A Culture Of Diminishing Corporate Governance

Credit: Nation newspaper

The CLICO Mess has brought into focus a bigger issue, the lack of a reliable governance framework. BU maintains we have witnessed a catastrophic regulatory failure which continues to challenge all jurisdictions CLICO operated. This view is contrary to William Layne’s who continues to dumb down the role of the regulator.

The CLICO Mess has exposed corporate governance as only a term of art, to be used by the learned in our midst to demonstrate astuteness.. The mind boggling revelation by ex-CLICO directors on the weekend that many decisions made by Leroy Parris was down unbeknownst to them. Who are some of the directors you ask? Tony Marshall a retired Barclays banker who would have operated in a corporate environment at a senior level – Tony Marshall in your position as Chairman of the NIS Board the public wants to know what is the status of the financial statements. Here is a reminder of your Press Release.  Dr. Basil Springer a local management guru who founded Systems Caribbean Limited before he sold it. Woodbine Davis a former Solicitor General, Leslie Haynes, a member of the legal profession who wears silk and the former president of the Bar. To Dr. Frank Alleyne’s credit he has pleaded no comment.

It is not enough for these ex-directors to distance themselves from Parris and CLICO, they need to explain why if they were kept in the dark about decision taken by the company why they remained on the board of directors in one case for 14 years?

BU family members millertheanunnaki  and An Observer  engaged this matter on another blog – see the following exchanges:

See relevant link: The Company Director Checklist – Barbados

Credit: Nation Newspaper

[millertheanunnaki]Put on your thinking cap and delve into your legal training, experience and presumed knowledge. In spite of the Pontius Pilate like and even a cock crowing Peter disavowal by some of the former members of the Board of Directors of CLICO is it still possible for these directors to be sued jointly and severally for negligence or lack of due care?  From what was expressed in the newspaper, it might be possible to draw a conclusion that any fiduciary responsibilities entrusted to the board of directors were continuously neglected with no publicly stated or expressed concerns raised with the executive management of the business.  A very sad reflection on their overall supervision achievement along with the Auditors apparent indifference. What are the chances, legally speaking, of an aggrieved policyholder bringing a case of contributory negligence-or in the case of BIPA a class action suit- against these directors and by inference the independent auditors who would have expressed a “fair” opinion on the reliability of the financial statements prepared by the executive management – read full comment

[An Observer] Man you are now getting down to serious OBJECTIVE discourse from which we may both benefit and which it is hoped will make fellow bloggers better informed.  you have done a public service by reproducing sec 95 of the Companies Act of Barbados . That section immediately follows the heading  ” Duty of Directors and Officers ” . This section clearly imposes a STATUTORY DUTY OF CARE ON ALL DIRECTORS. In my view therefore , if you have such a duty of care imposed upon you then , concomitantly , you may be censured for a BREACH OF THAT DUTY. It is therefore to be inferred that I hold the view that Directors in breach of that duty imposed by the Statute may be brought before a court of law. I believe that the disavowal by those Directors of any knowledge is a piece of corporate mumbo jumbo and really unworthy of repetition by serious commentators. They should therefore be taking steps to instruct counsel on their behalf, notwithstanding that one of them is himself a QC – read full comment

[millertheanunnaki] One is glad- or even “gay” in its original meaning- that a keen observer is able to appreciate the multi-faceted tentacles of the law that can be extended if only to garner a modicum of restitution that can be brought to the aggrieved policyholders- primarily to those holding priority life insurance contracts, and secondarily, vested pension interests – read full comment

Then for anyone to set aside the potential invocation and application of provisions of the Anti-Money Laundering & Income Tax legislation would be relying to much on the miniscule fines that can only be imposed under the superficial opprobrium and pussycat “slap on the wrist” penalties available under the legislation regulating financial instruments marketed by the Insurance industry – read full comment

To reinforce the point that directors on boards in Barbados seem to be serving to garner director’s fees –  those who attended the BLP Haggatt Hall meeting heard Opposition Leader lamented the Auditor General’s Report which confirms that many statutory corporations and government agencies are many years behind in presenting up to date financial statements.

49 comments

  • de fellas listened to this an apply it corporately.

