Will Leroy Parris Get The Opportunity To Wear Stripes?

Leroy Parris

Leroy Parris

Has any serious discussion been given to the news that the office of the Supervisor of Insurance has had to manage a backlog of cases going back to the year 2000? Given the role of that office juxtaposed with the financial stability Barbadians love to boast about it is God’s mercy Barbados has not suffered any major insurance catastrophe -that is until now. We cannot ignore the fact the inefficiency of the office spans a time when both political parties held the reins of government. BU is aware the Office of Supervisor of Insurance has never been held in high regard by principals in the insurance industry, bear in mind this is the office charged under the Laws of Barbados to regulate the insurance industry in Barbados.

Against the foregoing it is not surprising the former Chairman of Clico Holdings Leroy Parris would not have felt pressure to comply with a mandate from the supervisor of insurance which ordered Clico Life Insurance to stop selling the controversial Executive Flexible Premium Annuities. The matter was the subject of a police investigation and the file has been handed over to the Director of Public Prosecutors (DPP) for his consideration whether to press charges in the matter. Barbadians and others will await the DPP’s decision with interest. On the face of it it seems an open and shut case, Clico life under the direction of Leroy Parris deliberately violated an order from the insurance regulator. He afterwards demonstrated unfathomable ignorance by admitting it publicly.

BU has been sympathetic to how the government attempted to manage Clico at the start of the crisis. Many turned it into a political matter and the visible relationship between late Prime Minister David Thompson and Leroy Parry did not make the issue any easier to manage. A couple years later the final piece of the puzzle remains to be fixed, the disposal of Clico life insurance as a going concern.

The news that judicial manager Deloitte has finally been appointed is welcomed news for the policyholders who finally organized themselves after a couple years of being trapped in the glare of the headlights. Understanding the process which must now be gone through means that it will take years to finally settled this matter. The pending law suit of 10 million dollars filed by former Chairman Leroy Parris will not help to move the matter quickly along.

There is consensus the government took too long to appoint the judicial manager. It seems to BU after promising that a  judicial manage would be appointed in May 2011 the government’s hand was forced when St. Lucia appointed Richard Surage of PKF Professional Services Inc judicial manager effective 11 April 2011. The action by the St. Lucia government was an interesting move given the position that the Clico home office is located in Barbados where the ‘assets’ reside with mainly liabilities in the satellite offices of the Eastern Caribbean.  The appointment by the St. Lucia government would have embarrassed the Barbados government and consequently spurred it into action.

Many have asked why it took so long for a judicial manager to be appointed. Was it deliberate on the government’s part? Was it the usual bureaucratic requirements which Barbados has become known for? Was it ultra-caution demonstrated given the gravamen of the situation?  Perhaps it had to do with Clico being a privately owned company? Whatever the reason it has taken too long to get where we are today.

BU wishes the two Deloitte partners Oliver Jordan and Patrick Toppin well.

22 thoughts on “Will Leroy Parris Get The Opportunity To Wear Stripes?

  1. More riddles? What stripes are you thinking of?

    As far as I know, the only stripes worn in Barbados are on the shoulders and you get them when you get promoted?
    So are you saying that Mr. Parris might get promoted for being such a generous benefactor and he will wear a brand new three piece pin-striped suit to the function at George Street?

  2. Stripes for Parris? He already wears them in the form of the pin-/chalk-striped suits that he favours. There must be a tailor in Savile Row who calls Leroy a great pal too…

  3. Anothe kind of stripes are the ones seen in old movies where the bad guy wears a black and white horizontally stripped suit while in jail.

  4. Why should he wear stripes?

    When the canning factory in Barbados collapsed and many people lost their money including Elombe Mottley and Professor Stan Reid, did anyone wear stripes as a result?

    Can anyone remember who was the Principal involved and what is his skin colour?

  5. Other stripes are also the marks left on your back after a session with a bullpistle, or a piece of 4×4, as in the case of the Crab Hill station contractor.

  6. Silly me, then again he is white, so no one, especially Black people, will want him to wear stripes.

    They are only for Black People.

