank had completely offset the shortfall with a US$995 million injection.

He said members of the public and the business community were bringing forward their future demand for foreign exchange in anticipation of a shortage, but he assured that this was not necessary.

“As we move into the busy summer season, the Central Bank has already put measures in place to deal with the anticipated higher demand for foreign exchange, particularly US cash. We requested commercial banks to raise their branch limits for US cash beyond US$500 per person. We also established an intervention system for selling US cash to commercial banks as we do for selling foreign exchange to authorised dealers. So, if commercial banks or the banking system itself runs low on US cash, the Central Bank will meet the shortfall.”

Rambarran said as of mid-May, the stock of foreign exchange reserves stood at US$10.7 billion, which is “more than enough to cover a year of imports”.

“I assure the business community and the public we have enough foreign exchange reserves to satisfy demand. There is no need to ramp up or bring forward your foreign exchange demand,” he said.

Rambarran also said that despite last month’s downgrade of Trinidad and Tobago’s credit rating by Moody’s Investors Service, the country’s capacity to meet its debt obligations remains intact. Though he said the downgrade was unjustified, Rambarran assured that steps are being taken to move back to a favourable credit rating.

Source: http://www.trinidadexpress.com/20150602 ... earing-end

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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » June 8th, 2015, 9:30 pm

Central Bank: No Clico money for Duprey

Former CL Financial chairman Lawrence Duprey, former group financial director Andre Monteil and Gita Sakal, former corporate secretary, will not be paid under the terms of the 2015 Clico Resolution Plan until civil matters filed against them by the Central Bank are completed.

This was confirmed yesterday in a statement from the Central Bank in response to reports that $48.5 million is to be paid to former directors of the company.

The Central Bank said in June 2011, following a forensic investigation into the affairs of the collapsed insurance giant, a breach of fiduciary duty civil case was filed against the Duprey and Monteil and their companies “as they were considered to be the principal decision makers for the affairs of Clico.” Sakal was added as a defendant in March 2013.

“This is an ongoing matter and based on the advice of Queen’s Counsel, defendants in this civil claim, where they or their companies are policyholders/creditors of Clico, will not be paid under the terms of the 2015 Clico Resolution Plan, until the determination of the matter by the Court,” the Central Bank said.

“In respect of the other former directors and officers of Clico, where Central Bank and Clico have not, based on forensic findings and legal advice, contemplated or initiated any litigation against such persons, to date, there would be no legal basis on which Clico may now withhold payment to them as policyholders/creditors at the point of liquidating its debts to creditors from its own assets.”

The bank said under the terms of Government’s bailout of Clico in 2009 and 2011, related parties, including directors and officers of the company were not to be paid with public funds, on the principle that they may have contributed to the financial collapse of the institution.

The statement continued: “The decision to withhold payment from these former directors and officers of Clico, who are policyholders, resulted in them remaining creditors on the books of Clico. Clico, by law, has to treat with all classes of creditors as part of its resolution strategy.”

The bank said under the 2015 Clico Resolution Plan, the company is making payments to its policyholders and creditors entirely from the proceeds of the sale of its assets. This follows monetisation of the company’s Methanol Holdings (Trinidad) Ltd (MHTL) shares and the eventual sale of other Clico assets.

The Central Bank said: “Unlike Government’s bailout, the 2015 Clico Resolution Plan is not funded by Government. No Government funds are being used to make payments to creditors and policyholders of Clico including related parties, under the Clico Resolution Plan.

After Central Bank assumed control of Clico in 2009, an investigation was conducted into the affairs of the company by forensic accountant Robert Lindquist. The Central Bank said it has forwarded reports of all forensic findings since 2010 to the Office of the Director of Public Prosecutions and the police who have commenced criminal investigations.

Source: http://www.guardian.co.tt/business/2015 ... ney-duprey

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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » June 8th, 2015, 9:42 pm

$36 million payout to 4 former CLICO directors

Four former directors and their companies, who were classed as “related parties” when Colonial Life Insurance Company (CLICO) went bust in 2009, have already been paid $36,188,690.90.

They are Ian Garcia and his company Events Unlimited; Clinton Ramberansingh and his connected parties (Bianca Ramberansingh and Martina De Silva); Vishnu Ramlogan; and Nigel Salina and his company Nigel Salina and Associates.

The directors were among ten identified to be paid $48.5 million.

However, their connected parties will take the final sum that CLICO has to pay to $63,207,849.78.

All their policies will be paid with interest.

The directors include people who were summoned to the Sir Anthony Colman-chaired commission of enquiry into CLICO to be cross-examined on how the company had found itself in an illiquid position but opted to pay the $2,000 fine instead of giving evidence.

On May 1, Salina, who had long lobbied the Government for the money he invested in the company but had made himself available to the Colman Commission, received his money, which amounted to about $2 million.

Salina had four policies—two in US dollars and two in TT dollars.

On May 4, former financial controller and chief marketing officer Garcia and his company Events Unlimited received close to $16 million.

Garcia, who never appeared before the Commission, had five policies—three in TT dollars and two in US dollars.

One of his policies, worth $6.4 million, was in his company's name, Events Unlimited.

Garcia and Events Unlimited were publicly named in the commission of enquiry by CLICO's attorney Neal Bisnath.

Bisnath had said Garcia was one person who benefited financially from his job at CLICO by creating a company (Events Unlimited) and awarding it work from CLICO.

Bisnath had explained how CLICO had made a US$3 million draft to Events Unlimited which was authorised by former CEO Karen Gardier (who is also identified to be paid) and Garcia.

Bisnath had said the US$3m payment was wire transferred to a US account of Events Unlimited and then US$1 million was returned to open an EFPA (executive flexible premium annuity) policy.

The Express verified that the documents on that transaction remain available on the commission's website, but that policy has now been cashed out.

On Tuesday, Ramlogan collected his $3.5 million from CLICO.

On Wednesday, the Central Bank issued a statement which said that the directors are being paid as creditors, and not directors who may have helped the company to collapse.

