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No Confidence Motion In Minister Of Finance David Thompson Read After Storm In Tea Cup

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In case you missed the 12 hour  no-confidence motion brought by Leader of the Opposition Mia Mottley against the Minister of Finance David Thompson, click on the 4-audio links below which averages 3 hours per link! – Parts 1 – 2 – 3 – 4

This is Tuesday.

The Lower House of our parliament meets on Tuesdays.

Recorded on the Order Paper for today’s session is the continuing debate (second reading) on the Constituency Councils Bill. It is also anticipated that the motion of no-confidence in Prime Minister’s handling of the CLICO Affair will be tabled by Leader of the Opposition Mia Mottley.

Political pundits in Barbados could have predicted that some controversy would have been manufactured to hype the morning’s proceedings based on what is expected to be debated.

What is the controversy?

It seems that members of the Opposition have decided to shift positions in their seats and the Speaker of the House has refused to proceed with the PEOPLE’s business until they return to their assigned seats. We do not intend to argue who is right or wrong, only to register our disappoint that in 2009 with the burning issues of the day our Lower House would have been occupied for 45 minutes addressing the matter of the seating arrangement of members of parliament.

We are happy that after 45 minutes during which the House was on suspension, the issue of assigned seating was resolved.

The no-confidence motion was finally read to the Lower House by Leader of the Opposition Mia Mottley. Although in true Wesminster style the government is expected to defeat the motion, the debate is expected to generate a high level of interest given the fluidity of the Clico Affair.

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135 responses to “No Confidence Motion In Minister Of Finance David Thompson Read After Storm In Tea Cup”

  1. Tell me Why Avatar
    Tell me Why

    I listen to the debate, I read submissions from both sides of the fence and I read the views of David of BU. Now I am asking based on neutrality…..Did the debate answer the questions of doubt by policy owners? 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?

    We must stop fooling ourselves with the political rhetoric regarding Clico Holdings not affiliated to C. L. Financial. Clico is Clico in Trinidad, Clico is Clico in Barbados, Clico is Clico in the Bahamas, Clico is Clico in Guyana and all of them are part of the Clico chain all connected to C. L. Financial Trinidad.
    Is this true or not David.

  2. Tell me Why Avatar
    Tell me Why

    If Clico Holdings Barbados was a total separate entity, why then would Clico Holdings states in its corporate in identity that “CLICO Holdings Barbados Limited (CHB), is a wholly owned subsidiary of CL Financial Limited., which is perhaps the leading private sector group within the English speaking Caribbean. The CL Financial Ltd. Group has been operating for over sixty years and boasts assets in excess of US$10 Billion. CLICO Holdings has assets totalling over US$500 Million.”

    The above quote is a manifestation of C. L. Financial ownership with Clico Holdings. Or should we reach the opinion that Clico Holdings might be the true holding company for C L Financial, thus Clico Holdings has no liabilities and its subsidiaries including C. L. Financial failures will not affect the financial position of Clico Holdings. Food for thought Wuh and Adrian Hinds.

  3. Adrian Hinds Avatar
    Adrian Hinds

    Sing-A-Song
    Responding to your last two questions, first. Mia Mottley has never done anything to me personally. Also i have never been in a situation where i would have found it necessary to ask Mia for a dance. What i understand from people who went to school with her, Boys would have found little need to have asked her any such thing.

    There is no need for advise to Clico policy holders from me. I believe that policy holders would have had good grounds to sue the GoB had CLICO not been able to meet it’s obligation to any policy holder. Mottley’s mouthing off was for personal benefit only. The Insurance act of Barbados, which requires Insurance companies to pledge funds to a statutory fund, so as to demonstrate that they can meet policy holder needs, makes the GoB liable.

    Um is noise and nonsense from Mottley. Arm with the knowledge that Mottley provided, what is a Policyholder to do? what could they do? and more importantly what have they choosen to do?

    It isn’t clear to me how some Barbadians got the impression that Richie Haynes was a communist and power hungry, but I will be amazed if Barbadians don’t come away with the feeling that Mia is really really power hungry, and if they do, I hope they let her her starve in the political wilderness.

