Corporate Beggar CLICO Says It Is Payback Time For All The Free BizJet Rides!
The government of Trinidad & Tobago is refusing to say how much money it is giving to bail out the CL Financial Group and CLICO, but the estimated liabilities amount to US$16 Billion dollars.
Yes, BILLION with a “B”.
Prime Minister David Thompson of Barbados has yet to make a statement about CLICO’s narrowly averted bankruptcy, but soon (and probably already secretly done) his longtime friend, client and patron Leroy Parris will come asking for addtional concessions from Barbados. That means that CLICO and associated companies will be asking the Prime Minister to give your tax money to a company that has an estimated 100 billion dollars in assets, but has run out of cash.
What Happened To CLICO?
What has happened to CLICO is actually very simple. Let’s say that you bought a number of houses over the years and have rented them out. The rent money comes in and with that cashflow you maintain the houses, pay taxes on them and even buy more houses so at the end of a few decades you own many houses and are very rich.
But then the rent money stops and now you can’t maintain the costs to keep all your houses.
You are in trouble because the people you owe money to are at the doors and you have no money. If you don’t come up with the money, your creditors will petition you into bankruptcy and sell off all your houses at firesale prices.
If you were smart enough to plan for a downturn and not too greedy, you could have sold off a few of your houses beforehand to generate the cash needed to keep the others going, but you didn’t. So now you have to go begging to friends and relatives for help so that you don’t lose all your houses and other assets.
And that, my friends, is exactly what has happened to the CLICO, CL Financial family of companies.
“Here Is A Ten Dollar Gift For You – Now, Can I Borrow A Hundred Million Dollars?”
A few days before the CLICO crisis was announced, newspaper accounts say that CLICO “gave” land for a daycare centre and a school to Barbados – although the Nation article is ambiguous about whether CLICO is giving the land and doing the construction too. Pardon us for being a bit cynical if we point out that this “gift to the people” came only two days before Parrish and company announced that they were the recipients of taxpayer bailouts and guarantees that probably total hundreds of millions if not more.
How much will Barbadian taxpayers eventually be on the hook for? Good luck finding out the truth because the amount of taxpayer money and concessions being given by Trinidad, Barbados and other countries is being kept secret from the taxpayers.
Graeme Hall Wetlands To Be Developed By DLP Campaign Funder CLICO & Leroy Paris
CLICO Connection Harming Graeme Hall National Park
According to more than a few of our sources, CLICO owns about 10 acres of land in the middle of the proposed Graeme Hall National Park. Our sources also say that the government’s refusal to declare a national park at Graeme Hall is partially about pressure from Leroy Parris and CLICO who have big plans to develop the land in the Graeme Hall watershed.
OK, Prime Minister Thompson, here is where you have to choose between your friendship with Mr. Parris and your duty to the people of Barbados.
If CLICO wants our taxpayer dollars either directly or in the form of concessions, then part of the deal should include turning over the ten acres at Graeme Hall for a national park.
Your choice, Mr. Prime Minister…
Who will you favour? Leroy Parris and CLICO building condos in the Graeme Hall watershed… or saving the area for the long term good of future generations?
Your choice, Prime Minister Thompson – and all the people are watching.
Barbados Free Press 
Well Mr. Prime Minister you promised us transparency and never has it been needed more than now. A private company is getting a public bailout with our money and it should be for everyone to see.
President Obama caught the Wall street greedsters trying to pocket $18 billion from the monies that government gave to help their businesses. He wants that money back.
What about you Mr. Thompson? Are you going to let your old friend Leroy pocket our money or are you going to be a real leader?
Well my question is with all of them government insurance policies that get turn over to CLICO was that a way for CLICO Barbados to get a cash injection and stave off the doom that may be looming? And how come we aint got no stimulus package for Barbados yet in light of the world economic crisis? What are Our Dear Leader’s plans?
BFP says”If CLICO wants our taxpayer dollars either directly or in the form of concessions, then part of the deal should include turning over the ten acres at Graeme Hall for a national park.”
Excellent idea BFP.
This Clico crisis should be a warning to Bajans that there is a world wide recession and Barbados cannot escape.
We should all monitor what is happening in the UK,Canada and the USA.
I hope one of our trained economist bloggers can explain the Trinidad situation where Clico is worth 25% of their GDP.
Barbados the Beautiful says
“A private company is getting a public bailout with our money and it should be for everyone to see.”
Trinidad is bailing out Clico. Barbados is not involved…….yet.
Hants
January 31, 2009 at 3:03 pm
“Trinidad is bailing out Clico. Barbados is not involved…….yet.”
Are you kidding? Some Bajans are in panic as we write.
Just wait until Monday morning when business opens.
@ Re CLICO
The Barbados Government has not repeat NOT stated if they are going to “bail out” Clico.
I will listen and watch for the PM’s statement which I am sure will be coming shortly.
There is no doubt that Parris has been talking to his friend Thompson about what is happening. Look at the announcement by the Barbados Central Bank. This is a big deal and there is no doubt that Parris has or will be asking Barbados for concessions or cash which are the same thing and come out of our pockets.
This is a very “big deal”. Of course Clico is talking to Barbados Government and the Central Bank.
We need to be calm and wait for “the facts”.
There will likely be more companies reporting “trouble” in the days and weeks to come.
BFP you should start a post showing what we can do to help our country and ourselves.
I agree with Hants. Whoever wrote this article is a typical Doomer and Gloomer who does nothing but speculate, bring the usual ole talk, and brings little by way of facts.
I agree that we should all be worried, but there is no need to panic. Persons in a panic usually make rash decisions that leave them in a worse off position that they originally were.
What we should do is press the authorities (Central Bank, Min of Finance, Insurance Supervisor, and other financial regulators) for INFORMATION that is unbiased and clear. THEN we can react and make the necessary decisions to improve the situation. Let us hope that these authorities recognise that in times like these…information needs to come quickly and it needs to bring clarity to the situation.
In the meantime, let us keep the speculation down. That is part of what is causing the downward spiral in the global economy
Anyone who thinks that Barbados is not involved in discussions with CLICO is an idiot.
This article is not doom and gloom it is only stating the truth about how CLICO got where it is. Here is what Lawrence Duprey has to say about “this article”
“It took decades for businessman Lawrence Duprey to build an empire that controlled more than $100 billion in assets spread across the globe. It took just a week for it to start crumbling.
As the Government and the Central Bank engineered what could amount to a billion-dollar economic bailout for the asset-rich but cash-poor CL Financial conglomerate, group chairman Duprey admitted yesterday that he had underestimated the perfect storm of global and local financial troubles that made it impossible for CL’s insurance flagship firm Clico to pay depositors who wanted their money back. “We made a mistake,” he said.
(snip)
CL Financial has been successfully moving money between its subsidiaries for years and has developed the company on a business model of buying assets and borrowing.
But the new Financial Institutions Act prevents an insurance company from receiving or transferring funds from other subsidiaries and this hurt Clico’s cash position.
Duprey said its foreign banking partner also had trouble accessing credit, as did CL Financial and the contagion effects of the global meltdown also contributed to the cash-poor position of the financial companies.”
Further, BFP’s article calls for Prime Minister Thompson to favor his country, not his friend Parris, in discussions.
Now is the time to secure Graeme Hall National Park and get Clico to stop blocking this citizens’ initiative.
Baje, I disagree with you and Hants, but mostly you. This story on BFP is nothing compared with the stories in the Trinidadian news. In case you didn’t notice, this company with US$100 billion in assets just went belly up or would have except for the injection of public money.
Barbados Free Press is rightfully calling on the PM to favour Barbados and not CLICO during any talks and to remove CLICO’s blocking of the Graeme Hall National Park.
That is not speculation. That is a warning to David Thompson that we the people know his relationship with Parris and we demand Thompson favour our country, not his friend, when he is talking our money and the public interest.
Our PM is going to have to back CLICO Barbados – it’s a no brainer. How is another question.
If there is a run on Monday morning as suggested above and he (PM) does nothing then:
1. a whole lot of Barbadians are going to be out of a job.
2. a whole lot of Barbadian investors big and small are going to be out of money, and
3. many companies in Barbados who also have money invested with CLICO locally will be damaged
It will be the beginning of a serious downward spiral – also affecting the whole Caribbean where CLICO is.
Welcome to the dilemma that has faced the US for the past months!
Panic / fear can bring any institution in the World down – could happen to any bank here if every one wanted their money or even a few big depositors called for their money. The worst thing is panic.
Truth or innuendo…Red Lake Lassie
“CLICO’s blocking of the Graeme Hall National Park.”
Truth or innuendo…Miller Thomson Calgary Client
“Now is the time to secure Graeme Hall National Park and get Clico to stop blocking this citizens’ initiative.”
All of a sudden it is Clico blocking the National Park.
Quite frankly I think Clico should sell the 10 acres to the Government but that could be a problem for BFP.
Oops,Sorry no problem because ITAL does not include “friends”.
Blogging can be therapeutic.
The opportunity to read and write FREEly is priceless.
The hostility will increase during this recession as people intensify the blame game.
Just remember that every adult is responsible for their own well being.
Helllo!!!!
Anybody here ever did a business class?
Anybody bother to check the financial records of CLICO?
Of course not!!!! You can’t it is a closely held company….A lot of this here is mere speculation!!!!
Case in point Woolworths in Britain has gone under, but I dont remember seeing Woolworths here even laying staff off!!!!!I agree with the person above who chided us about panicking others…If you don’t know conclusively what you are saying say nothing.
Many people dont’ know that when CLICO was a ‘Caribbean’ Group their deposits in CCB (remember them) were under even more threat, ask anyone at the Central Bank.
During the 90’s the whole company was restructured, something you may not know if you were not close to the business world at that time.
And I want to make a further point, the companies bailed out in Trinidad are CLICO Investment Bank, CLICO and British American. CLICO Investment Bank manages 1/4 of T’dad GDP (in investments) so trust me T’dad can and will bail them out. Actually bailing them out is in T’dad’s interest they will now fully control that 1/4 of their GDP!!!
But didn’t anyone notice British American? What about British American Insuarance here? Since CLICO has a broader asset base than British American in the Caribbean I would think that they can weather this storm better than a smaller British American with a less diversified portfolio and less assets.
Oh and one more thing…notice that only ‘politico’s were quick to respond and turn this into a political issue. That is sad; the world’s financial dilema affects us all not just the current ruling party. Unless we put our heads together and mirror the US (all their lawmakers are now seeing the need to think like an American and not a Democrat or Republican) this storm will blow us all over. But then again if you are a multi-millionare by your own admission, the storm will make you just slightly less richer.
@ Laughing
Very well written.
BUT….You are taking the fun out of the blog.
See how I get cuss for asking people to deal with facts?
I have a feeling that Clico Barbados did not get into high risk investments but we will soon find out.
@ Hants
Thanks and I know what you mean. But I think we need to be responsible with our discussions. There are pople who will ‘jump on the band wagon’
In times like these the prudence which doesn’t always describe our financial actions need to be brought to bear on our intellectual abilities.
Panic in a financial arena is not good!!!!
Barbadians have seen faxes and faxes coming to their businesses in past months from British American Insurance inviting to invest term deposits at 5-8%. Clico owns huge land assets in Barbados but also is obviously not cash rich.
Hope some of that cash is available to do the works promised in Barbados, not to fulfill a transfer back to T&T.
The reports in the Trinidad express contains information about Clico and lessons for Barbados.
http://www.trinidadexpress.com/index.pl/article_news?id=161432370
Time to rethink growing cane to produce ethanol.
wuh loss look at all dese people up in here looking “white as casper” at the thought that a large Bajan company could be in big trouble. wishing that it were? certainly not!
Clico will have to sell it’s 20% interest in OCM which owns The Nation newspaper Barbados.
Great opportunity for a cash rich Bajan company.
Since when did a bubble ever “turn around”,
once Duprey knew his conglomerate was relying on the bubble to service Clico’s commitments the prudent course would have been liquidation of assets, at any price, to protect his policyholders’ interests.
Apparently he took the suckers way and believed the market would turn and save him.
Hope we take the very same steps that TT is taking, i.e. equity and citizen’s solid cover for every taxpayer’s dollar used in this bailout.
PM Thompson, if Clico wants anything from Barbados you should use this opportunity to secure the Graeme Hall National Park.
They own 10 acres there and they should get out of the way if they are blocking making the park.
The state of the Barbados economy is defined here by experts in their field and a they have provided credible analysis with anecdotal evidence.
One of the business owners has seen a 75% drop in sales.
http://www.nationnews.com/story/293685937365986.php
Superb investigative reporting by a Nation reporter.
Laughing wrote “I think we need to be responsible with our discussions”
Companies also need to be responsible.
@Hants
lol!
It’s still a sign of the times! Banks seeing massive reductions in their sales too. Less money is available to spend on ‘vices’ now, it will get alot worse before it gets better.
It is nonsense for Parris to say that events in T&T will not affect Clico B’dos which is a subsidary of Clico T&T. The Govt of T&T, thru the Central Bank now control Clico Duprey is no longer in charge. Obviously if the CB decides to sell off assets to raise cash then Parris will have to do what he is told. It is Duprey’s mis-management which caused this, he took a number of gambles which up to now were successful, but his risk management . was poor his top financial officer resigned about a year ago and that position was only just filled.
Imagine that 2 depositors caused this when they asked for their money, $100million, and Clico could not pay. Central bank had to step in to save Clico; about 20% of Clico’s staff will get laid off
every company involved in the oil industry in T&T has experienced a dramatic downturn in business.
This is a reminder to those who thought that the global financial troubles would not affect the caribbean.
I have not seen the link stated between the global financial crisis and what happened to CL Financial. It’s being attributed to poor management. The fact that the situation is rearing it’s ugly head now seems to be a coincidence.The severity of the global crisis will of course not make their situation, and by extention, ours, any easier however.
First comment this morning still stands. Hants says let’s wait for our esteemed leader to give us the story and until then we wait and wait while Clico is obviously going down taking our dollars with it.
Hants the problem with you, an obvious DLP ‘cannot ever be wrong’ supporter, is that you have failed to notice that Thompson and his ministers never tell us anything. They have not yet given us a report on any of the important things they have done, or probably things they should have done.