“In respect of the other former directors and officers of CLICO, where the Central Bank and CLICO have not, based on forensic findings and legal advice, contemplated or initiated any litigation against such persons to date, the Central Bank said there would be no legal basis on which CLICO may now withhold payment to them as policyholders/creditors at the point of liquidating its debts to creditors from its own assets,” the Central Bank has said.

The Central Bank only initiated civil proceedings against former CL Financial (CLF) chairman Lawrence Duprey and former CFO Andre Monteil, but joined former CLF corporate secretary Gita Sakal months after.

Permell: Govt must tell all

So why has the Central Bank, which was managing CLICO under Section 44D of the Central Bank Act, not taken civil action against the directors for breach of their fiduciary duty when all the documents were publicly available after the commission of enquiry?

That's what Clico Policyholders Group (CPG) chairman Peter Permell wants to know.

He said the Central Bank's statement on the former directors “suggests that there is some trepidation as it relates to potential litigation that could be taken against CLICO by these former directors if the Central Bank were to withhold or delay payment”.

Permell said he remained perplexed about public statements made by Finance Minister Larry Howai and Central Bank Governor Jwala Rambarran, a former employee of CLF subsidiary, CMMB.

“We are even more concerned that the PP Government has now apparently amended the well-established 2009 Government policy that the 'CLICO bail-out' is a guarantee to pay strictly third-party policyholders and creditors of CLICO. And as such by definition excludes former directors and senior managers of CLICO, their immediate family members and private companies. In fact, it appears that the floodgates have now been opened to include all former directors with only one minor exception i.e. persons who are subject to civil proceedings initiated by the State. It therefore begs the question who, when and, most importantly, why.

“As indicated previously, we take some comfort in the honourable Finance Minister's statement that an investigation into the matter is currently taking place. Since it's our considered opinion that former directors should not be paid at this time and if any of them were paid they have no right of confidentiality by virtue of their related party status,” Permell said.

“We therefore call on the Government upon completion of their investigation to not just tell the country who is not being paid, but to disclose all former directors who may have already been paid or are about to be paid and the quantum of such payments.”

The related parties payout is included in the $950 million which was allocated to pay 1,500 policyholders who were entitled to it now that the company has turned around.

CLICO was bailed out by the Government after it collapsed in January 2009. It is estimated that CLICO has cost the State about $25 billion inclusive of the commission. While CLICO has yet to fully repay the State, it had started making payments to its policyholders.

Source: http://www.trinidadexpress.com/20150605 ... -directors

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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » June 8th, 2015, 9:43 pm

Clico policyholders: Don’t pay any former directors

Peter Permell, chairman of the Clico Policyholders Group, said former directors of Clico should be paid only when the results of the Sir Anthony Colman Commission of Enquiry have been reviewed.

“We are calling on the Minster of Finance to halt these payments and for those who were paid to return the money if they got paid and their names have not been cleared as yet. Those directors would have had a fiduciary responsibility to the company and therefore the collapse of Clico clearly shows that that fiduciary responsibility was not clearly carried out,” he told the T&T Guardian.

“There are question marks over the heads of the directors over the collapse. Unless the Colman Report comes back and says there are specific directors they have issues with and there are others there are no problems with, only then should directors consider themselves cleared.”

The enquiry into Clico and the Hindu Credit Union (HCU) began in 2010 and last year Colman presented the results of the HCU enquiry to President Anthony Carmona. However, the Clico part of the report is still being worked on and has not yet been submitted.

According to reports, more than $36.1 million has already been paid out to former Clico directors. Those payments were processed between April 30 and June 2 and represent half of what the ex directors are entitled to. It was paid out at accrued rates ranging between two to 12 per cent.

On Wednesday, the Clico Policyholders Group expressed concern at reports that Finance Minister Larry Howai and the Government appeared to be unaware or uncertain as to whether payments had been made to the former Clico directors.

The Central Bank has said that Lawrence Duprey, former CEO of the CL financial Group, former group financial director Andre Monteil and Gita Sakal, former corporate secretary will not be paid under the terms of the 2015 Clico Resolution Plan until civil matters filed against them are completed.

Permell said other Clico directors should not be taking any money until the entire matter is cleared up.

“In the same way I am asking the Central Bank not to pay, I am asking the directors not to collect. It works both ways,” he said.

Source: http://www.guardian.co.tt/business/2015 ... -directors

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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » June 8th, 2015, 9:46 pm

The central bank governor remains mum on the payment of 36 million dollars to clico directors. Jawaala rambarran says the payments were mandatory as a matter of law.

Video: http://www.tv6tnt.com/sevenpm-news/-Jwa ... 46381.html

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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » June 8th, 2015, 9:51 pm

Central Bank fires Yetming

The Clico Policyholders Group yesterday called for a forensic audit into an alleged payout of millions of dollars to former Colonial Life Insurance Company (Clico) directors and their respective companies following the sudden firing of the insurance giant’s chairman Gerald Yetming and managing director Carolyn John on Friday.

In a move late Friday, which is likely to send ripples throughout the financial sector, the Central Bank gave the pink slip to Yetming and John and appointed Wendy Ho Sing as executive chairman “with immediate effect.”

Ho Sing is the senior specialist adviser to Central Bank Governor Jwala Rambarran. She previously served as Deputy Inspector, Policy and Market Conduct and Deputy Inspector of Financial Institutions at the Central Bank.

In an unsigned e-mail sent to media houses on Friday, the Central Bank said it had terminated the appointments of Yetming and John “after Clico failed to follow direct instructions issued by the Bank on March 26, 2015 setting out the protocols for all disbursements to policyholders and creditors under the Clico Resolution Plan.”

“These instructions included obtaining approval from the Bank for all payments prior to disbursement,” the Central Bank said in the e-mail.

The Bank said further that the two executives were fired pursuant to its powers under Section 44 (D) of the Central Bank Act.

The section states, in part, that “where the Bank is of the opinion that an institution is not maintaining high standards of financial probity or sound business practices, that the Bank “investigate the affairs of the institution concerned and any of its affiliated institutions and to appoint a person or persons for that purpose.”

