Continued mismanagement of CLICO – CL Financial “devastating” to policy holders

Policy holders: Your Country Needs You

by David Walker of Santa Rosa Team

  • The realities of the “offer” are not as described by the Minister and others.
  • Once you sign, you have given up all rights, even if they don’t honour the stated terms.
  • The “offer” is open until June 2012, so only your financial circumstances should force you to sign now.

While the happenings at CLICO and CL Financial have already had a devastating effect on your lives, it pains me to say that the continued mismanagement of the companies is about to hit you even harder. Like every other taxpayer and citizen, you will suffer from both the immediate financial impact, and the long term destruction of our investment and business climate. And YOU are the only ones standing in the way of the impending catastrophe.

“When a nation abandons the rule of law, when there is no attempt at regulatory oversight, when accountability and transparency are non-existent, and when any pretense of equity is openly shunned by authority, the inevitable result will be economic decline.

Who would invest in a country where you cannot enforce contracts against a company? Who would leave their money in companies that do not offer audited statements for over five years, with evident impunity? The answer is obvious.”

Recently, the authorities took legal action against directors of e-Teck for failures far less severe and with much milder consequences than what happened at CLICO/CLF. No authority has seen it fit to take similar action against the directors of CLICO/CLF. The nation needs to cleanse itself of these heinous acts. YOU are the only ones who will take the necessary action against both former and present directors of CLICO/CLF.

The Regulators failed disastrously at CLICO/CLF. Rather than punishment and condemnation, they have been handed the reins at CLICO.

There is now no Regulator at CLICO as a result. The ills that the Regulator identified as causes of the collapse have been continued, even accelerated under his stewardship. We still see interlocking directorships and related party transactions at the expense of policyholders. Only YOU and your actions can force the Governor of the Central Bank to honour his role as Regulator, and look after the interests of policyholders.

Such has been the mismanagement and incompetence of the regime, that they approved 10.7 billion dollars to solve a 4.5 billion dollar problem (the Minister’s figures). In spite of more than doubling the requirement, they have managed to treat policyholders so badly that they need to protect the company from lawsuits. Only YOU can reverse this waste of taxpayers’ money, and at the same time bring about the invalidation of a grotesque law that takes away people’s right for no good reason. Only YOU can bring this nation back to acceptable standards of behaviour.

It is instructive to note that a new Insurance Bill is being proposed in an effort to promote greater accountability from insurance companies. The government has at the same time failed to deliver audited statements for six years for the insurance company it controls. It evidently sees no double standards in this stance, as no reason is offered for the protracted absence of audited statements. Only YOU, through your legal actions can force the government to live up to the very standards that it says are critical to the effective functioning of our systems.

Every person knows instinctively that if a company is in difficulty, then what assets are available should be shared equally between creditors. In fact, that is the law in this country and virtually every other one we’ve examined. In spite of this, the regime has chosen to pay some policyholders under enhanced terms as against the rest. We refer here to those with less than 75,000 and Trade Unions and Credit Unions. This is especially galling since EFPA policies were not for corporations. Those who “broke the rules” (Trade Unions and Credit Unions) are being treated more favourably by this regime. Once again, it is only YOU who can force a reversal of this practice.

Our international reputation, our propensity to conform to the rule of law, our ability to attract inward investment and remittances, and the legacy we bequeath to our youngsters are all at stake. YOU have been placed in the front line of this battle for a better Trinidad & Tobago. We urge you to step up. Join this most important struggle through one of the groups that’s taking action. You can find out more about our actions at the Santa Rosa Team by contacting us at santarosateam@gmail.com .

Our website

For ease of access, we have placed copies of all issues in this series on our website, www.santarosateamtt.com/analyses.php. Each new issue will be uploaded within 24 hours of its publication. Our website also features an EFPA Calculator. Enter your principal and it will calculate your payment schedule according to the published plan. We will also soon put up a Q&A area that allows comment and also lets users post new questions which our experts will answer to the best of their ability subject to the limited information made available by the government.

