– President Jagdeo
Only in a worst case scenario will the administration resort to the National Treasury to repay CLICO’s policyholders.
This is according to President Bharrat Jagdeo, who told reporters on Friday last, that at present all attempts are being made to acquire the money from the company’s assets.
“Yes, they invested $34M US and The Bahamas has acknowledged that they have gotten the money, but we are not getting back the money and that’s a big problem,” the Head of State admitted.
However, the Head of State said that while it is a bad investment decision by the company, it is not a criminal act but instead can be considered as greed.
“I don’t need an investigation to determine bad investment decisions on the part of the company and on the part of the people who invested in the company because they are looking for big returns.”
He assured that the National Insurance Scheme has not lost a cent since they will be repaid.
The sale of the assets along with the receivables from Bossai and the US$15M that was received will be able to cover most of the liabilities, Jagdeo said.
“If we get those, we can clear most of the liabilities without resorting to the Treasury. In the worst case, if we cannot clear all the liabilities, then we will have to resort to the treasury,” President Jagdeo said.
On January, 30 last, the Trinidad and Tobago authorities announced moves to take control of three subsidiaries of the CL Financial Group, namely Colonial Life Insurance Company (Trinidad) Ltd., Clico Investment Bank Ltd and British American Insurance Company (Trinidad) Ltd.
This was necessary as the financial condition of these entities threatened the interests of depositors, policyholders and creditors of these institutions and posed dangers to the financial system of Trinidad and Tobago.
Subsequent to this move, the Bahamian regulator announced that they had obtained from the courts a winding-up order in relation to Clico Bahamas Ltd., previously known as British Fidelity Assurance Ltd.
This action was taken in order to protect the interest of the policyholders of the company after failure by the principals of Clico (Bahamas) to inject additional capital and liquidity into the company, despite many months of urging and directing by the Bahamian authorities.
Guyana has since lost its money invested overseas and the company is being wound up in Guyana.
On June 11 last, Chief Justice Ian Chang granted an order to the current Judicial Manager to sell the company’s assets to cover costs.
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