It also states that the Bank should “take all steps it considers necessary to protect the interests and to preserve the rights of depositors and creditors of the institution.”

Yesterday, the Clico Policyholders Group was guarded in its response to the firing of Yetming, a former Finance Minister, and John.

“If what is being alleged is true, that Clico failed to follow direct instructions issued by the Central Bank on March 26, 2015 with regard to obtaining approval from the Bank for all payments prior to disbursement, which obviously would include former directors of Clico and their connected parties, it would appear that the actions of the Central Bank to terminate the appointments of Clico’s Chairman Gerard Yetming and the company’s managing director Carolyn John would be more than appropriate in the circumstances. Since clearly, these are very serious allegations that warrant firm and decisive action,” the group’s chairman Peter Permell said yesterday in an email to media houses.

Permell said there appeared to be more to the issue than what was being presented by the Central Bank.

“We hasten to add that based on additional information reaching us, there appears to be much more to this story. And as such, not only would we prefer to wait until we have heard from all the parties involved before making a definitive statement on the matter, we are calling for an immediate forensic investigation to determine if these payments were above board,” he said.

Permell said the onus would be on Ho Sing to initiate the forensic audit.

“Ho Sing would have to bring in a firm ...somebody who has the necessary skills to do such an investigation,” he said.

The Central Bank’s decision to fire Yetming and John came days after Finance Minister Larry Howai told journalists he was unaware that million of dollars had been allocated to pay several former directors at the financially-strapped Clico and their respective companies as was alleged in financial circles within the past week.

In the same breath, he had acknowledged last week that all of the Clico payments would be made above board.

Over the past days, reports have indicated that four former directors and their companies were paid TT$36.18 million. The Bank, according to media reports, had said that the directors were being paid as creditors and not directors who may have helped the company to collapse.

Rambarran subsequently said in an interview that the former directors and officers of Clico who were not facing any legal action could have been paid.

“When I came into office in 2012, around December of 2012 the Commission of Inquiry was unfolding. Based on what was coming out from the Commission of Inquiry and looking back at some of the evidence we had from the forensic investigation, we again went back to the Queen’s Counsel and said ‘Are there any other persons who we should contemplate litigation against and the Queen’s Counsel came back and said, ‘Yes, we have grounds to contemplate litigation against Ms Gita Sakal (CL Financial corporate secretary),” Rambarran had said on a television programme.

Yesterday, Permell was adamant that the issue needed to be fully ventilated. “We want to hear from everybody,” he told Sunday Newsday.

“We want to hear from the chairman, we want to hear from Carolyn John, the managing director. What you are talking about here is the payment of millions of dollars to former directors who, based on the Central Bank’s statement, did not get authorisation for.

“It means that Clico would have gone ahead in the absence of clear guidelines as to how these payments should be made and paid those. It begs the question, why? What is the motivation for paying these people?

“Why would you disregard the Central Bank’s instructions — assuming that is what transpired, at this stage we are only hearing one side of the story. So I am saying, I want to hear from all of the parties involved and only then can I make a determination of what transpired here.”

He added, “There seems to be some cognitive dissonance on my part to what he (Rambarran) was saying prior to this release that we saw and what is being said in the release.”

Permell, in the email, also took issue with the fact Ho Sing will essentially hold two portfolios. “Additionally, it has not escaped our attention that the Central Bank appears to have taken a decision to merge the positions of Chairman and Managing Director into one, that of Executive Chairman,” he said.

“On the face of it, this appears to be somewhat retrograde and not consistent with tenets of good corporate governance as witnessed when Mr (Lawrence) Duprey previously held the position of Executive Chairman at Clico. In the circumstances, we shall be grateful if the Central Bank could kindly explain this move.”

Yetming could not be reached for comment yesterday as he was said to be out of the country.

Source: http://www.newsday.co.tt/news/0,212266.html

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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » June 8th, 2015, 9:53 pm

I was a scapegoat

Port of Spain: Two scapegoats. That's how fired chairman of Colonial Life Insurance Company (CLICO) Gerald Yetming has described Central Bank Governor Jwala Rambarran's decision to terminate him and the company's chief executive Carolyn John on Friday.

Yetming, who is abroad, said the statement issued on why he was fired was a “blatant lie”.

He provided the letter emailed to him by the Central Bank at 12.39 p.m. on Friday, which outlined why the Central Bank wanted him terminated.

The letter stated: “The Bank has re-evaluated its strategy for the future conduct of the affairs of CLICO and in this regard, the Bank is constrained to discontinue your appointment as chairman of the board. We wish to record our grati­tude to you for your contribution to the management and affairs of CLICO.”

But the Central Bank, in a statement issued at 10.49 on Friday night, said it had terminated the appointments of Yetming and John, pursuant to its powers under Section 44 (D) of the Central Bank Act, and appointed Wendy Ho Sing as executive chairman with immediate effect.

The issue revolves around CLICO's decision to pay over $63 million to former directors, inclusive of their companies and connected parties.

“The Central Bank took this action after CLICO failed to follow direct instructions issued by the Bank on March 26, 2015, setting out the protocols for all disbursements to policyholders and creditors under the CLICO Resolution Plan. These instructions included obtaining approval from the Bank for all payments prior to disbursement,” the release said.

Yetming, who yesterday defended his tenure at CLICO, said at no time was any instruction given to not pay policyholders.

He explained as chairman, he was given an outline of a CLICO Resolution Plan which the bank wanted to implement and which he passed on to John. He said John met with senior executives of the Central Bank regularly and had even provided a list of the related parties and the sums they were entitled to be paid.

“At no point in time was any instruction given to not pay the former directors, even though the bank was well aware. The only instruction I was given was a letter signed by Rambarran to not pay Gita Sakal (former CLF corporate secretary). Why signal her and not the others? The fact that they called her name and not others suggested they had reasons for not wanting to pay her,” he said.

“I am not going to allow my name to be tarnished in that fashion. He has messed up and it's only because the issue has been made public and it has been a protracted public issue that action is being ta­ken,” he said.

Yetming was a former minister of finance in the United National Congress (UNC)-led government.