So why now do you believe that suddenly this is going to change?
Sorry. Hants, Clico is going down, awash with worthless assets and Thompson has no alternative but to help his friend Leroi but he better not without telling us what he is doing and how because we have a right to the full package good or bad since it is our money.
Barbados the Beautiful says
“Clico is going down, awash with worthless assets”.
List the assets of Clico in Barbados.
Last time I checked they owned a lot of very valuable real estate and a profitible road construction company.
The Government of Trinidad will bail out Clico. Focus on Trinidad and you will have a better understanding of the situation.
I hope they survive because they employ a lot of people.
I have read all the information I could find from Trinidad and Barbados. Prehaps you “Barbados the Beautiful” should do the same. The Express and the Guardian has lots of info.
Barbados the Beautiful wrote
“Hants the problem with you, an obvious DLP ‘cannot ever be wrong’ supporter.”
The other problem with me is that I am more inclined to listen to Dr.Williams.
“BARBADIANS SHOULD NOT remove their business from any subsidiary companies of CLICO, Barbados’ Central Bank Governor Dr Marion Williams said yesterday.
In fact, Williams believes customers here should keep faith in the company. “It is a well-run company,” she said.”
Things will get worse before they get better
The PM doesn’t have a choice if CLICO requests support, however CLICO (B’dos) is listed as a wholly owned subsidiary of CL Financial Ltd. Does the parent company direct the investment strategy? As a guess I would say yes, but surely the B’dos Gov’t has some say in how a Barbados registered financial company invests funds generated from Barbadians . I am buoyed by the statement from the Governor of the Central Bank attesting o the health of CLICO
What happens to the vast number of CLICO’s employees if the firm collapses?
What happens to subsidiaries like Rayside Concrete works?
What happens to their policy holders?
What happens to the funds of major companies invested in CLICO?
What happens to investments of individuals (like my relative who moved a major sum to CLICO two years ago in search of better returns)?
This is another example that we are not immune from the financial downturn in the rest of the world.
Trinidad has a new Financial Institutions Act that prevents an Insurance company from receiving or transfering funds from other subsidiaries.
This may help Clico Barbados.
In delivering a brief, nationally-broadcast statement at Ilaro Court following consultations with Minister of State in the Ministry of Finance Senator Darcy Boyce; Central Bank of Barbados governor, Dr. Marion Williams; Supervisor of Insurance Carlos Belgrave and the Central Bank’s director of Bank Supervision, Cleviston Haynes, Thompson said Government was “fully satisfied that CLICO’s Barbadian operations are sound, prudently
managed and well regulated”.
GBL wrote “I have not seen the link stated between the global financial crisis and what happened to CL Financial”
Tudor wrote “Imagine that 2 depositors caused this when they asked for their money, $100million, and Clico could not pay”
Maybe the 2 investors who wanted to withdraw $100 million (I heard that it was one invester who wanted to withdraw $135 million)
wanted a withdrawal from Clico because their other assets in the international market had taken a hit.
Why would Leroy Parris rush to make a public plea. Becasue he is afraid of a run on Clico. I am sure that they will be under some pressure come Monday morning. An announcement from the central bank will not be enough to allay the fears of investors in a time when they have seen large international companies crumble. The arrogance of some will now bear sour fruits.
hmm….
watching
viveka…
plantations
hmmm…
We are told by the Barbados PM that we should not panic; he cleverly did not say we should not worry. The fact of the matter is that given the relationship between CLICO Trinidad and CLICO Barbados it will be well nigh impossible for the the financial problems affecting the one not to affect the other.
What the PM should do is to come clean and act promptly because sooner or later he will have to do precisely that and by then it may be so late that he will not only incur the wrath of the people but cause problems for other businesses as well.
This is precisely what happened to the British bank Nothern Rock a year or so ago. When it became obvious that the bank was in trouble, the bankers tried to bluff their way by imploring the people not to panic because the bank’s “assets were safe.” Unfortunately the public took their own counsel and began withdrawing their savings and investments . This led to a run on the bank causing the government to step in at the last minute and virtually nationalizing the bank in order to save not only the company but other businesses that would have been adversely affected if the bank went under. It turned out that the bank was in much deeper trouble than the public were led to believe and that they were right to seek to withdraw their cash until they had some assurance from the Britsh government that security of their investment would be guaranteed by the Government.
The PM should learn from these experiences and act quickly.
If I had any business doing with CLICO I would already be looking for alternative businesses with which to place my investments and take my custom away from CLICO forthwith. For there is no guaranty that one’s assests are safe without some kind of government intervention and declared guaranty.
BFP – please make a ‘print copy’ of this article so we can print it and hand it out. Thanks you.
BARBADOS IS INVOLVED!!!!!
Look Clico has to divest its 55% share ownership of Republic Bank to The TT government…..and guess who owns 57% of the BARBADOS NATIONAL BANK…..you guessed it…..Republick Bank!…….so how now owns the BARBADOS NATIONAL BANK….the TT government!!!!!……this is not in the best interest of Bdos!!
About 4 years ago I (a Bajan) was studying in London and sharing digs with other West Indians. After exams, it was discovered that one Bajan guy had failed. Well, in typical Bajan style, the other Bajans pranced up on him, laughing at him, calling him a dummy and gave that boy a rough time. Two Trinis, two Antiguans and one Jamaican took the guy out to a pub and wined and dined him, and encouraged him to “try again”, and keep trying till he succeeds. They uplifted him while the Bajans tried to belittle him and drag him down.
That is precisely what is happening to Mr. Leroy Parris of CLICO. The man came from humble origins, took on a huge company and has become a success story. But he didn’t reckon for the nasty crabs in the bucket, all scrambling over each other to get at him and pull him down. Black boy, from humble origins, who tell you to become successful? Can’t even speak proper English (like most of the writers on this blog), you en know you should be cutting canes instead of owning property? And … wuhloss! How dare you fly around in a private jet like you feel you is that Branson fellow? Man, you bound to fail and we going laugh at you, just like the Bajans who laughed at the one who failed his exams. Look, ga long back to yuh humble origins, do. But I say, “Rise, Sir Leroy” and I en care how much licks I get from the crabs in the bucket.
@Concerned Joe
!…….so how now owns the BARBADOS NATIONAL BANK….the TT government!!!!!……this is not in the best interest of Bdos!!
***************************************************
Looks like the financial and economic guru who made the decision to sell the BNB really goofed. Now that the chickens coming home to roost I hope they look in the mirror before they start blaming others.
Mr.Bruce,
This poor black boy talk is nuff shite talk.
When they in trouble they remember being poor black boys. When they flying high, they look down on those who helped them get where they are.
Owen Seymour was once a poor black boy. When he got power and worth, he called people negrocrats and sons on indentured servants. He may be a black boy , but he certartainly aint poor no more.
All that BFP is interested in is the Graeme Hall Park. This blog is not about Barbados.
It is about Allard’s – a non-Barbadian’s – desire to rewrite our physical development plan and dictate how land is used in this country. And who they bring down and destroy including depositors in Clico and workers can fall as long as the government does what Allard wants.
This is sick, sick, sick. BFP sham on you. You care nothing about Barbados and will continue with your sick innuendo and lies as long as you dont get your way.
Owen Arthur is right in saying that Allard finances BFP. Bajans be careful! Don’t contribute to this destruction of your own nation by a rich foreigner who has no scruples.
And imagine … Clico sold him the swamp in the first place! So Clico must now give away the rest of the land, stop all development and compromise its policy holders money to satisfy Allard.
No doubt Allard wants David Thompson in bed with him and agreeing to everything he wants.
******************
BFP says,
Dear Wuh?
You are most welcome to criticize BFP, spread false information and attack BFP for supporting sustainable environmental projects in Barbados – however you are not welcome to post the same comment on multiple stories throughout the blog no matter if the comment is for or against any topic. So remember… only post your comment on one story or you will have to find a home elsewhere.
thanks!
Robert
Well, excuse me for getting in this Graeme Hall thing, but I done jook my mout’ in it already, so I might as well be hanged for a sheep as a goat and be damned the consequences.
Why you have to sound so vicious, ‘Wuh”? Are you telling us that Graeme Hall has been, and IS, ear-marked for development? You have inside information on that? This is what you stated: “It is about Allard’s – a non-Barbadian – desire to rewrite our physical development plan (those words “physical development plan” got me worried) and dictate how land is used in this country.” So, wait, Allard still in it? I thought he had bowed out.
Will someone please put me right on what is going on with Graeme Hall? I heard Dr. Denis Lowe state emphatically that the Sactuary would soon be re-opened. Am I not to believe him? Boy, this is one hot potato and I know I will not give up in my quest to have Graeme Hall remain a sanctuary, and I am NOT A NON-BAJAN – my navel string buried right here and I going out by Coral Ridge when the good Lord makes that decision. I will NOT rest on the Graeme Hall matter. I getting real vex now.
8,000 Bajans signed the petition for the Graeme Hall National Park. Tens of thousands were upset about the waterpark and fought against it. Owen “I do wat I want” Arthur could not deny the public will against the water park. The American developer paid 2 million in bribes (oh sorry, “consulting fees) and got hisself stiffed by Arthur and the BLP.
Different party in power now but they still want to make money from the green space and develop it.
Different bunch a theifs is all.
With regard to the press conference (more like a press briefing, ashe didn’t take any question and we all can guess why) that the other person he said he conversed with (unofficially) was none other than Mariano Browne – and the plot thickens …
And by the way, you should put Duprey as the master puppeteer above Parris in your picture above, because ALL T&T companies that own Barbadian companies Micro-Manage them to the frustration of the Bajan Execs. that run them (for their T&T Masters).
….and the plot thickens.
Mariano Browne who was close to Arthur departed the bank owned by Clico and joined the Manning administration. Parris was and still is close to the present PM.
In Trinidad, Duprey was/is close to Panday and the said Browne joined forces with Manning. Duprey was and still is close to Panday. Remember, under the Manning administration, prominent members of the Clico group were searched by the Police.
However, Manning still showed maturity and assisted in the bail-out of this said Clico.
We must also understand that this is not a banking problem. The only entity in this equation is the CLICO group; and the bail-out is for CLICO only.
I still found it funny that Thompson would discuss it with Browne especially under the circumstances (all of them).
Oh, and considering that CLICO’s asset base is 1.32 times the total GDP of T&T, of course Manning has to do something to help them, irregardless of politics.
Points of interest – from CLICO’s Annual Report 2007 – that I would introduce here. Some may be relevant, some maybe not. Just putting them out there for thought.
under Borrowings …
Clico Holdings Barbados has borrowed (TT)$701 million from Deutchse Bank Alex Brown through two revolving margin loans secured by underlying debt securities. The proceeds of these borrowings were to purchase various debt securities that are included in the company’s financial assets at fair value through income category.
Clico Investment Bank Limited has borrowed (TT)$2,054 million in various fixed rate long term bonds in issue with maturity dates ranging from 2012 to 2018. The issues have been registered with the Trinidad and Tobago Stock Exchange Commission and can be repaid before maturity based on their various terms upon giving the requisite notice and payment of the requisite prepayment premium. These notes are secured by various investments owned by the Bank.
under Contingent Liabilities …
A life insurance subsidiary has given a guarantee to the Supervisor of Insurance (Barbados) agreeing to indemnify policyholders against any loss suffered, as a condition of the transfer of its long-term portfolio to a fellow subsidiary incorporated in Barbados.
A life insurance subsidiary together with the parent company has given standby letters of credit support to fellow subsidiaries amounting to (TT)$49 million.
A life insurance subsidiary has guaranteed a loan from a third party to the parent company in the amount of
(TT)$154 million.
(Note how the subsidiary is not named)
A banking subsidiary in the Group has guaranteed customer liabilities under acceptances, indemnities,
guarantees and letters of credit amounting to (TT)$1,385 million (2006: (TT)$1,043 million) for which there are equal
and offsetting claims against customers in the event of a call on these commitments.
(Is this subsidiary CIB? And yet they could not honour a call for (TT)$100 million)
Also, under the Subsidiary we have listed in Barbados …
Clico Agricultural Development Company Limited
– cultivation and sale of sugar cane and vegetable produce
Was this (along with Clico Holdings (Barbados) Limited – property and investment holding company) the milked remains of Plantations Ltd, from which mostly Barbadian shareholders never got one red cent for.
and under Non-Compliance with IFRS 7 …
For the year ended 31 December 2007, the Group did not comply with IFRS 7, Financial instruments: Disclosures due to not having the required information to prepare the disclosure requirements for the years ended 2006 and 2007. Non-compliance with this disclosure standard does not have any impact on the classification and valuation of the Group’s financial instruments or financial statements. It is intended that the Group will comply with this reporting requirement in its presentation of the financial statements for the year ended 31 December 2008.
The objective of IFRS 7 is to provide more transparency to financial statement users on an entity’s exposure to risks and how those risks are managed. IFRS 7 requires both quantitative and qualitative disclosures about an entity’s exposure to liquidity risk, credit risk and market risk arising from the use of financial instruments. Note however that, that IFRS 7 is not just relevant to financial institutions only. IFRS 7 applies to all entities, financial and non-financial.
It will be intersting to see how CLICO complies with this now and what will become evident – maybe as the 2008 Financial Year has just end, this may have been a catayst to what has happened now.
Take your pick and feel free to discuss these. I am sure this pot is going to boil for quite some time and nuff people are going to either get par-boiled or fully boiled.
Me
February 1, 2009 at 1:22 pm
Mr.Bruce,
This poor black boy talk is nuff shite talk.
When they in trouble they remember being poor black boys. When they flying high, they look down on those who helped them get where they are.
Owen Seymour was once a poor black boy. When he got power and worth, he called people negrocrats and sons on indentured servants. He may be a black boy , but he certartainly aint poor no more.
……………………………………………………………………………
A most fitting and true statement about us as a black people. Do not forget Muscle Mary; he looked down on those who came to him for help. Shameful!!!
I have been doing some serious investigations and went to The Trinidad Guardian online.
The cooperation between Barbados and Trinidad is producing fantastic results.
http://guardian.co.tt/features/entertainment/2009/02/01/soca-divas-unite
Doan cuss me an tell me nutten bout off topic.