  4. Tell me Why Avatar
    Tell me Why

    The great Errol Walton Barrow must disappointed with the level of parliamentary debate due to the constant cross talk and laughter by members of this honourable chamber. Minister of Transport voice was constantly audible throughout the debate mumbling at a high pitch. Watching my TV, I could see and hear an uncontrollable chamber. Please take your parliamentary ethics from the Prime Minister and the knowledgeable view how they deal with a point of order. Peace

  5. Adrian Hinds Avatar
    Adrian Hinds

    Tell me Why, I see a Prime Minister busy doing all he can to protect policy holders, and people’s jobs and investments in Clico’s other affiliate companys, outside of the Insurance one. Then i see Mottley lurching from one scenario to another, that no matter how i try not to, seems to be designed, to score political points, inspite of the potential to engender fair, and panic, with the potential for it to mushroom into major economic problems for Barbados.

  6. reluctant nonbeliever Avatar
    reluctant nonbeliever

    it really disgusts me to see how piggishly fat so many of our politicians are, don’t mind whether DLP or BLP.

    too many lavish dinners and banquets and lunches – and all at your and my expense! *stupse*

  7. BAFBFP Avatar
    BAFBFP

    reluctant nonbeliever

    Do you have any idea how much money has been spent on Government Ministers’ foreign travelling so far?

  8. Sundowner Avatar
    Sundowner

    Dear Ministers,
    Can you please get on with running the country and leading us through these difficult times, instead of behaving like a bunch of children?

  9. Adrian Hinds Avatar
    Adrian Hinds

    David no matter wuh computer i use I cannot hear the Audio clips. When i click on them i get the following

    “Uh oh.
    Sorry, no posts matched your criteria. Wanna search instead?”

  10. 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?
    _______

    Tell Me Why:

    Like Mia, you are obviously not listening or don’t want to – or like what you – hear!

    The $10 million deposit was for Clico Mortgage Finance Limited and the Governor of the Central Bank said it was to make liquidity available in case, as a result of the T&T scenario, things were to deteriorate. It was publicly said by Clico MF that it had not drawn out of the deposit so far.

    Secondly, the other Clico companies are not regulated by the government. Government does not regulate construction companies, real estate companies or sugar estates. The concern of the Minister of Finance, and he said so, is with Clico Life because it does not meet the Barbados Statutory Fund requirement. He has no power over the other assets!

    Simple.

  11. JC Avatar
    JC

    I must admit, that when this issue first reared its ugly head I knew nothing at all therefore, I could not have an opinion. I am grateful for the blogs.

    But when I ask persons on the street what they think about the Clico issue …… they curse Ms. Mottley realllll stink! They see her as wanting power at all cost. I dont know what to think as yet.

    All I can say is that I have investments in Clico and British American so I have EVERYTHING to loose! I more prefer to wait pray hope and hope some more…….

  12. David Avatar
    David

    Thanks Adrian, we connected to the wrong links.

  13. Wuh? Avatar
    Wuh?

    Nunez-Tesheira owns CL Financial stock
    Finance Minister Karen Nunez-Tesheira has presided over the billion-dollar bailout of the CL Financial group, even as she herself has owned shares in the conglomerate, Guardian investigations have revealed. The revelations raise questions about whether Nunez-Tesheira has a serious conflict of interest, why she has not disclosed her ownership of the CL Financial shares before and even why the shares are held in her name and not in a blind trust.

    CL Financial’s official filing with the Registrar General’s office reveals that Karen Tesheira, an attorney-at-law with a Hilltop Drive, Champ Fleurs address, owned 10,410 ordinary shares in the CL Financial group. Yesterday, a man driving his vehicle out of the property, which has a magnificent view of the Caroni plains, disclosed that Nunez-Tesheira no longer lives at the address given on the return. The Finance Minister’s name is 289th on the alphabetical list of 325 shareholders. The document, dated February 17, 2009, lists CL Financial shareholders, as at September 7, 2008. It is signed by Gita Sakal, CL Financial’s corporate secretary.

