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Prime Minister David Thompson And Opposition Leader Mia Mottley Expose Weakness In The Office Of Supervisor Of Insurance

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PRIME MINISTER David Thompson (right) with Supervisor of Insurance Carlos Belgrave and Barbados Central Bank Governor Dr Marion Williams/Nation Newspaper

A member of the BU household was fortunate to listen to the mid-day call-in program hosted by veteran journalist David Ellis. If we were not convinced that politics has enveloped the CLICO Affair, we are now convinced after listening to Mottley and the Prime Minister on the call-in show. Previous blogs have discussed the unravelling CLICO saga ad nauseam.

Our concern centres on the admission by Leader of the Opposition Mottley that she left government not knowing that the CLICO statutory fund was in deficit. She confirmed that the Supervisor of Insurance report for 2005 was only submitted in early 2008. The Prime Minister put forward the very logical argument that if Mottley can claim ignorance after years in office how could he be expected to know a deficit existed after one year in office.

Shameful!?!

The weakness apparent in both positions (Mottley/Thompson) is that it exposes a  deficiency in our governance system. In a world where financial companies have been collapsing like 9-pins, Barbadians must still remember BCCI, Trade Confirmers, New India Insurance and others, it is incomprehensible that a more efficient framework does not exist that would facilitate the timely flow of urgent information between the cabinet and the office of Supervisor of Insurance.

The office of Supervisor of Insurance we suspect is run like your regular civil service department. There has been talk in the post-CLICO Affair about the need to beef-up that office. Commonsense requires given the complexity of financial companies/markets the office of Supervisor of Insurance should be given priority. Bear in mine that we have international insurance companies operating in Barbados.

After listening to Prime Minister Thompson and Leader of the Opposition Mottley this afternoon we urge both of them to stay their aggressive political rivalry. The lifes of thousands of Barbadians depend on it.

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  1. The Scout Avatar
    The Scout

    It means that the present government has to tighten up on the these affairs. It bothers me that I’m seeing Clico companies within the region are getting somewhat concerned and it is only obvious after other companies I.E Trade Confirmers and other Insurance Co’s collapsed and left many people holding the bag. I would like both parties to come clean with the Barbadian public and let us know what is happening. I have the gut feeling that they are both holding back some vital information.

  2. Adrian Hinds Avatar
    Adrian Hinds

    David I am taking issue with the tone of your article. Why are you placing David Thompson on the same plateau as Mia regarding “staying there aggresive political rivalry”? From the very beginning the PM’d approach to this issue was one of calm, constant monitoring, and a preparedness to PROTECT BARBADIAN JOBS, AND THE BARBADIAN ECONOMY.

    …..Mottley went on the warpath not caring that she could cause significant dislocation to a large number of Barbadians, and Thompson merely sought to defend himself and his approach and you can get here and accuse de man of political fighting? What is wrong with you? stupse

    IT IS WRONG ON ALL ACCOUNTS TO HAVE MADE PUBLIC THE FUND DEFICIT AT THIS TIME OF ECONOMIC UNCERTAINTY, AND THIS IS WHAT MIA ALONE DID.

  3. David Avatar
    David

    Adrian it is a call we have made based on the report of the tone of the exchanges. This is not about who is right or wrong but about the government of Barbados continuing to send the message that all is well and that they are in control. Getting into a shouting match with the Opposition Leader on a callin program has the affect of increasing VOBs rating only. The investors in Clico must have been left to wonder what is really going on after the exchange today.

  4. Jerome Hinds Avatar
    Jerome Hinds

    Following today’s round 2 of the Clico saga ……the CBC event of last evening being round 1…..there is no doubt that among rational thinking Barbadians Ms. Mia MOCK – LEY is politically “bruised”

    How else can she seek to reasonably extricate herself from a political volcano that she PRODUCED and BLEW UP ?

    But then again her intended TARGET (Owen Arthur ) must surely be feeling CHEQUED out !

  5. Wuh? Avatar
    Wuh?

    David,

    You are normally reasonably astute. Mia Mottley wants to damage Owen Arthur NOT David Thompson.

    Her insatiable quest to be Prime Minister, her desire to silence Owen and the fact that she is not currently the centre of attention are the factors that spur her recklesness, wild and raucous passion on this issue.

    It is irresponsible and dangerous and she will be fitally wounded by it.

    All David Thompson has to do now is to declare for the country which former Cabinet Ministers had million dollar deposits in Clico Mortgage Finance! Will he do it?

  6. John Avatar
    John

    I rather have the truth and know the damage than depend on a set of politicians to keep it under wraps to protect me from fear and panic.