I amd focussed. lol
This is serious. very very serious.
Online edition of the Trinidad & Tobago Guardian
“The Government of T&T is set to become the largest shareholder of One Caribbean Media (OCM)—parent company of the Trinidad Express, CCN TV-6 and the Nation newspaper in Barbados—as a result of its bailout of Clico, the country’s largest insurance company. “
Well after a weekend’s smooth talking nobody is any the wiser about their financial futures if entrusted to Clico.
No total exposure figures, no cast iron guarantee from Clico Holdings (Barbados) Ltd., that they are ring fenced to a Trini cash grab.
Things do not smell right to me.
Everyone with Clico involvement should investigate, analyse and so make an informed decision on their own response to this new situation.
If you take comfort from the soothing words of the same executives of the company who have engineered this situation, then stick by them.
I know, after listening to all the long talk, which way I would prefer.
But I’m no financial analyst, just a man who has always worried about sufficient provision for his later years.
To say that Clico Holdings (Barbados) and its subs will not be impacted by the liquidity crises which has consumed CL Financial and its T’dadian subs is a complete joke. If you have ever seen the audited consolidated financial statements of Clico Holdings (B’dos) and the Barbadian flagship Clico Int’l Life Insurance, you would notice that a large portion of their assets are in the form of amounts due from related parties, most of which I understand, to be recievable from several of the large T’dadian companies incl. Clico Investment Bank and Colonial Life Trinidad. (to be honest I haven’t looked at their 2007 statements but this was certainly the case in previous years)
Also, it is common knowledge that whilst the banking system in Barbados is relatively well regulated, the insurance sector is certainly not.
Anyway, you couldn’t expect Mr. Parris to say anything different in his press conference given the circumstances.
Wuh, allard did not buy the Sanctuary from Clico, it was purchased from the estate of Mr. Corbin, a property developer. Allard purchased a small strip of land from Clico.
Personally I had glad that I do not have any money with Clico, I do have one small insurance policy with British American; I would not be suprised if some people withdrew their money from Clico on Monday morning. I am aware that one branch of First Caribbean International did experience customers on friday cancelling their standing orders with Clico.
As a point of interest Clico Investment bank in T&T were at one time offering depositors a higher rate of interest than any other financial Institution. Remember Trade Confirmers here in barbados some years ago? check now and see if British American here is not offering a rate higher than even Clico……
@ Straight talk
The best we can hope for is that the TT Government has the 10 to 20 billion dollars that may be needed to bail out Clico.
One thing that caught my attention is the problem with the ethanol plant.
Barbados is supposed to be growing special cane for ethanol production and prehaps that idea needs to be revisited.
Hants:
If you check out the EROEI of ethanol it would need oil to be back above $120 per barrel to even begin to be worth the massive investment required.
Similar to your Athabaska Tar Sand industry, I understand things have gone quiet round those parts too.
Its seems a shame that all research into alternate energy ceases when oil is cheaper, only to be revived when we enter another crisis.
I have 40K fixed deposit at CLICO and I am going for it BRIGHT & EARLY tomorrow (Monday) morning. I may have left it but after hearing Leroy Parris’ press conference I have ZERO confidence that he knows the difference between his rass and his elbow (of course figuratively because I suspect he and others know the difference). I plan to be at CLICO for 6:00 AM because I suspect that there are others who will be thinking along the same lines as me. Leroy Parris believes that he is a spin doctor bur I have news for him the higer the monkey climbs the more he exposes his —. Leyoy sure enough OVER EXPOSED his sorry — last week. I am sure that after look at his sorry performance his wife and family must be having second thought about this mans (?) ability to manage anything. My recommendation to ALL persons who have money in CLICO – WITHDRAW YOUR MONEY ASAP, DON’T TRUST SMART BOY LEROY.
@Straight talk
Very true.
I still can’t figure out why Solar Energy and Wind Energy is not developed to its potential.
We can only hope.
Sad to Say,
You are a real sad case!!! That’s all I have to say.
@ Sad To Say
You are entitled to do what you think is best for you.
Why are you encouraging others to join your rush to extricate your funds from Clico.
Now you have stated your intentions, it may be wise to camp out overnight in case all the Clico Investors decide to beat your 6 am line up.
BFP will you be doing some investigative reporting from Clico at 6am.
@ Sad to Say
If Leroy Parris is as you negatively described him, why did you invest $40,000 with a company run by him?
I still hope you do get your money but more importantly I hope Clico does survive.
They are ordinary people employed by them who do not deserve to lose their jobs because of by the mistakes Duprey says he made.
Oh, goody-goody! I going down by CLICO tomorrow foreday morning just to see exactly who down there in the early morning dew, then I will know exactly who is who on here!
Margaret
As a supporter of Graeme Hall are you reading all the submissions?
All the studies that have been paid for over the past 35 years that are on the Graeme Hall site, call for a buffer zone to protect the wetlands.
FOGH representatives met with Dr Lowe and The Prime Minister to object to a revision of the Physical Development Plan that originally called for open space and was to be changed to Urban corridor.
In spite of this objection and all those that opposed the Water Park, the new government went ahead and passed this amended legislation.
This affects the very health and long term viability of a National Park and a watershed in crisis, something you apparently fervently support.
http://www.graemehall.com/
Are you in favour of a National Park and green space in Barbados for future generations or do you favour development of the uplands?
This is really the crux of the problem as the government has passed legislation that contradicts this open space concept in spite of years of studies to the contrary and the previous legislation.
My recollection is that Allard saw the writing on the wall when he gave his press release and he said it was up to Barbadian citizens to choose what they wanted.
Allard true to his word shut the Sanctuary on the 15th of December after thousand upon thousands showed their support. It is now up to the government of Barbados.
After many tens of millions of Dollars spent on the environment over the past 10-15 years, has any politician ever picked up the phone to thank him personally for his efforts?
Maybe your energies are better spent asking Denis Lowe and members of the cabinet what the status of the negotiations are and what communications have taken place?
Thank-you for your support to date
Robert of BFP wrote “only post your comment on one story or you will have to find a home elsewhere. thanks! Robert”
Dear Robert and BFP:
Wuh happen that all-yu so touchous?????
********************
BFP says
Hi J,
That has always been the rule here. One is not allowed to copy and paste the same comment into five different stories. Try it at other blogs, perhaps BU, and see what happens.
Straight talk wrote “just a man who has always worried about sufficient provision for his later years.”
Get ye a young loving hard-working 2nd wife.
Best investment in the world
http://www.graemehall.com
“We have invested nearly US$35 million over the past 14 years here,”.
That is approximately $70million Barbados.
“All the studies that have been paid for over the past 35 years that are on the Graeme Hall site, call for a buffer zone to protect the wetlands.”
What will it now cost Government to compensate the owners of the land in the “buffer Zone/Urban corridor”.
I expect Government will pay Mr.Allard the $24 million he wants for the Sanctuary and manage it as a Tourist attraction.
*********************
BFP says,
Firstly, I can’t think of one tourist attraction that the Government of Barbados has properly managed. Not a one. I might be wrong here, so maybe you can assist by naming a properly managed tourist attraction owned by the the GoB.
Secondly, if the government purchases the nature sanctuary without securing the wetlands, it will be condo-city within five years. Ten at the most.
Monday on I WILL be at the Barbados National Bank and WILL withdraw what little I have. Call it panic, infantile or stupid. the fact that the PM and the M Williams were going all out to reassure Bajans that all is well has assured me that I have to safeguard my own interest. I vaguely remember Trade Confirmers and choose to let that situation be my guide. I know too that on Friday morning a millionaire walked into the BNB and withdrew every cent he had there (over 1 million) and it was only in the afternoon that Barbados got word of CLICO’s troubles. If he can withdraw his millions – then I can withdraw my thousands
How come no one has commented on my link to the Guardian.
Wanna under summuch stress dat wanna caan sih nutten bout Alisons Hind.
Back to the stress.
How come no one has commented on the fact that the Trinidad Government is set to become the largest shareholder of the Nation newspaper in Barbados.
Supporter of Graeme Hall National Park:
Thank you. I am now in possession of some very pertinent information, together with two sides of the story. I have given my word not to reveal this information, and my word is my bond.
Can anyone explain a bank run ? And what happens
if everyone who is in the line from tonight gets their money?
Chuckles:
A bank run occurs when its customers lose faith in the bank’s continued ability to safeguard their cash.
No bank has all its deposits actually on the premises, only sufficient cash for a normal day’s transactions.
So when an unusual number of customers all demand all their cash on the same day, naturally the bank will run out of its ready cash stored in branch.
What usually happens then is – the bank closes its doors – an angry crowd develops – TV cameras arrive – panic begins to spread throughout the whole banking sector.
For a deeper understanding of how the banks work watch the excellent “Money as Debt” on Google Video.
Because, as we are witnessing now, world-wide, if everyone asked for their money back at the same time there isn’t enough in the pot.
Thanks ‘straight talk’. Let’s hope that Bajans act sensibly and responsibly today.
Has anyone looked at the comment by T&T CB about “excessive related party transactions” made by Clico? In plain terms this means they have been shuffling funds between companies probably to disguise shortfalls and deficiencies in the group! The regulators have been unable to pin them down until now when the situation has reached critical mass.
While I appreciate the need for “calm”, it is difficult to remain calm when a major part of one’s life’s work is at risk. There is a compelling desire to cut and move to safer ground.
I say to all who feel that way – get your money out while you can, don’t be left saying Cudda, Wudda and Shudda.
Nothing that I have heard from Mr. Parris and his supporters is comforting, the man can’t even put a proper sentence together.
Our PM has been silent, not entirely surprising. I wonder when our Min of Fin will decide when it is appropriate to comment. Or is he waiting on something or someone?
Time will tell all….
Margaret – “Thank you. I am now in possession of some very pertinent information, together with two sides of the story. I have given my word not to reveal this information, and my word is my bond.”
Very good for you Margaret and your reasons for silence are truly noble but it does nothing for the rest of us who do not have ‘privileged’ contacts. That is the problem, some have those privileged connections and know what is happening and the rest are left to speculate and pick up rumour and gossip. That only breeds dissatisfaction. I recall that there was a firm promise from someone not too long ago that that type of system would cease … better days are coming I am sure.
Does this mean Tompy flying pun liat now de jet gone?
In all seriousness, the barbados government is appealing to people to stay calm as clico in barbados is “different” from clico in trinidad – hog wash….I think the barbados government should take financial steps to guarantee the barbados pubilc their deposits…much like the trini government….if it does colapse, with this song the PM is singing about clico barbados being different, the trini government will be within their rights not to pay a bajun a single cent!
Since the T&T government bailed out Clico T&T – the parent company of Clico Barbados, who then is the new parent of Clico Barbados?
Will the T&T government now send employees to Barbados to protect their investment?
Can we concluded that T&T now owns more of Barbados than ever before?
Bajan bta wrote:
“Has anyone looked at the comment by T&T CB about “excessive related party transactions” made by Clico? In plain terms this means they have been shuffling funds between companies probably to disguise shortfalls and deficiencies in the group! The regulators have been unable to pin them down until now when the situation has reached critical mass.”
——————————————
Did Clico T&T ask Clico Barbados to move funds before it collapsed? If so, how much and on what dates?
I glad ……..paris or CH CH cant even put together a sentence./…
Our PM may have a slightly different problem in future than just getting a ride on LIAT.
Any funds from CLICO are going to be real SCARCE from now on, if they are available at all. Just as well (for the DLP!) that this is January 2009 and not 2008! What a difference a year makes!
Let’s hope that the Bajan public does not have to pay a heavy price for the Clico calamity in T&T. This is the time for our regulators to show the quality of their effectiveness.
Hello Poor Boys and Bajanbat,
How do you feel about David Thompson telling you that your money is safe in Clico barbados?
Note that Darcy Boyce, the real financial brains in the DLP – gave no such assurance.
Shouldn’t Thompson remove himself from commenting on matters relating to Clico?
Luckily for us on Brass Tacks Sunday, our Supervisor Of Insurance assured us all that he “cannot find anything that CLICO could not manage. Don’t panic”
Let us all have faith in his due diligence.
Bajanbat: How politics get in this?….give me a break…. you shouldnt stop at clico… blame the entire sub prime and world banking collapse on Tompy too….
Thompy , wha loss dont got a clue… there is more to running a country than flying all over the world to NY etc…attending galas. If suggest barbados buy one of dem obamas cars for darcy boyce caw if something happen to he shhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh. lets see if darcy gine hold he hand like always….never again i aint wasting my vote.. by the way i would like to thank the blp for a beautifull board walk well done…!!!! lets brace for this ride…and another thing somebody should start to tell hartley henry stop trying to compare obama to thompy…..chalk and cheese!!!!!!! also we pay he salary the hard earned taxpayers out here.
What concerns me is the level of financial information which the group releases to the public. You will note that the financials for CIB for dec 2007 had an audit report dated dec 2008. Why is this happening. No member of the group should be allowed to get away with this nonsense!!
Maybe we might have an election earlier !!!!Once again thompy the predictable……back in 2004….ran barbados in trouble and once again has not let us down…….will run us in trouble again..!!!!
boardwalk….prime example of over extension…USD 35 mil…thats 7 mil per km….
optimist prime
You really think our PM knows the definition of ” conflict of interest” Give me a break!!!!
The Minister of state has not got the fortitude to stand up to his boss!!!
i hear bnb wildey got a line out de door
You are “troubled” about a boardwalk and not the decided case of: Dimes vs. Grand Junction Canal Company – in the context of Thompy and Clico?
sherbourne centre 32 million, to do what?? hear bajan buss stop!!!!
Barbadians should seek assurance that their money is safe from Prime Minister Patrick Manning – not Thompson.
The T&T government is the new “parent” of Clico barbados. Leroy Parris never had and will not now have a clue!!
not tax payers money….so no concern of mine
Agree with Optimist Prime. T&T government should make it clear that they also assure their liabilities in barbados….CSME , caricom??
Owen gone now…..Caricom ambassador kellman to sort it all out…sigh sigh!!!!
Someone told me that Clico owns the title deed to the DLP at George Street.
