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The CLICO Saga seems to be regaining some steam. It probably has something to do with those rapidly maturing flexible annuities (time deposits) reported to be about 300 million dollars. The Nation newspaper along with the Barbados Labour Party (BLP) have been accessing all avenues opened to them to sensitize Barbados about the horror which is about to descend on CLICO policy and annuity holders. There is the wider implication for the Barbados financial landscape and economy.

BU have to confess we are amazed at the haste which Opposition Mia Mottley and the BLP were persuaded to bring a no-confidence motion to parliament arising from the unfortunate circumstance of CLICO.  When the no-confidence motion failed the BLP promptly took its position on the road. It is only a naive group of people who would support a no-confidence motion supported by public meetings and expect that it would not defeat the government’s preferred strategy to maintain confidence as the circumstance would allow while it look for buyers for the beleaguered company. The protection of CLICO was and still is important to the national interest, in this regard the government and the opposition should have closed ranks on this matter.

Those companies in the region which have been placed under judicial watch what have they accomplished so far regarding the liquidation of assets to the satisfaction of policyholders?

Recent media reports have confirmed the imminent sale of the general and mortgage divisions of CLICO Barbados. The continued negative publicity which has been fuelled by the BLP has effectively destroyed any possibility of the life division being sold for fair value. The hole which will be created by the commitment to honour the maturing flexible annuities will obviously create pressure for any buyer. Who wants the grief of acquiring a portfolio with a customer base whose priority would be to appease a pent-up anxiety?

In hindsight it would have been a more sensible strategy for Prime Minister Thompson to have managed the CLICO matter through a functionary. In Trinidad the Finance Minister did all the front work with little comment from Prime Minister Patrick Manning. There is no doubt that the CLICO matter has been politicized to the detriment of CLICO’s customers. The relationship between Leroy Parris and David Thompson is embedded in Barbados folklore.

The USA at the height of the financial crisis deemed that there were companies too big to fail. In our opinion CLICO fits the definition of  a company too large to fail in a Barbados and OECS context. The fact that it is a company which epitomizes the entrepreneurial spirit of a Black man seems to matter not. Cyril Duprey must be skinning cuffies in his grave.

What has been disappointing in the CLICO discussion so far has been the willingness of those who should know better to follow what other islands have done in relation to CLICO. Barbados has built a sound financial system which has been the envy of many. The obvious failing of the Supervisor of Insurance to perform as required in the matter of CLICO is instructive. BU hope that by now the glaring deficiency which has existed in the Supervisor of Insurance Office has been long corrected. Bear in mind the problem of CLICO’s statutory fund should have been a concern of the former government. Important to note, CLICO Barbados was allowed to remit millions of dollars of dollars to its Head Office in Trinidad without any hindrance from the Barbados authorities under the former administration. Finally the  flexible annuity product which has now proved to be problematic was approved under the former administration.

All of the above demonstrates that CLICO’s problem can be attributed to the regulators and by extension the former government’s inaction. The financial crisis would have exposed CLICO just as it did many other companies around the world. The BLP has no moral or other authority to pontificate on the woes of CLICO. All they have succeeded in doing is to exacerbate the crisis of confidence which has probably help to sustain the run on CLICO. It is sad to witness the demise of a leading Black Pan-Caribbean company which the Barbados opposition has rushed to have dismantled, all in the interest of promoting political agendas.

Unfortunately we don’t see any solution in sight to bail the life division of the company in the present circumstances, the government will have to step in when all efforts have been exhausted.


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185 responses to “The CLICO Political Football”

  1. Donald Duck, Esq Avatar
    Donald Duck, Esq

    Brutus

    Why is what Slyan has written nonsense? To me it is perfectly valid. State your reasons or would i have to say that what you have written is utter nonsense.


  2. We have had the back page story by the Nation newspaper about a company which allegedly has CLICO executives as its principals and allegedly sold products which competed with CLICO. This has been denied by Terrence Thornhill the president of CLICO Barbados who was named as one of the people behind the company. What is of interest is Thornhill denied that the Nation tried to make contact with him as reported. Who do we believe? The kicking of the CLICO football continues.

  3. Donald Duck, Esq Avatar
    Donald Duck, Esq

    Anyone heard the press release from LP on CBC this evening about his involvement with Progessional Financial Servces?

  4. Donald Duck, Esq Avatar
    Donald Duck, Esq

    Professional should replace Progressional above.


