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Open Letter to Former Permanent Secretary William Layne: ‘CLICO Was a Time Bomb Waiting to Explode and Explode it Did’

The CL Financial/CLICO saga continues to occupy the news space in Barbados and regionally. Many have predicted it will take years to unravel if not resolve. And given the sloth of the Barbados Court system and the interlocking interests of politicians and prominent others there is good reason for those with material interest in the…

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Vernese Brathwaite
Vernese Brathwaite

The CL Financial/CLICO saga continues to occupy the news space in Barbados and regionally. Many have predicted it will take years to unravel if not resolve. And given the sloth of the Barbados Court system and the interlocking interests of politicians and prominent others there is good reason for those with material interest in the matter to batten down for the long haul.

One individual who has had a prominent role to play and a lot to say about the CLICO/Parris matter is William Layne. He is a retired permanent secretary in the ministry of finance  appointed to Chair the CLICO Oversight Committee established by the late prime minister David Thompson. Another little discussed role Layne held was Supervisor of Insurance.  Layne in a hard hitting CLICO exposition titled  RECENT FINANCIAL FAILURES IN THE CARIBBEAN – WHAT WERE THE CAUSES AND WHAT LESSONS CAN BE LEARNT? delivered a few interesting observations on what lessons we can learn about the demise of CLICO in Barbados.

In bullets (refer to full text in the link)

  1. Regulators must be given tools to do their job and be allowed to function by the political directorate
  2. There is a need for public education about investing
  3. Special attention has to be paid to regulating conglomerates which own regulated entities
  4. Regulators must publish all decisions about regulated entities
  5. Corporate directors must not allow themselves to be mere appendages of the CEO
  6. The Auditors must do their jobs
  7. We need to rethink how political parties are financed
  8. Citizens must demand that where corporate executives are by their fraudulent actions responsible for the demise of corporations, the full weight of the law must be brought to bear on such persons

The above conclusions make sense, we question though if any will be implemented in our lifetime in the existing governance system.  Those empowered to be the change agents, the politicians, are the perennial beneficiaries there why press for change.

BU invites William Layne to answer the following questions in the interest of informing public discussion, bearing in mind he served as Supervisor of Insurance, and was eventually promoted to Permanent Secretary in the Ministry of Finance:

  1. What did William Layne do about the problem?
  2. Which politician stopped him from doing his job?
  3. Why did he allow himself to be used by David Thompson so willingly as head of the oversight committee, after CLICO had crumbled?
  4. Were reports filed timely when he was supervisor?
  5. What qualified him to be supervisor?
  6. Vernese Brathwaite decided to study law, and she was the person most businesses dealt with and respected at the supervisor’s office. Why was it stipulated that you had to be an accountant to be supervisor?
  7. What special skills does an accountant bring to the field of insurance?

Mr. Layne feel free to submit a response to BU via this LINK or if you feel more comfortable responding in other fora we encourage you to do so.

20 responses to “Open Letter to Former Permanent Secretary William Layne: ‘CLICO Was a Time Bomb Waiting to Explode and Explode it Did’”

  1. Open Letter to Former Permanent Secretary William Layne: ‘CLICO Was a Time Bomb Waiting to Explode and Explode it Did’

    […] By David […]

  2. Due Diligence Avatar
    Due Diligence

    David

    Where has the paper languished (or been suppressed) since delivered by Mr. Layne in 2011?

  3. David Avatar
    David

    @DD

    Good question.

