Barbados Underground

15 comments

• David

  July 20, 2017 7:28 PM

  

  Extracted from TT chatter:-

  The crooked magicians and conmen have no money (money here means billions, not a few million), the companies’ liabilities exceed assets, the taxpayers are owed more than $15 billion, but they say they have a plan to pay back the billions owed to the taxpayers, they say they are looking after the taxpayers’ best interests – this is like Trump looking after the best interest of immigrants and minorities, once they lay their grubby corrupt hands on the companies.

  Remember that Press Conference in the Central Bank eight years ago when they were all schmoozing, smiling, assuring us this was merely a cash flow problem, CLF and CLICO had more than enough assets, a CB senior executive even said it was over $50 billion, with rumors of plenty Govt and CLICO high people, even the highest people in the land, all withdrawing their funds or most of it on the weeks preceding the CLICO ponzi scheme implosion? Who said this in 2009?

  the Group controls over ($100) billion of assets in at least 28 companies located throughout the Region and the world. 2. The Group’s financial interests cover several industry sectors including banking and financial services, energy, real estate and manufacturing and distribution. The four largest financial institutions in the Group manage assets of over $38 billion, over 25 per cent of the country’s GDP.

  Today, with the nation in economic recession, even depression, crime soaring, poor & middle-class suffering, unemployment rising, gap between majority and rich & powerful minority widening, property tax hammer to fall on the poor, middle-class and senior citizens (not rich business) to get another $500 million per year, and the crooks not paying us back 20 years equivalent of Property Tax but getting back their companies, they trying a similar thing as in 2008, this time the nation will explode with anger, frustration, and vengeance.