Does this meant that the DLP and the Barbados Parliament – are now owned by the Trinidadian Government?
they might as well…BLP in power for 14 years and allow all this foregn ownership…. so very possible we sell ourselves out…… vote kellman for new PM!
Not Kellman for new PM of Barbados – Leroy Parris! He is the real PM who was calling the shots.
The T&T government will be from now. In this regard, Patrick Manning is both PM of T&T and Barbados.
How did politics get into this? You know as well as all of us that politics is deep into the Thompy & Clico issue. If not get your head outta de sand. No need to get facetious and try to avoid the facts. No one is blaming Thompy for this problem, or the world crisis! But he does need to act independently on this matter and not wait for directions from any source!
Darcy still got some morals left, I hope, so he may have trouble standing up and telling his fellow Bajans that they are “safe” with Clico..
Conflict of interest, well that is a bare joke when it comes to Caribbean politicians. Don’t hold your breath waiting for one of them to see that issue in their mirror image.
I am sure you all got a slittle comfort as I did from the statement by Supervisor of Insurance that he cannot find anything that Clico cannot handle.
The cracks are going to show very quickly unless there is a lot of work very soon.
If T&T won’t even sign a fisheries agreement and still don’t like the oil rights settlement, any of you really think that they will pull one T&T cent to pay out Bajan policyholders or depositors? Sssstewpppppssse!
Don’t forget that Thompy said the fisheries thing could be settled over a bowl of soup at Consett Bay. I guess that is why he put Kells to deal with it because he lives in St Lucy! He is all at sea with his economics (Kellmanonics) so he was the obvious one to deal with matters of the sea.
Bajanbat,
Should Thompy immediate have a Cabinet reshuffle and fire himself as Minister of Finance, so that darcy Boyce would have a free hand?
BFP, take a bow. Only if Barbados had FOI and Integrity legislation. Only if our laws required politicians to declare their assets!
How much money did Clico give the DLP in the last general election? I do not think the new parent company (the T&T government) will tell us either.
They would not want a run on Clico barbados and more problems for them.
Optimist, ya getting touchy. No need for Thompy to pack it in and he would not do so even if the people wanted him to, which we don’t. Elections are expensive exercises for the taxpayers. Besides, he only quits when he deems it is strategically useful.
Based on the last budget I am not sure that Darcy has too many more ideas that are going to be very useful, taxing Lottery winnings and cell phones was a real PRIZE effort!
Declaration of assets is and always will be another joke that the people choose to believe will resolve some issues of political life. Anyone who thinks or expects that a politician is ever going to declare all of their assets has to be one short of a full deck.
ING Canada said it would not be part of the 7,000 job losses announced by Dutch financial giant ING Groep , which owns 70 percent of the Canadian firm.
“There is no (job) impact for us,” said Gilles Gratton, a spokesman for ING Canada. He said the return on profitability of the company’s property and casualty business is not related to economic cycles.
“We have our own economic cycle. This is not the time to scale back
“Urging full disclosure, President Bharrat Jagdeo has put Members of Parliament (MPs) on notice that they could face criminal charges if they fail to submit statements of income and assets to the Integrity Commission within two weeks.
Jagdeo told a news conference at State House that he would also urge the Integrity Commission to publish the names of defaulting MPs in the national newspapers. “…Whether they are PPP members, or PNC members or AFC members, we are going to publish the names of all of the people who have defaulted on the law and I am going to request the police to charge them in accordance with the act,” he said, while noting he would meet the commission on Wednesday.
The President’s comments were in response to a call by the main opposition PNCR for the widening of an ongoing forensic audit of customs workers to include among others, senior government officials and corrupt business people, who have acquired assets that bear no relationship to their incomes and earnings.
Jagdeo expressed surprise at the statement when public officials are already required to declare their assets under the Integrity Commis-sion Act.
In this regard, he noted that many of the PNCR MPs have not been complying with law and announced a two week-deadline for MPs to comply with the law.”
Source: Starbroek News February 2, 2009.
sorry that i missed the last few posts….but i was down bridgetown getting my money out bnb….they give me my $2,549 in dollar coins and three dollar bills….i had the option for a cashiers cheque but i was affraid that would bounce….anyhow….my money now safe….
bing back the blp!!! hELP!!!
I would officially now like to make it clear that i am switching over to the BLP!!!
Same can be said to you….long live the DLP and tompy….
Get real….what kind of person uses someone elses handle?
As demonstrated above…..usual poor tacticks from a BLP supporter….ballons in a mass meeting ring a bell?
Pingback: Global Voices Online » Trinidad & Tobago: The Bailouts Begin
All media reports state how many billions the Clico group is worth. Never a word about its liabilities. Ramesh Maharaj, a previous TT Atty. Gen. demanded an inquiry into the group years ago because he claimed they were insolvent. He was ignored.
Duprey bought many companies with premiums from hundreds of thousands of people who bought life insurance policies and also with funds deposited by savers in Clico controlled banks.
This worked as long as these companies made profits and confidence remained in Clico.
Funds were shifted around the group from profitable companies to cover losses in other ones.
This was no more than than a giant Trini style Ponzi scheme similar to the current Madoff scandal in the US.
Irrespective of what Parris and Thompson say, Bajan depositors in BNB and policy holders in British American Insurance and all other Clico companies are at risk of losing everything.
Remember just about one year ago Leroy Parris vowed to put Mariano Browne behind bars? I wonder what promises Mr. Browne – Junior Minister of Finance T&T – extracted from Nr. Duprey in return for the T&T Government’s bail out of CLICO. Does anyone think that Leroy Parris’ name surfaced during those discussions? Sit back and watch the plot unfold.
anybody roun’ here hear anything about a $10m move from the CB to Clico?
Armageddon. read between lines.
http://guardian.co.tt/news/general/2009/02/03/kamla-alleges-minister-got-insider-information
@Hants
Armageddon. read between lines.
*******************************************
And these are the people who will be assuming direct control of a significant portion of Barbadian assets.
Lord Help us
@ Sargeant
From the time this story broke I have been reading the Trinidad newspapers and even posted links here on BFP.
I sincerely hope that the assets of Clico Barbados are controlled and regulated by the Barbados regulatory agencies.
The accusations of “insider trading” in the Trinidad parliament today are very serious.
BFP have I broken your laws?
**********************
BFP says,
Hi Hants. Nope… don’t know why the spam filter grabbe that one comment and not your others. No bad words in it that I can see.
the guarantees and loans from Central Bank to Clico and other Barbadian Banks to backstop Clico have already started.
Thompson had no choice.
Stability is the operative word.
Hopefully this will not prevent the government from trying their own stimulus package?
Friends with bling bling and corporate jets can be a curse.
Wunna trying real hard to bring down CLICo but it didn’t work and won’t work. Thompy is saving Bajan jobs and Bajan investments and that’s what I elected him to do!
All the meetings Hallam, Marquita, Mia, Lynette Holder and the rest of them had all weekend and the telephone calls Optimist Prime (Mascoll who stole $10,000.00 from the Crdit Union) made, have not worked!!
Keep on keeping on Thompy… you there for a long time.
@Hants
It was bad enough when BNB was sold to Trinidad interests, now the T&T Gov’t will have a significant say in all aspects of its operation. Then you have the media i.e The Nation & VOB and other private sector companies like BS&T which are T&T controlled, these people have the capacity to bring us to our knees.
On a slightly different topic my T&T friends like to point out a couple of large buildings near the Scarborough Town Centre which were said to be owned by a T&T minister (now deceased) who used to be very prominent in the horse racing industry. I wonder if a few years hence we will hear of a few more assets owned by T&T ministers in this area
I may be missing something since some stories in the online edition are edited very poorly, but is this paragraph as printed in the Nation correct?.
CMFC will finance 100 per cent of the cost of the land plus legal fees, all up to a maximum of $250 000 and 100 per cent mortgages for first-time property owners of up to $450 000
Are they actually providing 100% financing towards the purchase of land and homes?
http://www.nationnews.com/story/327958608822988.php
That’s certainly what it looks like Sargeant, however, I would call CMFC to confirm.
Btw, Sarge, up till now this person who insists that I am you and various sundry other people, has been amusing in a sick kind of way but now things are getting out of hand. Because this idiot thinks I am you, he is quite naturally convinced that I am a man, which I am happy to report, I am not. I have been posting to various Bajan blogs for quite a number of years and it has always been known that I am a woman. Now, we got AH, who by the way, came in here posting under the name “Wayne” after getting banned, taking up the torch of that demented person who insists that I am you.
Only a petty and vindictive mind would now take a self-serving quantum leap and say that I have now “been outed from my closet”. How does a 100% female heterosexual get outed as a 100% female heterosexual unless I was in there rummaging around looking for my favourite high heels?
Is it true that the Governor of the Central Bank T&T as well as the Minister of Finance T&T – withdrew their money from Clico before they made statements or offered assistance to that company? If so, why?
Secondly! Is it not true that CLico Investment Bank (CIB) was used to purchase Samlords Castle; the plantation in St . John and Rayside?
How then can “any clown” say that there are no implications for Clico barbados?
Can we hear Local and Regional Statesman – The Rt. Hon. Owen S. Arthur,M.P.; Professor Frank Alleyne and Professor Michael Howard on this matter please!!
“Bajan depositors in BNB and policy holders in British American Insurance and all other Clico companies are at risk of losing everything.”
Ouch!!!! and I have $1,300 with BNB.
Can anyone enlighten me as to why my government is shelling out $10,000,000.00 to a company which recently declared that their business practices were sound and they were in absolutely NO financial troubles even though their parent company is begging CB T&T for bailout monies, without oversight?
I have major issues with a CEO displaying mountains of arrogance during a press conference in order to allay fears and maintain confidence. Does he think Bajans are stupid, we require for you to come straight. I for one will be scribing my displeasure to my parliamentary representative sighting that more oversight and debate is needed before any blank cheque is signed.
If 10M is the first prong of the fork, what will the other two teeth be? I know it is essential that CLICO Bds survives but they need to declare more than their CEO’s friendship with the PM in order to get my approval to use my money.
Even if there is a MOU, who do you think will dictate the “terms?” Imagine! Clico bought plantations. It then bought Samlords, then Rayside.
It then bough the DLP so that it can guarantee work for Rayside, hence the “firein” of 3S.
It bought equipment for Rayside; got lucrative contracts fixing roads, and is able to delay the introduction os an Agricultural Protection Act – with the instructions that some of those plantations are to be allowed to grow real estate.
Thompy, Parrish, Clico Barbados and the DLP – one in the same.
Wonder what David Durant, Pastor Holford and the Bishop have to say.
According to them, the DLP was chosen from on-high. I rather though it was Clico’s money!!
It is not pay-back-time!!! Ten million is only starters!!!!
I have to say, it is enlightening to see that our Caribbean Governements have matured to the point where they recognize that a controlled market response to a potential financial crisis will without doubt benefit all members of that particular society.
It is notable that each and every country where news reports have been coming from about the CLICO situation has clearly stated they will make a sound controlled response to this situation.
Even though we live in Barbados, and I have no doubt that politics plays a big role in this situation it does in each country. Clearly, Guyana and the OECS (as a block) cant have the same situational realities as we do in Barbados and Trinidad and Tobago.
What is unfolding here is the maturing of our markets and their regulators. Something which I think is laudable, and shows that even separately we still have the wherewithal at least financial, to control our sovereign fates. Imagine collectively.
But I want to make it clear that this move by the Barbadian Government must be seen as an attempt to protect Barbadian investors from the ‘cherry-picking’ the Trinidad Central Bank Governor mentioned.
I am glad too that our investors are level headed and savvy. No financial system can handle a run on any major player in its jurisdiction.
One last point beware of the ‘big shot’ maligners, some of them have ready cash and see this as an oppurtunity to purchase nice ‘juicy’ and ripe assets at very reduced prices…if they could only get CLICO to crumble!!!!
This will be the announcement when you arrive in Barbados..”Welcome to an extension of Trinidad and Tobago, formerly called Barbados”!
Makes me sick!
In the Nation newspaper of February 1, 2009, Prime Minister Thompson was reported as having said that he had consultations with the heads yesterday and was fully satisfied that CLICO’s Barbadian operations: “were sound, prudently managed and well regulated and that Barbadian depositors, investors and holders of insurance policies can therefore be considered safe in the context of our financial sector”.
In the Nation of January 31, 2009 the Governor of the Barbados Central Bank was reported as having said that BARBADIANS SHOULD NOT remove their business from any subsidiary companies of CLICO.
In fact, Williams believes customers here should keep faith in the company. “It is a well-run company,” she said.
Yet, in today’s Nation, we are reading that the Central Bank of Barbados is injecting up to $10 million into CL Financial’s affiliate company here, CLICO Mortgage and Finance Corporation (CMFC).
It would appear that the Bank has “agreed” to make the $10 million deposit into the CLICO Holdings Barbados subsidiary as part of an immediate three-pronged course of action in light of difficulties faced by the parent company in Trinidad and Tobago.
Did Parrish not say that Clico is sound? Will somebody explain to me what is happening and what this $10m is all about?
Is this a bail-out by “stealth?”
Which political party was in power when they sold the BNB to Trinidad?
Which political party was in power when BS&T was taken over by the Trinidadians.
Which political party was in power when the sale of Barbados land and Barbados companies was termed “maximising its potential”.
Remember the speech at Apes Hill?
How much money was borrowed from Trinidad prior to January 15th 2009.
The Trinidad army did not take take over Barbados.
We have been selling it to them acre by acre and company by company.
It is already so P! Wibisco. Plantations, BS&T, Geddes Grant, Stokes & Bynoe, Brydens, BNB, etc etc. Thank God for the vision of Goddard Enterprises!!
I find it rather strange that the CB now has to inject $10 million into Clico Mortgage & Finanace Corporation “as part of an immediate plan three pronged course of action in light of difficulties faced by the parent company in Trinidad & Tobago”. Especially after the comments of Mr. Parris at the press conference when he was adamant the the problems with the Trinidad company would not affect Clico Barbados, the same person who when asked if he was going to approach the CB retorted”for what to have them tell me what a wonderful job I am doing”.