    I say out with it …

    ….. and if Mia is baring all, good for her!!

    I want to see.

    … but it better had be all …. I don’t want no half truths.

  7. BAFBFP Avatar
    BAFBFP

    “Getting into a shouting match with the Opposition Leader on a call-in program has the affect of increasing VOBs rating only. The investors in Clico must have been left to wonder what is really going on after the exchange today”
    Shamefully the truth. Vic Fernands must have been bending over with glee…

  8. BAFBFP Avatar
    BAFBFP

    Does Clico being a long stay client of David Thompson and Assoc. not make the Prime Minister privy to a lot more inside information than he is letting? Attorney-Client privilege I suppose.

    But… the good news is…

    CAMPAIGN FINANCING IS BACK ON THE TABLE FOLKS

  9. JC Avatar
    JC

    I dont think that Mia Mottley cares anymore she is willing to take down country and man with her …….

    I think that is selfish!

  10. Gear Box Avatar
    Gear Box

    Mia Mottley is barin’ all… Gear Box sellin’ blin’ folds. Buy one an’ get one..

    AAAAAAAAAAghhhhhhhhhhhhhhh

  11. Adrian Hinds Avatar
    Adrian Hinds

    people get call power hungry and where bannish to the political dump heap for much less than Mia Mottley has done thus far. Why are we not willing to call her out and send her along?

  12. David Avatar
    David

    Interesting when Ellis asked the Prime Minister to give the amount CLICO donated to the DLP’s last campaign he and Mia closed ranks. We should definitely make campaign financing an issue.

  13. Straight talk Avatar
    Straight talk

    A strange decision by the PM (or was it Hartley Henry) to attempt to put his version of events, by cell phone, on a call-in programme.

    It was unedifying to say the least to hear a prime minister being told by Ellis to hold on a minute whilst he went to the other phone to rev up Mia some more, increasing the rancour.

    They were ostensibly discussing one of the major issues confronting the country, but all the listeners heard was a disorganised shouting match by the very people who should be handling this crisis professionally.

    What became obvious as the accusations flowed, is that political contributions are at the heart of how this situation is being handled.

    Mia nimbly moved her ground from the Statutory Fund per se, to whether the PM consulted Belgrave prior to his endorsement of Clico in January, and was he advised of the company’s true position.

    The deficit in the Fund cannot be explained away by mistakenly believing CL Financial had sufficient liquid assets to cover any shortfall.

    The law was enacted as a guarantee for the public, requiring the deposit specifically for this eventuality.
    No promises or flim flam, hard cash.

    Breaking the law by running a deficit in the Statutory Fund, should have had the alarm bells ringing.
    Instead it was inexplicably disregarded for years.

    The SEC believed Madoff and Stanford until events slapped them in the face.

    I agree with John that the very best option is for total honesty and transparency by all concerned, along with a plan to handle this true picture.

  14. Inkwell Avatar
    Inkwell

    The Prime Minister announced that negotiations are presently in progress to arrange the sale of the life insurance arm of Clico to another Barbadian entity.

    The question that all thinking observers and commentators should ask…and if you are not asking it, you are not thinking..is if all is well with Clico and policy holders have nothing to fear, as the PM, the CB Governor and the Supervisor of Insurance were quick to assure the public, why has it suddenly become necessary to hurriedly rescue the insurance arm from Clico?

    Any of you “thinkers” care to answer?

    Let me give you a hint:

    http://guardian.co.tt/news/general/2009/02/27/duprey-sinks-billion-florida-properties

    And we know how it is with the Florida real estate market.

  15. coffee time Avatar
    coffee time

    The question that all thinking observers and commentators should ask…and if you are not asking it, you are not thinking..is if all is well with Clico and policy holders have nothing to fear, as the PM, the CB Governor and the Supervisor of Insurance were quick to assure the public, why has it suddenly become necessary to hurriedly rescue the insurance arm from Clico?

    Any of you “thinkers” care to answer?

    —————————————————————–
    Sale of Clico Life covers shortfall in security guarantee. Shortfall thick girl and short man callously allow to exist and increase from 2004 .Duuh.

  16. Inkwell Avatar
    Inkwell

    Duuh…mbo

    If Clico Life is sold, there will be no shortfall in security guarantee and therefore nothing to cover. Duuh

  17. Inkwell Avatar
    Inkwell

    Duuh…mbo

    Why would Clico Holdings voluntarily let go a lucrative life insurance operation, when it could just as easily flog one or two or more of the loss making plantations it owns in St John? Duuh.