  “…Having perused the report myself…I can advise the population that it contains very serious allegations of criminal misconduct on the part of a handful of privileged individuals who were associated with the Clico/CLF group of companies…”
  “…a number of adverse findings of criminal misconduct of a kleptocratic nature were found…”
  ~~~ KEITH ROWLEY, July 2016 statement to Parliament on the Colman Report

  REMARKS for the CIB/CLICO MEDIA CONFERENCE by Ewart S. Williams Governor, Central Bank of Trinidad & Tobago January 30 2009

  Ladies and Gentlemen Some of you may know that CIB has been facing liquidity challenges over the past few weeks. These challenges came to a head in the last few days when the bank began to face an unusually high level of withdrawal requests which put a strain on their available liquid resources. Clico has also been facing liquidity problems, though nowhere near the levels of CIB. Of course, given the close integration of these two financial institutions within the CL Financial Group, it is just a matter of time before Clico also begin to come under severe liquidity pressures. The Inspector of Financial Institutions and the Governor of the Central Bank met with the Chairman and Chief Financial Officer of CL Financial on January 7 2009. In a second meeting on January 13 2009, Clico’s Chairman formally raised the issue of possible financial assistance from the Central Bank. There is no doubt that the increase in CIB withdrawals and the nervousness seen at Clico have something to do with the depositors’ concerns about the impact of the sharp decline in methanol and real estate prices on CL Financial’s overall financial situation. In the Bank’s view however, the current financial difficulties being faced by CIB and Clico have more to do with four things: • excessive related-party transactions which carry significant contagion risks. I should note that the high level of concentration is not specifically prohibited by the present legislation. • An aggressive high interest rate resource mobilization strategy to finance equally high risk investments, much of which are in illiquid assets (including real estate both in Trinidad and Tobago and abroad). • A very high leveraging of the Group’s assets, which constrains the potential amount of cash that could be raised from asset sales. In our regular monitoring of CIB, and of Clico since 2004 (when insurance supervision was transferred from the Ministry of Finance), the Central Bank has 2 consistently focused on these deficiencies but have been stymied by the inevitable challenge of change and by inadequacies in the legislative framework which do not give the Bank the authority to demand these changes. The Central Bank is very conscious of the contagion risks that financial difficulties in an institution as vast as the CL Financial Group could have on the entire financial system of Trinidad and Tobago and indeed in the entire Caribbean region. For the record, ladies and gentlemen, the CL Financial Group has an imposing presence with potentially systemic consequences for the financial sector and the economy of Trinidad and Tobago and the entire region. For example, 1. the Group controls over ($100) billion of assets in at least 28 companies located throughout the Region and the world. 2. The Group’s financial interests cover several industry sectors including banking and financial services, energy, real estate and manufacturing and distribution. The four largest financial institutions in the Group manage assets of over $38 billion, over 25 per cent of the country’s GDP. 3. In addition to Clico, among the Group’s holdings is the British American Insurance Company Limited, which is one of the main insurance companies in the Eastern Caribbean. After intense discussions over the past week the Central Bank, the Ministry of Finance and representatives of the CL Financial Group have reached agreement 3 on a strategy to deal with the liquidity challenges of CIB and Clico and to address the underlying problems that have given rise to the current financial stress. The principal objectives of the strategy are to ensure that resources are available to meet withdrawals of third-party CIB depositors and Clico policy holders; to protect the funds of the depositors and policy holders and in so doing maintain confidence in Clico and reinforce confidence in the financial sector as a whole. The main elements of the strategy are as follows: • The Central Bank will take control of CIB under section 44D of the Central Bank Act. • Early next week all the third-party assets and liabilities on the books of CIB and CMMB will be transferred to First Citizens Bank. These liabilities will be matched by resources from the sale of CIB’s holdings of certain high quality assets. The Central Bank will provide short term liquidity as needed to ensure that these liabilities are serviced. • Following the execution of these transactions, CIB’s banking license will be revoked. • Clico has a sizeable Statutory Fund deficit. CL Financial has agreed to divest additional assets to help fund this deficit. The Government has committed to provide any additional funding that is needed by Clico. • Government funding will be provided in exchange for collateral and an equity interest in Clico. It will also act as a catalyst for implementing a 4 change in the current business model and corporate governance structure of Clico. The intention will be to return Clico to its original moorings. I would like to emphasize that these considerable steps being taken – by the CL Financial Group, the Government and the Central Bank are specifically designed to tell CIB’s depositors that your funds are safe and to maintain confidence in Clico which for decades has been the strength of the insurance sector in Trinidad and Tobago and in the region. Clico’s policy holders can also be assured that the long term future of Clico will be guaranteed by the adoption of a more robust and less risky model. Because any stress in one corner of the financial system tends to raise concerns throughout the sector, I would also take the opportunity to remind the national community of the tremendous strength of our financial system, which indeed is the envy of the region. Excluding CIB, the banking system now boast of an average capital adequacy level of 18 per cent, compared with a recommended minimum of 8 per cent; in contrast to the illiquidity of CIB, the rest of the banking system is plagued by excess liquidity; the overall level of non-performing loans is an impressively low 2 per cent and the banks have more than adequate level of provisions against bad loans. Let me support the point raised by Minister Tesheira on the need to accelerate some aspects of the new Insurance Act on which we have been working for some time in collaboration with industry stakeholders. We absolutely need updated insurance legislation to regulate the insurance industry in normal times as well as in times of financial stress. 