“Wife came home last night with the story on how the whole CLICO thing unfolded for them. Seems some one in the Bahamas had 100 million invested with CLICO and needed the money back, because they (Bahamas) were in tights!
CLICO doesn’t have 100 Big Ones sitting around to handle large redemptions, and couldn’t borrow that from any Bank in T&T and so was forced to approach Gov’t.(central Bank) to cover dey ass. Word then got out about this ‘failing’, and a run started.”
“On another topic – what I “discovered” about CL Financial is that it is a PRIVATE company and evidently does not publish financial statements available to the public! How can a financial institution, particularly one of that size, NOT have to publish its financial reports? Anyone who invested one cent in that group deserves to lose their funds. That situation is a total disaster and should not be allowed to happen again.”
… above taken from some emails making their way around in Barbados.
Barbados Central Bank Bailout – In Exchange For Exactly What?
The story that is being given to the Bajan public is that CLICO’s Barbados interests and subsidiary are entirely independent from the troubled Trinidadian parent company and therefore we Bajans shouldn’t worry. Oh… “they” say that all those millions that the Government of Barbados pledged to CLICO’s benefit are “just in case” and “to show faith” in the company.
Barbados Money Laundering Advisory this morning points out some of the false information that we are being told about CLICO Barbados.
For instance, did you know that CLICO Barbados made loans to the Trinidadian head corporation for US$50 million? That my friends is over 10% of the insurer’s asset base that is probably worth less than nothing now.
PM Thompson Says His Conflicts Of Interest Are None Of Your Business
To Whom The Benefit?
Barbados Money Laundering Advisory’s concern with where our bailout money is going is reflected in the email displayed at the top of this article. CLICO parent company CL Financial is a PRIVATE company that publishes no financial records publically.
IF you had control of where your personal tax dollars were invested, wouldn’t you demand full disclosure before you loaned money to a private company? Wouldn’t you want some real and unencumbered collateral to back the loan?
CLICO Barbados owns some rather nice land that just happens to be smack in the middle of the proposed Graeme Hall National Park.
The Barbados Government should not have loaned that money to CLICO – they should have purchased that land for the people of Barbados!
Too bad that Prime Minister Thompson couldn’t exert any pressure on his old pal Leroy Parris. After all, we’d hate to have to give up those free rides to New York and Miami on CLICO’s business jet, wouldn’t we Mr. Thompson?
Further Reading
Barbados Money Laundering Advisory: Is “Weak” CLICO Barbados Subsidiary Bankrolling Trinidad HQ?
BFP: Clico On Life Support – Will Barbados Prime Minister Thompson Favour His Patron Leroy Parris, Or The People Of Barbados?
Barbados Free Press 