CL Financial Bailout – False Equivalence?
In today’s world of ‘Alternative Facts’ we have to be alert to the special dangers posed by ‘False Equivalence’. False Equivalence arises when two arguments are presented as being of equal relevance, but in fact one is solidly fact-based and the other is mere speculation or invention. Those dangers are especially present in matters of public importance, as recent events have shown.
Tony Rakhal-Fraser’s Sunday Guardian column on 25 June 2017, titled Appointing ‘Fit and Proper’ People, made me wince, despite his usual high standard of writing. My reaction arose from what appeared to be an attempt by the Central Bank Governor to promote a new discussion on the fit and proper rules.
Read full text on Afra Raymond’s website – CL Financial bailout – False Equivalence?
The DLP is about to complete their 2nd term and the CLICO matter remains unsolved despite repeated promised by minister of finance Sinckler.
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There is talk in Trinidad about winding up CL Financial. In Barbados a restructured CLICO if it comes to fruition will call for 800 million outlay by taxpayers.
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I am surprised the TT central bank was the regulator for companies like CL Financial…interlocking directorships are disastrous….what a mess.
At the end of the day Duprey cannot cough up 15 billion dollars to buy back the company dont care how much bubol he tries, he can try slick talking his way back into ownership but might lose his life being slick…that is what hapoens to garden variety conmen.
As I said…Leroy Parris should be jailed for fraud and the ministers protecting him should also be jailed.
This is very serious and they are all taking it for a joke, with Sinckler still lying to the people,
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David
You keep complaining, forever more, still no justice
Soon from now FJS and his pantomime will retreat to the safe embrace of retirement
With their lifetime pensions and all. Pensions not dissimilar to salaries. Maybe with periodic increases.
Barbados will thusly have two useless former PMs living off the public purse at the same time
There will be no debate as to whether one pension should be spilt between them
But both would have bequeath a political system that will continue to make the majority poorer and poorer.
Is it not time for a clean break?
A clean break must mean proscribing both the DLP and BLP as the illegal organizations they have been.
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David @ 6:52 PM
Settling issues like these requires big government. The public sector must be staffed by properly qualified ,competent and fearless professionals. It is not the function of the politicians to solve these issues. Politicians are not technocrats.
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@Pacha
Bajans do not riot. Bajan talk, and talk, and talk.
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@ Pacha
At this stage, a clean break would require the guillotine…
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@Bernard
You opine as if the public sector is an atonomous body even though it was designed to be.
Does this statement makes sense?
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Seriously Bernard, could Sinckler have hurried the Clico transaction along if he wanted to?
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@ David at 6:54 PM
When was the $ 800 million bailout first made public? Two days ago? And how is it going to be financed ? By fiat money? Are the assets of CLICO worth more or less than this figure? I keep repeating on this blog that there is usually more in the mortar than the pestle. Things are not always what they appear to be.
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@Bernard
The taxpayers are kept waiting on a leash, ppatiently, for the Clico Debate promised by our Honourable minister of finance a couple years ago. Can the public inpect the asset register? The Board books? Yet our government has promised to underwrite this transaction. Bear in mind it was triggered by said government because of a catastrophic failure in regulating a pan Caribbean behemoth.
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David at 9 :18 PM
Do you think that Mr. Sinckler was seized of the magnitude of this problem? Would hurrying the process along have reduced the size of the bailout? My short answer to your query is ” I do not know”.
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Bushie
Well you must know that the instrument for social transformation you mentioned is our preferred option.
But one still needs to, at least as a tautology, explore ‘other’ options
While keeping that indispensable antiquarian device sharpened, daily. LOL
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David
We are not so sure about your point on rioting .
New histories seem to suggest that Bajans were as riotous as other Caribbean peoples.
Even General Bussa was sending and receiving messages about the Haitian Revolution.
It was not an accident of history that Bussa’s War of 1816 gained inspiration from Haiti.
But Brassbowls of the Bajan variety continue to follow the Hoyes clique of victors’ history.
In no previous time period, has the wicket ever been better prepared for the spontaneous eruption of the docile Bajan masses. Those pressures will continue to make sure such an uprising occurs.
And when it comes it shall remove all within its path.
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@ David at 9 :42 PM
I agree with your observation. Were these books unavailable to the public because it was sub judice ? If you want matters to drag on you go to the law courts. Is that not one of the reasons that few persons cooperate with law enforcement in this country? There is a perception that nothing will be achieved by doing so.