  5. DD, No, I did not. Say much?

    David,

    What seemed interesting to me, is that while Mr.Thornhill denied a relationship with the company and I think, indicated that he would seek legal advice, he seemed at pains to explain that the company did not compete nor had any relationship with Clico.

    That last bit seemed unusual.


  6. @Crusoe

    What do you find interesting?

    Name PROFESSIONAL FINANCIAL SERVICES INC.
    Number 1297
    Date Registered / Inc. 1986-04-16
    Category Company


  7. David,

    That (thanks to commenter Sylvan above ‘This was in keeping with the statement made on page three of the 1997 Financial Statement which stated that Clico International Life Insurance Limited was incorporated in Barbados on January 17, 1986’)

    Prpfessional Financial Services Inc was incorporated just three months after Clico International Life Insurance Limited, if the dates above are correct.


  8. David, might be time to run like hell from this story. Not making accusations, just a thought.


  9. WE in the DLP will manage the affairs of this country and implement our policies as the economic climate allow.

    Remember we have a 5 year mandate ( in the first instance ) only 2 years have passed.

    You idiotically behave as though our 5 year mandate is up !
    ——————————————————————————–
    All you in the DLP have done to date is blame the BLP when are you going to stop the b*** shite and run the country?


  10. I saw somewhere where Mr Parris (Thompson’s buddy) and Mr Wilkinson(Arthur’s buddy) were directors of a company.
    I have given up on this country. I think there is a group of people who sit and plot and just make fools out of the rest of us


  11. Whether it is government contracts or financial services we have a clear picture of a group of people with power, who had a lot of fun with other people’s money

  12. ''''''FIRE'''''' Avatar
    ”””FIRE”””

    Hey Anon

    Yuh now ketch yuhself ?
    Its been so for years
    Its all a grand plan and the we the people like it so, today for me , tomorrow for you.You must get in on the act too, Its a game and the fantasy of antagonism between parties is a big part of it. Like in anything there will be individuals that dont like each other but for the most part these people cooperate to swindle the masses asses so get on board , get some belly -(money, food and largesse)-get some belly !

  13. Barnabas Collins Avatar
    Barnabas Collins

    @Anon and ””’Fire””’

    And do you think those people are feeling the recessions like the rest of us…..:)

    BC

  14. Fair & Balance Avatar

    @ Selwyn Greenidge
    “Now to Fair and Balance. All the Supervisor of Insurance Barbados can do is request from Colonial Life Trinidad is a commitment that the policyholders in Barbados will be financially protected. That commitment came from Colonial Life Insurance Barbados by way of the strenght of C. L. Financial”

    What a load of hogwash. Do you understand the role of the Supervisor of Insurance? Clico must by LAW place Assets in TRUST to protect Policyholders. The Supervisor can do more and has to do more than just accept a committment from the parent Company. If the Company does not conform to the Law the Supervisor can stop them from writing business as is the case now.

  15. Fair & Balance Avatar

    I don’t know why people are surprise about Parris and company setting up a company in a manner that is a conflict of interest with Clico. In the insurance fraternity you hear about the exploits of Parris which includes paying himself a salary in excess of 80,000 a months, issuing cheques for large sums to his attorney and in some cases his wife. Threatening people and companies that if they don’t do business with him he will move all Clico business with them etc etc

    He and his friends used Clico as their own playground and the tax payers of Barbados should not have to pay for it. There is a need for a forensic audit of Clico.

  16. Sylvan Greenidge Avatar
    Sylvan Greenidge

    Fair & Balance // April 2, 2010 at 12:29 PM

    “He and his friends used Clico as their own playground and the tax payers of Barbados should not have to pay for it. There is a need for a forensic audit of Clico”.

    I could not agree with you more on this point. I want to take it a little further though because I am convinced that Clico did not collapse because of the world recession.

    Clico was raking millions on its Flexible Premium Annuity Plan. The questions that beg answers are these:

    Who were the financial and legal advisors to Clico during the purchases of their properties including the private jet?

    What was the cost to Clico to retain their services and were their cost in keeping with the market price?

    Why did the Thompson administration gave US$10. million to Clico Mortgage Finance, which was never in any difficulty when it was clear from the outset that it was Clico Life that was in trouble?

    Now that Clico Mortgage has found a buyer, will the taxpayers of Barbados and in particular the public servants, who must now hold a wage freeze for four (4) years, get their money back? Or will the new owners be allowed to pocket that money and smile all the way to the Bank?