    Like

  • millertheanunnaki

    As predicted the phony marshal(l) has lost all credibility. His hubris has been his undoing. Setting himself up as some paragon of corporate morality and competence. Spending your entire career taking poor people money and lending it to non-productive consumption oriented merchant men with the high mark-ups in a very low risk almost cartel business environment does not make one a business guru. Despite his shortcomings (and we all have them) I would much prefer to hear Mohammed Nasser lecture me on business ethics, management effectiveness, worker productivity and efficiency than a corporate boardroom prostitute.

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  • Caswell Franklyn

    Almost everything that goes wrong in in terms of regulation of the financial services industry in Barbados can be traced to some type of political involvement. But rather than learn from their mistakes, politicians and senior public officers find ways of protecting themselves rather than strengthening the regulatory framework. When it was shown that the regulation of the credit union movement was sadly lacking, Government did not move to provide resources to protect members’ money: instead, they amended the Co-operative Societies Act to allow the staff of the Co-operatives Department to act negligently with impunity by inserting a new section 192C which states:

    “Neither the Registrar nor any member of his staff shall be liable in damages for anything done or omitted in the discharge or purported discharge of that officer’s respective functions under this Act, unless it is shown that the act or omission was in bad faith”.

    It would appear that Government learned from the failures of the Supervisor of Insurance and took steps to protect itself and not the customer.

    Government has now also moved to protect itself by making similar changes to the regulatory environment for the insurance industry by legislating a similar provision in the Financial Services Commission Act of 2010. You should be aware that the Financial Services Commission is now responsible for regulating the insurance industry.

    Government has guaranteed that if there is ever a massive failure of the financial services industry because of its negligence that the customers would have someone to blame but not someone to compensate them for their losses.

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  • millertheanunnaki

    @ Caswell Franklyn | March 5, 2012 at 9:44 PM |
    “Government has guaranteed that if there is ever a massive failure of the financial services industry because of its negligence that the customers would have someone to blame but not someone to compensate them for their losses.”

    You have expressed my fears of this insulation from charges of negligence or impunity framework the regulators of the financial services industry have been afforded. They are now protected within this legal watertight can. Maybe the big boys had a peek into the future of the local world of finance and saw some real foreboding signs.

    In the realm of eschatology it is felt that the harbinger of ruin is a two-headed giant monster arriving from the same locale in the East. The bugle blower (trumpeter) has already fallen in battle trying to protect the image and hollow interior of one of the giants. But can a mutual decision to have a bath in the river Styx be wise and timely enough to stave off the oncoming rush of flood waters soon to engulf the many baby boomers sitting on the river banks hoping for solace and comfort in their autumn years. Should we fear, Dear Caswell, these men from the East? Or should we take them at their highly paid word that everything is fine and tomorrow will be bright and sunny for those investors and policyholders?

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  • Caswell Franklyn

    Miller

    You are free to take them at their word, but I won’t be joining you anytime soon.

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  • miller,

    A smile came to my face when I saw you mentioned Mohammed Nasser in the same sentence with Phony Marshall. I can tell you of the way this man operates. I was a junior in the bank at the time of Gary Husband’s firm, Husbands Wrought Iron Works. Every day part of my duties was to refer all cheques drawn on accounts with overdraft balances to the then deputy manger, Phony Marshall. He used to take one look at Gary Husbands’ cheques as he then was and throw then back on my desk (cause he was a big pig), “send them back”. Not a word like, call Mr Husbands and ask him to make a deposit. But strangely enough, he would call white businesses.

    Say all of this to say, he knows about financial institutions and their workings and protected the bank’s interests as in the example of Gary Husbands. You really want to tell me that he did not know what a man not educated to his standards was doing to protect the interest of the policyholders?

    I saw him at the meeting last night and every time a speaker spoke of Parris, a guy near me said, call the police and each time Phony Marshall look back. He left after Mia spoke.

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  • millertheanunnaki

    @ Caswell Franklyn | March 5, 2012 at 10:47 PM |

    “Miller,You are free to take them at their word, but I won’t be joining you anytime soon.”

    Caswell, you are so smart as to hit the nail right on the “miller’s” head.
    Spoken like a true “Cawmerian” not from the miller clan of St. John though, are you?
    One hopes not!