  4. John Hanson 1781-1782- I SERVE 1788- 1792 BARBADOES. Avatar
    John Hanson 1781-1782- I SERVE 1788- 1792 BARBADOES.

    Before 2011 PLANTATION DEEDS TOLD you all CLICO was fraud and in laundering of land , The the crook liars and scumbags were taking lands, Even the UDC and lawyers ,
    No one listen ,,just like the 12 monkeys ,
    MIA AND OWEN AND SIR RICHARD CHELTENHAM AND SIR CO WILLIAMS AND OTHER ,
    WE LOVE BU AND BFP AND FOR ALL IS LISTED AND TALKED ABOUT,

    ALL THE LAWYERS AND KISS ASS RAN OFF BU AND CURSE THE WORDS OF THE TRUTH ,

    NOW ALL OF YOU WILL NEED MORE PAIN BEFORE YOU LISTEN , MUCH MORE PAIN TO COME , ENJOY,WE ARE USE TO IT BUT STILL FIGHTING FOR THOSE WHO CARE , WHO WILL LISTEN , WHO WILL HELP FIGHT AND VOTE THESE BITCHES OUT ,, SO THEY CAN GO TO JAIL,

  5. Due Diligence Avatar
    Due Diligence

    David

    here is another good one from 2010, by Peter Boos, worth revisiting

    CLICO-Why Was Nothing Done Sooner?

    http://businessbarbados.com/trending/barbados-economy/clico-why-was-nothing-done-sooner/

    I love this quote

    “Give a man value, give a man service and he will support you” – Philosophy of Cyril Duprey founding father of CLICO.’

    Seems like nephew Lawrence Duprey and Leroy Parris, thought he meant
    “Give a politician cash, give a politician service, and he will support you- and do not forget to spread it around to both paties”

  6. Artaxerxes Avatar
    Artaxerxes

    Recall, the Thompson administration established an oversight committee [OC] to guide the sell three CLICO subsidiaries: CLICO General Insurance, CLICO Mortgage and Finance Company Limited and CLICO International Life.

    In August 2009, the Supervisor of Insurance prohibited CHBL subsidiary CLICO International Life Insurance (CIL) from writing of new business until it has been able to satisfy the conditions of the Insurance Act pertaining to the statutory fund. However, it was subsequently revealed that CIL contravened the order by selling in excess of 800 new policies.

    Chairman of the OC, former Permanent Secretary in the Ministry of Finance, William Layne, publically criticized the actions of CHBL subsidiary CLICO International Life Insurance (CIL) relative to the sale of 800+ insurance policies, and called on the Supervisor of Insurance to seek legal address in this matter.

    The committee also complained about the lack of cooperation it had experienced during the period mandated to conduct its investigation.

    In a letter dated June 1, 2010, the then Deputy Supervisor of Insurance Vernese Brathwaite filed a complaint urging the police to probe the sale of 800-odd life policies by CIL despite a prohibition order from her department.

    According to an article written by Tim Slinger, in the February 22, 2012 edition of the “Midweek Nation”, official police sources told the Nation newspaper that after “several months of investigation that led the Commissioner of Police Darwin Dottin to refer the matter to the Director of Public Prosecutions Charles Leacock”, former executive chairman of CLICO Holdings (Barbados) Limited, Leroy Parris, and Terrence Thornhill, have been charged under Section 185 of the Insurance Act, Cap 130, for contravening an order by the Supervisor of Insurance, which prohibited CIL from selling new business.

  7. Artaxerxes Avatar
    Artaxerxes

    “2. Which politician stopped him from doing his job?”

    An article in the March 26, 2012 edition of the Starbroek News, entitled “Former Bajan Supervisor of Insurance defends CLICO actions”, [which was taken from the Nation newspaper], reported of a exclusive interview of William Layne by the Nation, in which he described his tenure as Supervisor of Insurance.

    Describing himself as a tough Supervisor of Insurance, Layne said he essentially closed Narsham because the insurance company was not meeting its statutory fund obligations.

    Williams was reported to have further stating:

    “I was Supervisor of Insurance for 18 months – between January, 1995 and June, 1996 – and during that time I stopped Narsham from writing insurance. They didn’t have adequate reserves and they ended up taking me to court.

    “I didn’t have to speak to any politician about that. I took action and stopped them from writing insurance. I don’t remember any time in those 18 months that I did not act….”