  18. David Avatar
    David

    The longer this matter continues unresolved the actors on both sides are digging themselves into a bit of a hole. PM Thompson should never have allowed himself to have been drawn into the undignified position of cellphone to cellphone although in fairness to the PM he seemed unaware until Ellis mentioned it.

    A couple observations from the exchange which ST touched on. The explanation by Ms.Mottley that the former government’s position of tolerating the statutory deficit because of a peceived financial strength is a surprising argument and one that will probably comeback to haunt her.

    The other point is her answer to the question that her actions could cause a run on the insurance company. What about the mortgage company CMFC which accept deposits? Couldn’t the events in Barbados cause on a run on that company? Finally the PM in his last press conference suggested that regulators have concerns about deposits which the insurance company has been taking implying that a run on the insurance company is/was possible.

    WHERE IS THE SUPERVISOR. OF INSURANCE IN ALL OF THIS?

  19. BAJAN TALIBAN Avatar
    BAJAN TALIBAN

    I am third (tired) of David Thompson.

    I am (board) bored of David Thompson
    already.

    Get on with the job man !
    You are Prime Minister
    The chit chat thing is not necessary !
    Just do the JOB man !

  20. Straight talk Avatar
    Straight talk

    Don’t worry, David our Supervisor Of Insurance has already assured us all that he “cannot find anything that CLICO could not manage. Don’t panic”

    But considering that his report on 2005’s financials were not on the Finance Minister’s desk until April 2008, I think his job title may be a misnomer.

    Perhaps “Curator of Historical Records” or some such.

  21. Anonymouss Avatar
    Anonymouss

    ST, thanks for the second good laugh of the morning.
    “Curator of Historical Records” thas a goo
    d one

  22. Marlehole Avatar
    Marlehole

    Nehemiah 5 (King James Version)
    Nehemiah 5: 1 – 5; 14 – 16.
    1And there was a great cry of the people and of their wives against their brethren the Jews.
    2For there were that said, We, our sons, and our daughters, are many: therefore we take up corn for them, that we may eat, and live.
    3Some also there were that said; We have mortgaged our lands, vineyards, and houses, that we might buy corn, because of the dearth. (Drought, scarcity)
    4There were also that said; We have borrowed (On loan, rented) money for the king’s tribute, and that upon our lands and vineyards.
    5Yet now our flesh is as the flesh of our brethren, our children as their children: and, lo, we bring into bondage our sons and our daughters to be servants, and some of our daughters are brought unto bondage (repression) already: neither is it in our power to redeem (acquire, buy back) them; for other men have our lands (domain) and vineyards.
    14Moreover from the time that I was appointed to be their governor in the land of Judah, from the twentieth year even unto the two and thirtieth year of Artaxerxes the king, that is, twelve years, I and my brethren have not eaten the bread of the governor.
    15But the former governors that had been before me were chargeable unto the people, and had taken of them bread and wine, beside forty shekels of silver; yea, even their servants bare rule over the people: but so did not I, because of the fear of God.

    16Yea, also I continued in the work of this wall, neither bought we any land: and all my servants were gathered thither unto the work….
    I started with this passage of scripture, in my opinion because of its relevance. The Trinidad and Tobago’s government PM Patrick Manning have decided to “Eat its seed” at this time for whatever reason. Political, personal whatever and he will live to regret that. Anyone looking at CL Holdings (the company), has to know its #1, 2 or 3 in the country of T&T and a great revenue earner; way too big to be liquidated in THIS ENVIRONMENT. Yes, CL Holdings (like AIG) moved away from its core model and went into the banking sector, extended itself and has made a net loss of $37.5M BSD as admitted by the chairman in their report FY2007 on the Wellington Preserve, Palm Beach FL; “equestrian project” and should no doubt be “rap on the knuckles” and be reigned in; not made to pay the price he is seemingly asked to pay. The political merits/demerits can be argued, but the government “Eating its seed” is not an option. In Barbados, CLICO should not be in any jeopardy and the Leader of Opposition should “Chill Out” and realize for there can be no “Run on an insurance company.” What will people do? Kill each other to collect the insurance premium.

  23. David Avatar
    David

    The late submission of reports in the civil service which disregards if urgent circumstances require it should start to concern Barbadians. In the private sector there is a mandatory requirement under law for registered companies to make public their financial statements. In the public service is has become institutionalized that government departments submit financial statements YEARS later as in the case of the Caribbean Broadcasting Services, Hotel and Resort Ltd. Why has this practice been accepted for so long? Should we blame the policy makers (politicians) or the heads of departments in the public sector?