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  • “Oh judgment , thou art fled to brutish beast and men have lost their reason ”
    The Miller had earlier enjoined that I should pick up My Julius Caesar in respect of the sarcasm of Mark Antony in his reference to the conspirators as honourable men . My reflection led me to a consideration of the above quote from the same Shakespeare classic . The CLICO debacle seems to have brought out the worst in several important officials. I had the opportunity of hearing Mr Owen Arthur in an excerpt from his address to the crowd last night at the BLP meeting and he delivered himself of a similar piece of foolishness . According to him , he had no control over anything to do with the Statutory Fund ; the Supervisor of Insurance was NOT answerable to anybody ; he had full autonomy. Such a claim by Mr Arthur, made with the kind of confidence that left one in no doubt that he did not know he was talking foolishness , cannot survive serious analysis for two main reasons :
    !. No public functionary can have a discretion which can insulate him against a Cabinet policy ; the Minister , the spokesman for Cabinet merely articulates Cabinet policy and would therefore override any conflicting act of the Supervisor Of Insurance
    2.( This is even more fundamental ) section 4 of the INSURANCE ACT Cap 310 of the Laws of Barbados states as follows..
    (1) For the purposes of this Act there will be a Supervisor of Insurance who , SUBJECT TO THE MINISTER shall be responsible for the general administration of this Act , and whose office shall be a public office .
    Let us move on to another section of the Act which brings the authority of the Minister into focus.
    Section 21 (1) :
    Where, after consideration of the report of an inspector appointed by the Supervisor under section 51 to investigate the affairs of a registered insurance company or after other enquiry , the Supervisor is satisfied that it is in the interest of the policy – holders or prospective policy – holders to do so , the Supervisor may by notice in writing prohibit a registered insurance company from writing new policies in any class of insurance business in respect of which the company is registered.
    (2)
    The Supervisor shall in any notification under subsection (1) state the reasons for his decision and inform the insurance company of its right under section 177 to request the Supervisor to refer his decision FOR REVIEW BY THE MINISTER .
    In 2006 , a cease and desist order was made against CLICO ; the Government of the day was a BLP Government ; Mr Arthur was THE MINISTER OF FINANCE . need I say more
    But there is also further scope under the Act for the involvement of the Minister in the decision making process :
    Section 33 (1)
    the assets of a statutory fund shall not be invested except in the securities specified in the Second Schedule .
    (2)
    The MINISTER may by order published in the Official Gazette , AMEND the Second Schedule .
    it is clear that a lot of uncritical reporting by the traditional press is allowing important officials to get away with murder ; the blogs must step in to fill the void and prevent this practice from gaining further momentum.Mr Arthur must be held up to greater scrutiny.

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  • BLP is Corrupt of ideas

    $10m cleared
    The controversial $10 million the Central Bank of Barbados placed at the disposal of former CLICO subsidiary CLICO Mortgage and Finance Corporation (CMFC) in 2009 has been repaid in full and with interest.

    The DAILY NATION has been trying to track down what happened to the $10 million injection, which has caused something of a political firestorm.

    When contacted, Central Bank Governor Dr DeLisle Worrell declined comment. So too did Paul Maxwell, chief executive officer of Capita Financial – the rebranded CMFC – who said the board of directors would issue a full statement on the matter later this week.

    However, a well informed source, who requested anonymity, revealed that repayment was made, not as a lump sum, but as several small loans that became due every three months.