    Messages left on Sakal’s cellphone yesterday, to find out whether she knew Nunez-Tesheira was a shareholder, were not returned up to press time. CL Financial has 7.5 million shares in issue and its stated share capital is $7.5 million. The company’s major shareholders are: Dalco Capital Management, with 1,947,833 shares; the CL Duprey Investment Trust, with 1,634,335 shares and the employee pension plan of the British American Insurance Company, which is registered in the Bahamas.

    The documents also reveal that as at September 7, 2008, CL Financial’s total indebtedness in respect of all mortgages and charges, which are required to be registered with the Registrar under the Companies Act, amounted to $208 million and 134 million euros. Contacted for comment as she was going back into the afternoon session of a retreat convened by PNM parliamentarians and senior officials at the Salybia Nature Resort and Spa, Nunez-Tesheira confirmed that she was the owner of the shares. She said they were an inheritance from her late husband Russell Tesheira, a former national footballer and one of the top insurance salesmen of Clico, the insurance company that is at the centre of the Government’s rescue of the CL Financial group.

    Asked whether she felt that owning the CL Financial shares while she presided over the break up of the group constituted a conflict of interest, Nunez-Tesheira said: “If you want to say that….” She then said she was being called back into the meeting. Nunez-Tesheira was a lecturer in civil law at the Hugh Wooding Law School, and vice principal of the school, before entering politics. She wrote two legal texts, one on ethics in the legal profession and the other on probate practice for the English-speaking Caribbean, according to the Parliament’s Web site.

    Before entering politics, she also consulted in business law for companies in the energy and manufacturing sectors and consulted in probate matters.
    The revelation that Nunez-Tesheira is a CL Financial shareholder will raise new questions about when she first learned about the liquidity problems at Clico and Clico Investment Bank.

    The minister strenuously denied allegations made by Opposition politicians, at the emergency sittings in Parliament in early February, that her family withdrew $2.1 million from CIB as a result of her advanced knowledge of the group’s financial position. She said her sister signalled an intention to break their mother’s fixed deposit on December 30, 2008—well before she was formally briefed on the issue by Central Bank Governor Ewart Williams on January 14.

    While Nunez-Tesheira disclosed information about the purchase of a house and a car during statements in Parliament and interviews with the media, she never disclosed the fact that she had a potential conflict of interest as a result of her inheritance of the CL Financial shares. Shareholders of companies are entitled to attend annual meetings and to receive dividends.

  14. Wuh? Avatar
    Wuh?

    Let’s hear what Ms. Mottley says! She said we should follow the Trinidad model!

  15. Sing-a-song Avatar
    Sing-a-song

    To David

    I just the final moments of today’s Brasstacks Sunday programme. David Ellis was reading the written comments of Prof Avinash Persaud on the Clico issue (I believ). Prof Frank Alleyne (Chairman designate of the National Economic Advisory Council) agreed with those comments.

    I did not hear much of what Ellis read so I cannot report it here. So….can you use your resources to get Prof Persaud’s comments and post them? Somehow I think they would provide sobering critique of Gov’t’s handling of the issue.

  16. David Avatar
    David

    @Sing-a-song
    We did not listen. Hopefully a BU family member can give us a summary.

  17. Sing-a-song Avatar
    Sing-a-song

    Cayman Islands authorities have issued a stop order on new Clico policies.

  18. Tell me Why Avatar
    Tell me Why

    Wuh in earth you trying to say Wuh. Tell me why would Government place $10 million at the disposal of Clico Mortgage and not Clico Life. As I see it, Mortgage problems would only manifest itself when foreclosures increases and the the Mortgage company finds itself not receiving payments from mortgagees thus a reduction in cash flow. It would be more realistic for that money to be placed at the disposal of Clico Life. Wuh, please state what is Government’s position regarding the said Clico Life since the only talk we are hearing is the company MIGHT be sold and interest parties are in discussion with Clico.

  19. David Avatar
    David

    @Tell me Why

    An obvious explanation maybe those deposits which the Prime Minister referred to in his last press conference which the life insurance company has been selling. Could it be that the life insurance company would have placed those funds at the mortgage company? Just asking.