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It would appear that the Treaty of Chaguaramas might be invoked to deal with this Clico Fatted Calf on behalf of the affected Caribbean policy holders and pensioners.Nothing should be withheld from the public’s need to know in the entire region.All details of assets,liabilities of CL Financial.All details of transactions including contracts and salaries,perks,real estate owned by directors and top management.The unsuspecting public must know the extent to which their contributions were mismanaged and those responsible must pay back what they have stolen or misused.The debacle cries out for resolution.How equipped is Caricom to deal with this Caribbean financial powerhouse collapse arising out a regional lack of oversight by Caribbean governments.
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@ David at 9 : 16 PM
The public service was set up as an autonomous body to serve the state not the party in office.
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@Bernard
How the public service was designed to function and how it functions today is not one and the same. Does it have something to do with the ‘power’ of the Home Office to whip things in shape?
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@Pacha
Yes history records that a few slaves back in the day ran amok until the uprising was quelled, what have we observed in the period to suggest that the appetite to be extreme simmers in the Bajan of today?
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That is government causing more damage to policyholders and taxpayers with delays, when they should be charging Leroy Parris.
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If Clico is in administration, then the administrators have a legal right to pursue any debtors.
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@ Bernard
Is that not one of the reasons that few persons cooperate with law enforcement in this country? There is a perception that nothing will be achieved by doing so.
+++++++++++++++++++++++++++++++++++++++++++++++
More precisely,
“… there is a clear and certain REALITY that nothing will be achieved by doing so.”
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Minister Colin Imbert’s take on the CL Financial/Clico present status.Dare we hope Barbados taxpayers are being protected also?
http://www.trinidadexpress.com/20170713/news/we-are-protecting-taxpayers-says-imbert
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Dennis Johnson expressing the opinion of many of those affected by this Clico drama.On Tuesday a lady called Peter Wickham bemoaning the fact that she contributed to a company pension fund that was administered on behalf of the company by another insurance company.Reference was made to a decision of that company chaired by Duprey (but nothing to do with Clico)to remove that pension fund from its original fund management to Clico managed by Paris and his lot.The upshot of that decision has wrecked the livelihood of several employees who over the years contributed to a well organized pension scheme and who owing to no fault of their own are without their monthly pension cheque and some of whom are not yet of an age to qualify for NIS pension.This is how people lose their property and their dignity.Its outrageous to see Paris driving about Barbados with millions in the Central Bank and with millions invested in real estate and in investments in a retail business and these poor people are suffering because nobody thought Duprey and Paris were dishonest and reckless with peoples’ monies.Sometimes laws are unjust to the just while Stuart blames investors for the collapse of Clico.
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Gabriel at 10 :17 AM
It is the responsibility of the MoF in T&T to protect the interests of the T&T tax payers; and the M of F Barbados to protect the interests of the Barbados tax payers. That is what independence means… Taking responsibility; Not celebrating an event.
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Gabriel….there are existing laws on the statute books to arrest Leroy Parris for fraud, the laws are not unjust, they have to be enforced.
It Fruendel Stuart, Adriel Brathwaite and the deceased DPP who are unjust for not charging Parris for fraud…a simple case of protecting his illegal action and only giving him a charge that is not indictable….just to soothe and massage the public into silence, as they did the supervisor of insurance by sending her on an 8 year long leave at taxpayer expense….with full pension.
all in an effort to cover up theft and corruption against the people..
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A worthwhile link:
https://therealdeal.com/miami/2015/12/30/trust-doubles-up-on-fort-lauderdale-holdings-with-8m-house/
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Those gangs of thieves were raiding the company and it`s subsidiaries as far back as 2002 to buy up luxury properties in Florida, at one time he owned one or two hotels, dont know if it or they are still around.
obviously no thought was ever given to policyholders and pensioners.
now there is a fire sale of properties , that money should be returned to Caribbean governments for the billion dollar bailouts.
`Broward County records show Baldini’s holdings used to include the homes at 1, 2, 3 and 9 Harborage Isle Drive. Several news reports said Baldini bought these houses at the same time her husband, Lawrence Duprey, headed the faltering CL Financial insurance conglomerate in the Caribbean.