The Sunday Express was told Rambarran's actions were done with­out approval from the Central Bank board or consultation with the Ministry of Finance.

Despite his dismissal from CLICO, Yetming is still the Government-appointed chairman of its parent company CL Financial (CLF).

Since June 2009, CLF has had a shareholders' agreement with the Government.

Inconsistencies

On Friday morning, during CCN TV6's Morning Edition programme, Rambarran defended CLICO's right to pay the former directors (who are policyholders), saying, “We have to abide by the rule of law.”

The sum was put aside to pay ten former CLICO directors—an insurance company which was broke in January 2009 was bailed out by Government and is now back in the black. Rambarran had said the policyholders were creditors and were now entitled to be paid.

It came after it was reported four former directors and their com­panies, who were classed as “related parties” when CLICO went bust, have already been paid $36,188,690.90 million.

They are Ian Garcia and his company, Events Unlimited; Clinton Ramberansingh and his connected parties (Bianca Ramberansingh and Martina De Silva); Vishnu Ramlogan and Nigel Salina and his company, Nigel Salina and Associates.

All their policies were paid with interest.

The directors include people who were summoned to Sir Anthony Colman's Commission of Enquiry into CLICO to be cross-examined on how the company had become illi­quid but they opted to pay the $2,000 fine instead of giving evidence.

The Sunday Express understands the only correspondence Ramba­rran had penned to CLICO was to withhold payment from former CLF corporate secretary Gita Sakal after he sought a legal opinion to enable him to do so.

Central Bank sticks to statements

The Central Bank yesterday would not answer additional questions posed by the Sunday Express after it took charge of CLICO on Friday night.

The Sunday Express understands the bank moved into the company's head office at St Vincent Street, Port of Spain, on Friday night and had the building on lockdown for hours.

The Sunday Express could not get Rambarran to answer what caused his about-turn on the payout issue, whether he would share the instructions CLICO disobeyed, whe­ther the bank would seek to stop further payments from being made and whether it will take any action on funds already paid and whether, under his watch, the firing of the two executives represented mismanagement of CLICO by the bank.

The bank only replied: “Central Bank's response to all your questions is as follows, Central Bank stands by its two statements issued this week on this matter.”

On May 31, when the Sunday Express exclusively published the directors' payout story, Rambarran had said: “The Central Bank is bound by its strict confidentiality provisions under Section 56 of the Central Bank Act, Chap 79:02, and is particularly prohibited from disclosing information relating to the customers of an insurance company registered under the Insurance Act.”

On June 1, at the Fourth Monetary Policy Forum, Rambarran had answered questions on the issue with this: “I will not be commenting on the dealings between an insurance company and its customer.”

A day later, Howai said he would look into whether payments were made, and Opposition Leader Dr Keith Rowley called for the Government to instruct Rambarran to not make payments. The Central Bank issued a statement on the subject.

On June 3, the bank said: “Under the 2015 CLICO Resolution Plan, CLICO is making payments to its policyholders and creditors entirely from the proceeds of the sale of its assets.

“In respect of the other former directors and officers of CLICO, where Central Bank and CLICO have not, based on forensic findings and legal advice, contemplated or initiated any litigation against such persons, to date, there would be no legal basis on which CLICO may now withhold payment to them as policyholders/creditors, at the point of liquidating its debts to creditors from its own assets.”

The Central Bank only initiated civil proceedings against former CLF chairman Lawrence Duprey and former CFO Andre Monteil but joined Sakal to the civil matters months later.

Howai and Rambarran

Yesterday, Finance Minister Larry Howai did not want to answer questions from the Sunday Express when asked whether there was a possible disconnect between his office and that of the Central Bank.

The Sunday Express enquired whether he was comfortable with the bank's decision to terminate Government-approved top CLICO management and what exactly would be done with regard to payments.

Last week, Howai was unaware payments had been issued and had launched an enquiry into it.

Chairman of the Clico Policyholders Group Peter Permell had observed the public statements between Rambarran and Howai and said, “This seems to suggests that the left-hand (the Ministry of Finance) does not know everything that the right hand (the Central Bank and CLICO) is doing” in the CLICO matter.

Permell: We want audit

In a statement yesterday, Permell said that if the Central Bank's statement was true then it would appear that the Bank's action to terminate the appointments of Yet­ming and John “would be more than appropriate in the circumstances since clearly, these are very serious allegations that warrant firm and decisive action.”

“However, we hasten to add that based on additional information reaching us there appears to be much more to this story. And as such, not only would we prefer to wait until we have heard from all the parties involved before making a definitive statement on the matter, we are calling for an immediate forensic investigation to determine if these payments were above board.

“Additionally, it has not escaped our attention that the Central Bank appears to have taken a decision to merge the positions of chairman and managing director into one, that of executive chairman. On the face of it, this appears to be somewhat retrograde and not consistent with tenets of good corporate governance, as witnessed when Mr Duprey previously held the position of executive chairman at CLICO. In the circumstances, we shall be grateful if the Central Bank could kindly explain this move,” Permell said.

Source: http://www.trinidadexpress.com/20150606 ... -scapegoat

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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » June 8th, 2015, 11:53 pm

Former Finance Minister weighs in on Clico controversy

Two fired Clico executives are being used as scapegoats, a former Finance Minister has said.

Mariano Browne, former Minister in the Ministry of Finance, said former Clico chairman Gerald Yetming and managing director Carolyn John were used as scapegoats in the controversial payment of more than $36 million to directors of the company.

Yetming and John were fired following disclosure of the payments. Wendy Ho Sing was appointed executive chairman with immediate effect.

But in an interview on CNC3 Morning Brew on June 8, Browne said the two were fired because of mounting public pressure on the issue.

Browne said Central Bank Governor Jwala Rambarran, Minister in the Ministry of Finance Vasant Bharath and Finance and the Economy Minister Larry Howai had all said clearly that the payments were to be made.

"It is clear that they knew what was in the offing," he said.

"It was only after, when the information (about the payment) was leaked on Friday as to the quantum of payments and who was paid that they conveniently found two scapegoats."