  7. I have some very serious concerns about this whole CLICO matter, particularly the manner in which the Supervisor of Insurance sought to prevent Clico from writing new business.
    The Supervisor clearly has the power to do so, but, before he makes such an order he must give the company the opportunity to be heard.
    This is not something that I am making up. The Court of Appeal has already ruled on that very same point in the case of Narsham Insurance (B’dos) Limited and the Supervisor of Insurance. The Court said, ” In our opinion Narsham should have been given an opportunity to respond to the conclusions (findings) resulting from the investigation before the Supervisor issued the directions that he did issue. That is not to say that we are making any judgment on the merits. But as a matter of procedural fairness it should had been given that opportunity”.
    The Court went on to give judgment in favour of Narsham for that omission and ordered an inquiry into the quantum of damages that the Government should pay.
    I checked: Clico was not given an opportinity to be heard before the Supervisor made the order. Can Clico now get damages for this omission of the Supervisor which would help to bail them out of the hole that they are in? Depending on the quantum, Clico might then be able to pay out the claims against it.
    I am not one of those conspiracy nuts but this could be a deliberate set up to put money in Clico’s pockets, bearing in mind that Government has already channeled National Insurance money through Public Workers Credit Union to buy the Clico Mortgage and Finance Company which is now competing with Public Workers.

  8. @ David

    Come on david, you know that the taxpayers always have to end up holding the bag, that how the system in BIM works.

  9. Throughout the financial world it is now common for Govts and financial powerhouses to collude in Wealth Reduction Strategies purveyed to the middle and lower classes. Government Ponzi schemes have dominated for centuries and the enlightened know that Govts make Madoff (the American who ONLY ripped off to the tune of $65 BN) look like an AMATEUR. the US has known liabilities of at least $14.5Trillion and future liabilities of closer to $100 TR. Their grandiose scheme is likely to decimate the US$ itself!

    It is far more sad when this occurs in a small country like Bim and we all know that our leaders are best of friends with the Ponzi schemers. The political leaders involved are not going to throw the perputrators under the proverbial bus less they themselves get run over by the rear wheels.

    It should have been obvious to all by now that when financial solutions appear too good to be true, those solutions usually are not true.

  10. David
    You really think that politicians really care about taxpayers money. Most of them care about how much money they can pass to their friends because some invariable comes back under the table. Remember the now infamous text message, “contract approve I await my commission” which caused a Cabinet reshuffle.

  11. Caswell,

    Was CLICO prohibited from writing insurance business generally or only the EFPA policies?

  12. Caswell;

    You said above
    “Remember the now infamous text message, “contract approve I await my commission” which caused a Cabinet reshuffle.”

    I hadn’t heard the story before. Grateful if you would provide a few more hints.

  13. Yes Caswell the people want to know.

    Was the Cabinet MInister, male, female, tall, short, a lawyer or what? DPL or BLP? black, white etc.

    • @Random Thoughts

      When you get the info what will it do for you? Nice topic for around the water cooler maybe?

  14. Heard from a CLICO inisder that CLICO was prevented from writing Executive Premium annuties only.

    Said insider (decades of experience in the insurance industry) refused to sign the Executive Premium annuties because insider was smart and knew that CLICO would NEVER be able to honour them. So they were signed by a “senior” CLOCO official instead.

    At the nearest opportunity CLICO laid off the insider.

    • BU apologizes to Fair and Balance who made a comment some time ago CLICO agents were still on the payroll and being paid very well. He is correct.

  15. Quoting David “When you get the info what will it do for you? ”

    David the info will help me to decide which person or party to vote for. ANything wrong with that?

    I don’t want to vote for a bribe taker.

    ‘Cause them fellows robbing we blind

  16. RT
    Your vote has probably gone in that direction before, unbeknownst to you, and almost certainly you will have Hobson’s choice in the future. These pols in it for the $$$$$$$$$$$ ALTRUISM be DAMNED! Their definition of LEADERSHIP is….. leading the peoples money to our bank account. It is all about POWER and MONEY, ONLY! ONLY! They aint racial about where the $$$$ come from or even colour prejucided regarding the currency. NUFF GRANTLEY’S, but the White Queen or DEAD PRESIDENTS ARE VERY WELCOME.

  17. The specific prohibition for the EFPA was that it was not to be sold to institutions like NIS, pensions schemes etc. This was at initial launch of product many years ago. Then by a specific instruction after the financial mess was uncovered the SOI prohibited the further sale of life insurance policies. Two distinct illegal acts. And why should someone not go to prison? It is lame to say others did not? Is it not time to start? Could it be that failure to prosecute before emboldens others to be more careless. Look at the magnitude of this impact, over 40,000 families impacted, not to mention the taxpayers who will pick up the tab. Hell, somebody should go prison.

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