Barbadians in the understandable emotion of the moment should resist the irresistible urge to discuss the current bailout of CLICO by the Trinidad government in a parisian and or political manner. This approach should extend to those who resent the lavish lifestyles of the CLICO Barbados executives who are known to ride around Barbados in high-priced luxury vehicles, and we understand there is an executive jet which is for the exclusive use of Chairman Leroy Parris and others of his bidding. Perhaps in the current climate the local CLICO management maybe persuaded to behave like a company which has modestly performed in comparison to a SAGICOR.
Back in July 2007 we hinted our concerns that Trinidad and Tobago had become the hegemonist of the Caribbean. At the time former Prime Minister Owen Arthur with lead for CSME matters seemed prepared to expose Barbadian companies to the highest bidder. The Arthur approach fitted well with the Port of Spain expansionist strategy given their cash rich position derived from a petro-based economy operating in a bullish global petro-market. The end result is that our largest conglomerate BS&T, our Barbados National Bank and other home-spun entities were gobbled-up by Trinidad investors. While the advantages of the Arthur strategy made a good economic argument BU has always been concerned about our ability to cope with the downside of such a strategy i.e. the mitigation of risk associated with the heavy concentration of Trinidadian ownership in a small Barbados market.
The inability of CARICOM to date to implement CSME has seen with it the inability to harmonize a regional financial regulatory body of any significance. The implication of not doing so is stark given the current unravelling of T&T government’s financial bailout of CLICO. Interestingly Neal & Massy, Ansa McAL and One Caribbean Media are other Trinidadian controlled pan-Caribbean company operating in Barbados. It seems ironic that CSME was so widely touted under the previous administration but as far as we are aware there is no legislated unitary governance structure in place to manage pan-Caribbean companies.
We have with purpose highlighted the company One Caribbean Media (OCM) to illustrate the importance of implementing a regional regulatory governance structure. BU has been a harsh critic of the concentration of media ownership in Barbados given the importance of the Fourth Estate in a working democracy. The recent bailout by the T&T government now sees OCM being 23% owned by the government of Trinidad which will immediately entitle them to seat bodies on the OCM Board. We leave it to the BU family to study the implications in the absence of clear codes of governance in the prevailing climate.
After listening to VOB’s call-in show this morning we have to agree with Dr. Justin Robinson, on the horizon may loom an opportunity for Barbadians to buyout the assets of the local CLICO subsidiary. To be honest we don’t see in the current environment how CLICO local can bounce back given the dent in its home market compounded by the global financial crisis. The government of Barbados should move hastily to preempt a marathon run on the company if it appears evident by 9AM tomorrow. We hope that the Barbados government during its informal talks with Junior Minister of Finance Mariano Browne would have signalled such a plan.
A word of caution to Prime Minister David Thompson. Your self-confessed relationship with Chairman Leroy Parris places you in a very delicate position. Our suggestion may seem ridiculous but Chairman Parris should be encouraged to cede his authority to one of the other executive officers in the company for the obvious reasons as this matter unfolds.
The BU household wishes for a good result to the CL Financial (Parent) – CLICO fumble (we are writing this on Super Bowl Sunday). After all this is a company founded by a Black man and financially modest Trinidadian Cyril Duprey at the time in 1936. In 1936 it would have taken a black man with balls to do what he did. The company through the years has been become a large player in and out of the region.
This is a company which cannot be allowed to fail.
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