The probe was initially called for by the Clico Policyholders Group when news of the payments were made public.

Yetming is insisting there was no need for any forensic probe into the payment issue, adding that to have such an investigation was to conclude that something illegal was done.

He insisted, however, that "nothing illegal, nothing dishonest and nothing fraudulent has taken place."

The Central Bank however indicated last week that the two were fired after Clico failed to follow the March 26 instructions given by the bank on the procedure for all disbursements to policyholders and creditors under the Clico Resolution Plan.

Yetming told CNC3, "They never told us stop making payments to these directors. They never asked why have you not come to us for approval to pay these things, which is what they are now hiding behind."

He said if Rambarran had a problem with the manner in which the payments were issued he should look at his own staff at the Central Bank for answers.

Yetming said, "If they failed in their duty to him to have done what they were required to do or what he expected them to do to stop the payments to these people, then he should address them."

He said he was a non-executive chairman at Clico, and John should not have two answer any questions about the issue.

He added that he and John were successful in their attempts to return confidence to the company which collapsed in 2009.

More than $36.1 million has already been paid out to former Clico directors. According to reports, those payments were processed between April 30 and June 2. The payments represent half of the entitlement of the former Clico directors.

Source: http://www.guardian.co.tt/news/2015-06- ... ontroversy

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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » June 8th, 2015, 11:57 pm

Ex-clico CEO gets $17.3m

More controversial payments revealed

Two days before the chairman and managing director of CLICO were fired for not following instructions with regard to payouts, its former chief executive, Eugene Dziadyk, was paid $17.3 million for his policies.

Dziadyk, a Canadian actuary who had three US currency polices, was paid on June 3.

Unlike other policyholders, like former director Nigel Salina who had a two per cent interest on his policies, Dziadyk had 12 per cent interest on the three policies.

For his three investments valued at of $499,919.15, $1,083,051.82 and $1,086,935.36 in 2007, he was paid $3,239,842.96, $7,018,970.63 and $7,044,138.85 respectively.

The $17.3 million represents 85 per cent of the money owed to him with the interest.

The payment was made even after Finance Minister Larry Howai called for a report on the matter.

At the Sir Anthony Colman's Commission of Enquiry, it was revealed that Dziadyk had benefited from an interest credit of $63 million on an account.

As a CLICO director, he penned a letter which is available on the Commission's website, retroactively increasing the interest rate of his Executive Flexible Premium Annuity (EFPA) — which he opened in 2004 at CLICO — from 12 per cent to a whopping 75.48 per cent.

“In accordance with the amendment to the above policy dated March 17, 2004 and approved by Mr Duprey, an interest rate of 75.48% shall be credited to this policy covering the period March 17,2004 to April 24, 2007. This policy may be surrendered without penalty,” the letter stated.

The letter which was dated April 24, 2007 was also the day Dziadyk had a meeting at the Central Bank to discuss liquidity issues and the inadequate response of the Central Bank among others.

Special arrangement for Dziadyk



Henry Hamlet, a Clico department manager who gave evidence at the Commission, testified on the special arrangement.

As a result, Dziadyk's account grew from US$2.3 million to US$12.5 million.

Hamlet had said Dziadyk took out about US$10 million (TT$63 million) from the account which was left with a balance of US$2.1 million.

That balance left in the account with the interest is what Dziadyk was paid on June 3.

Dziadyk's payment takes the sum paid to former directors of the company to $53.3 million.

Four former directors and their companies who were classed as “related parties” when CLICO went bust in 2009, have already been paid $36,188,690.90 million.

They are Ian Garcia and his company Events Unlimited; Clinton Ramberansingh and his connected parties (Bianca Ramberansingh and Martina De Silva); Vishnu Ramlogan and Salina and his company Nigel Salina and Associates.

The directors and their connected parties are among ten identified to be paid $63,207,849.78 million on their policies with interest added.

On May 1, Salina received his money which amounted to about $2 million. Salina had four policies-two in US dollars and two in TT dollars.

On May 4, Former financial controller and chief marketing officer Ian Garcia and his company Events Unlimited also received close to $16 million.

Garcia, who never appeared before the Commission, had five policies—three in TT dollars and two in US dollars.

One of his policies, worth $6.4 million was in his company's name Events Unlimited.

Financial benefits for Garcia



Garcia and Events Unlimited were publicly named in the CLICO Commission by CLICO's attorney Neal Bisnath.

Bisnath had said at the CLICO enquiry Garcia was one person who benefited financially from his job at CLICO by creating a company (Events Unlimited) and awarding it work from CLICO.

Bisnath had explained how CLICO had made a US$3 million draft to Events Unlimited which was authorised by former CEO Karen Gardier (who is also identified to be paid) and Garcia.

Bisnath had said the US$3 payment was wire transferred to a US account of Events Unlimited and then US$1 million was returned to open an EFPA policy.

On June 2, Ramlogan collected his $3.5 million from CLICO.

The directors include people who were summoned to the Commission to be cross examined but opted to pay the $2,000 fine instead of giving evidence.

Rambarran, Yetming Faceoff



The payment issue had led to a face-off between Central Bank Governor Jwala Rambarran and former CLICO chairman Gerald Yetming.

Rambarran, a former employee of CL Financial's CMMB, is being advised by Ram Ramesh, his former boss and former adviser to Duprey when the company sought a bailout from the Government.

Last Friday, hours after he defended the directors' entitlement to be paid, Rambarran fired Yetming and managing director Carolyn John.

Yetming said the reason he was fired is “a blatant lie”.

Rambarran had written to Yetming on Friday evening stating: “The bank has re-evaluated its strategy for the future conduct of the affairs of CLICO and in this regard the bank is constrained to discontinue your appointment as chairman of the board. We wish to record our gratitude to you for your contribution to the management and affairs of CLICO.”

However, the Central Bank had said in a release on Friday night: “The Central Bank took this action after CLICO failed to follow direct instructions issued by the bank on March 26th, 2015 setting out the protocols for all disbursements to policyholders and creditors under the CLICO Resolution Plan. These instructions included obtaining approval from the Bank for all payments prior to disbursement.”