    During the no-confidence motion on Clico, brought by the competent Leader of the Opposition, Ms. Mottley Thompson stated emphatically that judicial management would not work. All Barbados heard Thompson said during his 2010-2011 Estimates debate that Clico may have to go the route of judicial management. Is this not a blatant display of incompetence to make sound and inform decisions on the part of Thompson?

    If Thompson displayed such gross incompetence in dealing with a matter as small as Clico how then can he be trusted to deal with a matter as big as the country?

    In the name of transparency and accountability will Thompson tell Barbadians how mush money was donated to the DLP by Clico in the last general election?

    Did Thompson and other members of the DLP travel around in Clico’s private jet and if they did were they aware that poor black working class Barbadians form NCC, SSA, NHC, to name a few were paying with their premiums for that lavish lifestyle?

    Is it true that during the last general election members of the DLP were seen with large sacks of money campaigning with and is it true that Clico gave the DLP and open cheque to finance they last campaign?

    Whose money was Clico spending?

    Is Thompson and the DLP aware that ordinary poor and humble folks in this country cannot get their monies out of Clico?

    There is definately an urgent need for a forensic audit.

  17. Sylvan Greenidge Avatar
    Sylvan Greenidge

    Fellow bloggers just a quick one on the side.

    It seem as though the Government HH aka WIV claimed he installed in Antigua is falling to pieces. There is now constitutional crisis there.

    Then DLP here is falling to pieces to. What does all this mean?

    David, BU can you get an explanation from WIV for us?

    I have already said on this blog that lies can help you win an election but it certainly can’t help you retain it and what we are witnessing in Antigua and Barbados is the proof of the pudding.

  18. Donald Duck, Esq Avatar
    Donald Duck, Esq

    clico policyholders and the government should check out this story about Equitable life

    http://www.dailymail.co.uk/news/article-1263151/Equitable-Life-victims-line-1billion-payout-Tories-win-election.html


  19. Sylvan Greenidge said:

    “Now that Clico Mortgage has found a buyer, will the taxpayers of Barbados and in particular the public servants, who must now hold a wage freeze for four (4) years, get their money back? Or will the new owners be allowed to pocket that money and smile all the way to the Bank? ”

    Sylvan Greenidge, do you understand the concept of a loan? It is money to be paid back, not money that the new owners can just pocket.

    Also, Thompson said that the main reason to put Clico Life under judicial management would be to restructure the EFPA’s. What is wrong with this?


  20. @Donald Duck,

    “Why is what Slyan has written nonsense? To me it is perfectly valid. State your reasons or would i have to say that what you have written is utter nonsense.”

    First of all he did not attempt to respond to my questions. Is he saying that Clico Life never wrote any policies and that all policies issued by them are Colonial Life Trinidad policies? Is he saying that Clico Life could never had had any policies of its own that could be regulated in Barbados because its ultimate parent is a Trinidadian entity?

    If this is what he is saying then this is hogwash as “Fair and Balance” said. You mean that none of the international banks operating in Barbados are subject to Central Bank regulation because their owners are outside Barbados? Donald Duck, please explain this to us since it makes so much sense to you.

    You people are entitled to say what you want to support your own party position. But some of us can recognize nonsense regardless of who is spouting it. If I am missing something, then explain it to me and I will retract any erroneous comments.


  21. THE MORE THINGS CHANGE! (Sorry Carl Moore)

    It seem like only recently that Hilary Beckles now (Sir Hilary) wrote the “Best Seller” (Corporate power in Barbados: The mutual affair: economic injustice in a political democracy). I have just finished reading Mr. Leroy Parris’ comments in response to a newspaper article and wonder what the author of this great book will have to say about these comments taken directly from the Nation News:

    Quote: In a statement issued yesterday, Parris said, “There was absolutely no conflict of interest stemming from his relationship with that company.”

    He confirmed that he was a director of “Professional Financial Services”, but said the company did not write insurance policies.

    In the story headlined CLICO Query, it stated that questions were being raised about the involvement of two senior CLICO Holdings Barbados Limited officials in a private insurance enterprise offering services similar to those of their Whitepark Road, Bridgetown company.

    But yesterday, Parris said, “The company was a registered insurance agency through which he, as an agent, had sold insurance for both CLICO International Life and CLICO General Insurance.”

    “Professional Financial Services is paid commissions on policies sold on behalf of both CLICO companies,” Parris explained.

    Parris said Professional Financial Services also had “a management contract with CLICO Holdings Barbados Limited” and through his company, he provided “management services to CLICO Holdings” as executive chairman.

