Barbados Supervisor Of Insurance Announces $2,500 Voluntary Fine For Infractions… That Should Stop Multi-Million Dollar Insurance Frauds Like CLICO!

Prior to being appointed to his regulatory position, (Barbados Supervisor of Insurance) Carlos Belgrave was the General Manager of a local company that manufactures “flour, animal and poultry feeds”  … from OffshoreAlert’s 2006 “Worst Regulator” Award

Prior to being appointed to his regulatory position, (Barbados Supervisor of Insurance) Carlos Belgrave was the General Manager of a local company that manufactures “flour, animal and poultry feeds” … from OffshoreAlert’s 2006 “Worst Regulator” Award

Carlos Belgrave, Former Chicken Feed Manager, Sets The Standard For Barbados Insurance Industry

The recent collapse of the CLICO insurance company exposed the fact that successive Barbados governments have allowed insurance companies and offshore corporations to pretty much do as they please so long as those political campaign donations, kickbacks and business jet rides keep rolling in.

But now that the world’s attention has come to focus upon our failings, Barbados decided to make some noises so investors and other governments will believe we’ve taken effective measures to supervise our offshore insurance industry. The key here is that we haven’t taken any new steps… we just make noises and promises so others will be taken in and believe that things have changed in Barbados.

The sham press conference by Barbados Supervisor of Insurance was all about repairing investor confidence after the CLICO debacle – not about real change to protect investors & policy holders

To kick things off, our Supervisor of Insurance held a press conference (Nation News article) announcing that the General Insurance Association of Barbados (GIAB) members have agreed to some voluntary standards that may be enforced by a $2,500 fine. It is hoped that maybe, sometime in the future, these voluntary standards might possibly become law in Barbados. Maybe. If. Sometime.

Judging by the accounts in the local news rags, the revelations at the press conference were shocking – but true to form the Barbados media spun an outrageous admission of incompetence, guilt and amateurism into a positive story. In truth, the Barbados Supervisor of Insurance admitted that Barbados lacks effective standards in law respecting the financial health, financial management and financial strength of insurance companies. (Barbados Advocate coverage of press conference here)

CLICO investors and policy holders probably thought we had such standards as laws – but they thought wrong.

But hey, we’re going to put those laws in place. Someday, maybe, if… but for now the Barbados insurance companies promise to volunteer to maintain those standards or risk having to pay (again voluntarily) a whopping BDS$2,500 (US$1,250) fine. Wow! That should prevent another CLICO-type collapse, don’t you think?

Our lack of rules, laws or effective oversight is what allowed a healthy insurance company like CLICO Barbados to “invest” in huge loans to parent company CL Financial and other Clico companies – loans that were secured by way-overvalued swampland in Florida. Loans secured by deals where executives of CLICO-associated companies took secret commissions and kickbacks for engineering the over-payment for swampland!

See our articles about the CLICO fraud…

CL Financial, CLICO Fraud Report: Dummy Company, Phantom “Consultancy” Payments, Vanishing Money Transfers From Company To Company

EXCLUSIVE REPORT BY BARBADOS FREE PRESS: CL Financial Group Collapse – Insiders Took Bribes To Have Company Purchase Land For More Than Market Value!

A US$3 Million Florida Mansion Belonging To CL Financial Director - Thanks For The Bailout, Prime Minister Thompson!

One of many: A US$3 Million Florida mansion belonging to CL Financial Director - Thanks for the bailout, Prime Minister Thompson!

Meanwhile, the Directors of CL Financial were purchasing millions of dollars of prime, upscale Florida waterfront mansions for their own enjoyment and profit.

That is the legacy of two successive Barbados governments and our Supervisor of Insurance, Carlos Belgrave.

Now Belgrave says he wants to make a law requiring minimum capital standards for insurance companies. Hopefully Belgrave no longer accepts “bearer peat certificates” as security for capital! Such standards saw Belgrave named in 2006 as the “worst regulator” by Offshore Alert.

The CLICO Chicken Came Home To Roost

A Chicken Named CLICO

A Chicken Named CLICO

In the case of CLICO, the Barbados insurance company was allowed to operate for years without sufficient cash reserves – and no one thought it dangerous when a otherwise healthy CLICO loaned all kinds of money to its parent company to purchase swampland in Florida at a price that greatly exceeded the real value of the land!

Not to be outdone by the previous BLP Government for looking after friends and concealing the truth from the public, current Prime Minister David Thompson has pledged millions of your tax dollars to assist collapsed CLICO. Oh… did you know that the Prime Minister and CLICO CEO Leroy Parris are godfathers to each other’s child? Did you know that CLICO contributed to the DLP election campaign and that David Thompson borrowed CLICO’s business jet?

All a coincidence I’m sure as the Prime Minister works diligently to socialize Clico’s losses with our tax dollars.

You know the drill for the Prime Minister’s friends: Profits are private, but losses are paid for with your public tax dollars!

Barbados Supervisor Of Insurance Carlos Belgrave Approved US$ Half A Billion Insurance Assets That Were “Bearer Peat Certificates” !

