CL Financial Shocker: “10 to 15 cents in the dollar available to pay claims”

“We also read recently that former CL Financial chief, Lawrence Duprey, had taken steps to limit the information he was required to furnish to the liquidator of CLICO (Bahamas) as to his private assets, allegedly acquired with CLICO funds…”

… Afra Raymond’s latest article talks about who’s going to get screwed in CL Financial/CLICO bailout. A small clue: Lawrence Duprey is doing just fine, thank you!

Our friend Afra Raymond is responsible for much of the good and aggressive reporting and commentary about the CL Financial & CLICO scandal. At BFP we’ve done some research ourselves and we even discovered a Florida company that was previously unreported in the news media, yet appears to be linked to a fraudulent CL Financial company real estate transaction in Florida. (See BFP’s article: EXCLUSIVE REPORT BY BARBADOS FREE PRESS: CL Financial Group Collapse – Insiders Took Bribes To Have Company Purchase Land For More Than Market Value!)

That said, we have to comment upon how absurd it is that blogs and part-time citizen journalists like Afra and BFP are often the ones taking the lead in covering this ongoing financial scandal. I mean, how absurd is it that bloggers discover CL Financial company connections that the regular news media is unaware of? Something is wrong there, folks!

Here’s Afra’s latest effort that appears on his blog under the title Ten to one is Murder!

The CL Financial bailout – Ten to One is Murder

A Kaiso title for the Election season.  And yes, we are told that CL Financial will rise again.  The picture is even more clouded than a year ago and the rumours abound

The latest developments are –

Press conference of 24th March – Following a front-page Express story, on the impending lawsuit by Justice Carlton Best to recover his $57,000 CLICO deposit – see I want my Cash at the Trinidad Express – the Governor of the Central Bank held a press conference that very day to tell us that those waiting for the return of their deposits would have to hold strain. See Delay your Redemptions at the T&T Guardian.

The further shocking news, after all the emphatic official statements that the group had good assets, was that if those were liquidated there would only be 10 to 15 cents in the dollar available to pay claims.

Now how could that possibly be the case? How are we to reconcile these conflicting accounts of the situation with CL Financial’s assets?  Is it that they are fully-pledged, over-pledged, or is there actually any ‘headroom’ within which the taxpayer can have a chance to recover the huge sums advanced so far?  Which is it?  Please note that this is not an isolated situation, as shown by another threatened  lawsuit from a former Attorney General of Guyana for the recovery of over $500,000 from CLICO – see Kaieteur News Online Former Attorney General threatens to sue CLICO Trinidad.

Post-Cabinet Press Briefing – The Minister of Finance confirmed the Governor’s position to the media the next day, as reported in this paper – T&T Guardian Clico Policy holders be patient.

In that article, the Minister is reported to have affirmed, again, that “…“The CL Financial Group had sound assets that were valued at more than $100 billion…”  Both the Governor and the Minister took steps to recover their own funds before the group’s financial troubles were public knowledge and that sits awkwardly, in the public mind, with their current appeals for patience.

Dr. Euric Bobb – At a Central Bank press conference on 31st March, resigned as Chairman of CLICO and as a Director of CL Financial, of which he was the Chairman, until his resignation late last year.

Governance – His statements as to the poor governance at CLICO, the leading company in the CL Financial group, were astonishing, to say the least – see Governance was an alien term in CLICOat the T&T Guardian. No reconciliation of the company’s bank accounts.  No audit committee.

Those are serious shortcomings in the basic accounting and governance controls in any company.  For one which had investment as its centrepiece, those are shocking.  They give the impression of unprofessional and haphazard management of a significant part of our nation’s savings.  They detract from the reputation of the CL Financial chiefs.  Surely these shortcomings found their way into the Management letter from the Auditor to the Board and Shareholders?  Was the Central Bank aware that these elementary controls were absent?  Even if there are serious shortcomings in the financial procedures at CLICO, are we not entitled to rely on the Supervisor of Insurance or Inspector of Financial Institutions to resolve those in favour of the investing public?

continue reading this excellent but shocking article at Afra Raymond’s blog

Advertisements

5 Comments

Filed under Barbados, Consumer Issues, Corruption, Crime & Law, Freedom Of Information, Freedom Of The Press, Offshore Investments, Political Corruption, Politics, Politics & Corruption

5 responses to “CL Financial Shocker: “10 to 15 cents in the dollar available to pay claims”

  1. reality check

    Who and where were the auditors in all of this?

    These are the professionals who are suppose to act for the insurance holders and the rights of the minority shareholders and to ensure the accuracy of the financial statements.

  2. The Watcher

    Sadly to say(not like I am sad in any way), when there is a finincial mess in Barbados, it seems like Trinidad is behind it, inside it or owns it!
    Remember Trade Confirmers Ltd? Then there was that little know insurance mess with a Trinidadian based insurance company who quietly left some folk here “holding the bag”.
    This needs to be dealt with and swiftly. Mr Parris has made his statement to the press. When the reality strikes, you may hear something different as CEO’s choose their words carefully so as not to put themselves in a bind even when they leave their respective firms.
    People have to cease being sacrificial lambs to the slaughter and act wisely!
    Nuff said!

  3. Donald Duck, Esq

    Who is on the oversight committee in Barbados? Why is this info so top secret?

  4. Listening to Kamla

    The thing is… Kamla big on stage saying we not like Barbados.

    Clearly she hasn’t been reading you guys.

    Wait til the true state of financial affairs come to light.

    GATE will come crashing down.

    And will someone disclose how much the texan got off all the VIP 20/20 games.

  5. Pingback: Memories of CLICO: John Mauldin, Michael E. Lewitt and The Death of Capital « Barbados Free Press