5 The “fast track” amendments to the 1980 Insurance Act that are being proposed will provide us with the authority to conduct on-site supervision; will give us the legal basis to share information with other regulators (I should note that CLICO and its affiliate British American have vast regional operations) and will allow the Central Bank to take prompt corrective action to protect depositors, if and when necessary. Before ending I would like to acknowledge the high level of cooperation that we have received from Mr. Duprey in our efforts to address what must be a very difficult period for the CL Financial Group. I should also recognize the role of First Citizens Bank in doing its part to help stabilize the banking system. Resolving the problems of Clico will call for continued collaboration between CL Financial, Government and the Central Bank, but moreso on the collaboration of the entire financial community led by ATTIC and BATT. While it is currently a CL Financial problem, only the concerted and vigorous action of the entire financial sector would stave off financial contagion. This is not the time for companies to take advantage of CIB/Clico’s problems to expand their balance sheet: this is the time to let competition take a back seat and to support the Government and the Central Bank to keep Clico as a functioning entity and to ensure the continued stability of our financial system. The actions that we will be taking over the next several weeks and months will only work if they have the support of the community of depositors and policyholders as well as the entire financial sector. 6 We are confident that the proposed strategy will lead to a financial sector that is more resilient to deal with the adverse currents now buffeting the global economy.

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• Well Well @ Consequences Observing Blogger

  July 20, 2017 7:50 PM

  

  Duprey and his cohorts can still face criminal charges in TT for their ponzi fraud….if they try to give the government problems…or they can continue playing games until the people explode all over them.

  Leroy Parris can also face criminal charges in Barbados.

  Rowley would have to put his money where his mouth was and have DPP arrest Duprey via extradition.

  `Apart from the serious concerns as to the suppression of the Colman Report, there is the role of the Central Bank in this debacle. The existing fit and proper guideline of May 2005 would readily disqualify Lawrence Duprey and his cohort from ever becoming Directors, Officers or Controlling Shareholders of any financial institution in this country, yet those rules have not been implemented, for whatever reason.

  At this juncture, we are faced with the bitter reality that if the litigation or negotiations go in favour of Lawrence Duprey and his cohort, we could be faced with the return of persons described by the PM in his 1 July 2016 statement to Parliament on the Colman Report –

  “…Having perused the report myself…I can advise the population that it contains very serious allegations of criminal misconduct on the part of a handful of privileged individuals who were associated with the Clico/CLF group of companies…”
  “…a number of adverse findings of criminal misconduct of a kleptocratic nature were found…”

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• Gabriel

  July 20, 2017 9:57 PM

  

  The GOTT failed in their bid on a technicality.Correct it and go back to court with plan A…order for liquidation

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• David

  July 21, 2017 5:19 AM

  

  @Gabriel

  You have to admit that the litigious environment in which we live makes the most simple issue a challenge to find resolution. Then factor that the CL Financial CLICO matter is complex and what do you have? You have a problem of time to solution. Perhaps not in our lifetime to exaggerate some.

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• David

  July 21, 2017 5:41 AM

  

  Has the Prime Minister delivered on his promise to address the CLICO List?

  He added: “I have a list . . . of all of the persons who invested in the Executive Flexible Premium Annuity, but I ain’t saying nothing yet. I know all the people who earning quick money, who were entranced by the lure of attractive interest rates. I know them, I have all of the names”.

  http://www.barbadostoday.bb/2015/03/17/pm-holding-clico-list/

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• Well Well & Consequences Observing Blogger

  July 21, 2017 6:09 AM

  

  Fruendel was trying to threaten CLICO victims to protect Parris, he should be locked up with Parris.

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• Anne

  July 21, 2017 6:27 AM

  

  Politicians claim to be concerned about its citizens but we all know that is just a lot of long talk. Say what we like about the USA; but if Leroy Parris and those within Clico were in the USA they would be in prison. The sad thing is that this Clico fiasco started during the BLP administration and they along with the DLP have nothing to help. This is nothing more than disgraceful. The politicians in Barbados and the wider Caribbean are nothing more than jokers. As Gabby said in one of his songs, all the politicians are doing is mekking mock sport at people.

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• Well Well @ Consequences Observing Blogger

  July 21, 2017 7:22 AM

  

  the Negropean slave leader is nonfunctional outside of their brainwash.