    What is happening?

  24. Global Voices Online » Barbados: Proper Systems

    […] of the Opposition admit “not knowing that the CLICO statutory fund was in deficit”, Barbados Underground says: “It is incomprehensible that a more efficient framework does not exist that would […]

  25. bajanbat Avatar
    bajanbat

    @ Adrian Hinds – “… people get call power hungry… etc”.
    Power hungry people also scheme and trick their way to the top of their party so that they can achieve their personal dream to be PM – see D Thompson’s track record in the DLP.
    If the Supervisor’s reports were not filed before she left office, the fault lies with the Supervisor. There is a major weakness in the reporting system that needs to be fixed.
    Mr Thompson was in office for months after the report was filed but he evidently was not aware of it and did not find out about it until T&T blew the whistle. Do you mean that during the cosy chats with Parris the matter never arose? Despite the client and the friendship relationships? Give me a break.
    The PM’s conflict of interest in this matter is so bad he should be ashamed to stand and defend Clico. If the BLP does not bring the matter to the public attention would we ever know what is happening or are we to be satisfied with that? We would have to rely on these blogs for info like we are presently doing.
    The talk of “creating panic” is junk. That talk is only intended to try and shut up those who want to bring the lack of transparency in this admin into the light. There has been no panic despite the info released by the BLP and the blogs.
    Stay focused on the issues and stop taking political sides. That is what destroys Barbados, the utter political polarisation of the population.

  26. Natas Avatar
    Natas

    Anyone beside me ain’t find it strange that the PM of Barbados annouced at a meet the press and people event that a private company will sell part of its base, should this information not have come from an official of the private compamy CLICO. Just wondering!!

  27. David Avatar
    David

    @bajanbat

    The jury maybe still out on how the public debate will affect Clico as a company. If we are judge by the current debate in the house of assembly on the constituency councils and the snide remarks directed at clico, the sales people of clico and policyholders will be on the edge of their seats in the coming weeks.

    The point of agreement is the fact that Parris is or very soon become a political liability. We know that the government’s political strategist like many hold Obama in high regard. Remember that Obama at a point had to divorce himself from Reverend Wright who was know to be a long time friend and spiritual mentor.

  28. coffee time Avatar
    coffee time

    Inkwell // March 3, 2009 at 6:07 am

    Duuh…mbo

    If Clico Life is sold, there will be no shortfall in security guarantee and therefore nothing to cover. Duuh
    ……………………………………………………………
    Then its win win scenario for thick woman ballyhooed 40,000 policy holders.Duuuh.

  29. Straight talk Avatar
    Straight talk

    He may have divorced Mr Wright, but only after he had an affair with Mr Wrong.

    Once Rockefeller, Morgan and Citibank explained to him how power is actually exercised, ruthlessly, his whole campagn changed.

    There is no difference now between how Obama is dealing with the meltdown and the previous administration’s capitulation at the feet of naked greed.

  30. M Avatar
    M

    Natas // March 3, 2009 at 1:57 pm

    Anyone beside me ain’t find it strange that the PM of Barbados annouced at a meet the press and people event that a private company will sell part of its base, should this information not have come from an official of the private compamy CLICO. Just wondering!!

    Right on Natas, people are being so political that they are missing the obvious, why indeed should the PM be making this statement instead of the arrogant Leroy Parris. As the chinese say “sum ting wong”

  31. Wuh? Avatar
    Wuh?

    Perhaps the PM gave a directive! And I say bully for him once it helps. Go David!

    Mia is fighting Owen, not you!

  32. David Avatar
    David

    We keep reading of this power play in waiting by Arthur, what evidence do we have of this? If a divide were called tomorrow who would get the majority support of the sitting MP’s?

    We can assume that Mia would get Toppin, Forde, Marshall, Payne which means that one of those four would have to break ranks.

    Mia looks safe unless something drastic happens Friday!

  33. sitting MP Avatar
    sitting MP

    Mia had always shown the promise and she will ensure that that promise of leadership will materialise. Thompson cannot handle MIA (not the rapper)
    MIA GWINE RUN HE OUT OF POLITICS

  34. Wuh? Avatar
    Wuh?

    Neither she nor Owen Arthur got the best of David Thompson since he came back to lead the DLP.

    He read Arthur out of Parliament in the 2007 Budget with the cheque and he actually – as Opposition Leader – closed the House in December 2007 and effectively called elections.

    Never forget… David Thompson has the files!