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  • THE HORSE WAS OUT THE STABLE SINCE 2002 – WHO GUARDS THE GUARD . THE SUPERVISOR OF INSURANCE HAS A DIRECT REPORT WHO IS HE . READ THE AUDITOR GENERAL REPORT STATUTORY FUND , SEE HOW THE INSURANCE COMPANIES COMPLY
    Solvency
    5.205 Insurance companies are required to submit their financial statements to
    the Supervisor of Insurance on annual basis. These should be certified by
    an auditor or actuary. These statements are then reviewed for compliance
    with the financial requirement of the Insurance Act.
    5.206 Section 58(b) specifies that “a general insurance company is not solvent
    where the value of its assets does not exceed the amount of its liabilities
    by (i) $500,000 or an equivalent sum; or (ii) 25 per cent of its premium
    income in respect of its general business in its last preceding financial
    year, whichever is the greater amount.”
    Findings
    5.207 Of the companies reviewed for the years 2007 to 2009 the majority met
    the solvency requirement, but at least one company did not meet the
    requirement for the review period. Another company did not meet the
    requirement in 2007.
    Conclusion
    5.208 The consequence of failure to meet the solvency test is that a company
    may not be in a position to meet its insurance and pension commitments
    when due.
    Chapter 5
    _________________________________________________________________________________________________________
    Auditor General’s Report 2010
    137
    Statutory Fund
    5.209 The Insurance Act calls for the establishment of a statutory fund by
    insurance companies. This is achieved by the insurance company
    pledging a certain amount of its assets to cover its liabilities. These assets
    are held in trust by a company approved by the Supervisor of Insurance
    and Pensions.
    5.210 Section 25 (4 and 6) of the Act stipulates that every company carrying on
    long-term insurance business in Barbados shall place in trust in Barbados
    assets equal to its liability and contingency reserves, with respect to its
    Barbadian policy-holders, as established by the balance sheet of the
    company as at the end of its last financial year. The placement must occur
    not more than 4 months after the end of the financial year to which the
    balance sheet of the company relates.
    Findings
    5.211 A number of companies had difficulty in meeting the statutory requirement
    as follows:
    (a) One Company, registered in December 2007, had no
    documentation to show that a trust had been created although
    a written request to establish such a fund was sent to the
    company by the SOIP since December 2007.
    (b) The assets held in trust for another Company fell short of the
    statutory requirement in 2007 and 2008. The Supervisor drew
    the breaches to the Company’s attention by letter and required
    them to bring their statutory fund into compliance with the law.
    This was done by December 2009.
    Chapter 5
    _________________________________________________________________________________________________________
    Auditor General’s Report 2010
    138
    (c) A third Company, registered in January 1994, did not meet the
    statutory fund requirement during the review period. Since
    2004, there were numerous correspondences between the
    SOIP and the Company about establishing the fund and putting
    in place a trustee. At the conclusion of the audit the statutory
    fund was still not established.
    (d) The statutory fund requirement was not met for a fourth
    Company. There were numerous correspondences from 2002
    between the SOIP and the Company in respect of the statutory
    fund. It should however be noted that at the end of the review
    period no fund was in place.
    Comments
    5.212 Insurance companies are required to establish a statutory fund. Its
    purpose is to ensure that there are enough assets available to meet future
    pensions and other insurance liabilities due to Barbadian Policyholders.
    5.213 It should be noted that three of the companies did not have the statutory
    funds established as required by the Insurance Act. The absence of these
    statutory funds meant that the relevant restrictions on the use of the
    assets of these funds were not in place. In addition, if the company faces
    financial difficulties there is not the safeguard of sufficient funds being
    available to meet commitments.
    5.214 Under the Insurance Act, the Supervisor can take various actions against
    insurance companies in breach of the Act, and these include cancelling of
    their registration to conduct new business, petitioning the court to place
    Chapter 5
    _________________________________________________________________________________________________________
    Auditor General’s Report 2010
    139
    the company under judicial management, or requesting that the company
    be wound up.
    5.215 It is important that the regulatory agency take the necessary timely action
    to mitigate loss to policy holders. It should be noted that the extent and
    timing of such intervention is a matter of judgement. Correspondence
    between the SOIP and a few insurance companies would indicate that
    issues related to the setting up of the statutory fund, and its composition,
    was ongoing for years, and should have been resolved earlier.
    Trustees
    5.216 The assets in a statutory fund are to be placed under the control of a
    trustee. Section 27 (1) of the Act stipulates that the trust referred to in
    subsections (4) and (5) of Section 25 shall be created by a trust deed. The
    contents and the trustees shall be approved by the Supervisor before the
    trust is created.
    5.217 It should be noted that the three companies which did not have statutory
    funds also did not have Trustees in place.
    Conclusion
    5.218 Companies that do not have the required assets held in trust will find it
    difficult to meet their liabilities when these become due.
    Actuarial Review
    5.219 Long-term insurance companies are required to, not less than once
    annually or for such other period as the Supervisor may allow, but not
    exceeding 3 years, cause a review of the company’s operations to be
    Chapter 5
    _________________________________________________________________________________________________________
    Auditor General’s Report 2010
    140
    carried out by an actuary. This review includes a valuation of liabilities.
    The companies are required to furnish to the SOIP a copy of the report of
    the actuary by whom the review was made, and a statement of its longterm
    business within 4 months of the end of the financial year.
    Findings
    5.220 Four company files were checked and all of them had the necessary
    reviews by actuaries.
    Exempt Insurance
    Licensing of Exempt Insurance Companies
    5.221 The Insurance Act requires that Exempt Insurance Companies have a
    minimum paid-up capital of $250,000 in order for them to be licensed. In
    the case of an approved mutual insurance company, the minimum
    contributed reserves are set at $250,000.
    Findings
    5.222 Files for ten companies were reviewed for the years 2007 to 2009 and all
    had the minimum paid-up capital requirements.
    Annual Financial Statements
    5.223 Exempt insurance companies are required to submit annual financial
    statements, accompanied