  8. Walter Blackman Avatar
    Walter Blackman

    Due Diligence
    February 25, 2015 at 8:52 PM #

    “here is another good one from 2010, by Peter Boos, worth revisiting

    CLICO-Why Was Nothing Done Sooner?”

    Due Diligence,
    This is part of what Peter Boos said on 6 May, 2010:

    “Mr. William Layne, a very senior and highly respected, experienced Civil Servant in the Ministry Of Finance, who is also Chairman of the Oversight Committee of CLICO in Barbados, must be congratulated and thanked profusely for publishing the statement that he did on 25 April 2010. Much more transparency like this is needed now.
    In a financial failure of this magnitude, the role of the auditors is always likely to come into the spotlight.

    In the interest of total transparency and to avoid any prospect of a charge of conflicts of interest being raised, the appropriateness of two former senior partners of the firm that is still the current auditor of the failed CLICO serving on the Oversight committee must be addressed.
    The two gentleman in this awkward position are men of integrity and good reputation but surely they should excuse themselves from these duties in the circumstances?”

    In my opinion, Mr. Boos correctly said that selecting two senior partners from the Audit firm of the failed CLICO opens up a charge of conflict of interest.

    But doesn’t selecting William Layne, one of the Supervisors of Insurance who regulated the failed CLICO, also create a charge of conflict of interest?

    So the oversight committee was made up of auditors and a regulator who were all at the wheel sometime during the CLICO crash, and none of them “excused” themselves?

    So someone had to select a CLICO oversight committee, and the one who steps forward to do that job is David Thompson, a Barbadian Prime Minister who had contributed to the destruction of CLICO in the first place? The very first person who should “excuse” himself, not from the process, but from public life?

    Did someone expect anything meaningful to result from such a “tainted” process?

  9. Simple Simon Avatar
    Simple Simon

    @Walter Blackman February 25, 2015 at 10:19 PM “David Thompson, a Barbadian Prime Minister who had contributed to the destruction of CLICO in the first place? The very first person who should “excuse” himself, not from the process, but from public life?”

    Mother Nature herself had to excuse David Thompson from life itself.

    Thank you Mother.

  10. millertheanunnaki Avatar
    millertheanunnaki

    @Walter Blackman February 25, 2015 at 10:19 PM
    “So someone had to select a CLICO oversight committee, and the one who steps forward to do that job is David Thompson, a Barbadian Prime Minister who had contributed to the destruction of CLICO in the first place? The very first person who should “excuse” himself, not from the process, but from public life?
    Did someone expect anything meaningful to result from such a “tainted” process?”

    Isn’t the same thing happening under the current regime where a PM can get up and boldly declare continuing loyalty and offer complete succor to the same established fraud at the heart of the CLICO matter?

    Why continue to heap opprobrium on a dead man who can tell no lying tales or be tried for his sins of commission?
    What can be done with the living sanctimonious hypocrite who will move the gates of heaven to protect Parris from the scales of justice?

  11. Lemuel Avatar
    Lemuel

    After the Trade Confirmers saga, one would have thought that lessons were learned. The total picture is not about WIPA members taking an “investment chance” and losing their money as a result; it is about the manner in which most business is conducted in Barbados where the playing is set up to disadvantage the “lambs who assembly to be slaughtered financially”. From all that has been said those WIPA investors were doomed to lose their monies sooner or later.

    That is conversation I am waiting to hear. William Layne has been a little coward all his life and benefited from his association with Mr. Griffth the former Director of Finance and Head of the Civil Service under the Owen Arthur administration. His impact for over the period spent in the Civil Service was at the most minimal.

  12. just asking Avatar
    just asking

    I have always said & will always say nothing will happen until Leroy Parris, some M. P in the DLP & the BLP get locked up at the lovely 5 star hotel in St. Philip. Lots of the policy holder will die before they get a penny from this fiasco, and I trust the ones waiting for their pensions have other pension schemes available.

  13. racehrse Avatar
    racehrse

    WIPA; While I empathize with you, you know the old saying: If it sounds to good to be true, it usually is. When you get greedy, it sometimes doesn’t end well. The government has no business bailing you out. But, that doesn’t stop you from going after the money still available in the hands of the thieves.