Today’s action by the CB could erode public confidence in the stability of Clico and really raises additional doubts.about the future of the company. On saturday we saw the Prime Minister, the Gov of the CB and one of her managers as well as the Supervisor of Insurances assuring Barbadians that there was no need to panic and to stay calm today’s actions does send mixed signals.
Wonder which lands at Small Ridge are for the school?? will it be a school?? I wonder..did he not say that no more land was going to be taken out of Agriculture?? wish he would make up his mind..
“THE CENTRAL BANK of Barbados is injecting up to $10 million into CL Financial’s affiliate company here, CLICO Mortgage and Finance Corporation (CMFC)”
In trying to analyze this opening stanza of the Nation Newspaper, I am left with the belief that the leadership of this institution has fallen short of practicing financial and economical prudence in their diversification of investor’s monies and the maintaining of adequate liquidity. This statement is made on the basis of overnight lending practiced between financial institutions at minimal interest rates to sure up liquidity for next days transactions, with the view that the borrowing institution will gain sufficient deposits in the days trading/ transactions to repay the loan and maintain reserves.
The mere fact that the CB found it fit OR were asked to intervene, shows a lack of CONFIDENCE by the financial groups in Barbados to recover any short loans to the ailing CMFC; and us the public is asked to believe that all is well?
A properly managed financial institution should have a portfolio that can secure a $10M loan rather than receiving a “deposit”/ intervention from the tax payers. SOMETHING WRONG!!!
According to our CG Gov the $10m is show “good faith” by poutting their money with Clico. Now if that does not take the cake please tell me what does. Thompy obviously needs to show as much support for his friends in need as possible and this is one way of doing so with our $$.
Nice one, but it does not fool anyone. This is a backhand support line along with the “line of credit”.
Watch out, things will not get better.
Some of you need to spend some time reading news from around the world.
Giving a line of credit to Clico is to ensure that Bajan investors can get their money out of Clico if they want or need it is prudent.
The Government is acting responsibly.
Any of you who have money in Clico can go and get it. It is yours.
The Government of Barbados has taken the steps to protect your money.
Hants
February 3, 2009 at 4:43 pm
Some of you need to spend some time reading news from around the world.
Giving a line of credit to Clico is to ensure that Bajan investors can get their money out of Clico if they want or need it is prudent.
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As usual Hants, you are trying to use spin instead of dealing with what’s right or wrong. First of all, this is not a problem that is affecting all the financial institutions in Trinidad and Tobago along with Barbados. It is a Clico thing. Now let’s deal with what is happening with Clico Barbados. Only Friday, the chairman allayed fears to the Barbadian public that everything is good with the Barbados’ operations and stupidly stated that it have nothing to do with what is happening in Trinidad. The PM stated that the operation of Clico is sound and don’t worry about what is happening in Trinidad, yet we are hearing a stimulus package of $10 million dollars. I even go further regarding the Governor of the Central Bank defending the finance of Clico Barbados.
This leads me to why $10 million was placed at Clico’s disposal within 48 hours. TELL ME WHY President Bush had to consult before approval? TELL ME WHY President Obama is waiting for approval with the stimulus package in order to jump start the American economy? TELL ME WHY Trinidad when the democratic way by going to Parliament for approval? TELL ME WHY Britain had to go to Parliament for approval? TELL ME WHY Barbados feels that the power of approval should only be the dire responsibility of
the Ministry of Finance and who the hell is the opposition in this matter. We got rid of the BLP due to its dontt carish attitude with the taxpayers dollars.
Hants, you seems to have a short memory. The BS&T sell out started in the Arthur administration, but was only concluded with the signing in 2008. Remember during the election, word was out to the effect that the “sale will be overturned before the ink dries”. Yes Hants, if this administration was serious about the demise of BS&T, we would still have a BS&T instead of TS&T?
So was the Govt of Trinidad, Hants, like you I read news from T&T on-line as well as having a brother living there. For those of you who have not done so as yet, go and read the Minister of Finance’s (T&T) comments re Clico’s management (mismanagement) and see where she withdrew her personal money from Clico.
Clico’s debt is reported to be $8 Billion; and that figure is likely to increase when all of the facts are in; Govt is going to appoint a new chairman & board of Directors, Duprey remains as chairman of one of the companies cannot remember which one.
The run on Clico was approx $250 m/week, this is only the tip of the iceberg.
The “anonymous” post is mine.
Thanks to”Laughing” for bringing balance and objectivity to this blog.
Straight Talk wrote “…once Duprey knew his conglomerate was relying on the bubble to service Clico’s commitments the prudent course would have been liquidation of assets, at any price, to protect his policyholders’ interests.”
Who’s to say that prudent method wasn’t attempted ? Sometimes Government policies and revised Acts make such transactions difficult. Remember how the B’dos Government sold off interests in ICB and BNB to foreign companies for ‘liquid assets’ ? Well, not every country likes the idea of selling off national assets to foreign interests, and Trinidad is very nationalist. Any business is about risk, and as we have seen in the past few months, from the problems on Wall Street, to the trading value of oil, much of what happens is driven by fear and speculation.
Everyone that has a policy or some small or large investment in any such company can be considered a stakeholder, and if everyone panics and withdraws their ‘investment’, call it the nail in the coffin.
People need to look at the issues and facts, and not make it a political statement as this does nothing to help the overall situation.
@ Tudor and Anonymous
Your opinions are interesting.
People need to look at the issues and facts, and not make it a political statement as this does nothing to help the overall situation.
………………………………………………………………………………….
Coffee & Cream. By placing $10 million at Clico’s disposal create the impression that something is wrong after Parris, The PM and the CB Governor told Barbadians that everything is well with Clico. Just don’t blame people because questions are now being asked.
@ Tudor and Anonymous
Wanna bowling too fast so I gine retire hurt. lol.
Hants, the anonymous post is mine. I would like you to tell us if the Canadian Government decides stimulus packages without going to Parliament? I am curious to hear how it is done in Canada.
Coffee & Cream:
Allow me to stir (pun intended) – “People need to look at the issues and facts, and not make it a political statement as this does nothing to help the overall situation.”
I’ve read Duprey dismissed an executive because he refused to dip into the statutory reserve to pay managerial bonuses.
Have you read the same?
Do these actions do anything to help the overall situation?
I, thankfully, have no ties with the CL Group and have no axe to grind.
But this behaviour, if true, does not bode well for its investors (who have a choice) or its clients, pension and policyholders (who maybe are tied in).
If you are willing to condone this sort of accountancy manipulation for the sake of stability you are merely postponing the day of reckoning.
Read between the lines of what the CB of TT said.
@ Tell me Why
It is my opinion that the Government support of Clico Barbados was necessary to protect Barbadian Investors.
In the words of the late great Bajan minstrel Shilling “he decide to decide de decision” and dat is dat.
The PM and the Dems can deal with any political fallout.
I hope all uh wanna self employed like me and not teifing company time when wanna should be wukking.
Try and see what is happening. The PM & the Gov of CB say that all is well with Clico, so we can take comfort. I would think that if they want to make us more comfortable then they could say that they IF there is a need to support Clico they will make funds available. Why is it necessary to actually place $10m with Clico? The story from the Gov that “it is to show our confidence that we are willing to place our own (laff at that one) money with them” is just that, it is a laughing matter. There must be some reason the funds are there. I hope they will not form part of any assets that Clico-T&T needs to settle any liabilities or secure any debts in T&T. As I said before, don’t expect one T&T cent to back Bajans liabilities.
The PM is a clever politician and he will ride this one out. Let’s hope we all come out smiling. I never had nor would ever have one cent with that Co but many Bajans do and I don’t want to hear they have lost their life savings. We don’t need another Trade Confirmers.
@ Bajanbat
“but many Bajans do and I don’t want to hear they have lost their life savings.”
Well said.
No right thinking Bajan wants Clico to fail.
People invested their money and bought policies in good faith and no one saw this coming.
@Hants – let’s remember everything when we remember which party was in power when BNB & BS&T were “sold out”. Let’s also remember that it was the DLP’s esteemed leader, ELS, who sold our C&W shares to that parasite which saw the opportunity to truly bleed the Bajan public. He knew fully that with their licence due for renewal they needed the extension in order to impose their monopoly upon us for as long as possible. We are still paying the cost of that little transaction!
How quickly and conveniently some of us forget!
I think we have to face reality. Legislation related to the bailout plan has been tabled in the Trinidad parliment. Which means the Trinidad Government is serious about this situation (and take it seriously) and have been taking it seriously for sometime, to allow the mass mobilization we have seen in their response to the CLICO issue.
The Trinidad Government has seen an ‘oppurtunity’, as ‘Coffee and Cream’ has rightfully stated to retain their companies using a nationalistic stance.
In the case of Barbados the Central Bank has made it clear that what the monies represent. And I might add what they are doing is nothing unusual in the normal course of Central Bank business. Actually the Central Bank statement about opening a facility if they need ready access to cash refers specifically to the need to sure up the ability of CLICO to fund withdrawals of deposits. Its is not a loan!!! It is a quick conduit to allow CLICO easy access to funds the Central Bank holds on its behalf.
I will throw out this sprat…this is a test case for Caribbean financial market integration. We get to grade ourselves. Lets hope we give each other a passing grade!!
More ca ca in T&T carnival come early!
Dr. Keith Rowley prevented a vote in Parliament, when the Govt realized that they did not have the constitution majority needed to pass both bills Parliament was suspended without the vote being taken.
As a matter of interest both Williams head of the Central Bank and the Minister of Finance withdrew their money from CIB in January (mere conicidence)
Dear Bajanbat,
I think you make a good point.
I have some questions to ask – the whole matter is quite unclear. It is not, for instance, clear whether the Central Bank has given Clico a loan or a deposit, but whatever it is, it is $10m of tax payers resources that has been put at risk. What assurances, collateral, etc have we got in return? When TnT bailed out Clico, it took a controlling interest and therefore diluted the shareholdings. Did the govenrment at least take a claim on some of the assets – the Clico Jet may be worth $10m and could be impounded until the $10m can be safely withdrawn. No where else have govenrment’s put tax payments money at risk without some sort of leverage, influence or when the money has been in the form of capital, actual equity. Did the govevernment seek that? Does the PM have a conflict of interest in deciding the sanctions Clico Barbados should face in return for tax payers support? Should he declare a conflict of interest and put the matter into the hands of the Governor and others considered more independent?
When the PM stood alongside the Governor he said Clico firms were well managed and safe. Why do they then need $10m? What did he not know then and was he wrong then to reassure Barbadians from withdrawing their deposits and insurance policies. (Of course If we had followed BFPs early campaign and had a declaration of assets we might also have been able to see whether the PM was assuring Barbadians of the firm’s safety while withdrawing his own exposure.)
I am in finance and have been following developments and while I will say that much is unclear to me, it seems to me that once the Trinidad holding company was in trouble, the Barbados Ministry of Finance should have taken immediate steps to insure that Barbadian policy holders had their interests protected. This would be about requiring the holding company to augment its previous commitment of capital support to its Barbadian entities. If they had done that, we may not have needed to put $10m at risk, and could instead have reaffirmed a willingness and ability to help policy makers if required and a willingness to offer liquidity in return for collateral.
@Optimist Prime
• Is it true that the Governor of the Central Bank T&T as well as the Minister of Finance T&T – withdrew their money from Clico before they made statements or offered assistance to that company? If so, why?
**************************************************
Please ask Local and Regional Statesman – The Rt. Hon. Owen S. Arthur to phone his boy Mariano and let us in on the details. You can share his response among us friends on the blogs.
Tell OSA he can’t keep that card up his sleeve and deliver in Parliament to embarrass the Dems
Parris/Browne/CLICO/Arthur/Caribbean Commercial Bank/RBTT/$75,000/David Thompson
Machiavelli would be proud.
I should write a screenplay. If anyone else does I need a share of the profits.
Let Leroy Parris bring back some of the millions from Miami and sell some of those properties he bought out of the policy holder;s money and get rid of the jet.he should also sell some of them mercedes benz for too long he has been allowed to pay himself millions per year without consideration for the poor policy holders and everyone allowed him and his friends to live on the hog. Had to come to a head some day only problem the poor will feel it and some will loose their pensions even after they forclose on the poor people houses and still holding thousands of their funds and contnue to live large. It is time
@Sargeant
With regard to RBTT you forgot one name (another recent top dog) there that is now our top diplomat to the USA.
Also, that 10m is probably about the amount that the DLP got during the last election campaign – lots of back scratching, guys, lots.
everbody seem to be ignoring what the finance minister from T&T say it is clearly poor management and greed and they should go before any money is given to them as I think it will save the innocent shareholder;s money. Giving them the taxpayers money to continue business as usual is just a NO NO.
I am confused… can someone help me understand two things? (1) based on media reports the central bank of Bdos recommended a 3-PRONGED approach to the assistance it will give to Clico – a $10 million deposit, a special facility in the event the company needs cash and guarantees for any inter-bank borrowings. I note however that when the PM was questioned on the assistance given to Clico, in a very agitated manner (as he usually does when posed questions he does not want to answer) he described it as a “line of credit”. Is he trying to pull wool over our eyes? Isn’t the line of credit being given IN ADDITION to the $10 million deposit?
The PM also claims that the facility is being made to Clico Mortgage & Finance in the event that persons who made deposits for mortgages do not return are request their deposits back. Isn’t this the company which has been offering 100% plus mortgages (including the legal fees) Does 100% mortgage means that you are not required to pay a deposit? Help me here please!
Thompson’s demand to the Central Governor to put $10 mill at the disposal of Clico is setting a bad precedent in Barbados. What could have gotten into our Governor that she would be all over our radio and TV boasting about $10.mill she made available to Clico although they did not ask is gross folly ad crass idiocy?
Barbadians are yet to be told what collateral has been secured for the money. How can Marion Williams allow a novice like Thompson to throw away our money like that? Where is the transparency and accountability that was promised by this corrupt Government?
After Thompson and Parris wasted policyholder’s money buying a private jet and jetting around the world on their escapades. Taxpayers of Barbados now have to put up their hard earned cash to maintain these boys lavish life style.
