The ongoing CLICO saga presents a headache for Barbados. The financial hole which CLICO can drill deep into the economy of Barbados makes for a sobering reality. This is at a time the Barbados economic remains firmly griped by a recession brought on by the global financial meltdown. Whether CLICO is a poorly managed company, a casualty of a contracting market or a combination of the two here is what we know for sure. The Supervisor of Insurance the government appointed regulator fell asleep on the job and as they say the rest is history. If the required competence does not exist within the Office of the Supervisor of Insurance to alert them that they need to become more efficient as the industry watchdog, here is an extract from the IMF 2009 Country Report.
The lack of adequate supervision of the insurance sector exposes the sector to material risks. Profitability and capital adequacy in this sector are difficult to assess due to incomplete and inadequate data. Single negative events may significantly damage the reputation of a jurisdiction in an increasingly regional and global market. Although the mission noted the introduction of on-site inspections, the sector remains largely self-regulated owing to continuing shortages of qualified staff, inadequate regulation, and out-of-date financial reporting. Greater cooperation and exchange of information, particularly with the authorities in Trinidad and Tobago, are necessary to facilitate effective assessment of financial soundness and the protection of Barbadian policyholders by the supervisor.
Those not mired in the partisan cesspool of politics or influenced by agendas which run counter to national interest would have been aware that the Office of the Supervisor of Insurance was woefully ill-equipped to regulate the insurance sector of Barbados. Of interest in this case is that the deficiency would have straddled successive administrations.
The last sentence in the extract is highlighted because of its relevance to the CLICO matter. It is now 2010 and we are not aware that any major restructuring has occurred at the Office of the Supervisor of Insurance. What this means is the multi-billion dollar insurance sector continues to be regulated in a less than acceptable manner. This obviously has wider implications for Barbados given the wide responsibility of that office. There is also the morbid possibility that Barbados could be struck by an earthquake given the unsettled tectonic plates located in the bowels of the earth and not to forget the 2010 hurricane season is rapidly approaching.
It all comes back to the degree Barbadians are willing to hold our politicians and civil servants accountable. In this regard BU family member Inkwell could not have sum up the situation any better.
Accountability in the Barbadian political context cannot be limited to the use of a vote at election time. The DLP skewered the BLP last election campaign with charge upon charge of corruption and malfeasance and used lack of accountability very effectively to bring down the Government through the exercise of the vote.
In order to achieve this, though, the DLP promised that it, if elected would be accountable to the people. It promised an end to corruption. It promised a declaration of the assets of its members. It promised integrity legislation. It promised freedom of information. It promised us ACCOUNTABILITY. And the people, with hope in their breasts, answered their call.
We have been treacherously betrayed. The DLP lied and knew that it was lying and what do we do…nothing. We talk about holding them accountable at the next election. And re elect who? the last lot, who we have good reason to believe were in fact corrupt? Don’t even mention the PDC. And most of the people who were complaining bitterly about the lack of accountability in the last lot have gone silent. Damn hypocrites.
How long are we going to continue allowing ourselves to be victims of politicians’ lying and greed and hunger for power? We need to be more pro-active in holding our elected officials accountable, because it is the nature of the Barbadian politician to sneer at the principle of accountability once in office.
They are not going to submit to higher standards of accountability unless forced to do so. And only the people can do it. All that’s lacking is the will. And the politicians know it.
The blogmaster invites you to join the discussion.