Several executives at one the firm’s subsidiaries, CLICO, were even allegedly accused of siphoning millions of dollars from the company, according to a report in the Trinidad Daily Express.
The insurance conglomerate was later bailed out by the government of Trinidad and Tobago to the tune of $7.3 billion, according to a report in the Guardian of Trinidad and Tobago.
Baldini put three of her Harborage Isle homes up for sale last year: the properties at 2, 5 and 9 Harborage Isle Drive. Two successfully sold this year, while the third — 9 Harborage Isle Drive — is still on the market, according to listing service Redfin.
An interesting note is that the listing 3 Harborage Isle Drive, the one 888 Property Trust bought, said it was an “urgent” sale at below market value. County records show Baldini’s ownership on the island has been troubled: the community’s association and various lenders have filed multiple foreclosure suits against the properties for delinquent liens and loans.`
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It looks like Duprey offloading assets to avoid Imbert and the AG sending in the liquidators.I wont be surprised if this cabinet and the DLP Fatted Calf brigade membership got concessionary mortgages compliments of Paris and his directors.Paris is notorious for buying silence like Putin bought Trump’s silence.
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The Duprey CL Financial Miami link is complicated. The bottomline in simple terms is that Duprey’s investment in the US property market tanked when it went bellyup in 2007 2008. Obviously if one billion in property was reduced to $250,000 in value overnight there will be a problem. Why did the regulator allow this movement of money from the parent in the volume it did to destabilize the company?
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…that would be TT Central Bank, as regulator….that was bad for business.
too much bribery.
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David
Agree 100%.Im not sure if CB was the regulator at the time when there was lack of oversight.I think CB came into play when Duprey ran into trouble and approached the government for a bailout.Duprey was a UNC backer and Panday appointed him to chair the airline BWIA in the late 90’s,some say so he fly up and down their network free of cost while looking after his portfolios.
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@Gabriel
Keen followers of CLICO through the years are aware that Duprey’s use of the reserve funds created many headaches for regional regulators. Instead of maintaining reserves in cash/government securities like the establishment he used the money to finance ‘projects’. This is why regional regulators should not be given a pass on the failure of CLICO.
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Agree with you again.Even OSA got duped in believing he could inveigle the Paris contact to curry favour with Duprey to back the Pierhead project.Paris like the Quisling had his eyes fixed on the crown of thorns he envisaged adorning the head of the shortlived king of St John churchyard.
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from Afra’s article…re central bank’s 2005 guideline`s as regulator of financial institutions.
Our Central Bank has refused and/or failed to enforce its own ‘fit and proper guideline’ in relation to the largest and most serious financial collapse to hit our region. Thousands of savers and pensioners have been wiped-out across our Region and yet our Regulator has not followed its own rules. In my view, the “unresponsibility” of the Regulators is really what we should be sternly interrogating.
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the difference in Barbados the regulators are government minister controlled, taxpayer funded agency.
TT regulator should be much more independent, but the bribery and corruption upended everything.
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On hindsight it would appear that a number of govt leaders fully bought into the CLICO idea,otherwise a number of these errors would not have taken place.
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TT central bank is accountable.
`One can make a critical observation about the Central Bank’s approach to interlocking directorships. Recall that such interlocking directorships were stated by the very Central Bank (through then Governor Ewart Williams) as one of the principal reasons for the CLICO/CLF failure – the rubric being ‘excessive related-party transactions’. The Bank should be required to explain, in the circumstances, why it continued and expanded, that policy upon taking control of CLICO.
We have seen Directors sitting on CLF, Angostura, CLICO and MHTL boards simultaneously despite the Central Bank’s stated concerns. It was not through a lack of power or weakness of the legal or regulatory regime. The Bank chose to perpetuate interlocking directorships under its control. They can hardly complain. We need to consider removing the Central Bank from its role as the driver of any exercise to improve regulation of the financial services sector. They cannot be expected to properly analyze or criticize their failings.
It seems to me that we would be better served if the Central Bank were removed from non Central Banking roles totally, except where satisfactory arguments can be made in their favour.`
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@Vincent
What it is: we had countries operating In silos and as a result a large pan Caribbean company was able to exploit the inability of regulators across the region. We can debate if it was by accident or design.
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And wunna still think that Parris was more than Duprey’s puppet.
Trinidadians are masters of discombobulated financial practices.