Thompson was swift in putting up our money for Clico so that Parris can keep his big job but not a cent in a stimulus package to stop the loss of Barbadian jobs. Barbadians should take note that as soon as our $10.mill ($30.mill T&T) was made available Clico Trinidad took the position to take the Trinidad Government to Court because Duprey felt that the Government was taking too much of their assets. It appears that these fellows at Clico believe that they should have the right to spend other people’s money as they wise.
Thomas Gresham makes a very good point.
This government came to office with a promise of accountability; transparency, financial prudence, good governace and freedom of information.
First, there was a right-off of $19m for the Turf Club.
Now, $10m has been placed at the disposal of Clico with no conditions. Where is the financial prudance the DLP promised?
I never expected such a casual and almost reckless “misuse” of public funds. The DLP is not above the law and must not feel that it is not accountable to anyone.
Why were condidions not attached to that $10m?
Now that Clico has been gounded, so too may its private jet. Thompson is so accustomed to the big life that he may not wish to catch LIAT.
We may now see him in Barbados more often. But it took a financial crisis of his clone’s company.
Optimist Prime
I think that you are mistaken my friend….the barbados goverment has not given 10 mil to them with no conditions…they merley deposited 10 mil on account, which will accumulate interest (just like your bank account, and yes, goverments do have bank accounts!). What does this mean you ask? – since the government is in no rush to withdraw their money, it will act as a buffer and available cash to cover those who are affraid and withdraw their money out of lack of understanding.
I do not understand how you can interpret this as being careless!!!
Troubled,
Lets face it. That $10 million is really to support the “massive life style of Parrish.” Can you pay yourself a 400,000 bonus?
Do you know that the white people in Barbados withdrew their money on Friday and again on Monday?
How many people can fly their barber to New York on private jet to buy supplies? Parrish could have!!!
Again there is evidence that the DLP is using the taxes of the poor to prop-up the rich and famous.
Clico; Parrish; the Turf Club, Simpson Motors – who next?
Why could it not have used some to support the jobs of those at Bartel, and the Jewelry store of Broad Street?
Well look! Clico put $15 million in the DLP’s election pot and Parrish now gets back $10. Seems reasonable to assume, $5m left!
Optimist Prime:
What does colour/race/creed of the depositors of cilco have to do with this discussion. I think you to be very narrow minded to bring race into a debate – there is no room for it here!
If there were blue, green, orange people withdrawing the money what difference would it have made?….
Please enlighten us on the race and size of withdrawals that occured on those two days since you are in the know.
As regards that $10 million which the Central Bank deposited into Clico, note that it was done after interest rates were lowered by the same CB.
What rate of return will it fetch or will the Central Bank and Thompson waive the interest?
In the absence of Parliament, who regulates the regulator? We know that Parrish’s friend is regulating the Central Bank and that Parrish is regulating the DLP.
But who is regulating Parrish and Clico or are they above the law. Fruendel Stuart said Arthur was disrobed. Perhaps only Thompy can disrobe and regulate Parrish.
Care to answer my question about race?
The interest rates in Barbados are still higher than any other major economy in the world….please do your home work….there is more to the world than our 166 square miles!
I did not promise FOI, ask those who did?
If it appears that I introduced race, I regret such. It was not intended. I hope you are not “troubled.”
hhahaaa…no
Is it possible that this whole CL/CLICO mess is a byproduct of the ugly side of Trinidad politics with resulting harm to the Barbados operation?
Consider this: One of the allegations is that the crisis was initiated when the state owned National Gas Company (NGC) withdrew funds to the tune of four billion from CL/CLICO. In the Caribbean it would be inconceivable for a Gov’t owned entity to withdraw that sum of money without the PM being informed. One would have to assume Manning knew about the withdrawal.
A cash strapped Duprey now has no choice but to approach the T&T govt for funds and Manning seizes the opportunity to crush Duprey by demanding a large chunk of his empire to play ball. The financial fall out ensures that CL/Duprey will never be able to assist Panday and his party in challenging Manning as he has ensured that one of his opponents major benefactors is neutralized.
a) What if Manning was aware that CL/CLICO was having problems and ordered the funds withdrawn to do maximum damage to Duprey because:
b) Duprey was a big supporter of Panday and his party and was a previous employer of Carlos John before he became a minister in Panday’s gov’t. When Manning became PM both Panday and John were charged with corruption relating to the alleged payment of a bribe by John to Panday in connection with a construction project.
.
A little aside, RBTT owned by CL/CLICO bought CCB and fired Mariano Brown. They sued Brown for the return of bonuses he had paid himself. The lawyer for the plaintiff was David Thompson now PM of Barbados, during the election Thomson produced a copy of a bank draft issued by CCB/Brown payable to Owen Arthur & the BLP for $75,000 for election expenses relating to the election of 2003. Was that copy furnished by CL/ CLICO who were now the owners of CCB?
Brown is now the junior Minister of Finance in T&T. You can’t make this stuff up, truth is stranger than fiction
@ Sargeant
The reports in the Trinidad media suggest that this is about power and politics.
IMHO Barbados and Barbadians must not permit a foreign Government to own anything in Barbados other than an Embassy.
We must buy back BNB and the Nation newspaper must be put back in private hands.
I don’t care if private foreigners own property or businesses in Barbados but not foreign Governments.
Optimist Prime wrote “Optimist Prime
February 4, 2009 at 7:35 pm
“Can you pay yourself a 400,000 bonus?”
You sure that it wasn’t a million?
“Is it true that the Governor of the Central Bank T&T as well as the Minister of Finance T&T – withdrew their money from Clico before they made statements or offered assistance to that company”
Man you all ain’t hear that it wasn’t the governor’s money.
It was she DEAD mother’s money.
And all-yu invading the DEAD woman’s privacy.
First time I ever heard that DEAD people have any privacy, or need any privacy.
Kofi wrote “Thompson’s demand to the Central Governor to put $10 mill at the disposal of Clico is setting a bad precedent in Barbados. What could have gotten into our Governor”
Eh!!, eh!! Kofi. The Governor getting on in years. She gine retire soon. You expect she to give she self high blood pressure at this time of her life?
Stupseeeeeeeeeeeeeeeeeeeeeeee!!!!!!!!!!!!!!!!!
Optimist Prime wrote “How many people can fly their barber to New York on private jet to buy supplies? Parrish could have!!!”
Ya lie!!!!!
‘casue none of these guys have any hair (to speak of) so why would they need a barber?
I live in St. Lucia and out here everybody cashing in their premiums now. Bajans better start to do the same. Check the stock value of CL Financial and see how it drop.
Clico simply mismanage all their clients money.
Has anyone noticed the irony? “Nothing is wrong with the CLICO Barbados operation”, yet the Central Bank of Barbados puts $10 million of tax payers’ dollars …”at the disposal of CLICO…”.
I wonder if this would happen to any other company whose parent company experienced similar problems.
David Thompson has a bit more explaining to do to convince me that this is not a special favour for his friend.
Little boy you make a lot of sense. I have no memory of the Central Bank ever putting millions in a company “to show good faith!” . Thompson and Williams could say what they like, I know this chick ain’t banking on that!
TORONTO — TD Bank economists have issued a bleak forecast on Canada’s worsening labour market, predicting job losses totalling 325,000 this year.
My optimism is decreasing. Tings looking bleak.
Hello all,
I will be posting time to time. A bit of a respite was very useful.
The Government’s action in offering ‘public’ support to Clico was, as another blogger noted, part of our ‘maturing’ as a regulated economy.
Maintaining public confidence in our banking system is certainly a priority.
Nevertheless, any despositor who has worked and saved deserves their right of access to withdraw their funds.
My worry is that this is a reflection of the state of the T&T economy at this time.
Some may criticise whomever who allegedly caused the quandary with the original substantial withdrawal. Allegations that it was orchestrated are probably unfounded, as the depositor, even if a Government entity, may merely have been protecting the national companies deposit, to wit, the taxpayers.
What is clearm is that there is an evident slowdown, both in T&T, and in Barbados.
To aggravate this, our companies will find it harder, despite generally being well run and rated, to obtain credit on the internaitonal markets, as
the international markets are very tight.
So, we are at a scenario where we expected to be now, an expectation aired over three years ago.
What do we do.
Supporting business is important. Thus, some ease on hotels and construction, both of which are getting hurt, is necessary.
This must be done in such a way as to limit foreign exchange loss, but ease the cost of doing business for these entities in these industries.
That said, some expectation from Government, that employers will themselves make every effort to maintain jobs, within their capacity, is reasonable.
Further to the construction and tourism sectors, it is essential that we address all local productive sectors, with a view to ensuring business flows are maintained.
Temporary tax breaks to productive sectors are possible and necessary, but we must be careful to not strain the revenue earning capacity of Government, by using breaks that reduce Government earnings by too great an extent.
My preference would be breaks on business areas that involve local input. This way, we maintain control on imports and foreign exchange, but encourage the businesses to utilise local inputs, with reduced costs.
This may be more difficult done, than said.
However, if necessary, and I will get burnt for this, I would consider introducing a ‘stabilisation tax’, on petrol (not diesel, which is used in productive sectors) and liquor, immediately, which would provide funds for the next year, towards an increased unemployment pool, increased Government spending on infrastructure projects, thereby employment, or reduction in specific taxes for the hotel sector, since that is both revenue and foreign exchange earning.
The incidence of the tax will have to be determined, too low and not enough funds will be raised, too high and there will be criticism, albeit the tax being for economic stabilisation.
Ten or twenty cents a litre of petrol may be acceptable. Ten to fifteen percent on liquor would be my thoughts.
Other measures must be brought to bear. One other area I would assist greatly is agriculture.
Bearing in mind that importation of food costs foreign exchange, I would seek to make life easier for animal and food product.
Thus, such taxes as above may be used to offset versus reduction in feed cost, or reduction in taxes on farm equipment and agricultural equipment.
Overall, the important point is increasing local productive capacity and jobs, while reducing foreign exchange outgoings.
While any country usually aims for this, now it is more critical than ever, particularly as it is now harder for any country to obtain credit internationally.
We have a long road ahead. But simplicity and care will go a long way.
Peace & Live Strong
Hants, that as expected. It was unreasonable to think that Canada would be spared, with the US being a major trading partner.
This is a long haul and must be addressed by economic fundamentals, bearing in mind that in the past, ignoring fundamentals is what got the world in this state.
Peace & live Strong
Barbados has got to take a long hard look at the foreign exchange earners, most importantly, tourism.
We need to look at the unnecessary items we are importing in the name of …”offering international quality”.
Do not tell me that after all these years we still cannot have menus that reflect who we are.
Michael Winner hit it on the head when he described the fare at Sandy Lane.
But then again the boys at the top of the hotels have no real understanding about who we Bajans really are…or maybe some of them , like a lot of us “forget whey dey come from”.
Those clients who went to Whitepark road for they money and were told they had to the President yesterday must be applauded for ignoring the dishonest SOB
Come Sir Courtney you can fool some of the people sometime but you cant fool all the people all the time.In fact you can fool very few of us right now we are educated just as you are probably not to the same level but we all know and understandand we respect your brilliance but don’t disrespect our intelligence and and take our calm demeanour to mean that wer dumb. Why is Sagicor not in the sme position as Clico when have the same they have the same make up in terms of the companies in thier conglomerate> The Global situation has absolutely nothing to do with CLICO. it is GREED, MISMANAGEMENT,POOR ACCOUNTING, and POOR and UNTRUTHFUL AUDITING straight up. You really think I am Ossie Moore
Ossie Moore add another one lack of accountability and they showed no respect for the policy holders funds the way Leroy Parris and Duprey abused it.
The only real Ossie Moore in this whole shake up is the Chairman of Clico Barbados. so we should not be surprise at the downfall of Clico
It is very easy for Thompy to decide which master to serve: Clico and Parrish or the people who voted for change.
Imagine, Thompson is yet to bring a stimulus package for the Barbados economy, but his “squeaky clean” government is quick to give Clico a $10 million stimulus package.
No business person can point a finger at his: “squeaky clean government.”
StupPPPPPPppppppSEEEEEEEEEEEeeeeeeeeee.
DLP supporters feel let down and disappointed about Thompy’s $10 million stimulus package for his friend Parrish?
They want to know how could he actually give away $10m of the taxpayers money, just because he does not want to fly on LIAT?
Last year at the DLP’s conference the rank-and-file wanted to know how is it that they have tickets to the fatted calf – yet brandname persons were given unhindered access to the trough and were actually gouging themselves obese.
Thompy told them to be patient. But the same thing is happening again.
Clico has been given $10 million, even without asking, yet vendors cannot get, neither can the DLP’s rank-and-file who are asking.
That $10 million could have given the teachers, nurses and policement the duty free cars they were promised.
Do you know how many houses that $10 million could have built for people in St. John?
One thing for sure. Prime Minister Thompson is really looking out for “Big Business,” while the small man suffers.
My mother was diabetic, my father was diabetic, my grand mother and a few aunts and uncles were also diabetic…
If the parents are diabetic the children should get checked for diabetes too…
My parent company is suffering from poor management decisions, according to the Trinidadian Minister of Finance…does it not follow that the “little child” here in Barbados could possibly be suffering a similar fate?
But I is only a “Little Boy” so I wunt know neffin bout dem management tings!!!
Somebody help muh nuh!!!
Optimist Prime
February 5, 2009 at 2:58 pm
DLP supporters ( except Hants and …)feel let down
… but Parris is also a Director on the Parent Company’s board, so don’t tell me that he is isolated from ‘poor management decisions’ aspects.
I found this comment regarding …
Trinidad and Tobago: New Companies Act In Trinidad And Tobago – 4. Directors And Officers’ Liabilities
14 May 1998
Author: Timothy Hamel-Smith
It is a reality of the late 20th century that directors and officers of companies face numerous potential liabilities. The new Act has served to emphasize this reality. Directors and officers therefore need to be very concerned about potential liabilities. Prior to the new legislation, directors already owed fiduciary duties and duties of skill and care to their companies. The legislation codifies these duties. It also reinforces and extends these duties in various ways. It is also very significant that the Act increases the range of persons to whom directors are made accountable for breaches of their duties.
So that begs the question, how come the directors have not been served notice that they may be liable or possibly charged with a crime, if investigations find such.