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• Gabriel

  July 21, 2017 9:00 AM

  

  Allan Stanford did as he liked in Antigua compliments of the Bird administrations.Speak to any regional professional and they would always whisper Stanford is a front for money launderers out of South America and runs a ponzi scheme.Like Trump he thought himself a king in Antigua and one day it all came crashing down.His monuments are there in Antigua so are the carcasses for politicians he left there.The point is, left to the Birds he would still be a king of Antigua……Sir Allan Stanford….bah….effing crook.
  Now Sandals think they can do as they like in the Caribbean making and ringing every ounce of blood from ignorant conniving politicians like Stuart and Sealy of Barbados.The Brown cum Bird administration of Antigua locked horns with pirate Butch over a meter of Butch holding on to a tax that Brown felt rightly belongs to the govt of Antigua.Brown won that round and Butch got spiteful and gave notice to 700 employees that the hotel was closing for upgrade.Brown says he will not be intimidated by Butch.Let this be a lesson for the asses who currently occupy Bay St and who sold the bajan taxpayer down the drain with a 500 million dollar tax holiday for Butch to do as he likes in Barbados.Black people too brainwashed to know everybody not smart as Barrow or Tom or even Owen.Staurt and his fools will destroy Barbados by giving away a whole range of tax concessions to Butch Stuart and then turning around and tax the middle class out of existence with unfair taxes like the NSRL.Stuart,more than an errant school teacher.A man out of his depth.An embarrassment.

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• Bernard Codrington.

  July 21, 2017 12:24 PM

  

  Yes, Archangel. So now you you see that in addition to the pestle there is radish , cayenne pepper and onions in the mortar. It is not the system nor the party nor the institution, it is the competence and the integrity of the persons who man them that are important. It is going to get a lot more messy.

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• Bajan in NY

  July 22, 2017 12:28 PM

  

  @Anne July 21, 2017 at 6:27 AM #
  Politicians claim to be concerned about its citizens but we all know that is just a lot of long talk. Say what we like about the USA; but if Leroy Parris and those within Clico were in the USA they would be in prison.

  Care to give us the names of the Wall Street Banksters who were jailed for the 2007 financial collapse?

  Any idea why the man we name the St. Joseph judicial center after made the following admission?

  U.S. Attorney General Eric H. Holder Jr. told lawmakers that some financial institutions have become “so large” that it makes it “difficult for us to prosecute them.”

  Holder’s admission bolsters criticisms that federal prosecutors are deeming some banks “too big to jail,” a charge that lawmakers and consumer advocates have routinely made in the wake of recent bank settlements. Although the government has issued record multimillion-dollar fines in these cases, critics say without criminal charges, the agreements amount to a slap on the wrist.

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• David

  July 22, 2017 3:43 PM

  

  

  VIDEO: 107.7 FM Interview on Eden Gardens and CL Financial bailout 16 July 2017

  by AfraRaymond

  This is my interview with Rennie Bishop on 107.7 FM on Sunday 16 July 2017 to discuss the Eden Gardens debacle now come to light and continuing CL Financial bailout. Part 1 and Part 2. Video courtesy TTRN -Trinidad and Tobago Radio Network Limited. Programme Date: Sunday, 16 July 2017 Programme length: 49:44 and 13:21

  Read more of this post

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• Well Well @ Consequences Observing Blogger

  July 22, 2017 5:12 PM

  

  the beauty about that too big to jail statement, is when they are finally caught jail sentences range from 150 to 200 years in prison…good ole USA.

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• David

  July 24, 2017 9:49 AM

  

  From TT chatroom.

   

  Allied forces of the Govt are demanding repayment from CLF, immediately. See also Anthony Wilson’s article in the EXPRESS about negotiations instead of litigation and why the Govt (supposedly representing the people in Westminster system, but that’s another debate for another time) is first in line to be repaid, and not CLICO shareholders. While they still have their shirt on, the coup-makers should sit down to negotiate a new agreement that must address repayment before any companies are out of Govt control.

  Why not an IPO of the Republic Bank shares? 

  PAY BACK $2B *

  Creditors seek to recover debt from CL Financial:

  • Published on Jul 22, 2017, 10:00 pm AST
  • By Asha Javeed
  • THE creditors of CL Financial (CLF) are calling in their debt.

    First Citizens Investment Services (FCIS) and CLICO Investment Bank (CIB), which is in liquidation, have both written to CLF demanding that their debt which totals about $2 billion be repaid by this week.

    The demand letters come after the Government lost its petition to appoint joint provisional liquidators to CLF, claiming it was insolvent and could not repay its debt.

    First Citizens Investment Services (FCIS), formerly Caribbean Money Market Brokers (CMMB) which was acquired from CLF for $1, is a subsidiary of banking group First Citizens which is majority owned by the State.

    CIB is currently in liquidation by the Deposit Insurance Corporation (DIC).

    The Minister of Finance appoints the board of management of the DIC.

  • Negotiate, don’t litigate *

    Jul. 22, 2017, 7:59 PM AST 0 Comments

    Anthony Wilson—SINCE Express journalist Asha Javeed’s outstanding exclusive story on Thursday last of the government’s decision to apply to the courts for the winding up of CL Financial (CLF) and the appointment of a liquidator…

  PAY BACK $2B *

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• Gabriel

  July 26, 2017 1:29 PM

  

  The GOTT has finally got the courts to agree with their proposals to protect CLF assets from the Duprey gang

  http://www.trinidadexpress.com/20170725/news/freeze-on-CL-assets

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