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David
Too many of the Country leaders like to micro-manage plus the executive Jet was very busy flying around the place with his members……based on this I would opt for design.
Note the debt problem of these islands was an ever present problem and with a possibility of a win-win-WIN situation…..I would say they embraced it.
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…those same disgusting interlocking directorships exist in Barbados….pure corruption.
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http://www.caribbean360.com/news/tt-government-goes-court-recover-cl-financial-bailout-money?utm_source=Caribbean360%20Newsletters&utm_campaign=e5dcea601f-EMAIL_CAMPAIGN_2017_07_14&utm_medium=email&utm_term=0_350247989a-e5dcea601f-39425505
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Parris was a willing puppet, he used to call the CLICO jet his own, he knew what he was doing was criminal, David Thompson as lawyer for CLICO knew what he was doing was criminal, ……
….Leslie Haynes and all the other parasitic directors who sat on CLICO`S board knew they approved illegal policies to be sold and that they were robbing senior citizens……none are innocent.
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Paris bought politicians,govt officials and whoever else he needed to achieve his master’s Duprey will.With his separate hangar for the private plane he used extensively to fly the king of St John to and from his Miami jaunts and specialist visits to the big Apple,Paris spirited untold resources out of the island while paid prying eyes were diverted.
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http://star.worldbank.org/corruption-cases/node/18517
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Is the able right hand man Terrence Thornhill still chairman of the EGF?
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Chuckle…..I well remember this……..I like the last sentence below,which is typical in these banana republics the populi are never told.
Disclaimer: The corruption cases databases are a product of the staff of the International Bank for Reconstruction and Development / The World Bank. It is intended for general information purposes only. The findings, interpretations, and conclusions expressed in the Database do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. Neither the World Bank Group nor its officers or employees shall be liable for any losses that may result directly or indirectly from the use of or reliance upon such information.
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John H. O’Halloran
Jurisdiction of Origin :
Trinidad and Tobago
Position of Public Officials/Persons (Years in Office):
People’s National Movement official (1956-1970), Chairman of the Trinidad and Tobago Racing Authority (inclusive 1980-1981)
Jurisdiction of Recovery Effort / Asset Location:
Canada
Jurisidction of Asset Recovery – Description:
Location of Recovery Effort, Asset Location / Alleged Asset Location
Recovery Start (Year):
1983
Recovery End (Year):
1991
UNCAC Offenses Implicated:
Art. 16
Art. 23
Money laundering Implicated?:
Yes
Legal Basis for Recovery:
Private Civil Action
Status of Asset Recovery :
Completed
Assets Returned (USD):
Exact amount of recovery unknown [judgment for $7.65 million plus court costs
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Caribbean governments would have to liquidate all CLICO`s real eatate holdings and sue Duprey and his gang to make up the difference of amount they used in taxpayers money for the bailout, if any of them croak, sue their estates to recover taxpayers, policyholders and pensioners money.
this cannot be allowed to slide, then all the insurance thieves with the same practices and mindset will become further emboldened….and do even worse as they see and know how easily bribed government ministers are…
Fruendel and his gang have to be severely punished for the corrupt and unjust part they played against policyholders and pensioners to protect Parris.
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@ David July 14, 2017 at 4:44 PM
“Is the able right hand man Terrence Thornhill still chairman of the EGF?”
Now you can appreciate the depth of rot which has infiltrated the current administration to make it ineffective in moving in any direction to resolve the CLICO fiasco to the minimum satisfaction of the CLICO policyholders especially those holding pension and life insurance annuities.
Why should a man so morally tarnished, both professionally and personally, be the head of such a financially-focused organization with the mission of facilitating the economic development of Barbados. Out of sheer self-respect he ought to have relinquished such a position.
The DLP is unable to bite the hand of the elections benefactor which financed its rise to power in 2008.
What we should be querying also is if the Parris $5 million leprous deposit is still at the C B now that his protector and laundry guard has been unceremoniously dismissed for disobeying the order to print more Mickey mouse dollars to prop up a crumbling regime.
Now you see why the miller has been at Dr. Deliar’s throat since 2013 for failing to give a satisfactory account of that miraculously missing $300 million in foreign exchange reserves?
One wonders what William the Billy Skinner now has to say about his good friend who like Saul has now seen the Light of being professionally honest with himself?