    “This is perfectly legal and a common practice in corporate Barbados,” he said.

    According to a copy of the company’s documents, both Parris and CLICO Holdings Barbados Limited president Terrence Thornhill were appointed as directors of Professional Financial Services in 1993.

    On Thursday, in an interview with STARCOM NETWORK’s Stetson Babb, Thornhill said: “I know of the company, but I am not involved in any way and have never been involved in the runnings of the company and have never received any benefits from Professional Financial Services in any form.”

    He also promised legal action against the paper.

    Our story

    The WEEKEND NATION story also stated that Professional Financial Services Incorporated had been offering coverage for upscale homes, including a 2007 policy for a Clermont Terrace, St Michael residence.

    A document obtained by the paper indicated Professional Financial Services as its “source” and the type of cover provided as “homeowners, including catastrophe perils”.

    But Parris explained: “Insurance coverage of this property was switched to CLICO General from another company, after CLICO Holdings made a substantial investment in a company founded by the owner of the property.

    “Professional Financial Services acted as the agent and received a commission of $1,705 on a premium of $13,640 paid to CLICO General,” he said.

    The total sum for which the property was insured was $2.4 million.

    My question:
    Was it all worth it?


  22. 500 Lots Programme To Be Launched Soon
    By Lisa Bayley
    Published: May 13, 2009

    …..”I want to assure the public that land surveying, legal and other infrastructural work is ongoing, behind the scenes, to bring the first of the 500 lots to prospective homeowners. I am also pleased with the hard work and dedication of the workers of the Ministry, the NHC, Town Planning and the Land and Surveys Department to speedily bring these projects to fruition, because I know that there are thousands of people who I meet everyday, that are crying out for a piece of this rock to call their own,” he said.

    The 500 lots programme will also utilise lands at Vineyard, Clifden and Woodbourne in St. Philip; Guinea, Cherry Grove, Pool, Henley and Todds in St. John; Coconut Hall in St. Lucy; Sedge Pond in St. Andrew; Branchbury, Blackmans, and Easy Hall in St. Joseph; and Forty Acres in St. Thomas.
    lbayley@barbados.gov.bb
    —————————————————————————————————————

    Is Todd Estates (a part of “CLICO Holdings (Barbados) Limited… a wholly owned subsidiary of C L Financial Limited” according to their website) the owner of the land at Pool, Henley and Todds in St. John?

  23. Donald Duck, Esq Avatar
    Donald Duck, Esq

    Does anyone believe LP’s comments in the sunday sun on his involvement with Professional financial services?


  24. LP said that he and Thornhill did not have a conflict of interest in owning the company, but Thornhill says he is not a part of the company. So i wonder who is lying.


  25. Could it be that Thornhill WAS a director but he isn’t NOW?

  26. Donald Duck, Esq Avatar
    Donald Duck, Esq

    How is this whole clico life (“Clico”) issue going to be resolved. Here are the issues

    1. Clico currently has a cash crisis. I don’t think anyone can deny this since its management has confirmed this.
    2. Accoriding to a news report Clico will not be able to meet its obligations to pay out nearly $300 million in annuities in the short term.
    3. Clico cannnot write any new business since the Government has stopped it doing so. Can its existing business supply its own needs?
    4. No one seems to want to buy clico.

  27. Trained Economist Avatar
    Trained Economist

    Well BU is certainly making its impact. I just heard Don Marshal on Brass Tacks and he seems to have been reading this thread.


  28. @Trained Economist

    If that was the case hope he cited his source?