It seems that the official site for getting a copy of the T&T Companies Act – http://www.ttparliament.org/bills/acts/2003/a2003-12.pdf – is not working.
Oh, sorry, found it at
Click to access a2003-12.pdf
seems the link I initially found needed updating. Now let’s see … (have to cross reference it with the Barbados version)
http://guardian.co.tt/
littleboy: You have made a very valid point. Hotels and restaurants are going to start feeling the hurt in a big way and will need to start seriously trimming costs and overheads. As you have suggested, one of the first and best ways to do this is to stop paying for high end, fancy imported foods. Any chef worth his salt, can and should, use local ingredients as the primary source of good food in his kitchen. You can take any local Bajan dish and “haute” it up with a little imagination. Look how Michael Winner was raving about the roast suckling pig he used to get at Sandy Lane. I could be wrong but I believe that many tourists do not want to go to a restaurant on vacation and find the same things on the menu that they get at home. Cutting back on imported foods would not only keep many hotels and restaurants viable but would also ensure that agriculture and food suppliers do not suffer during this recession.
PiedPiper
“but I believe that many tourists do not want to go to a restaurant on vacation and find the same things on the menu that they get at home.”
Probably true but a high priced destination must be competitive.
I have noticed that Barbadian supermarkets sell a high percentage of imported food which is consumed by average bajans.
Prehaps it is time for increased production of local food for bajans.
Clico Barbados is 100% owned subsidiary of Clico Trinidad. Under the MOU between the Government of Trinidad and Tobago and Clico (see below) the Government of Trinidad requires the Clico group of companies (that includes Clico Barbados) to see assets to provide for the security of Trinidad policy holders, depositors and creditors.
http://guardian.co.tt/news/general/2009/02/05/memorandum-understanding-between-cl-financial-and-government
My concern is that if the Barbados government is partial to Clico and the Trinidad government is not, that the Trinidad govenment will force actions on Clico Barbados (100% owned by Clico Trinidad) that will support Trinidad policy holders at the expense of Barbados policy holders.
It is essential that the Barbados government ring fences the assets of Clico Barbados until all claims by Barbados policy holders and others are fully satisfied. Moreover, they should use the $10m deposit for maximum leverage and require full disclosure of the assets and liabilities of Clico Barbados so that we can see whether the Trinidad government is stripping the Barbados company of assets in order to support Trinidad policy holders.
By the way, the deposit is not an “innocent” gesture of support. Financial institutions require confidence to operate. No one in their right minds would put a deposit in to a company which has lost the confidence of its depositors. This gesture puts Barbados tax dollars at risk and that should not be done lightly or without strict conditions.
@ Thomas Gresham says
“No one in their right minds would put a deposit in to a company which has lost the confidence of its depositors.”
How would you suggest the Government protect the depositors some of whom are unfamiliar with finance and economics?
The collapse of confidence in Clico in Trinidad and Tobago threatens that firm, its affiliates; their depositors; policy makers and creditors and the wider financial system wherever it operates.
While it is right for the Barbados government to act, it should have done so responsibly and in an unbiased manner.
Government’s legitimate interests lie not with protecting individual businessmen but with protecting Barbadian depositors, policy holders, tax payers, employees, businesses and the wider economy.
The problem is that there seems to be tremendous difficulty on the part of Thompson, which master to serve: The people of Barbados who voted for accountability, transparency and financial prudence, or Clico and Parrish.
No such difficulty on the part of the government of Trinidad and Tobago, which – following from best practice elsewhere in these financially troubled times – drew up and signed a memorandum of understanding (MOU) with Clico before it committed tax payers funds to the support of Clico.
Now!!! I will discuss that MOU and the $10m in my next post.
The Barbados Government committee taxpayer’s resources to the support of Clico, principally in the form of:
1. A $10m deposit
2. A special facility in the event that the CMFC needs access to cash, and
3. Interbank guarantees that would cover lending by other banks, if it becomes necessary.
If there was no risk, then there would be no need for this support. So, the first question is – did the Government of Barbados sign a Memorandum of Understanding, placing strict terms and conditions on the use of government support, with Clico Holdings Barbados, before tax payers’ funds were put at risk?
To put tax payers’ funds at risk without such terms and conditions, would, in the words of the Prime Minister in another context, be “on a rolling basis.”
Now, as regards my last post. In his July budget, Prime Minister Thompson tried to give the impression that there was no contract for the building of the ABC highway and that a MOU was not a contract. Well, the Trinidad and Tobago government thinks so. That explains why CL Financial had to sign one.
The second point is: Prime Minister Thompson made a sound and dance about the $2 million that went into Hardwood. Tell me, is the $10 million, which Thompy gave his friend Parrish – more or less than the $2 million, which was invested in Hardwood, which he (Dumpsy) described as “recklessness” for which someone should be placed behind bars?
@Optimist Prime
The second point is: Prime Minister Thompson made a sound and dance about the $2 million that went into Hardwood. Tell me, is the $10 million, which Thompy gave his friend Parrish – more or less than the $2 million, which was invested in Hardwood
**************************************************
There is a difference, we can argue about what steps the Gov’t should undertake to protect the public before the 10 million was placed at the disposal of CLICO, BUT the funds were provided in full public spotlight, unlike the 2 million or thereabouts which was GIVEN to Hardwood.
We the public didn’t know anything about the Hardwood gift; it took a whistle blower to spill the beans. Of course there was also a rumour that the then Deputy PM helped facilitate the exposure to trip up Mascoll but that’s another story.
To continue the 2 million is gone for good we will never see that money again; the 10 million is cheap insurance to prevent the Barbadian public from panicking.
BTW OP, you seem to be chortling at the possibility that CLICO would fail, are you so power hungry that you hope a financial disaster hits Barbados in order to benefit your party?
Dear Hants,
Good question. The things we should do are the following:
1. Extend the level and scope of deposit insurance to all deposit taking institutions. Singling out certain institutions and picking numbers actually makes things worse
2. Ring fence the assets of insurance companies to ensure that assets cannot be sold and the proceeds sent abroad to support a parent at the expense of Barbadian policy holders. If Trinidad is tough and Barbados soft……you know what will happen.
3. Any further support must be given with strict conditions – deposits and loans need to be backed by collateral and a plan/MOU of how the company is going to behave to ensure that the government will get back its money. To ensure the plan is pursued, the government should have rights of information/disclosure and perhaps, where support is large as in this case, a seat on the board.
Optimist Prime might have an agenda and might be throwing a party line here and there, but we must forget the political talk and deal with the issue at hand. Yes, I must say that OP do have some strong points regarding the speed in placing a buffer without and guarantee in terms of withholding assets in case of a fallout. Suppose the parent company now under the Trinidadian Government control dismisses the head of the Barbadian operation (please don’t tell me that the Barbados’ head cannot be fired); what type of protection is in place to safeguard our taxpayers’ money?
@ Sargeant
What type of spotlight you talking about. Was it discussed with anyone or you like the rest of us heard it with surprised ears.
This is the type of politics that’s enveloping Bees and Dees and not allowing us as a people to deal with issues without the constant party lies and deceptions.
TMW: Read my post again I wrote “we can argue about what steps” .etc The announcement of the 10 million placement was made to the media and by extension the general public by the Gov. of the Central Bank. I am not saying it was the correct course of action, I was responding to OP’s lumping of the two issues and my point was to differentiate between the 2 million for Hardwood which the public didn’t know anything about and the announcement about the 10 million deposit.
It would help these discussions if we all read the news from Canada the USA and Britain every day.
And my Bajan Canadian friends please go home and spend some money. Air fares cheap. 1 week charters as low as $359CAD return including tax.
I gine in a few weeks.
Hants. I might be coming back to Canada this year. Can I get this fare in July?
@Tell me why
You should check with Marville Travel in Toronto.
http://www.marville.com/
They cater to the Bajan market.
I have been using them for several years.
Duprey is battling.
http://www.trinidadexpress.com/index.pl/article_news?id=161436053
Hants. The fares will only benefit those travelling from Canada. Unfortunately, I live in Barbados.
@ Tell me why
Sometimes this agency has cheap fares from Barbados to Toronto. They did at Christmas.
You should check their website a month before you want to travel.
can someone confirm if the annuities clico barbados was selling were in fact solicitations for a deposit?
Dear Donald Duck,
It would appear so. While insurance companies do generally stretch the definition of insurance products to include products which offer a little bit of insurance plus a big bit of investment, (in order to benefit from the favourable tax treatment of insurance) this appears to go one step too far.
It is called an annuity, but you get your money back after five years and get paid a higher rate of interest if you keep it there for 5 years. This is in effect a 5 year term deposit that you may get at your bank. The interest rates were attractive and so many people have gone for it.
The problem is that this will not be covered by the deposit insurance scheme (as this only covers bank deposits and the insurance company did not have a banking license and so was not technically offering banking products).
Moreover, the assets that investors in these annuities have accumulated – as they are not technically deposits – may get taken over by the Trinidadian parent and sold to protect Trinidad policy holders because our insurance regulator appears to be treating Clico with kid gloves and not demanding a ring fencing of assets in which Barbadian customers may have claims on.
I do not wish to sound an alarm or raise a panic, but if were to be thinking only of my self and I had money in one of these annuities, I would be trying to cash them in today and I would be prepared take the interest penalty for doing so. I would redeposit them in banks with deposit insurance and I would spread my deposits across banks to ensure that I maximise my coverage by the rather small limit of deposit insurance.
My best wishes to anyone who may be affected.
Going back to my earlier comments of last week, today the Advocate published an article indicating that Clico Holdings Barbados reported amounts totaling $56m due from related parties; the bulk of which is due from CL Financial and Colonial Life Trinidad. While this is less than 5% of their reported total assets, it is not a fair statement for the Chairman to suggest that Clico Holdings is unaffected by the mess in Trinidad nor that Clico Holdings is fully autonomous of its larger TT parentage.
Clico holds a large number of valuable assets – there is no disputing that. The problem is that they are not particularly liquid, especially within the current economic environment. When there is a maturity mismatch on the B/S between holding LT assets supported by Short to medium term liabilities and the public loses confidence in the institution, then even the most valuable assets cannot save you if they are not reasonably liquid.
With or without the $10m, I would not be as worried about Clico Mortgage and Finance as I would be about Clico Int’l Life. There is a thin line between banking and insurance and Clico life has crossed this line with their EFPA and FPA products. While the Central Bank does a reasonable job of regulating the banks, the Supervisor of insurance certainly doesn’t.
Much as I hate to agree with the former PM, I think he is right on this issue
http://www.nationnews.com/story/293754580819964.php
Wuhloss!!! The shoe on the other foot, the BLP complaining about a lack of air time in getting their message out. I guess that’s what happens when you let a bunch of “poh rakey wild boys” take control.
The opposition leader is crying “boo hoo hoo we can’t get our message across, enough is enough, we won’t be silenced, we gwine sue”. The former PM was quoted as saying
“There are dangerous, dangerous, dangerous things that are happening in this country.’
The BLP should use the blogs and its own Wishing In Vain (Optimist Prime) to get its message across. According to the publishers of the blogs they are more widely read and have more credibility than the local media.
Ahhhh…….. Politics in Barbados, never a dull moment
http://www.nationnews.com/story/331242336016493.php
The Starcom Network news program of 7.30 AM, Tuesday February 10 2009, carried comments attributed to Mr. Doug Skeete, where Mr. Skeete suggested that the financial challenges of the CL Financial group could affect subsidiaries outside of Trinidad and Tobago, if the government of Trinidad and Tobago is unable to put the affected institutions in Trinidad in a sound footing. On reading the Memorandum of Understanding (MOU) between the Central Bank of Trinidad and Tobago and the CL Financial Group Ltd., the affected institutions in Trinidad and Tobago appear to be CLICO Investment Bank (CIB), Caribbean Money Market Brokers (CMMB) and CLICO Insurance Trinidad and Tobago.
The MOU between the Trinidad and Tobago Central Bank and the CL Financial group states, “The Central Bank of Trinidad and Tobago will assume control of CIB under the provisions of Section 44D of the Central Bank Act.” “The third party liabilities and assets (to meet these liabilities) of CIB will be transferred to First Citizens Bank Limited.” The Central Bank will provide short term liquidity as needed to ensure that these liabilities are serviced.” “Following the execution of these transactions, CIB’s banking license will be revoked.” Given that CIB will cease to exist it is unclear to me what Mr. Skeete means by “putting CIB on a sound footing? Given that the Central Bank of Trinidad and Tobago has made provisions for meeting any outstanding liabilities of CIB, it is again unclear to me how the assets of CL Financial Group subsidiaries outside of the Trinidad and Tobago (including Barbados) would be affected by a need to meet the liabilities of CLICO Investment Bank. I am sure I am missing something and Mr. Skeete can explain.
The MOU between the Trinidad and Tobago Central Bank and the CL Financial group states, “The third party liabilities and assets (to meet these liabilities) of CMMB will be transferred to First Citizens Bank Limited.” The Central Bank will provide short term liquidity as needed to ensure that these liabilities are serviced.” Again, in light of the terms of the MOU, it is unclear to me what exactly Mr. Skeete means by “putting CMMB on a sound footing? It seems clear to me that CMMB will be operated as a subsidiary of First Citizens Bank (the state owned bank in Trinidad and Tobago). It is again unclear to me how the assets of CL Financial Group subsidiaries outside of the Trinidad and Tobago (including Barbados) would be affected by a need to meet the liabilities of CMMB given that it will now be owned by First Citizens Bank. I am sure I am missing something and Mr. Skeete can explain.
The MOU between the Trinidad and Tobago Central Bank and the CL Financial group states, “Clico Trinidad and Tobago has a sizeable Statutory Fund deficit.” “CL Financial has agreed to divest additional assets to help fund this deficit.” “The Government has committed to provide any additional funding that is needed by Clico Trinidad and Tobago.” “Government funding will be provided in exchange for collateral and an equity stake in Clico Trinidad and Tobago. “It will act as a catalyst for implementing a change in the current business model and corporate governance structure of Clico Trinidad and Tobago.” ‘The intention will be to return Clico Trinidad and Tobago to its original moorings.” The assets to be divested were also spelt out in the MOU. The MOU states, “Specifically, CL Financial will divest itself of all, of its 55% holding of Republic Bank Limited and shares in Methanol Trinidad Holdings.” Is this what Mr. Skeete means by “putting Clico Insurance Limited on a sound footing? It is again unclear to me how the assets of CL Financial Group subsidiaries outside of the Trinidad and Tobago would be affected by a need to meet the liabilities of CLICO Trinidad and Tobago given the commitments given by the government of Trinidad and Tobago, and the value of the assets the CL Financial Group has agreed to divest. I am sure I am missing something and Mr. Skeete can explain.