  35. David Avatar
    David

    What is VERY clear coming out of the CLICO Affair is the SERIOUS weakness in the Supervisor of Insurance office. In the BU household we are still reconciling how Barbados can be considered a stable financial market with the insurance sector regulated by a Curator of Historical Records!

  36. Wuh? Avatar
    Wuh?

    It is clear though that whatever we or don’t have is 10 times better than anywhere in the Caribbean!

  37. Insulted Avatar
    Insulted

    The PM claimed that he, in making his original comments (otherwise known as lies) on the status of Clico, was seeking to inspire public confidence. The opposite is now true since it is crystal clear that he (and the SOI , CB Governor, Leroy Parris and Clico) lied to the people. How does a company move from sound to “in deep trouble” in the space of 4 weeks. What an interesting way to inspire confidence. To make matters worse, he comes on national television to make the announcement that Clico Life may be sold to another insurance company, and that Clico would no longer be selling its Flexible Annuity Plan. A job which I believe should be that of the company’s PRO or CEO. Makes me wonder if he ever ceased to act as Attorney for the Company after taking up the office of PM. He seemed awfully comfortable with discussing the affairs of Clico, much like he was a member of their management team. On top of all that the CEO of the company which is supposed to be buying out Clico Life makes a statement to the effect that his company was approached by the Ministry of Finance (not Clico) to try to assist Government with a solution for the Clico troubles. Again Mr. Thompson continues in his role as CEO/PRO/Attorney for the CLICO. All that Mr. Thompson has done so far is the very thing he was claiming in the first place to be avoiding. In Trinidad, I have not heard one word from Mr. Manning on the handling of the CL Financial’s woes there.

  38. David Avatar
    David

    @Insulted

    Could it be because Prime Minister Thompson is also Minister of Finance? In Trinidad Nunez- Tesheira is Minister of Finance so it might explain the different roles for Thompson and Manning. We have heard quite a lot from her.

  39. Wuh? Avatar
    Wuh?

    Insulted, you have insulted my intelligence. Confidence is the word in a financial crisis.

    How many jobs have been lost in Clico, how many policies cashed in, and has there been a run on the institution?

    1600 Barbadian workers have to thank David Thompson for being proactive and saying “the government of Barbados will protect your investments and jobs!”

    It is more than eitrher Manning or Tesheira was prepared to do!

  40. Insulted Avatar
    Insulted

    @ David
    Yes I would agree that we did hear a lot from the T&T Finance Minister, but I am sure you would agree that the T&T regulator (The CB Governor) played the lead role in that scenario, and there was at least the appearance of independence of his office. Are you really saying that the PM’s latest pronouncements on CBC was the job of the Minister of Finance? And are you saying that it was also his job to approach ICBL?

    As far as I am concerned his last CBC appearance was just an exercise designed to devalue the no-confidence motion, since the PM had made a similar appearance only 5 weeks prior, and did not come with any new information.

    @ Wuh?
    I agree with you that confidence is paramount in a financial crisis. But please be honest with yourself. If you discovered that someone in whom you had deep trust had lied to you (especially on a matter which could negatively impact on your future) would you continue to have confidence in that person? I think that the PM is the one guilty of insulting your intelligence my friend.

    On your question of how many jobs have been lost in Clico, If I were you I would not display such confidence at this stage, since we are yet to discover the financial fate of Clico Life. Just in case you haven’t heard, Clico Life is in trouble…. deeeeep trouble. It is clear that this story has many more chapters, and we are only now reading the foreward. And please pray tell me, when did Mr. Thompson act proactively? After the opposition wrenched the truth from him? After he lied (under the pretence of inspiring confidence) about this and so many other things in the past, how in heaven’s name am I now to believe that he WILL protect my job and investment?

  41. David Avatar
    David

    @Insulted, agree with you partially. Isn’t the CBB of TT charged with regulating insurance companies? You have raised some valid points which we will address later.

  42. Wuh? Avatar
    Wuh?

    If Clico Holdings, the parent company in Barbados is well managed and everything is so right, why then (a) Government place $10 million at the disposal of the company and (b) why all of a sudden we are hearing that the “Life” subsidiary of the company must be sold? What about the other subsidiaries in this whole episode?
    ____

    OK, I see where you are coming from. You want Clico to fail. Stupse. Just another political animal.

  43. sitting MP Avatar
    sitting MP

    Some real partisan political jackasses
    are braying and the sounds reminds me of the indain poet shangri and his erudite poem on the sound of silence.

    Some would do well to follow the theme if possible

  44. jenn Avatar
    jenn

    it issssssssssssssssssssssssss sooooooooooooo ashaaaaaaaaame

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