CLICO Refused To Allow Due Diligence by Insurance Corporation of Barbados – TT$Billions In Assets Found “Worthless” By Trinidad Government – Fraud Fears Growing…

Trinidad & Tobago Finance Minister Announces TT$ Billions Of Supposed CLICO Assets On Books “Worthless”

Trinidad And Tobago’s Finance Minister announced says that forensic audits have been ordered for CLICO Investment Bank and the Colonial Life Insurance Company and that TT$ billions in assets carried on the books are worthless. When asked if there had been any lawbreaking, Finance Minister Karin Nunez-Tesheira replied, “At this point in time I can’t form an opinion. I wouldn’t dare form an opinion.”

CLICO Wouldn’t Sign Due Diligence Confidentiality Agreement With ICBL – – NO WONDER!

Meanwhile in Barbados, the Insurance Corporation of Barbados Ltd. (ICBL) has pulled out of negotiations to purchase CLICO’s life insurance business to try and save Barbadian policy holders.

It turns out that CLICO wouldn’t sign a confidentiality agreement to allow the due diligence process to start. Ha! That is understandable considering the announcement by the Trinidad and Tobago Finance Minister.

PM Thompson Says His Conflicts Of Interest Are None Of Your Business

PM Thompson Says His CLICO Jet Rides Are None Of Your Business

Prime Minister Thompson’s Personal Relationship With CLICO’s Leroy Parris Causes Doubts – No Kidding!

Barbados Opposition Interim Leader Mia Mottley yesterday called for the Insurance Supervisor to take-over CLICO, saying that the discontinuation by ICBL “tears into shreds the Government’s strategy for CLICO”. Last March she filed a (unsuccessful) non-confidence motion against the Thompson DLP government – which was laughable considering that it was the Owen Arthur – Mia Mottley BLP government that first let CLICO run wild and break the statutory funding laws.

The new revelations by the T&T Finance Minister also rip Prime Minister Thompson’s credibility to shreds – because all of Thompsons polite assurances about CLICO’s health were based in part upon many assets that have just been exposed as worthless paper.

(That’s if there is any paper left. SHHHH!!!! If my ears don’t deceive me, I think I can hear the sound of shredders working overtime at CLICO’s office!)

There is a price for all those “free” rides that Prime Minister Thompson had on CLICO’s business jet – and you and your children will pay that price for decades.

This morning, Friday May 8, 2009, Prime Minister Thompson met with his old pal Leroy Parris to try and figure out what to do with the mess. No doubt there will be some announcement designed to soothe the people of Barbados – but the money will have to come from somewhere and I have a feeling that it will be another load on the backs of Bajan taxpayers.

Last time the Prime Minister gave his old friend’s company some public cash, he ignored the fact that some CLICO companies hadn’t filed financial statements in years. Due Diligence? Ha! Where it concerns giving your money to CLICO, David Thompson doesn’t know the meaning of the words “due diligence”. Check out the Keltruth article Did Thompson’s DLP Have Audited Financials for the Companines that they Bailed Out? as well as our previous article Barbados Government Bailed Out CLICO Even Though Company Failed To File Financial Statements

You want to know how CLICO got where we are today?

In part, this mess is because people like David Thompson, Owen Arthur, Mia Mottley and other politicians let CLICO do whatever it wanted to, when it wanted to and to hell with the rules, laws, oversight and public accountability.

There is a price for all those “free” rides that Prime Minister Thompson had on CLICO’s business jet – and you and your children will pay that price for decades.

16 Comments

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16 responses to “CLICO Refused To Allow Due Diligence by Insurance Corporation of Barbados – TT$Billions In Assets Found “Worthless” By Trinidad Government – Fraud Fears Growing…

  1. reality check

    the sins of the politicians are visted on future generatons of Barbadians. Gravity has taken hold and exposed the fact that the Emperor has no clothes and the citizens hard earnings for retirement and millions paid in taxes and VAT have been squandered.

    Does anyone wonder why no audits of government corporations including the NIS, Gems etc. have been done and presented for years?

  2. Jason

    “Barbados Opposition Interim Leader Mia Mottley…”

    INTERIM ?????

    Nasty nasty BFP!!!! (But true. Mottley was never elected by the party members and her “leadership” was never confirmed by the general membership.

    “Interim” sounds like the proper term. 🙂

  3. Storm watcher

    As a policyholder of CLICO I am very concerned by the recent events affecting the company but I am more worried by the politics of it all. How come no one is talking about ring fencing Alico a subsidery of AIG that has received 85 Billion from the Obama administration? How come no one is talking about the recent write down in assets of Sagicor and termination of employees? Where are the unions? How come no one is talking about the bailout of Butterfield Bank by the Bermuda Government and the recent decline in rating from “C” to “C-“? Are there other companies with statutory deficits? Where is the opposition leader on these very important issues. Alls quiet on the Western front.

    It seems to me something is not right here. Is Clico targeted just because of the relationship between the Prime Minister and the Head of Clico or there is something else that I am missing.

  4. Jason

    It seems to me that the Bajan news media is under more restrictions than ever since the DLP formed the government. The BLP squeezed the media using a blunt instrument, the the DLP is being very intelligent about not showing their control in public.

    The big story in the Barbados news media is how much news is skipped over and never communicated to the public.

  5. permres

    Comment from a UK minister “this undermines the whole idea of democracy” or something like that! Read it here:

    http://www.telegraph.co.uk/news/newstopics/mps-expenses/5296433/The-Expenses-Files-how-Daily-Telegraph-revealed-MPs-expenses.html

  6. Donald Duck, Esq

    Readers should note the following provision of section 39(2) of the insurance act of Barbados

    “Every company shall publish
    (a) the balance sheets referred to in paragraphs (a) and (b); and
    (b) the profit and loss account referred to in paragraph (c),of subsection (1) annually in the Official Gazette and in a daily newspaper
    within 4 months of the end of the financial year.”