Instead of pulling Reliant’s license and despite there being no change of control or management, Belgrave allowed Reliant to continue in business by approving replacement capital with a face value of $518 million that consisted of nothing more substantial than a loan note issued by a newly-formed Panama firm that was secured by “bearer peat certificates representing the right to obtain peat, a pre-coal state organic material used as energy or for horticultural use, from the Changuinola Peat Deposit of Northwestern Panama”…

… quoted from Offshore Alert in the BFP Article: Carlos Belgrave, Supervisor of Insurance and Pensions in Barbados, Called “Worst Regulator” By OffshoreAlert

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17 Comments

Filed under Barbados, Consumer Issues, Corruption, Ethics, Offshore Investments, Political Corruption, Politics, Politics & Corruption

17 responses to “Barbados Supervisor Of Insurance Announces $2,500 Voluntary Fine For Infractions… That Should Stop Multi-Million Dollar Insurance Frauds Like CLICO!

  1. Sargeant

    Voluntary fine?

  2. RRRicky

    Voluntary fine. You have to love that! If you don’t pay the fine, you don’t get to be a member of the voluntary group that “self regulates” the insurance industry.

    What a joke. There is no requirement for an insurance company to join this group. What a friggin’ joke!

    Somebody please pick me up off the floor. I laughin so hard! 🙂

  3. Red Lake Lassie

    How can we have international respect when our chicken feed manager was named “worst regulator” by Offshore Alert three years ago? I must be a stupid person to not see the intelligence behind the decision to leave him in that position.

  4. Sundowner

    I heard today that Clico has sold Rayside to Simpson Motors.

  5. cq8

    I laughed and laughed and laughed at the photo and the truth of your story. US$ 1250.00 voluntary fine!

    That is a good one.

    Then I thought about it and what it means for my Barbados.

    Laughing stopped. Think I’ll cry.

  6. Peat Moss

    Peat certificates? In dear old North Carolina we have no peat but we can issue cowshit bearer certificates. We can word ’em like this;

    “bearer cow shit certificates representing the right to obtain cow shit, an organic material used as for horticultural use, from the North Carolina ranch of Fuller Davis”

    I, Fuller Davis, will guarantee up to a billion dollars of loans based upon my cow shit bearer certificates.

    Mr. Carlos Belgrave, y’all give us a phone call, hear?

  7. Hants

    BFP editors.

    Is there anything good about Barbados that is worth discussing openly?

    I see things through my photogray lenses and love Barbados more than any other country on this planet.

    I seem to be lucky enough to know nuff Bajans that I like both here in Canada and in Barbados.

    Can we at least have 1 good post for every 28 anti Bajan,anti government post.

    Please let the world know that Barbados is still a wonderful place to live and to visit and that Bajans are still friendly and nice to Tourisses.

    I gine an continue reading a book called “Four saints and an angel” written by a Bajan.

    I still supportin BFP but uh tired uh de bad news so I gine an drink a likka an read de book.

  8. rhubarb

    Is Mr. Belgrave STILL our Supervisor of Insurance?

  9. Chicago

    I get tired of all the negativity too, but I thank God that we have one place, one website, that isn’t constrained and spinning nice thoughts about Barbados 100% of the time.

    Hants, you are right about the negativity, but I don’t hear you saying that BFP isn’t telling the truth.

    I wish we had a third political party waiting for the next election. We desperately need it.

  10. reality check

    Hants

    I agree with you and BFP should do this more often

    The quicker we bring in ITAL and fix what is wrong with us the more likely that not only will we get better news but the more likely others will help us for our honesty and efforts to deal with our problems in a fully transparent way.

    We don’t need bandaids and sugar coated pablum but real medicine as promised by the DLP.

  11. Chicago

    Belgrave held the press conference you can read it for yourself. He is still our Stupidvisor of Insurance.

  12. Sargeant

    Hants I see you are supporting Bajan authors. My sources tell me that the book was recently launched in TO at the Consul General’s office. As usual I received the news after the fact but if you got an invite all power to you. BTW I think the author is related to the Guvnr of the Central Bank

  13. Donald Duck, Esq

    I hear so too.

  14. Brown Suga

    What is the Supervisor of Insurance really there for? Just to collect money and “huge” fines. He can’t even get insurance companies like Harmony General to payout policy holders when they cars are written off or when people get injured by their policy holders. “Working in Harmony for your Peace of Mind?”. Scrap that slogan… load of crap. They are not “Harmonious at all. They policies have all the allowances outlined in black and white but some how their chief underwriter somehow refuses to settle legitimate claims and thus put poor people to suffer all the losses after they have paid premiums to be insured against any accidents or injuries. It is happening too too often…..but who do we have to protect us and make sure that people’s claims are honoured? It is UNFAIR! When will our “Saviour” come? Soon? or Never?

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  16. Fuzzy

    BFP it will take people like you guys to keep pressure on this administration to pass legislation to protect the policy holders of our country and gradually rebuild some confidence in the insurance industry…Unless this is done the only insurance company that caribbean people should buy life insurance and othere financial products from are the American companies that are still there as they are very seriously regulated by the American Government and they cant mess with the policy holders like the unregulated Caribbean companies. l

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