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The Clico saga continues in TnT…
http://www.trinidadexpress.com/20170715/news/meet-with-us-let8217s-negotiate
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They are all sitting on their fat asses looking for more bribes…if the government can find a buyer for the 15 billion dollar debt, sell the damn blighted, corruption filled company,……
……there are more than enough conglomerates inside and outside of TT with the money to purchase the entity.
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Extracted from a Trinidad chat group.
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if the shareholders have 15 billion to repurchase CLICO, then they have the 23 billion of taxpayers money to pay back the treasury…what took them so long, the court case lit a fire under them.
they are playing games.
got some nerve, sat down and watched government use up billions of tax dollars and remained silent.
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As Trinidad say it Permell have de gall to quote Kamla..eh eh.All ‘o dem is one set a UNC backers.One set ‘o crook and teef.
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From the T&T chat group.
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lol….these shareholders have short memories, they forgot what befell some CLF/CLICO execs on a monthly basis some years ago.
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Well Well & Consequences Observing Blogger – you are a sad bitter moron allowing your miserable life to be poisoned by hatred of generations long dead. My guess is that you have been a failure all your life, and spend your worthless hours seeking excuses for your own irrelevance.
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Hal…is that you plagarizing a 45trumptard`s words, just because you dont understand what is really happening.
if you only knew how successful i was you would shoot yourself for wasting all those decades in UK being mistreated by, discriminated against and shat on by racist whites. your existence and experience was pure hell, hence your inability to understand the most simple things or have the power of analysis or deduction.
that is a sad existence…..mine rocks.
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…and you got a nerve to call yaself a journalist…plagarizing comments from racists…lol
Hal…get a life…you will always be 100 steps behind.
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…a bet ya wish ya had not been so impulsive to plagarize that comment…lol, lol
let it stay as a reminder, i will save it Hal……lol
you are plagued with deficiencies and have no self control.
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When the COI was in full swing,nobody could get Duprey the prayer mantis to appear before the commission.Now its all over bar the liquidation, Duprey the prayer mantis turned up in Trinidad,in Guyana ,maybe in Bdos too unknown to the local press, making all kinds of noise and promises,still no money to show.Effing school boy,bullying trix just like trump.Based on what’s going on in TnT,and not enough money to bail the CLFinancial,it’s reasonable to conclude that Barbados will be a failure too.
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Duprey claimed he was in fear for his life to ever return to TT, obviously now taxpayers 23 billion dollars has been used up to save CLF, he has no more fear.
…but it`s now he should be very, very afraid…lol
when Trinis start every sentence with
all yuh…ya know it`s time to run.LikeLike
Praying
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Headline >> Clico transfers interest in No Man’s Land to Govt
Source >> The Trinidad Guardian Newspaper
At the very end of the notes to the 2016 year-end audited financial accounts of beleaguered insurance giant Clico lies note 37. It reads: “To facilitate the implementation of the Resolution Plan, in January 2017, the Company was directed by the Central Bank of Trinidad and Tobago to take the necessary steps to effect the transfer of its 100% shareholdings in Occidental Investments Limited and Oceanic Properties Limited to the state enterprise Buccoo Limited. This transfer agreement was completed on March 2017.”
In effect, this note says that Clico’s 100 per cent interest in Occidental Investments Ltd and Oceanic Properties Ltd, more commonly known as the No Man’s Land ocean property in Tobago, and carried on Clico’s balance sheet at a value of roughly $187 million, is now owned by the Government of T&T.
One of the concerns arising out of this transfer, according to chairman of the Clico Policyholders Group Peter Permell, is the fact that the Minister of Finance by virtue of the powers under Section 44D of the Central Bank Act can give general or specific instructions to the Central Bank in this particular transaction.
https://www.cahfindit.com/node/166214
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Some further data on CL Financial and Clico
http://www.trinidadexpress.com/20170716/news/what8217s-at-stake-in-liquidation
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The State’s application to have the High Court appoint joint provisional liquidators for CL Financial (CLF) has been postponed until tomorrow.
Read more : http://bit.ly/2u39GP3
State’s bid for CLF liquidation on hold
trinidadexpress.com
http://bit.ly/2u39GP3
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Recent development is that a TT High Court has blocked government’s application to appoint a liquidator for CL Financial. This continues to be a complex transaction.
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