Peter N. Boos asks “Where were the politicians and business leaders when this (Clico mess) was happening?”
That’s easy to answer in the case of now Barbados Prime Minister David Thompson…
Barbados Prime Minister Thompson was lawyer for CLICO when they failed to file financials for 13 years! Then as Prime Minister he bailed them out with your tax dollars.
While CLICO and its associated companies cooked the books and failed to file legally-required financial statements for 13 years, David Thompson was CLICO’s lawyer. Mr. Thompson and his law firm represented Clico and Leroy Parris in many of the transactions that are rightly questioned by the poor victims.
There. That was pretty simple, wasn’t it?
This excerpt is from The Nation newspaper article The Rise and Fall of Clico by Peter N. Boos
“To simplify it, the post Cyril Duprey leadership of CLICO took the company on a journey that no well-regulated and properly managed insurance company ever can or would take.
Investments of insurance companies funds are regulated by law and are there to protect the people to whom the funds are owed.
In CLICO’s case, insurance funds, held in a fiduciary relationship for pensioners, policyholders and depositors, were used to invest in high risk asset purchases, many of which made little or no returns.
Sugar plantations and other distressed real estate in Barbados being glaring examples.
Interest rates promised to depositors were well above normal commercial rates offered by banks or other insurance companies.
This financial model is not a viable equation for any business far less for an insurance company. Policyholders, depositors and pensioners of insurance companies expect prudence, low risk, high security and integrity from their insurers and their managers.
They also should be able to place confidence in regulators to ensure compliance.
Yet this was allowed to happen right under the noses of the financial regulators across the Caribbean. Why did this happen? We must find out.
Where were the politicians and business leaders when this was happening?”
The Nation – Mia Mottley: Leroy Parris should repay CLICO