Identify recipients of CLICO sale of bonds

April 8, 2009 | By | Filed Under News 

– PNCR motion
Determine whether there were related party dealings and/or the misuse of insider information that led to the speedy dissipation of the $2.6B received by Colonial Life Insurance Company (CLICO) Guyana from the sale of its bonds in the Berbice River Bridge and identify the beneficiaries.
This resolve clause is embedded in the motion submitted by Leader of the People’s National Congress Reform, Robert Corbin, and will soon come up for debate in the National Assembly.
It is unclear whether the motion will be supported given that the President refused to comment on the party’s position when asked recently at a press briefing at Freedom House.

Opposition Leader Robert Corbin

Opposition Leader Robert Corbin

The motion is also seeking to have the National Assembly of the Parliament call on the President to establish a Commission of Inquiry into the affairs of CLICO (Guyana) with terms of reference that include the examination of whether there was any breach of fiduciary duty to policyholders, depositors and/or shareholders, on the part of the management or any particular official of CLICO (Guyana), in the management of the Company’s affairs, that contributed to the present financial state of the entity.
Another term of reference is to examine whether there was any malfeasance, irregularity and/or misconduct by any official of CLICO (Guyana) in the recent management of the Company.
The motion submitted by Corbin is also seeking to have the House cause the Commission of Inquiry to determine whether there was any irregularity and/or malfeasance in the use of money invested/entrusted by the National Insurance Scheme in CLICO (Guyana) and to present the details of all transactions involving NIS funds.
There is also a call for the House to request the President and the Government of Guyana to establish a separate Commission of Inquiry, into the investments made by NIS, with terms of reference which include the investigation of all investments made with NIS funds, with a view to determining if there was any malfeasance or irregularity and to determine whether all decisions, on the investment of NIS funds, were approved by the duly appointed Board.
Corbin has based the calls on the fact that the guarantee by the government of Guyana to policyholders and depositors of CLICO (Guyana) will ultimately be a liability to taxpayers of Guyana and since the approval of a motion acknowledging and endorsing the guarantee, there have been several reports which question the propriety of several transactions and activities involving CLICO (Guyana).
It was pointed out also in the motion that the Liquidator of CLICO (Bahamas), Tony Craig Gomez, has stated inter alia that, “Contracts entered into with CLICO (Bahamas) by CLICO (Guyana) do not appear to have been standard policy contracts, but in many cases could easily appear to be the transfer of funds to the Bahamas that could easily be classified as related party loans rather than policies.”
He added also that Liquidator has stated that “while the funds forwarded to the Bahamas were recorded in the records of CLICO (Bahamas), the cash actually appeared to have flowed into the United States of America bank account directly from Guyana.”
As it relates to NIS it was pointed out in the motion that a substantial amount of approximately $6.9B of NIS funds is involved in these apparent irregular transactions and  disturbing reports have also surfaced about the decision making process with respect to investments of NIS funds.

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