Mr. Skeete was also quoted as saying, “if the affected companies in Trinidad and Tobago are not put on a “sound footing, then the subsidiaries may be affected by a need to liquidate the assets to meet liabilities.” Since, hearing the comment I have searched in vain to find an example of where a struggling financial institution actually ended up in bankruptcy. In the vast majority of cases a struggling firm is acquired by a stronger rival and its assets and liabilities are assumed by the new owners. Why this worst of worst case scenarios would be presented as some plausible or likely outcome is a bit beyond me. I am sure I am missing something and Mr. Skeete can explain.
Unless, Mr. Skeete can provide some more information, it seems to me that the actions of the Central Bank of Trinidad and Tobago have served to contain the impact of crisis to entities in Trinidad and Tobago.
In the Nation Newspaper of January 29, 2009 Leroy Parrish was saying in a press conference that Clico Holdings Barbados Limited which employs 200 workers within its group of companies has no plans of severing staff.
He also announced that Clico was giving the people of Barbados a gift of (6 acres of prime agricultural land) to build a school. (Change of use by stealth?)
On January 31, 2009, Leroy Parrish was telling Barbadians that the local company is well run and was safe and sound and that there was no need to panic.
He said that in Barbados, Clico is supervised by the Supervisor of Insurance and the Minister of Finance.
On January 31, 2009, Opposition Leader Mia Mottley said: “Barbadians would also want to be assured that the many other investments of Clico in the non-financial sector, such as in housing and tourism, will not be negatively affected as this could have significantly repercussions for jobs and general investor confidence in the country.”
On January 31, 2009, Central Bank Governor Marion William was telling Barbadians that they should not remove their business from and subsidiary companies of Clico. She said Clico is a “well-run company.”
In the Nation Newspaper of February 3, 2009, Prime Minister Thompson was telling Barbadians of his “satisfaction, “that Clico’s operations in this country were sound, prudent and well regulated.”
He gave the assurance that, “Barbadian depositors, investors and holders of insurance policies can, therefore, be considered safe in the context of our financial sector.”
The Nation of February 3, 2009 reported Central Bank Governor Marion Williams as saying that the Bank had agreed to make $10 million deposit into the Clico Holdings Barbados subsidiary as part of an immediate three-pronged course of action in light of the difficulties faced by the parent company in Trinidad and Tobago.
In the Nation Newspaper of February 4, 2009 Central Bank Governor Marion Williams said that the bank’s decision to put $10 million at the disposal of Clico Mortgage and Finance Corporation (CMFC) represented a show of confidence in the institution and was not a negative development.
Williams said: “I cannot understand why it should be queried that the institution is not as strong as we feel it is…Something that has been intended to be positive is being construed to be other than positive.”
David Thompson said that the $10 million was a line of credit, while Marion Williams said it was a deposit to instill confidence.
Marion Williams said that in addition to the $10 million deposit, the Central Bank has opened a special facility in the event that CMFC needed access to the liquidity.
She added that, with the “endorsement” of the Ministry of Finance the Central Bank proposed to provide interbank guarantees that covered lending by other banks to CMFC, if it became necessary.
The Nation Newspaper of February 6, 2009 stated that Opposition Leader Mia Mottley held a press conference and asked: where is the collateral, where is the oversight and, what has the Thompson government put in place to protect the $10 million taxpayer’s dollars.
Judging from a news item on VOB, it would seem that at a branch meeting on Sunday, February 8, 2009 in his St. Peter constituency – former Prime Minister Arthur pointed out that the role played by the Trinidad and Tobago Central Bank is different to what obtains in Barbados.
He explained that Insurance companies in Barbados are regulated by our Supervisor of Insurance, while the Central Bank only regulates – Clico Mortgage Finance Company (CMFC).
Mr. Arthur was right to have been shocked that Marion Williams could say with authority – that “Clico Barbados” is a well-run company.
Thompson too has hinges his credibility on trying to convince Barbadians that “Clico’s operations in this country were sound, prudent and well regulated.”
There is a cover-up somewhere and someone is telling lies.
Is this sophisticated corruption? You decide.
@Optimist Prime
Mr. Arthur was right to have been shocked that Marion Williams could say with authority – that “Clico Barbados” is a well-run company.
**********************************************
Someone’s credibility is on the line alright. How come we never heard a whisper about Ms. William’s credibility when she announced job numbers and economic forecasts in the past?
I think I know the answer; she was speaking on behalf of a different government.
Can we discuss some facts for a change. Trained economist has introduced some facts from the MOU between the Central bank of Trinidad and Tobago and CL Financial.
Those facts certainly paint a different picture than the innuendo that has been so common place on this blog.
Given the information presented by Trained Economist how much exposure does Clico barbados really have to the developments in T&T. Based on the information in the MOU the risk to us here seems modest.
@ Sargeant,
While listening to any call-in-programme, you can always tell a dem. You can too on this blog. Look friend!
Unemployment statistics is and has always been the corefunction of the Statistical Services Department.
The Central Bank is suppose to be a “independent monetary authority.” There are some institutions, which are expected to be independent: the Police, the Church and the Law Courts.
Old friend, get your facts straight. But, you are a dems!!!
@OP
The Central Bank is suppose to be a “independent monetary authority.” There are some institutions, which are expected to be independent: the Police, the Church and the Law Courts
“Suppose and expected” are the operative words, but you know that the reality is far different.. Why is there a perception in Barbados that some people are above the law? Why do some people find it difficult to get justice when they are battling the Gov’t? Why did the PM fire Winston Cox? I noticed that you didn’t address my point about Ms William’s competence as it relates to economic forecasts. Was she right then but wrong now on CLICO or is she not competent enough to speak about CLICO?
I said in an earlier post that there is no off season in Barbados as far as politics is concerned so I am not surprised that the BLP is using this crisis as an opportunity to improve its political fortunes.
As for Dems on the call in shows you can also tell Labourites in the letters section of the newspapers, the blogs…….
@ Sargeant
The law allows Marion Williams to regulate CMFC. How then can she give the impression that Clico in Barbados: Rayside, land in St. John, Samlords, Insurance and all the other investments Clico have including the $18 million leased private jet – are sound and well-managed?
Where is the collateral or the guarantee to back the Clico $10 million stimulus package?
Why a $10 million stimulus package for Clico in 24 hours, but none for the BHTA after two months?
Dear Trained Economist,
I do not understand the attempt to defend Mr. Parris misrepresentation to the Barbados people that there is no “biblical cord” between Clico Financial of Trinidad and Clico Barbados and why anyone would believe that after the government of Barbados has seen it necessary to put tax payers resources in support of Clico.
Clico Barbados is a 100% subsidiary of Clico Financial of CLF. It is clearly part of the Clico Financial group of companies.
The MOU between the Trinidad government and Clico Financial states and I quote:
Section 1:
Clico Financial agrees to take steps to correct the financial conditions of CIB, CLIOCO and BA by:
[a, b, c, and]
d. selling all or any of their other assets as may be required to achieve the said correction.
[Clico Barbados is 100% owned by Clico Financial and therefore constitutes “any of their other assets”].
Section 6. For the discharge of its obligations herein respect of CIB, Clico Financial shall sell dispose or collateralise the following assets as required to ensure the balancing of the third party assets and liabilities portfolio [of CIB in Trinidad].
[a, b, and]
c. Other assets of the CLF Group of companies, of such quality and value as agreed by the Government of Trinidad and Tobago and as may be required.
Section 11.
For the discharge of its obligations herein in respect of CLICO, Clico Financial will sell dispose or collaterlaise the following assets as required to ensure that the Statutory Fund requirements for CLICO and BA are satisfied:
[a, b, and]
c, Other assets of the CLF group of companies of such quality and value as agreed to by the Government of Trinidad and Tobago and as may be required,
Section 19. Clico Financial will make full and fair disclosure of all CLF companies and their assets and liabilities to be provided by a date specified by the Government of Trinidad and Tobago
It is important that Barbados acts to ensure that assets of Clico Barbados that Barbadian policy makers and depositors may have a claim on, are not sold under this MOU and sent to Trinidad. Bear in mind that the Barbados Inspector of Insurance has recently tabled a report on Clico for….2005.
I have trouble understanding the fear-mongering that is going on. I am not defending anything, I am simply responding to the comments made by a number of persons. The MOU suggests that the central bank and government of Trinidad and Tobago has moved to secure the liabilities of the affected companies in the CL group.
In light of that, the main danger to Clico Barbados Holdings is a run on the institutions which can be generated by the fear mongering a lot of you seem to revel in.
A collapse of CLICO will not hurt Mr. Parris and David Thompson as much as it will hurt the credibility and stability of the Barbados financial system, and lots of ordinary bajans.
First Citizens Bank has just announced a cash injection into CMMB, what is served by strirring up fears of a grab on the assets of Clico Barbados?
The Trinidad and Tobago Central bank has estimated that the bailout will cost between $6 to $8 billion TT. The MOU calls for the divestment of republic bank shares, OCM shares and the methanol shares. The collective value of these assets will certainly cover the funds required.
What evidence is there that there is some clear and present threat that Clico Barbados’ assets will be sold to meet any liabilities of the CL group?
This is ridiculous and irresponsible fear-mongering.
Looks like the economists TE & TG will start to battle and leave us mortals out in the cold. I lost interest in economics at supply and demand. I hope they have a sense of humour as per the following:
“I’m thinking of leaving my husband,” complained the economist’s wife. “All he ever does is stand at the end of the bed and tell me how good things are going to be.”
We have 2 classes of forecasters: Those who don’t know and those who don’t know they don’t know.
— John Kenneth Galbraith
And there are plenty more where those came from
I could not agree more. failed economic ideas are at the heart of the current global crisis. I hope one lesson of this global crisis is how untried and untested economic theories are.
One thing we do know is that panic can bring down a sound financial institution. My comments are made from the perspective that given the havoc panic can wreak on a financial institution, sound or not, one should be careful not to unduly stoke peoples fears.
Clico Financial borrowed $15bn to invest in methanol in Trinidad, property in Florida and related investments.
The debt represented 75% of the cost of the investments. Clico Financial and its family of companies put in the remaining 25% as equity using funds from policy holders and depositors.
Dividends and capital gains from this equity was supposed to pay back the policy holders and depositors.
Methanol prices and demand have collapsed. Florida property has collapsed. If they were to be sold today, the value of the assets would be worth 50% of their previous value and less than the value of the debt.
This means the equity is almost worthless.
Still think policy holders and depositors should not worry and those of us who worry are scaremongering?
There are a couple ways out of this. We could close our eyes and pray that property and methanol prices will return to where they were and in the mean-time use fictitious”long-term” valuations and hope that policy holders and depositors are content to keep their money invested. This was the plan for the second half of 2008. It hasn’t worked. Government ownership may lead to greater calm, provide more time for prices to return to previous levels and provide an opportunity for the National Gas Company to renegotiate down the gas price. The alternative is asset sales to protect Trinidad policy holders and depositors at the expense of those elsewhere if local regulators are not on the ball.
There are indeed many jokes about economists. How many times have you heard “find me a one handed economist”. So, there is a power cut and an economist’s wife is scrambling around for matches, she finds the box, only to push it off the table. Exasperatedly she asks her husband to help and he responds. “This is sooo easy. Assume a light”……
Sargeant,
I hear that the BLP is having a meeting on Sunday night in the car park opposite Tyrol Cot – and will discuss the four C’s: Clico, CBC, Constituency Councils and Cost of Living.
OP
Same old; same old. Will Mia still be crying those crocodile tears? Will OSA update his “dangerous, dangerous, dangerous things” speech? If he wants to wax poetic I recommend the following : “It was the best of times, it was the worst of times; it was the age of wisdom, it was the age of foolishness; it was the epoch of belief, it was the epoch of incredulity; it was the season of Light, it was the season of Darkness; it was the spring of hope, it was the winter of despair; we had everything before us, we had nothing before us; we were all going directly to Heaven, we were all going the other way.” Dickens – A Tale of two Cities- but he can claim poetic license and call it a tale of two parties with the spin that the BLP offers hope and prosperity and the DLP despair and ruin. Tell the senior statesman (and you seem to be close to him) that he has to deliver a speech worthy of his stature none of that po rakey wild boys stuff.
Of course you can also tell your potential audience to bring a shovel and a bucket, all the better to clean up the horse manure that will be dispensed from the stage.
The BLP meeting on Sunday night should be called
“The legacy of the Fly”
A BLP Pressure Group rises from the ashes of the defeated.
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Even if there is a MOU, who do you think will dictate the “terms?” Imagine! Clico bought plantations. It then bought Samlords, then Rayside.
It then bough the DLP so that it can guarantee work for Rayside, hence the “firein” of 3S.
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Hmmmmmmmmmm!
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u hear that PM thompson is buying back the bnb shares which Republic holds in the BNB. Where is he getting the money from? Was it not his intention to sell the remaining shares to use the proceeds to renovate the hospital?
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This is changing the subject..we have a problem with Rats in the island at the moment…four legged Rats…a good few years ago the government declared war on Rats!! should we not declare war on them again?? lock up your animals a night…put bait down…keep putting the bait down everynight night until they do not eat the bait…the animal rights people we have in the island will probably say that is cruel..we do not need leptospirosis around..so please!!! pick up all of your garbage around your property!! no littering!!! keep Barbados free of RATS!!
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how come we have not heard anything more about the barbados government buying back the bnb shares
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all policy holders who policies have matured and people who bought policies when they were told to stop should cometogether in class acion siuts against the company and former ceo, both political parties know of the doom of the company and did nothing
Thompson favoured his friend, not the people of Barbados. That is his legacy.
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Why people still make use of to read news
papers when in this technological world all is accessible on net?