    This is now may 9 and has the public seen anything!!

  7. reality check

    storm watcher

    you are not missing anything because the media in Barbados is not sayng anything.

    the credit crunch in the US really took hold after Lehman Brothers was allowed to go down. The US couldn’t afford to let AIG go down because of ts huge financial tentacles all around the world.

    The US government will probably get its money back in AIG because it has finally become pro-active. Barbados tax, VAT and borrowed debt money squandered by Barbadian politicians over the past 10 plus years is gone forever. There is no one willing to speak frankly and rise above the
    failed politics as usual way of life including the suppression of a free press.

    There is a light at the end of the tunnel in the world finacial system as stock markets appear to be strengthening and some companies are doing very well. Barbados has avoided the very thing that has allowed some of the necessary changes for reform namely ITAL and FOI.

    Barbadian citizens get what they elect.

  8. Nostradamus

    Storm watcher, you ask why no one is talking about Butterfield Bank (BB). Well maybe because the Bermuda government stepped in, and I seem to remember that it was at the request of BB who were proactive is requesting support.

    But it may also have something to do with the fact that their financials are public and transparent and available for all to see on their website, right up to 2008.

    http://www.butterfieldgroup.com/about/Investor_relations/annual_reports/

    Can the same be said for CLICO? Visit http://www.clicolife.com or search the web and see if you can can find any financials on the company.

    As for http://www.clicoholdings.com they are “under construction” Probably like Sam Lord’s Castle!

    Go to Sagicors website and see the financial information available.

    http://www.sagicor.com/corporate-financialinfo.aspx

    As a policyholder of Clico you should be worried about the politics but you should also be concerned about the lack of transparency and accountability and demand that Clico do what they are mandated to do by the Insurance Act.

  9. Nostradamus

    The extract below from:http://www.capital-chronicle.com/2009/04/credit-crisis-in-caribbean-cl-financial.html makes interesting reading. In particular “So it would make sense for the government to hedge by encouraging multiple bids rather than halting the brokering effort at a single potential buyer as they have done.”

    Given this realpolitik one CL financial subsidiary, the Barbados-based US$100m (by assets) life insurer Clico International Life, may not see material benefit from the fund. In breach of regulatory reserve requirements, the firm requires capital having been caught out by an aggressive underwriting strategy, too much leverage, falling asset markets and illiquid holdings. Salt in the wounds, it also bought bond-based but derivative-powered “guaranteed return” structured investment products from Deutsche Bank which carry redemption penalties if cashed early. This further hurt its liquidity position.

    Which is why, as much of the rest of the CL Financial insurance operations in the eastern Caribbean fall apart, it is in talks brokered by the Government of Barbados to sell up to a competitor. That single suitor is a Bermudan firm of identical gross asset value – Bermuda Fire & Marine (BF&M) – whose capacity to finance an acquisition that will double its size whilst maintaining a prudently structured balance sheet is surely questionable.

    Understandably in a small island with rising unemployment and where nearly half of all households have policies with the firm the survival of Clico has become a hot political issue. If BF&M choose to cherry pick – and who would blame them in the current economic context – there will be a rump of operations left over for the local social safety net and taxpayers to deal with. Worse, BF&M could simply walk away.

    So it would make sense for the government to hedge by encouraging multiple bids rather than halting the brokering effort at a single potential buyer as they have done. And there is a cheap and elegant method of so acting which might even have a place in the current US context: a sovereign guarantee underwriting against further falls in value the bulk of the riskiest and most illiquid company assets.

  10. Nostradamus

    BFP, please check and release my 2 comments from moderation.

  11. Pingback: Global Voices Online » Barbados: More on CLICO

  12. permres

    I think this is relevant to this thread from the photo of David Thompson above. This is great:

    http://www.christiantoday.com/article/lord.carey.condemns.clawing.greed.of.mps/23320.htm

    How about our Rev. Holder coming out with something like this?

  13. Checkit-out

    I am a bit surprised that there are so few new substantive comments this week on the current CLICO situation on this blog. Check out Keltruth below.

    http://keltruthblog.com/blog/?p=483

    Seems like there are several statements that were made overseas indicating substantial monetary commitments by the Barbados Government to bail out policy holders in a number of CLICO’s regional subsidiaries.

    I have’nt seen these reports of massive committments in our media before but I could easily have missed them. Could it be that they have not been reported here in Barbados for whatever reason.

  14. Checkit-out

    Are there some some lessons to be learnt re. the paucity of comments on CLICO and the budget by regular BFP posters given the virtual de facto takeover of CLICO management announced by the Prime Minister in his budgetary proposals?

    Has there been some vindication of earlier comments on CLICO by the Leader of the Opposition?

    Was the budget a good one? or the worst one in recent memory?

    What is the BFP community’s take on the attempt by the Prime Minister to prematurely close the debate and exclude the former Prime Minister and some of his top Ministers from contributing and offering their ideas on the Budget?

    Did that attempt when juxtaposed with his earlier calls for working together with the opposition give some insight into the sincerity of the man?

  15. Hants

    The regular posters are seeking excitement over at BU.

    Budgets and Insurance matters are above my pay grade.

    I remain a DLP supporter with confidence in David Thompson and his ministers.

    I also believe some Barbadians think Barbados is super naturally special and the recession is “beyond our imagination”.

    And somebody tell MIA it is better to wear vertical stripes.” from a professional design point of view”.

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