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  • All I can think of is “Tubby de Guard”

    “Wha I aint know dat”

    Nobody aint know nuffin bout nuffin … like Tubby!!

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  • @An Observer

    Would a lunch meeting meeting held about two weeks ago between William Layne, Patrick Toppin and Owen Arthur at a West Coast restaurant be declared to the public in the interest of transparency?

    Should the public be concerned that the Judicial Mangers have not delivered a copy of the report to stakeholders including the public but the Nation Newspaper was able to get a copy? Should the Judicial Managers have to explain this situation?

    Should the policyholders and public of Barbados be told that Deloitte’s fee (as reported to BU) has climb to 7.5 million to date?

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  • @ David ( above )
    David these are all VERY SERIOUS ISSUES and in time the PUBLIC will have to address them IN THE NAME OF A DEMAND FOR TRANSPARENCY . I have already had my say on Mr Toppin’s appointment as a judicial manager but will repeat here what I said then . If it is a fact that he formerly worked For CLICO and was involved in a legal battle with the company , he should have recused himself from the possible appointment of himself OR HIS FIRM as judicial managers . I will not further dilate on that AT THIS TIME.
    David , the public is also entitled to know that THE NATION PUBLISHING COMPANY IS A MAJOR INVESTOR IN THE CLICO EFPA. Could this FACT be responsible for the attitude the paper has been displaying ? the paper has been less than even-handed during this whole saga. We must wait for a reply . Until then ….Peace my brother.

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  • I wonder how ALL THIS go really pan out…..
    Nuff people dun know dem getting KICK out of Parliment…includes the PM.
    Do you realise MP’s brekkin each man for ee self nowadays.?

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  • The art of government is to make two-thirds of a nation pay all it possibly can pay for the benefit of the other third.

    attributed; Walter Bagehot The English Constitution  (1867) ch. 5

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  • @David

    Would a lunch meeting meeting held about two weeks ago between William Layne, Patrick Toppin and Owen Arthur at a West Coast restaurant be declared to the public in the interest of transparency?
    ***************
    Barbados is still a free country and anyone is free to meet with whomever…. But Layne was Arthur’s PS in Finance so they would have worked together and per haps formed a relationship/friendship that transcends Senior Civil Servant/ Minister. I don’t see Arthur having a PS in his most important Ministry that he doesn’t have confidence in, thus it may not be unusual to have lunch but when Toppin is thrown into the mix then it becomes very interesting…. One can see a strategy where it is necessary for one to be singing from the same song sheet and score political points along the way as it would in their best interest (Layne/Arthur) to deflect any responsibility for the CLICO imbroglio.

    That reminds me Layne was at Foundation with Stuart wonder if they are friends?

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  • millertheanunnaki

    @ An Observer.. | March 6, 2012 at 12:32 AM |
    “Oh judgment , thou art fled to brutish beast and men have lost their reason ”

    I too found this outburst of “ignorance” rather “Amusing” if not downright misleading and disingenuous. Which functionary in his or her right mind would be so insulated, blinkered and insensitive to such a far reaching decision as to not seek guidance from the PS or Minister. An instruction to cease and desist from selling financial instruments has ramifications way outside the bureaucratic halls of inertia protecting the officials from the risks of dismissal for incompetence and misjudgment as exist in the private enterprise arena. The effect of such an instruction from the SoI is to stop the business from trading and hence undermining its viability and capacity to maintain employment.
    Once can bet that such possible fall out would have seriously focused the SoI’s attention to pass this political hot potato to a higher rung of the decision-making ladder.

    A shout by the then minister of “Non” Mea culpa would find a similar ear as the boy with his final shout of “wolf”.