    🙂

  29. Sylvan Greenidge Avatar
    Sylvan Greenidge

    Brutus I am not saying that Clico Life was not regulated by the Supervisor of Insurance Office here Barbados because Clico Life followed Barbados’ regulations with respect to the structuring and administration of their conventional life insurance policies. Every policy written was registered with our Supervisor’s office here, that is not my contention.
    Neither am I saying that Clico Life could never had had any policies of its own that could be regulated in Barbados because its ultimate parent is a Trinidadian entity? What I am saying is this. Every policy written by Clico Life Barbados between January 1, 1994 , when it started to write business in Barbados, and January 1, 1997, when it bought over the portfolios from Clico Life Trinidad were made to and on behalf of Clico Life Trinidad. Check any applications for insurance made during that period and you would see what I mean.
    None of the policies sold by Clico Life Barbados or bought over from Clico Life Trinidad up until January 1, 1997 have not been consumated as stipulated by the Supervisor of Barbados. In other words policyholders were not notified neither have the Supervisors of Insurance in the respective territories agreed to the transfers. Can there be deemed Clico Life Barbados policies then? I say NO. In other words you have built your house but you did not receive the approval of the Town Planning Department, can your house be considered lawful constructed?
    The bulk of Clico Barbados’ business written after 1997 has been the Executive Flexible Premium Annuity (EFPA) – an investment instument. The question is Brutus did Clico require a statutory fund deposit for that? NO. My contention in this matter has always been that Clico’s Statutory fund deficit was not as a result of any carelessness on the part of the last Government or the Supervisor of Insurance but simply the collaspe of C. L. Financial and blatant mismanagement of the group of companies. Had this entity not failed, nobody would have seen the vulnerability of Clico Barbados. I would also add that had this matter occurred in the USA somebody would have to face some jail time.
    Since Brutus is convinced that every aspect of Clico Life operations in Barbados must be fully regulated by the Supervisor’s Office then maybe he can answer these questions for us. Can the financial security of an investment tool being administered by a subsidiary be held in escrow by the parent company stationed in another country? Is this not the case with Clico Barbados? Did the statutory fund for the policies bought over by Clico Barbados from Clico Trinidad transferred along with the policies? Where in the Financial Report of December 1997 can you find such evidence?

  30. Sylvan Greenidge Avatar
    Sylvan Greenidge

    Brutus suggested that the Bds$10.million given to Clico Mortgage was a loan that is expected to be paid back by that company. However, a newspaper report stated that it was essentially a line of credit in the event that people make calls on the assets.

    With Clico Mortgage now sold who repays the loan? Was there a run on the Clico Mortgage?

  31. Sylvan Greenidge Avatar
    Sylvan Greenidge

    David, BU word reaching me is that Parris is to have a press conference today. Have you heard anything on the matter.

  32. Sylvan Greenidge Avatar
    Sylvan Greenidge

    News report Parris has resigned as Chairman from Clico Life

  33. Donald Duck, Esq Avatar
    Donald Duck, Esq

    It looks as though LP listened to my earlier advice and resigned. However, I doubt he would go so easily. He is probably still in charge of clico holdings and ceo of clico life if you say he has only resigned as chairman.


  34. @Sylvan Greenidge,

    Thank you for your response.

    You lost me at the point when you start to talk about the EFPA’s which according to you constitute the bulk of Clico Life’s business written after 1997. Why would these not be subject to the statutory fund requirement? Why do you refer to them as an investment instrument? Are you saying that they were not approved by the Supervisor of Insurance as an insurance product? I suspect you would be incorrect.

    Are you suggesting that the statutory fund deficit which is now a concern to the authorities does NOT include the EFPA’s? Your argument seems to be that it should not. Are you also suggesting that the bulk of the statutory deficit today relates to the the policies taken over by Clico Life in 1997? I would have to see the numbers to believe that! Do you have the numbers or are you just speculating?

    You then go onto to say that had CL Financial not failed no one would have seen the vulnerability of Clico Life. Again I ask you whether it was prudent supervision to accept an IOU from CL Financial in lieu of assets placed in trust to the order of the Supervisor of Insurance. I suggest to you that this was not only irresponsible but illegal and you are right that had this happened in the US someone would be in jail by now.


  35. @Sylvan Greenidge,

    You will have to explain this question to me because I do not understand it:

    “Can the financial security of an investment tool being administered by a subsidiary be held in escrow by the parent company stationed in another country? Is this not the case with Clico Barbados?”

    You also asked:

    “With Clico Mortgage sold who repays the ($10M) loan”? That is an easy one – Clico Mortgage still has to repay the loan.

    “Was there a run on Clico Mortgage?” Yes, this was reported in the press and this presumably is the reason why the Central Bank lent them the $10M.

  36. Fair & Balance Avatar

    Wow Parris resigned!!!! Its about time. Has his file been pass on to the DPP?


  37. In an effort to clean up the mess Barbados is in the P.M has to make some harsh decisions

  38. Alex Fergusson Avatar
    Alex Fergusson

    CLICO: Keep the faith

    4/8/2010

    DO NOT panic!

    That’s the advice Chairman of CLICO Holdings Limited Leroy Parris has given to policyholders while also refuting claims that the statutory fund of the company is in deficit by over $100 million.

    Parris called on policyholders to remain with the company rather than panicking since their money was safe.

    He told a news conference yesterday that the company had paid out $118 million to policyholders.

