Reason #846 why Mia Mottley and the BLP Opposition have no credibility
The BLP Arthur/Mottley government appointed chicken-feed factory manager Carlos Belgrave as Barbados Supervisor of Insurance. In 2006 Belgrave received Offshore Alert’s “Worst Regulator” award for staunch support of three Barbados insurance companies that faked their books and had owners previously convicted of fraud. Not to mention that Belgrave approved and licensed the companies when other countries had turned them down.
If you need a little more flavour to the story, consider this…
Barbados Supervisor of Insurance Carlos Belgrave allowed a failing Reliant insurance company 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”. (See BFP’s Carlos Belgrave, Supervisor of Insurance and Pensions in Barbados, Called “Worst Regulator” By OffshoreAlert)
Got that? Belgrave approved half a billion dollars of supporting company value based upon pieces of paper promising the right to mine peat in Panama put forth by a newly-created paper corporation!
Belgrave and successive Barbados governments obviously applied the same tough standards to regulating CLICO and valuing its assets.
For years the BLP government and Belgrave allowed CLICO and it’s associated companies to violate all kinds of rules and standards that put investors at risk.
Now that the whole house of cards collapsed Mottley is spewing off at the mouth saying that she and the BLP will protect CLICO investors!
Well, as our own Auntie Moses says – a lie is a lie and if you’re going to tell a lie, why not make it a big one!
Further Reading (make sure to take your anti-nausea pills!)
The Nation: BLP vows to protect investors
You really should read the article at The Nation, but we print it here in full because the Nation has a record of re-writing history by revising and/or deleting articles…
BLP vows to protect investors
THE OPPOSITION BARBADOS LABOUR PARTY (BLP) will be putting mechanisms in place to ensure that policyholders and investors in the CLICO group of companies are not disadvantaged.
Opposition Leader Mia Mottley gave this assurance on Sunday night while addressing a large crowd of party supporters at Christ Church Foundation School.
Arguing that nature abhors a vacuum and that she was responding to pleas from concerned policyholders and investors, the St Michael North East MP said: “We in the BLP acknowledge that the jobs of CLICO employees must be protected by any responsible government, but at the same time we also recognise that investors’ money must be protected.
“Every week I am being sought after by policyholders and investors who express their concerns about their investments. Last week a senior citizen expressed her fears over an investment of $100 000. A young couple also expressed their concern over an investment of $50 000.”
Mottley questioned CLICO’s ability to honour its financial commitments to investors by pointing out that in the current depressed real estate market many of CLICO’s properties were over-valued. She argued that the CLICO office block at Worthings, Christ Church, would hardly fetch an asking price of $32 million, but the significantly reduced price of $17 million.
The St Michael North East MP told the gathering that a Land Tax valuation of the Sam Lord’s property in St Philip had put it at a sum equivalent to the money owed to the mortgagee. She maintained that under these circumstances, Government would have to shell out about $70 million for the acquisition of the property if CLICO were to realise a profit.
The Opposition Leader argued that such action would be unconscionable at a time when Government was cutting transfers to statutory boards and had issued a directive to all Government agencies asking that the recruitment of substitutes at all Government agencies be discontinued.
Noting that international agencies were given access to the Memorandum of Understanding (MOU) between Government and CLICO before members of the House of Assembly, Mottley tore up her recently acquired copy before charging that it was not worth the paper on which it was written.
Mottley said: “Under the terms of the MOU, there was no obligation for CLICO to carry out a forensic audit. There was not any requirement on the part of CLICO officials to curb expenditure. The company was still paying $75 000 a month to keep an executive jet in the skies.”
She charged that while taxpayers’ money was propping up CLICO Mortgage Finance Corporation, Leroy Parris was able to withdraw two deposits totalling over $250 000. (WG)