If our ears and eyes are functioning correctly, the opposition Barbados Labour Party has loudly told Barbadians that it intends to file a motion of no-confidence in Prime Minister David Thompson over the handling of the CLICO Affair. The decision has caught most Barbadians by surprise, many who we have spoken to are not sure what to make of the decision. To observers CLICO’s public image has taken a beating, given the nature of its business which relies on public confidence a no-confidence motion at this time is likely to place a dagger firmly in the heart.
We can only assume that the conviction which Mottley has shown by her declared political strategy of tabling a no-confidence motion, she will be able to accept the consequences. CLICO Barbados being placed under the microscope has come about because of action by the regulatory bodies in Trinidad. We can only assume that if no action was taken it would be business as usual on Whitepark Road. The Prime Minister has made the point that the financial state of CLICO Barbados could not have deteriorated so precipitously in one year of DLP rule. The inference is that the former government should have been aware of any financial weakness in the CLICO balance sheet before demitting office.
The CLICO Affair has now become a political football.
Some people are arguing that it is the job of the opposition to to expose what she knows about the CLICO Affair. Mottley has publicly stated that her concern is for the 38, 000 CLICO policyholders. What seems to be eluding the political actors in the CLICO drama is the understanding that as long as this matter continues to be played out in public the fortunes of CLICO Barbados will continue to slide south.
Commonsense should have indicated that when the CLICO story broke in Trinidad given its gravity, its subsidiaries across the region would have immediately become ensnared in a crisis of confidence. Investors in CLICO would have understandably become concern about the safety of their investments. In some cases it would have been reasonable to anticipate premature withdrawals. This behaviour becomes even more understandable in the current global financial crisis. In light of the foregoing we find the action of the government to extend financial assistance as prudent. The failure of CLICO in Barbados would only serve to undermine the total financial market in Barbados. One of the key strengths of the Barbados economy over the years has been is solid financial system. Recently little Barbados received the evaluation that it was one of the best managed financial system in the world.
Whether Leader of the Opposition Mottley believes that Prime Minister Thompson’s intervention was less than honourable; motivated by his close relationship with Chairman of CLICO Leroy Parris, he deserves the benefit of the doubt given the high stakes. Her charge immediately tars Governor of the Central Bank Marion Williams and Supervisor of Insurance Carlos Belgrave who have publicly supported the government’s position on CLICO.
So where are we?
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