Wendy Ho Sing, the former inspector of financial institutions, has been named as executive chairman with immediate effect.

Source: http://www.trinidadexpress.com/20150608 ... -gets-173m

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Re: OFFICIAL CLICO THREAD

Postby neilsingh100 » August 16th, 2015, 10:43 am

There is plan to scam policyholders and taxpayers to the benefit of CL shareholders.

Your government working for you!!!

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Re: OFFICIAL CLICO THREAD

Postby SR » August 17th, 2015, 11:43 am

And even bigger plan to use politics to force government hands even though the situation was created by the other party.

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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » August 17th, 2015, 1:45 pm

Trinidad court rules in favour of information disclosure in CLICO bailout

PORT OF SPAIN, Trinidad -- In a landmark decision, the High Court of Trinidad and Tobago in Afra Raymond v The Minister of Finance and the Economy has ruled that the minister must publish the details relating to the CL Financial bailout that had been requested under the Freedom of Information Act.

The collapse and subsequent state bailout of the CL Financial group is said to represent the most widespread Caribbean episode of improper financial conduct leading to colossal losses, all facilitated by careless regulators against a background of large-scale political party donations to both parties.

Official estimates are that the bailout has cost Trinidad and Tobago upwards of $25 billion (US$4 billion) of public money, estimated to range between 10-13 percent of national GDP. By way of comparison, the Wall Street bailout was estimated to have cost the US Treasury about one percent of US GDP.

Despite this substantial sum of public money being spent by public officials, details of the recipients of the funds and the reasons for the decisions being made remain shrouded in secrecy. Further, the terms of reference of the ongoing CLICO enquiry are crafted in such a manner so as to exclude post-January 2009 events relating to this matter.

“The persistent secrecy surrounding the decisions taken in this matter of critical public interest, including allegations of back-door deals in favour of the corporate elite going as high as within the corridors of Parliament can no longer be countenanced by right-thinking citizens of Trinidad and Tobago,” Disclosure Today, an independent, non-partisan, not-for-profit organization committed to advancing transparency on all matters of public interest, said in a statement.

Stating that the people of Trinidad and Tobago require greater transparency on the CL Financial bailout, Disclosure Today called on the ministry of finance to:

(1) Comply with the order of the High Court and, in the public interest, not to use taxpayers’ funds to appeal the ruling.

(2) Disclose the list of the creditors of CL Financial existing as at the date of the request for information, the names of the EFPA holders, the dates of the repayment of EFPA holders and the identities of those whose investments have been repaid.

(3) Publish or cause to be published all outstanding audited accounts of CL Financial for each year from 31st December 2008 to 31st December 2014 including any interim, preliminary, draft or unaudited statements of CL Financial Ltd for the years 2008 – 2011, which were relied upon to prepare the affidavit of Minister Winston Dookeran filed on 3 April 2012 in High Court proceedings Percy Farrell and Others v Clico and Others.

(4) Disclose the presentation made to Members of Parliament in September 2011 as a briefing for the debate on The Central Bank (Amendment) Bill and The Purchase of Rights and Validation Bill, 2011 including copies of all slides, power-point slides, tables, charts, schedules, text or other information which comprised that presentation.

(5) Provide an update on the status of the Commission of Enquiry into CL Financial; and the HCU and an assurance that once the report is completed, its contents are published and made available to the people of Trinidad and Tobago and the media.

Source: http://www.caribbeannewsnow.com/headlin ... 27030.html

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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » August 17th, 2015, 1:46 pm

neilsingh100 wrote:There is plan to scam policyholders and taxpayers to the benefit of CL shareholders.

Your government working for you!!!


SR wrote:And even bigger plan to use politics to force government hands even though the situation was created by the other party.


Really?

I'm not surprised but how the plan is going to unfold?

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Re: OFFICIAL CLICO THREAD

Postby SR » August 17th, 2015, 1:51 pm

Withdrawal of support for the ppp in the upcoming elections if thier demands are not met by the 21st. And support to the pnm instead in hope of getting a favourable settlement if they return to power

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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » August 17th, 2015, 2:05 pm

SR wrote:Withdrawal of support for the ppp in the upcoming elections if thier demands are not met by the 21st. And support to the pnm instead in hope of getting a favourable settlement if they return to power


I see. But if votes are withheld, would that make any impact?

Or am I underestimating the amount of people in the Clico Policyholders Group? I am aware it's 200+ members but I'm guessing that's "active" members.

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Re: OFFICIAL CLICO THREAD

Postby gfbl » August 18th, 2015, 9:29 am

so the ruling for disclosure on the disbursement of $25,000,000,000 of state funds has been appealed. The powers that be are saying it is not in the people's interest to know how these funds were disbursed?

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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » August 18th, 2015, 11:27 pm

gfbl wrote:so the ruling for disclosure on the disbursement of $25,000,000,000 of state funds has been appealed. The powers that be are saying it is not in the people's interest to know how these funds were disbursed?


Pretty much. You can read more about the case here:


The unexplained gap

"On 1 October 2010, the Prime Minister addressed Parliament to explain that $7.3 Billion had been spent on the bailout and that a further estimated $7.0 Billion was required to settle all debts. That is a 2010 estimate of $14.3 Billion to settle the CL Financial bailout, but the current estimated cost of the bailout is in excess of $25 Billion. That means that over $10.5 Billion more than the 2010 estimate has been spent, so where did all that extra money go? That information and the defined official policy of secrecy are at the heart of this scandal."

Read more: https://afraraymond.wordpress.com/2015/ ... real-case/

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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » August 18th, 2015, 11:32 pm

CL Financial Bailout – The Hidden Truth

Sad to say, this CL Financial bailout is resembling a situation in which well-connected persons are getting what they can, anyway they can, but making sure not to get caught. Who were the beneficiaries of this lavish payout? What is this reluctance to release details?

That is the Code of Silence in effect.