    According to him, the Statutory Fund in 2007 was $255 million. “We put into the fund some $205 million and then another $40 million,” he revealed.

    Parris said that they had met with the Supervisor of Insurance and informed the office that they had paid out $118 million in Barbados and there was no reason why more money should be placed in the fund.

    “We have a draft valuation from the actuaries which certified that the Fund is $268 million,” the CLICO official said. As such, this is a levelling off of the 2007 figure.

    He also told the media that 5 000 life policies were written in 2008, 2 900 in 2009 (a bad year for the company) and 800 in the first two months of 2010.

    He maintained that CLICO is a successful company that is well run and challenged those criticising him to show where they would have done differently.

    “I have made this company a one-stop shop where you can purchase life insurance, general insurance and mortgage [insurance]. This is the first company that started low income housing in Barbados,” said Parris.

    Parris also took full responsibility for all the investments undertaken by CLICO during his tenure. “I have no regrets for the investments we have taken,” he said, pointing to the acquisition of Rayside Construction, St. Lucia Distillers and to establishing companies in other Caribbean islands.

    The CLICO chairman also made an appeal to clients to maintain confidence in the company.

    “It bothers me to see what is happening with this company and where it is going. Our policyholders who have supported us in all of these years, we are asking them to continue to support [us] because we need them,” according to him.

    “I am asking my policyholders not to leave us. We need them and we give policyholders a commitment that their investment in CLICO International Life is safe. Your money is safe,” he assured.

    He added that they do not have to run, neither do they have to panic since their money is safe.

    “Although the agents are not working, I have instructed the agents to continue to service the policies and to keep in touch with their policyholders,” he noted. “We are selling some assets to pay policyholders. We have agreed to sell two companies and we will be selling some other large assets.” (JB)

    http://www.barbadosadvocate.com/newsitem.asp?more=local&NewsID=9763

    +++++++++++++++++++++++++++++

    I posted this crap from this know buffoon because there are questions that need to be answered. (1) If there is an Oversight Committee that is said to be making decisions for CLICO–in what capaicty was Parris speaking yesterday?

    (2) Despite the ego–it is now clear that CLICO is an eloborate “Ponzi Scheme.” It needs to be able to write new policies in order to get those premiums to pay others.

    (3) Apart from Leroy Parris–there is someone else whose DNA is on everything that Clico has ever done: David Thompson. Clico’ mess is as much Leroy Parris as it is David Thompson’s. Now! This is the only issue–David Thompson’ direct involvement and his now direct/indirect involvement in Clico’s affairs.

    (4) Thompson is not standing alone. Stuart, Donville Inniss, Hammie and Sinckler have allowed themselves to be joined. I will explain how later. Instead of standing with the 40,000 policy holders–they opted to wrap themselves in Clico’s flag.

  39. Alex Fergusson Avatar

    Here is what I found in the Trinidad Express of June 7th 2009:

    Clico is an elaborate ponzi scheme. Note also that Parris was a director of CL Financial and that Thompson has long been the legal advisor to Leroy Parris of CLICO?

    +++++++++++++++++++

    “FORENSIC investigator Robert Lindquist has uncovered what is being described as an elaborate scheme within the CL Financial Group, where annuities, with attractive returns, were being sold by insurance power house CLICO but that customers’ investments were being funnelled for ghost services to the group.

    Reliable sources have disclosed that the scheme, akin to the Ponzi scheme operated by Wall Street money manager Bernard Madoff, was launched back in 1997 as CL executives took advantage of a loophole in the existing insurance legislation and excess liquidity in the marketplace.

    In Madoff’s case, the fraud, which US prosecutors say may have totalled nearly US$65 billion, turned him into an overnight global disgrace, as his name became synonymous with the current economic meltdown.

    “Following the signing of the memorandum of understanding on January 30, former attorney general Bridgid Annisette-George, Finance Minister Karen Nunez-Tesheira and Duprey met at the Office of the Attorney General for further discussions even as the Central Bank was involved with its High Court matter seeking to get detailed financial information from the CL Financial Group.

    Lawyers for the Central Bank are also seeking to challenge a High Court order which prevents the State from using disclosed information in any future criminal proceedings

    http://www.trinidadexpress.com/index.pl/article_news?id=161487723

  40. Alex Fergusson Avatar

    Clico is an elaborate Ponzi Scheme

    +++++++++++++++++++++

    Here is something I found in the Trinidad Guardian of 4 March 2010 hinting at a mismatch between assets and liabilities and suggesting an eloborate ponzi scheme:

    “Robust analysis

    Williams, referring to the CL Financial conglomerate, said, “Any robust analysis would have shown up a whole range of vulnerabilities in all of the financial institutions of the CL Financial conglomerate.”