    But as a keen “observer” of the local political landscape you should be quite in tune to the habit of the political directorate hiding behind the much maligned incompetence and lack of communication by the bureaucratic officials when the ‘sh*t hit the corrupting fan”.

    You should advise the present political directorate that words spoken and promises made in one of the highest courts of the land might not be legally binding but could have enclosed within them the dynamite fuses of electoral fortune.
    Bajan parliamentarians are very proud when alluding to their revered Westminster heritage. But a “true” imitation (pardon the ironic intent) requires that when words and promises are proved to be misleading or just plain impossible one ought to do the “honourable” thing: withdraw and apologise.

    Below are some quotes on integrity that some from our political class could find “conscience moving” if such a capacity exists therein.

    “Do not repeat anything you will not sign your name to.”~Author Unknown
    “Laws control the lesser man. Right conduct controls the greater one.” ~Chinese Proverb
    “Sometimes, to do the right thing, we must keep a promise we never made.” ~Robert Brault
    “I have found some of the best reasons I ever had for remaining at the bottom simply by looking at the men at the top.” ~Frank Moore Colby

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  • @ David
    Are you aware that the judicial managers ( Deloitte )have appointed DELLOITE as the company to do the forensic audit of CLICO ? Quae tanta insania !! WHAT GREAT MADNESS IS THIS ???????

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  • @An Observer

    Please expand on your annoyance about Deloitte employees selecting their parent to do a forensic audit.

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  • @ Miller.
    This debate is really bringing out the best in you intellectually ; maybe you are capable of even greater . i shall therefore keep an eye on you . Peace my brother .

    Like

  • millertheanunnaki

    @ An Observer.. | March 6, 2012 at 1:19 PM |

    When I was at Grammar school I read the story of the role of the Trojan horse in the Siege of Troy.
    I am always suspect of those “Greeks bearing gifts”. But then again I wouldn’t look a gift horse in the mouth.

    Your sense of observation and objective analysis have also risen on the intellectual ladder thanks to a helping hand from the one ahead of you despite the peter principle that might confront you further up the ladder. (LoL, just taking the mickey!).
    Extend your hand down to Amused who has just started on the first rung. After all ‘one good turn (term) deserves another’ that should be now extended to your friend in need.

    Mucho Gracias, Senor!

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  • @ David. “Please expand about Deloitte employees selecting their parent to do a forensic audit ”
    The first point to be made is that DELOITTE’S EMPLOYEES ARE DELOITTE .
    would that not be incestuous and lacking in transparency and , in light of the expressed concern for Mr Toppin being appointed a judicial Manager in the first place because of bias , this would surely be widening the net of POSSIBLE bias. Quis custodiet ipsos custodes ? Who will guard the guards? Who will have oversight over whom , the parent over its child? David these officials are contributing to the FURTHER complication of an already very complicated matter. It will be of immense interest to see how Deloitte will extricate itself from this corporate quagmire.

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  • @ MILLER..
    LOL !!! LOL!!! quidquid id est timeo Danaos et dona farentes…I fear the Greeks …and they are bringing gifts …Virgil 2
    I love that ! Peace my brother .

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  • @An Observer

    May the Courts decide!

    Two points for consideration:

    1. A forensic by nature has to be fact based.

    2. Suspect the ‘professionals’ performing the forensic will be from the international arm of the firm.

    Like

  • Off topic?
    R. Allen Standford convicted by a federal jury.

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  • @ David.
    Those considerations DO NOT prevent the law on bias from taking effect..According to the House of Lords, there need not be any PROOF of bias ; the MERE PERCEPTION is sufficient . According to Lord Hope of Craighead..” bias is such an insidious thing that even though you are sure you would not be affected by it , unconsciously YOU MIGHT BE ” . It is in keeping with the aphorism that justice must not only be done but should manifestly and undoubtedly be SEEN to be done. The bajans have a similar expression of concern…You must shun the very appearance of evil ..
    Peace my brother ..

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  • If it looks like a Horse’s ASS, smells like an Horse’s ASS, then it must be a politician.