  20. Tell me Why Avatar
    Tell me Why

    It will be impossible to state due to a lack of financials and notes referring to such movement of funds. To me, being a simple man in the street, we all can see that the shifting of funds from one entity to the next is simply business as usual. Take a look at how conglomerates set up businesses in other countries and the possible loophole when crisis looms .

    “Corporations also create subsidiaries for the specific purpose of limiting their liability in connection with a risky new business. The parent and subsidiary remain separate legal entities, and the obligations of one are separate from those of the other. Nevertheless, if a subsidiary becomes financially insecure, the parent corporation is often sued by creditors. In some instances courts will hold the parent corporation liable, but generally the separation of corporate identities immunizes the parent corporation from financial responsibility for the subsidiary’s liabilities”

  21. Wuh? Avatar
    Wuh?

    Wuh in earth you trying to say Wuh. Tell me why would Government place $10 million at the disposal of Clico Mortgage and not Clico Life.
    ___________________

    The Central Bank does not regulate insurance companies. It cannot deposit money in an insurance company! An insolvent insurance company has to be dealt with under the Insurance Act. There is no procedure for depositing money in insurance companies.

    It obviously deposited the $10 million in case there was a run on the mortgage company in view of its having the name Clico! The Governor was sending a message that the Central Bank will act to help stabilise any potential fall out. Simple.

  22. Wuh? Avatar
    Wuh?

    Additionally, mortgage companies take deposits. Not just issue mortgages. It has nothing to do with foreclosures. It has everything to do with the potential of people/institutions coming in to call their deposits.

  23. Checkin-out Avatar
    Checkin-out

    Wuh and Others

    We seem to be concentrating on CLICO and losing sight of the likely ultimate wide-ranging effect of the current Global Financial situation / meltdown on several aspects of Barbadian life given the progressive increases in the bad news we are getting on a daily basis from the interet, TV and other sources. One aspect is possible job losses in Barbados when and if tourism tanks, the US and UK situation becomes even more chaotic, dollar parity issues lead to inflationary problems, etc.

    Is anybody else considering that CLICO is just an early symptom in Barbados and the region of what is happening elsewhere and that with the glimmerings we are seeing of local staff reductions and reduced days, etc. in other areas of endeavours, that there could be significant deleterious effects on home ownership here and that a significant number of persons could have mortgage type problems.

    Am I the only person thinking that we could be on the threshold of extremely severe problems here and that how the CLICO problem is handled is going to be of some importance to how we get through the crisis.

    Granted that it is important to avoid panic and adding to the pressures that could create a run on financial entities, Is’nt it important at this stage to thoroughly examine the antecedents of the CLICO debacle before throwing scarce reserves at it? Is’nt it important to be fairly certain that one can reliably back up any assurances given? Was’nt it reasonable to expect that Government members would try to counter and not ignore the substantive issues raised in Mia Mottley’s motion and not just concentrate on the red-herring that it was a motion against Owen Arthur and not David Thompson? Was there an alternative to the No-Confidence motion to force the Government to ventilate the issues? Did anyone feel at anytime that there was the slightest possibility that the No-confidence motion would have carried?

  24. Inkwell Avatar
    Inkwell

    What should be of concern to observers of the current Clico issue and the no confidence motion is that the government members made no attempt to respond to the substantive points Mottley made. The question is..to what extent has the PM’s friendship with Parris and his business association with Clico ( he has been Clico’s lawyer for the past 13 years) influenced his decisions and affected his judgment.

    Without a doubt the PM has a conflict of interest and his position is clearly compromised, and Mottley’s motion has exposed this, but the government’s defenders including the Parliamentarians have sought to deflect this conclusion with a political red herring, (which Arthur promptly dismantled).

    It would be naive to expect Mottley not to make political mileage over The PM’s embarrassing position.

  25. Adrian Hinds Avatar
    Adrian Hinds

    Inkwell I doubt your position is shared by any significant number of Barbadians. I really do. What do you say to Caswell Franklyn, a rank BLP member and supporter who I grew up in St.Thomas seeing with Tom Adams day in and day out, who said that Mia Mottley isn’t on good grounds for her action? what????