    He said some of the vulnerabilities included: A mismatch between assets and liabilities, with mostly short-term liabilities paying above market interest rates, matched by long-term assets, excessive leveraging of balance sheet assets reducing their net value, an increasing amount of inter-group transactions, the total absence of a risk management framework and inadequate capital.

    Rippling effect

    He said the situation was so chronic with Clico in T&T that it caused a rippling effect in the region. T&T must address existing weaknesses in order to strengthen regional financial stability.”

    http://guardian.co.tt/business/business/2010/03/04/governor-region-needs-better-financial-monitoring

    ++++++++++++++++++++++++

    Imagine, your house burning but a political mad-man telling you not to call the fire service. Are you mad? Why are you listening to Parris? Is your money safe?

    Think for yourself!!!!

    IS YOUR MONEY SAFE!!!!! YOU SURE! SERIOUSLY–ARE YOU SURE YOUR MONEY IS SAFE? CAN YOU SEE IT–CAN YOU TOUCH IT–CAN YOU GET IT?

  41. Donald Duck, Esq Avatar
    Donald Duck, Esq

    We also need to know what was LP being paid for his services as ceo either directly by a clico entity or via PFS.


  42. Donald, who the hell are you? Do we know what you are being paid? Is Clico a govrnment owned company? You damned joker!!

  43. Alex Fergusson Avatar

    Thompson and the Clico fiasco and ponzi scheme

    Apart from Leroy Parris, the other person who knows everthing thing about Clico -who was there for every signing; drafted all legal documents, offered all legal advice and was the brains behind Clico ponzi scheme in Barbados – is now Prime minister David Thompson.

    Like leroy parris, thompson’s DNA is all over Clico. Clico’ failings is that of parris and david thompson.

    He defended Clico as Attorney, now he defends it a PM.

    ++++++++++++++++++++++++

    Here is an extract from the speech that the Hon. Leader of the Opposition made in Parliament on March 6, 2009 – during the ‘No-Confidence Motion’ brought against David Thompson by the Opposition BLP:

    “Mr. Speaker, I will, in the course of this speech, establish that the Minister of Finance has failed in his duty and has breached the public’s trust by the following:

    1. Misleading the public, more particularly the policyholders, depositors and their families, when he made the statements on the 31st of January to the effect that deposit holders, pension holders and annuity holders were safe and that CLICO Barbados was sound, prudently managed and well regulated.

    I will further establish that he has failed not only to indicate at the time of the filing of this Motion what the statutory deficit was, but equally to indicate what action his Government would urgently take to protect the almost 40 000 policyholders and to ensure that these people would not be exposed at this extraordinarily difficult time in the regional and international economy.

    Sir, what is the risk to face Barbadian policyholders?

    Before I go into that, Sir, I would want to make one comment at the outset. This Parliament is addressing this issue today now for the first time since it broke, not because the Government has brought it here, not because there is a Ministerial Statement from the Minister of Finance, as the Prime Minister of The Bahamas would have found fit to do on Monday in his Parliament – I make a copy of that Ministerial Statement available to this House – not because this Parliament has had a Government bring legislation here as the Government of Trinidad and Tobago did when the issue broke; but because we in the Opposition have brought it here.

    Sir, we believe that it is too serious a matter for the Parliament of Barbados not to be able to address, especially against the background of the failure of the Minister of Finance in his public duties.” -END-


  44. Why is Alex Ferguson determined to try and cause panic among Clico Life policyholders and others? Is it in the interest of the BLP if there were to be another run on Clico Life? Is this the game plan of the BL&P? I hope not, in which case someone should put a muzzle on Alex Ferguson. I don’t think a run on Clico Life is in the interest of Barbadians.

  45. Alex Fergusson Avatar
    Alex Fergusson

    Question Time – as Asked by the Opposition Leader in Parliament on March 6, 2009:

    “Who is the Minister of Finance who used to go about with CLICO selling products in the United Kingdom, the United States of America and Canada?

    Who is the Minister who went to intervene in the Eastern Caribbean to deal with the statutory fund deficit?

    Who is the Minister of Finance that a member of his Opposition office paid for by CLICO?

    Who is the Minister of Finance flying on an $18 million jet in Opposition and in Government, when he was advised not to do so? Sir, a jet owned by CLICO bought out of the premiums of hardworking Barbadians.