Given that the very request was for the detailed financial information which has been deliberately suppressed since 2009, it is of course impossible to say with any certainty just how much Public Money was actually spent on this CL Financial bailout. That is the inescapable fact at the centre of this scandal. The Minister’s tautology is really a powerful explanation of this point.

Read more: https://afraraymond.wordpress.com/2015/ ... den-truth/

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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » October 7th, 2015, 11:28 pm

A five-minute clip on the CL Financial bailout, the State and the 'Code of Silence' around how $25 Billion of your taxpayers' Dollars were spent.


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Re: OFFICIAL CLICO THREAD

Postby Xplode » April 9th, 2016, 6:12 pm

CLICO policyholders: Extremely heartened

THE CLICO Policyholders Group (CPG) said yesterday it was “extremely heartened” by Minister of Finance Colm Imbert’s statement on insurance company CLICO during his mid-year budget review in the House of Representatives.
CPG chairman Peter Permell said he recalled Imbert stated the CLICO statutory fund was fully funded and all policyholders still on the books (of CLICO) are to be paid in full.
Permell said: “Since this is a major development and means that the over 15,000 ‘assenting’ policyholders or those persons who assigned their policy contracts to the Government in order to access the offer; but who are still legally on the books of CLICO, are now finally going to be paid the balance of CLICO’s contractual obligations due to them. And moreover, they will now be in a position to finally bring closure to the CLICO debacle and move on with their lives. A position the CPG fully endorses and have advocated ab initio.”
He added: “Accordingly, as a responsible organisation and given the emotional roller-coaster that these policyholders have been on during the period, the CPG is calling on the Finance Minister to bring further clarity to his statement to avoid any unfortunate misunderstanding.”

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Re: OFFICIAL CLICO THREAD

Postby hydroep » October 3rd, 2016, 2:33 pm

For all interested parties:


Duprey back for Clico Talks

..first visit home in several years
Gail Alexander
Published:
Monday, October 3, 2016

CL Financial majority shareholder Lawrence Duprey is back in T&T on personal business, his first visit back in several years, the T&T Guardian has been told.

Duprey, who has been living in Fort Lauderdale, Florida, for the past seven-plus years, arrived last Thursday just before the Budget, a spokesman confirmed.

The spokesman said he came on personal business, including to meet with lawyers—though they said he isn’t filing legal action against anyone. He will be meeting shareholders before he returns overseas.

The T&T Guardian understands that top CL Financial group members held a meeting with him last Friday— prior to the Budget delivery—and he also subsequently met senior representatives of some CL companies.

Some quarters have speculated that Duprey would not have come to T&T unless needed in positive efforts to resolve the Clico/CLF issue, and possible discussion concerning the Golden Grove Estate Clico owns in Tobago, where Government is pushing forward with the planned Sandals hotel development.

Duprey didn’t respond to email query on whether he had come to discuss, with colleagues or Government, the Clico/CLF issue or the hotel development on Clico’s 600 Golden Grove estate. That is owned by Clico subsidiaries Occidental Investments Ltd (OIL) and Oceanic Properties Ltd (OPL).

The estate is earmarked for development of the Sandals resort with which Government is forging ahead, following an August meeting where Clico and CLF representatives - including Duprey’s representatives - met with Finance Minister Colm Imbert and agreed in principle to the hotel development on the Clico estate. This will be as part of their moves to repay the $20 billion debt Clico owes Government for bailout following the 2009 collapse of the former insurance giant.

They also said they were encouraged to co-operate with Government since they understood they would be given first option to get back their companies. Consequently, they’re supporting the hotel development.

In Imbert’s 2017 Budget presentation last Friday, he detailed information confirming further developments on the resort plan in Tobago. He announced that Sandals’ plan comprises two hotels—a hotel for couples and a family hotel—and said construction would take two and a half years. Imbert said an average of 2,000 people would be directly employed.

“At completion and on start-up, over 1,500 direct employees are expected to be engaged. Hundreds more will be employed in indirect activities. After five years, once the Tobago Sandals Resort is fully established, the direct employment opportunity is expected to grow to near 2,000 persons in well paid jobs,” Imbert said in his presentation.

“Further, it’s expected Sandals will purchase in excess of $100 million annually in local goods and services, directly benefiting hundreds of local service providers, entertainers, tour guides and tours and attraction providers. Local transportation/taxi associations will benefit through contractual arrangements for transferring of visitors between the resorts and the airport, as well as to and from local sites and attractions daily.”

Imbert said original projections indicate Sandals’ contribution to T&T’s economy to be of the order of $500 million per year. He said the Sandals resort would be a catalyst for development and enhancement of the tourism industry.

“We feel certain a Sandals resort will attract other tourism investments in Tobago, precipitate the upskilling of the workforce, boost agricultural production and deliver better and more effective marketing of Tobago, as well as Trinidad as preferred tourism destination,” Imbert said.

The resort, scheduled for completion by 2018-19, is expected to be the signature project of the Rowley-PNM administration. In the 2016 Budget, Imbert had pledged to resolve the Clico issue finally in the interest of all.



http://www.guardian.co.tt/news/2016-10- ... ign=buffer

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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » January 10th, 2017, 5:56 pm

Update on the CL Financial Bailout - By Afra Raymond

Brings us up to speed on what has been happening.


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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » January 14th, 2017, 11:46 pm

Rebirth’ of Duprey

Divestment plan for Govt to exit CL Financial in 5 months, giving ex-chairman possible control...

AFTER eight years, a commission of enquiry, civil action by the Central Bank and an active police investigation, former chairman of CL Financial (CLF) Lawrence Duprey could regain control because he remains the main shareholder of the once-mighty conglo­merate.

That is if the Government follows the plan titled “Project Rebirth” prepared by auditor Price­waterhouseCoopers (PwC).

The plan paves the way for Government to exit CLF in five months, with the balance of $19.34 billion owed to it for the 2009 bailout.

The $19.34 billion payment will comprise 92 per cent cash and eight per cent real estate.

“Under the divestment plan, the Government receives within 150 days, $13.99 billion from the restructuring of CLICO, which comprises cash of $12.170 billion and real estate of $1,827 million,” the plan said.