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If you know of anyone who would benefit from receipt of these emails, feel free to have them submit their email addresses to santarosateam@gmail.com. If you do not wish to receive these emails, kindly let us know by return email and your address will be deleted from the list.

David Walker

Lead Consultant

Santa Rosa Team

MEETING MOVED to Monday, December 12, 2011

Dear Policyholder,

We had planned to host a meeting on Sunday last (4th Dec) but decided to postpone it so as not to clash with a previously carded meeting by the Ramesh Lawrence-Maharaj group. The Santa Rosa Team and a few of our clients attended and we can report that we support their actions wholeheartedly.

Our meeting has been rescheduled for Monday 12th provisionally at St. Mary’s College in Port-of-Spain. More details will be sent to you within the next 48 hours.

We also propose to release a proper analysis of the latest “offer” within that timeframe. In the meantime though, you should be aware of the following early conclusions –

  • The realities of the “offer” are not as described by the Minister and others
  • Once you sign, you have given up all rights, even if they don’t honour the stated terms
  • The “offer” is open until June 2012, so only your financial circumstances should force you to sign now
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5 Comments

Filed under Barbados, Business & Banking, Consumer Issues, Corruption, Crime & Law, Trinidad and Tobago

5 responses to “Continued mismanagement of CLICO – CL Financial “devastating” to policy holders

  1. Newbie

    “When a nation abandons the rule of law, when there is no attempt at regulatory oversight, when accountability and transparency are non-existent, and when any pretense of equity is openly shunned by authority, the inevitable result will be economic decline.

    You forgot to also mention Social and Moral decline as society becomes a DOG EAT DOG environment, if they can do it, we can do it too, no body trust no body (not even family, sounds familiar?).

    I think I am starting to understand DEMOCRACY. It seems to mean that we have the right to choose who will victimise us next and OUR CHOICES have the right to change the rules in our interest???? whenever it suits them, or is that SO IT SUITS THEM?. I don’t know I am not sure of anything anymore.

    MR Stuart is now a little upset about the LIAT pilots’ action against the company so now he will sit with his advisers and decide how the rules can be changed TO SUIT THEM (Government and businesses, CLICO), all in our interest of course. Unions have a little say here and there in the Caribbean and it seems even that little strength is in danger of being cancelled if Mr Stuart has his way.
    You would truly believe due to Government inaction that there has been no wrongdoing in this whole CLICO affair, true or not, it seems that the only people suffering are the average citizen, the big boys already have their money back, apparently.

  2. Maverick

    As long as the people of Barbados are subservient to politicians and their “policy” and not demonstrate for their one interests, so long will noting and anything be changed on the island.

    Previously the people of Barbados has been exploited by the British, now by their own “brothers”!
    Nothing has changed.

    The people of Barbados still behaves like slaves but celebrations for 45 years, every year, “Independence Day”, sorry, I really do not know why! There more depend to day from all and everything then they have eve been under the British!

    The world has changed in 45 years, there it’s now a shark basin. Small fish are eaten. CLICO is a large fish, and fish who sit still are very easy to to eat.

    I want to say wake up in Barbados, but how can you teach a stone to swim?

  3. Just want to know

    One has to remember our P.M has publicly stated the head of CLICO in Barbados is his friend, and he is not going to turn against him, so what does the people who have interest in CLICO going to do? None of them seem to want to march and demonstrate, so they will became sore losers, while the people of have bigger interest get all their money back.

  4. BA

    I would like to know when those “in the know” first started withdrawing their money from Clico and their offered investments. The hearings in T&T show that there were plenty of people with the inside track. Disgusting! All the time they were telling the policy holders ‘no problem here’ they were quietly bailing out of the the crash they could see coming. No shame like the filthy animals they are.

  5. GO Maverick!

    Is Maverick accusing Bajans of being imminently exploitable?
    Surely not….lol

    I like the part where he says…
    Previously the people of Barbados has been exploited by the British, -and now by their own “brothers”!
    Nothing has changed.

    The people of Barbados still behaves like slaves but celebrations for 45 years, every year, “Independence Day”,
    sorry, I really do not know why!

    Excellent analysis, sir! Well done!