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  • chocolate city hussle

    thank God I have not money in CLICO

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  • chocolate city hussle

    NEVER trusted anything coming out of Trinidad after Confed.. u people wil debate, talk, threaten, etc just to make those policyholders think they will eventually get their funds..that is a joke. i bet when all the dust is settled not one cent will those policy holders be refunded, not one cent

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  • @An Observer

    Very interesting and balanced blogs. I always say the last minister of finance in the BLP administraton cannot escape from this mess, neither the supervisor of insurance, the directors who operate under the company law, nor the law firms which assist which appear to me as facilitating money laundering(note i said law firms as I have been involved that a number of law firms facilted transfer of meony from the company). The current administration was almost powerless as the shit had hit the fan.

    I ALSO hold the view that the forensic audit should be done by some other firm besides the one toppin is associated with, and perhaps june fowler and her group should apply to the court to have this not obtained and the funds for such be borne by the company. Some years ago when professor beckles was figthing with the then mutual, a negotiated settlement was reached with the company to settle some of the expenses the then concerned policy holders had incurred as a result of their activity.

    The sordid affair brings home to all and sundry that there are very few people with balls in this county, they will do anything to reach the top and overlook principles to get as much principal to buy big houses cars etc to have a conspicuous life style. those who have a value system are either crushed or marginalised or labelled. no wonder why politicians can get away with so much
    thiefing, because those they select to place on boards or promote to high positions are of similar ilk.

    I belive that the only director who could be absolved of any wrong doing is Professor Frank Alleyne, all the others should be sued for even the clothes they are wearing. Thank god i dont have a cent invested in an insurance company, except for a life insurance.

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  • The more one investigates and get info about the players in this CLICO Mess it becomes more of a mess.

    The NATION has been pursuing the CLICO matter relentlessly and to its credit it declared an interest, it is the holder of an EFAP.

    BU understands June Fowler, head of BIPA, is a former employee of the Nation newspaper.

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  • millertheanunnaki

    @ David:

    Is there anyway of finding out if the Judicial Managers of CLICO still have an “on-the-job” relationship with Mr. Thornhill, the former Chief Financial Officer and who subsequently took over as President of CHL Barbados?

    In other words, is he still employed in that capacity in light of the recent revelations of alleged financial impropriety by the management of CHL in relation to some of its subsidiaries and related companies?

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  • David wrote “Would a lunch meeting meeting held about two weeks ago between William Layne, Patrick Toppin and Owen Arthur.”

    That is what will happen in a small country like Barbados among the elite and wanna bees.
    Conflict of interest does not exist in Barbados.

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  • Random Thoughts

    Quoting today’s ABC News in reference to the convicted [Sir] Allen Stanford “he had taken money from investors for fraudulent certificates of deposit and frittered it away on a lavish lifestyle and failed investments.”

    Quoting Hartley Henry, the former principal political adviser to the late [Honourable] Prime Minister David Thompson in reference to Thompson’s trip to Trinidad on CLICO’s Lear jet “The Prime Minister is accustomed to living large”

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  • Saw what was happening in Iceland in the Advocate and got a link on the net.

    http://uk.reuters.com/article/2012/03/05/uk-iceland-trial-idUKTRE8240WJ20120305

    The outcome could be interesting!

    Here is a quote from the article which sounds so familiar!!

    “Many Icelanders blame a small and closely connected group of businessmen, bankers and politicians for the crisis.”

    http://www.theaustralian.com.au/news/world/gfc-puts-icelands-ex-pm-geir-haarde-in-the-dock/story-e6frg6so-1226291134499

    Here is a quote from the second article.

    “We knew about the crisis, but not the banks’ lack of accountability and their illegal activities, which not even the Financial Supervisory Authority seems to have realised,” he said.

    … and another one that sounds so familiar!!

    “Noting that international auditors had helped the banks to hide the state of their balance sheets, Mr Haarde said the charges were a political vendetta by centre-left MPs who now controlled the government.”

    …. and the beauty …..

    “The case is being watched by many Western government leaders who are uncomfortable with the idea that a politician can face jail for failing to show foresight and caution.”

    Like

  • @Miller

    The best info available suggest that Thornhill is on the job.

    Like

  • @An Observer
    “In 2006 , a cease and desist order was made against CLICO ; the Government of the day was a BLP Government ; Mr Arthur was THE MINISTER OF FINANCE .”
    Hence we see the reason for the BLP strategy of downplaying the role of the supervisor of Insurance. Look for Mascoll to pursue that strategy again on Thursday.The Clico policyholders will not be fooled. The BLP must take some blame for this situation.