The cash component of US$589 million will come from the sale of Methanol Holdings International Ltd (which should raise $2,507 million (US$369 million), CLF cash in CL World Brands of $182 million (US$27 million) and CLICO cash of $1,307 million (US$192 million).

The real estate component will consist of lands which Government requires for its infrastructure development plans.

The real estate up for divestment are Oceanic/Occidental land in Tobago for $867 million and HCL's Buccoo Lands for $960 million.

The plan, dated December 12, 2016, was presented to the CLF board last month.

It noted since 2009, the Government and related entities injected $22.4 billion into the CL Group—into Colonial Life Insurance Company (CLICO), British American (BAT), CMMB and Clico Investment Bank (CIB)—to mitigate risk.

CLICO remains under management by the Central Bank.

In March 2015, Central Bank Go­vernor Jwala Rambarran announced that CLICO had turned a profit and was able to satisfy its main creditor—the Government—with a $7 billion payment.

However, only $4.9 billion was paid.

The Sunday Express understands however that CLF wants to hold on to Angostura.

CLF is chaired by former Inde­pendent senator Dr Rolph Balgobin.


The plan


The Sunday Express obtained a copy of the plan which shows that PwC proposed a due diligence period of 30 days and a transaction period of 120 days, with interim payments being made until the sum is fully repaid.

That plan, which proposed that assets of CLF and two of its subsidiary companies—CLICO and CIB—be divested, remained with the CLF board for over a month before it was handed over to Finance Minister Colm Imbert, the Sunday Express was told.

He did not immediately respond to requests for comment yesterday.

PwC had projected that the exit plan should begin execution in January to meet the May deadline.

The plan comprises three major steps:

1. The restructuring/stabilisation of CLICO

2. The phased liquidation of CIB that commences with the sale of its marketable securities held

3. The transfer of CLF cash and HCL lands to the Government to make up the shortfall.

“Post-transaction execution CLICO is projected to have positive shareholders equity of $3.091 billi­on, a surplus on its Statutory Fund and sustained after-operating and after-tax profits,” the plan read.

“The nuclear option (forced liqui­dation of CLF Group) is estima­ted to lead to the destruction of stakeholder value in the order $7.9 billion, plus the inevitable legal, accounting and other advisory fees, and would take several years to be fully resolved,” it said.

PwC noted CLICO has a deposit of $4.4 billion before interest due from CIB, as well as a repurchase agreement of $1.7 billion with CIB.

PwC expects CIB to meet at least 70 per cent of the agreement.

“Given this interdependence, we recommend that the restructuring and or liquidation of the respective entities be carried out in a co-ordi­na­­- ­­ted and holistic fashion whilst ensur­ing full compliance with the Companies Act and the Act of Parliament, which appointed the CIB liquidator.

“Also, in order to advance the interests of all stakeholders, all reasonable steps should be taken to secure the ‘block' sale of the 50 per cent Republic Bank Ltd (RBL) shares that are collectively held by CLICO, CIB and the Clico Investment Fund (CIF) to secure the premium that would arise from such a sale,” the plan said.

The sale of RBL shares is expected to earn $1,992 million.


Duprey fights back


Since 2015, Duprey has wanted his company back as he believed he was duped into disposing CLF to the Government in January 2009.

The Sunday Express learnt that Du­prey, who has visited Trinidad from his home in Florida Miami, USA, at least twice recently, has held meetings with the CLF board on the matter.

Duprey, 82, remains the main shareholder of CLF.

“The company is easy to fix. The economy and the country need that company. I have unfinished business to take care of,” he had told the Sunday Express in a 2015 interview.

The Government has been managing the CLF conglomerate through a shareholders' agreement originally signed in June 2009 and which has had multiple extensions as the Government seeks to exit the company.

He has blamed the politics of the day for how he eventually lost control of it.

In his witness statement provi­ded to the commission of enquiry in October 2012, he said: “The global collapse, coinciding with an ever-impossible revamp of the regulatory framework and a refusal of Government-owned entities to back the group after all the years of benefit that they had received from the interest income that the group had generated, led to the need for some ultimate Government support.

“I would have preferred, as I deal with further on in this statement, of the intervention had not been so politically motivated and had been directed at protection, for I believe had that been the position, we would have fared a great deal better. Losing all the intellectual capital as a condition of intervention was a bad decision and was not one replicated in the USA or the UK.

“It is of note, in this regard, that I was firmly of the view in January 2009 that the run on CIB and the resultant liquidity or cash-flow issues was much inspired by the decision of State-owned or run entities ma­king decisions at or about the same time to withdraw rolling deposits which had been previously rolled from maturity to maturity without question. The decision to seek funds back came in reality out of the blue and caused severe problems.”

Source: http://www.trinidadexpress.com/20170114 ... -of-duprey

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Re: OFFICIAL CLICO THREAD

Postby Online » January 15th, 2017, 1:12 pm

Interesting Interviews on CLICO:

Chairman of the Clico Policyholders Group discusses the return of CLICO's former Executive Chairman Lawrence Duprey
https://www.youtube.com/watch?v=yLUrJezDTgg

CLICO's former Executive Chairman Lawrence Duprey discusses developments regarding CLICO
https://www.youtube.com/watch?v=JoCBQTCW6yQ

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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » January 15th, 2017, 10:29 pm

Online wrote:Interesting Interviews on CLICO:

Chairman of the Clico Policyholders Group discusses the return of CLICO's former Executive Chairman Lawrence Duprey


CLICO's former Executive Chairman Lawrence Duprey discusses developments regarding CLICO


Thanks for this!

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Re: OFFICIAL CLICO THREAD

Postby Online » February 5th, 2017, 4:13 am

You're welcome.
Recent post: Special SKY 99.5 fm Interview on the 8th Anniversary of the CLICO COLLAPSE (January 30th, 2017)
https://www.youtube.com/watch?v=peN13rQgxgw&t=29s

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Re: OFFICIAL CLICO THREAD

Postby The_Honourable » May 17th, 2017, 5:59 pm

Duprey has apologized to Clico policyholders and has offered to make amends :lol:


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