  14. Prodigal Son Avatar
    Prodigal Son

    David,

    I guess it is fitting that we on BU extend condolences to the family of Carlos Belgrave, another character in this CLICO mess. He will be buried tomorrow at St Andrew’s Parish Church.

  15. David Avatar
    David

    Indeed Prodigal Son, saw it in today’s Orbit.

    He was in a bad way for years.

  16. Wily Coyote Avatar
    Wily Coyote

    NEW TOPIC

    BULLSHIT BAFFLES — CORRUPTION RISING — POLITICIANS BANKING IN USA — SUGAR INDUSTRY DEAD(RIP) — PIERHEAD UNDERWAY — NATURAL GAS USERS AT FAULT — NEXT ELECTION it will cost $300 to buy a vote — etc. etc. etc.

  17. Town Rat Avatar
    Town Rat

    Vernese Brathwaite was sent on full paid leave since 2009 by Chris Sinckler and David Thompson after she filed the report with the DPP and COP.

  18. Colonel Buggy Avatar
    Colonel Buggy

    just asking February 26, 2015 at 9:33 AM #

    ……………. and I trust the ones waiting for their pensions have other pension schemes available.
    ……………………………………………………………………………………….
    Or invest in a policy with United Zenith Insurance

  19. The Watcher Avatar
    The Watcher

    I would like to comment on the bullet points made by either Mr.Layne, or the original authour of the article should it not have been Mr. Layne exclusively.

     "Regulators must be given tools to do their job and be allowed to function    by the political directorate."

 When you don't receive your tools in a timely manner, RESIGN forthwith!

 "There is a need for public education about investing"

    Full disclosure is necessary in order for the public to begin to understand these financial instruments. Additionally, the public needs some persons who can act in their interest and are un-biased.

    "Special attention has to be paid to regulating conglomerates which own regulated entities"

    Big businesses need sword wielding regulatory bodies sitting at their door-steps daily who are ready, willing, and able to cut off the lifelines of these entities when they stray. No negotiation allowed when they transgress.

    "Regulators must publish all decisions about regulated entities"

    Employing all forms of information outlets including Social Media will nullify the effect of the organized media who may be swayed or influenced not to publish certain points.

    "Corporate directors must not allow themselves to be mere appendages of the CEO"

    This will happen when a change in culture occurs. Mendicant directors will always bow to the CEO who fattens their pockets and brings them financial security. Public oversight into these individuals and their actions will certainly stem the tide of stupidity within them, but only cultural shifts will solve this matter.

    “The Auditors must do their jobs”
    They will if they arent scared of the repercussions of doing their jobs.

    “We need to rethink how political parties are financed”

    Nope. We need to end campaign financing and allot fixed sums to parties for campaigns. Parties must also make public their budgets for campaigns.

    “Citizens must demand that where corporate executives are by their fraudulent actions responsible for the demise of corporations, the full weight of the law must be brought to bear on such persons”

    Lets start with seizing all of theris assets, assets of their immediate families and then jailing them until they are proven innocent.
    Our justice system is worthless when you have money and mendicant prosecutors and others want their palms greased. Change the whole thing one time. No loopholes and no chance to unduly influence that change.

  20. David Avatar
    David

    Slipping

    Report shows CLICO clients surrendering and abandoning policies

    Added by Emmanuel Joseph on March 3, 2015.

    Saved under Local News

    As CLICO International Life Insurance (CIL) faces possible liquidation, a report submitted to the court has shown that lawyers and actuarial consultants hired by the judicial manager were paid more than half million dollars last year alone.

    That was in addition to the more than $8 million the judicial manager was paid up to June last year.

    The information was contained in the December 12, 2014 report of the judicial manager, Deloitte Consulting, that took over the company in 2011. The report has only now been made available for public viewing.

    http://www.barbadostoday.bb/2015/03/03/slipping/

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