    Like

  • Minister Kellman has hinted on Facebook that millions in foreign currency was allowed to leave Barbados via CLICO in the period 2003 to 2008.

    It appears the government maybe gearing up to release the hog.

    Like

  • All this ducking and redirecting does not detract from the fact that the late Prime Minister was involved in some questionable CLICO/CIL transactions. Is it true that one of the invoices was for ‘observing a case’ by another DLP big wig?

    Like

  • @ David
    You sure? Them gotta come good to beat that $3.3m cheque, jaguar, personal loans etc. It was DT who portrayed himself as the paragon of virtues. Notice the likes of Carson no longer mention the $70k, which shows you they have no interest in good governance.

    Like

  • @enuff

    You are correct but we will have to wait to adjudge impact.

    Bear in mind Thompson is dead.

    Like

  • ALL the DLP-ites could really get sense and stop their pathetic attempts at shielding COMMON CLASS thieves and St John robbers cause all they really doing is showing the blindness of yard fowls.
    If the boss were eva to fall in that class…I telling you all now Onions DONE.. an going back to fishing in Tobago….never to show face would be TOO shame. But you DLP yard birds got no class simply..

    Like

  • millertheanunnaki

    @David | March 6, 2012 at 8:16 PM |
    “Miller: The best info available suggest that Thornhill is on the job.”

    Only goes to confirm that it is one big pappy show at the circus, isn’t it?
    The alleged citing of two key players- along with OSA the man with the recently acquired big mouth in this matter- having lunch is indicative of how these so-called “champions of the aggrieved policyholders and victims of this perceived fraudulent activity are treating the matter.

    Why can’t these people entrusted with the confidence and avid expectation of the people to bring about a just resolution to this scandalous affair for once behave in a professional and dignified manner befitting of their status in society? They integrity is now seriously on the line and I would have to begrudgingly agree with Observer about the continuing involvement of some of the parties in this “battle” for justice. They are making a mockery of the process. Poor naïve BIPA being screwed (with a limber tool and with a thorn in the side to boot).

    All they are doing is poisoning the water that feeds the plants of social cohesion.
    What kind of examples are they setting for the wider society and erstwhile foreign admirers of the Bajan way and the enviable gem that once sparkled across the region.
    Oh Bim how much do decent people weep for you!

    Like

  • Why is it that everyone wants to absolve Prof Alleyne of this sordid affair? In my opinion he may be the most guilty of all by not divulging what he knows but can put it in a letter to DT? So he knew something was amiss long time. But look he is now chairman of the FSC the body overseeing the same operations of Insurance companies, credit unions and other entities. if the Act is read he is actually contravening the same act he is expected to oversee. No other former director has that responsibility. He should do the honourable thing and then keep his secrets. Why are some us so biased?June Fowler take a look.

    Like

  • Is it true that the extent of June Fowler’s liability is $8,000.00?

    If true we should all take our hats off to this lady.

    Like

  • This is the political diimension to the CLICO affair and as excpected the BLP … This sordid mess wkas champoined by Mofttley and the BLP when …. is blaming everyone except the Minsiter Of Finance from 1994 – 2008.
    For a time, it seemed as if his personal and professional lives were stabilizing. ….. of the poems, portraying the rise and fall of a consummated but brief love affair. …… impels each to keep a close account of the material gains of everyone else.

    Like

  • Reblogged this on Barbados Underground and commented:

    There is a heavy focus on the role former Chairman of CLICO Holdings Barbados Limited Leroy Parris played in the demise of the company. The revelations to be found in the CLICO Final Forensic Report UNSEALED should make sensible Barbadians feel ashamed. A listen to the contribution of Edmund Hinkson to the 2015-2016 Estimates Debate would have cemented the feeling. Hinkson was relentless in his assault of the Speaker of the House Michael Carrington by highlighting the immoral act of withholding client’s monies for several years until ordered recently to pay by a Barbados High Court. During the assault Michael Carrington occupied the Chair. What a farce!

    The other embarrassment Barbadians have to suffer is to observe prominent members of society who served as directors on the Board of CLICO Barbados allowed to go about their business without being called to account. One of many functions a Board of Directors has, is to ensure a robust governance framework is established to guide quality decision-making by the management team. Reconciling the findings of the recently unsealed forensic report and the role of the Board of Directors continues to be a challenge if the CLICO mess is to be viewed through a corporate governance lense.

    Like

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