  26. Checkin-out Avatar
    Checkin-out

    Adrian Hinds, there seems to be a little illogic in your statement above.

    What does Caswell Franklin’s supposed alignment with the BLP and Tom Adams have to do with the numbers of Barbadians who probably think that Mia Mottley was strategically wrong to bring up the No-confidence vote but that Thompson most likely has a conflict of interest re. clico and, minus his deep connections with clico, might have taken a tack in dealing with clico that would be more in tune with the actions of the other Caribbean states that have taken action so far?

    Are you saying that all Bajans take a party line on everything the DLP or BLP does and can’t think for themselves or take logical positions outside of that their favourite party favours?

    Are you a creature of your party?

  27. Bright Clearmind Avatar
    Bright Clearmind

    Cost of living, cost of living and cost of living. High! high! high!!!! higher than a kite flying in the Easter wind. It doesn’t seem to bother the Government at all, because they seem unable to get pass constituency councils. Cost of living, cost of living, cost of living! high! high! high!!!!!!!!!!!!!!! Lord have mercy! Lord have mercy! Lord have mercy!!!!!!!!!

  28. Bright Clearmind Avatar
    Bright Clearmind

    Cost of living, cost of living and cost of living. High! high! high!!!! higher than a kite flying in the Easter wind. It doesn’t seem to bother the Government at all, because they seem unable to get pass constituency councils. Cost of living, cost of living, cost of living! high! high! high!!!!!!!!!!!!!!! Lord have mercy! Lord have mercy! Lord have mercy!!!!!!!!!

  29. Bright Clearmind Avatar
    Bright Clearmind

    Cost of living, cost of living and cost of living. High! high! high!!!! higher than a kite flying in the Easter wind. It doesn’t seem to bother the Government at all, because they seem unable to get pass constituency councils. Cost of living, cost of living, cost of living! high! high! high!!!!!!!!!!!!!!! Lord have mercy! Lord have mercy! Lord have mercy!!!!!!!!!

  30. Adrian Hinds Avatar
    Adrian Hinds

    Checkin-out // March 10, 2009 at 10:10 am

    What does Caswell Franklin’s supposed alignment with the BLP and Tom Adams have to do with the numbers of Barbadians who probably think that Mia Mottley was strategically wrong
    ————————————————–

    NOTHING AT ALL! WHY THE QUESTION? SHOULD I HAVE PUT THE QUESTION IN NEW PARAGRAPH? A new sentence was not enough to seperate my initial statement from the following question?

    Are you saying that all Bajans take a party line on everything the DLP or BLP does and can’t think for themselves or take logical positions outside of that their favourite party favours?
    ————————————————–
    NO NOT AT ALL, AND THAT YOU HAVE TO ASK SHOULD DEMONSTRATE THAT IT IS POSSIBLY NOT WHAT I INTENDED. HOWEVER I GET THE FEELING THAT YOU WOULD DEMAND OF ME THAT MEAN WHAT YOU ASK, SO THAT YOU CAN HAVE SOMETHING TO BARK ABOUT.

    Are you a creature of your party?
    ————————————————-
    Yes I am a party of 4. The number of my immediate family. lol!

    ….and i really thought you had a challenge that i could dig into. stupse

  31. Sad Dem Avatar
    Sad Dem

    this constituency council was suppose to be a bright idea but now the minister will make Errol Barrow cry in his watery grave he is too plain in his politics. Errol Barrow would be shame of this set of so called men and women fronting as m.p.s they make me cry.

  32. No-Confidence Motion Reviewed : GoWEB ePress

    […] Barbados Underground has given you an excellent gem: […]

  33. Chuckles Avatar
    Chuckles

    If you want to see the Trinidad Model which Barbados should follow on CLICO debacle, read

    http://www.trinidadexpress.com/index.pl/article?id=161450218

  34. Avatar
    Anonymous

    i find nothing da i want

  35. Shavonne Avatar
    Shavonne

    I take pleasure in, lead to I discovered exactly what I
    was having a look for. You have ended my 4 day lengthy hunt!
    God Bless you man. Have a great day. Bye

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