    Mr. Speaker, I know who is close to the Chairman of CLICO and, Sir, it is not the Honourable Member for St. Peter or myself and Barbadians will judge accordingly. ”

    ++++++++++++++++++++++++++

    DID THE DLP SAY THAT IT IS “SQUAKY CLEAN? ”

    SQUEAKY CLEAN MY ASS!!!

    Where is the forensic Audit on Clico? How come Thompson wants one at UDC and not at Clico?

    +++++++++++++++++++

    How come hartley henry did not write about Clico, parris or thompson today? How come hartley henry is not writing about Mia Mottley anymore?

  46. Donald Duck, Esq Avatar
    Donald Duck, Esq

    Carol

    Doesn’t clico life have 30 to 40,000 policyholders or stakeholders in the company? Please correct me if i am wrong. If clico holdings was the only stakeholder then I would agree with you that we do not need to know what fees and or salary were paid to LP. To get an idea of the amount paid to LP and his team you need to get a copy of the financials and you need to see what is included under “key management compensation”

  47. Donald Duck, Esq Avatar
    Donald Duck, Esq

    Alex

    Remember the jet was not owned by clico. it was leased by clico holdings barbados!!!

  48. Sylvan Greenidge Avatar
    Sylvan Greenidge

    @ Brutus

    In response to your questions;

    The EFPA is NOT a conventional insurance product and does not require the security of a statutory fund. I referred to it as an investment instrument because that is precisely what it is – a number of deposits made to Clico to invest on behalf of the depositor.

    The largest portion of the statutory fund deficit would have to represent the policies taken over by Clico Bds from Clico Trinidad in 1997. There is no evidence in the 1997 financial report to show that the policies bought over were accompanied with the requisite statutory fund.

    The Supervisor of Insurance can hold an IOU from a parent company on behalf of its subsidiary. And finally, a quick glance at the financial report of Clico will show the level of income earned by Clico from its EFPA and its conventional life policies. The fact they are now face with $300 million liability on the investment side (EFPA) is proof enough as where Clico’s emphasis was concentrated.

    I agree with Alex Fergusson Thompson ‘s fingerprints are all over Clico. Can Clico go down without bringing down Thompson with it?

  49. Alex Fergusson Avatar
    Alex Fergusson

    Clico’s mess is david thompson’ handy work – – his DNA is all over Clico.

    Where else in the world could a man who is the Lawyer for a company, who is intimately involve with that same company – now preside over it and do all that the law does not allow – to keep it from Judicial Management simple because of a $15 million handshake his party got last election? “ONLY BOUT HAY.”

    Here is more from the speech given by the Leader of the Opposition – The Hon. Mia Amor Mottley, Q.C., M.P., in Parliament on March 6, 2009:

    ++++++++++++++++++

    “Mr. Speaker, these are the risks that we face and what are the charges? The company had a large statutory fund deficit and could not easily sell its assets because of the global crisis.

    The Minister of Finance can no longer rely on the strengths of C.L. Financial but yet the Prime Minister of Barbados is claiming a certain ignorance, all of a sudden, in respect of statutory fund deficits.

    Mr. Speaker, the Honourable Member for St. Peter will speak more on this.

    Sir, in 2007, while as an attorney-at-law, the member for St. John would have intervened in an Eastern Caribbean country in relation to action about to be taken against CLICO Life, in relation to its statutory fund deficit.

    He came to the job of Minister of Finance, having served previously as Minister and secondly, with the knowledge of what statutory fund deficit could do to the functioning of an insurance company.

    Sir, he cannot now tell us that he did not know on January 31st, that he did not ask the regulators; that he did not ensure that he covered himself by saying that he was investigating the matter before telling Barbadians they were safe or that the company was prudently managed, well-regulated and sound. ” -ENDS-

  50. Sylvan Greenidge Avatar
    Sylvan Greenidge

    Can you imagine that the DLP Government is under fire on all fronts its political advisor has chosen not to comment on a single issue affecting Barbadians. In his usual political trash today he writes about every other Caribbean country except Barbados. How interesting.

    The BLP has him and the intellectually bankrupt DLP on the run. Good going Mottley and Owen.

    I have already said that lies can win you an election but lies cannot help you to keep it. From the rumblings of the DLP has ran out of patience with the electorate and their lies nor constant reference to what the last BLP did are no longer holding up. Looks like we are beginning to see the end of these wild gun slinging boys.

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