Government Suspends Payments to Former CLICO EFPA Policyholders

The decision by the government of Barbados to default on the the New Life Investment Preservation Bond should not have come as a surprise to those with a finger on the pulse of current affairs. Prime Minister Mia Mottley indicated on winning the government that with the country in debt 15 billion dollars with a GDP of 171%- third highest in the world-  a priority of her administration is to restructure/reprofile the debt. The country was given notice that in government’s Phase I and II economic program to be rolled out in the coming weeks government guarantee of all bond issues will be on the table for review.

The decision to suspend payment to former CLICO Executive Flexible Premium Annuity (EFPA) policyholders will be a blow after the matter was ensnared in litigation for almost a decade. Many of the policyholders are retirees – those not dead – and the investment in the EFPA represents savings to support living in the golden years.  The blogmaster will make bold to suggest there was political interference in the process. The symbiotic relationship between the DLP and CLICO brands loom large.

The BU intelligentsia recently engaged in a sidebar conversation – an example of a comment, with Actuary Walter Blackman where the the viability of New Life Investment Company (NLICO)– the parent company of New Life Investment Company- was questioned if there is no premium income. The conclusion is that to maintain payment of pension and other financial commitments this is just another state owned company that will be sucking the very sore nipples.

To discuss insurance related matters the role of the newly minted Board of the Financial Services Commission (FSC) to be chaired by Avinash Persaud must play an important role. Barbados Underground posted in 2017 on a report that dropped off the back of a truck prepared by the IMF which reviewed the robustness of the operations of the Financial Services Commission (FSC)- specifically as it pertains to the supervision of Sagicor.

Middleclass Caught Between the FSC and Sagicor

A report prepared by the International Monetary Fund (IMF) that reviewed the robustness of the operations of the Financial Services Commission (FSC)- specifically as it pertains to the supervision of Sagicor-  has triggered alarm bells in the local and regional financial market.   Although there is no evidence based on any public reporting Sagicor is not a well run company, the

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The blogmaster over the years can measure the efficiency and culture of most organizations by the relevance and ‘vibrancy’ of its website.   A review of the Financial Services Commission (FSC) shows there is an opportunity to improve content management. Have a view of the Management Team Page, the Manager Insurance position is vacant? Surely not! Have a look of Resolution Life Assurance page, the decision to suspend annuity payments is still to be updated to the News & Updates page.

How difficult is it to update a page? Some will suggest the blogmaster is being captious.

In all seriousness.

What the last decade of DLP government has taught us is that a fractious contentious climate is not conducive to moving the country forward. It does not matter if the policy prescriptions of the former government were correct, if the leadership – both political and NGO –  is unable to persuade the majority of the population to get on board, to borrow from the lexicon of the street people, the dog dead. We can continue down the path of the last lost decade or we can dig deep, suppress politically partisan and uneducated position for the good of country.

The country is broke.

#MBGA

 

 

82 comments

  • How many Clico annuitants are still alive today? We have now seen, nearly three month in to this new government, and with an army of so-called economic consultants, that there is still a paucity of ideas for settling life-long annuity contracts – ten years after the global crisis.
    Remarkably, the regional union, CARICOM, has also failed to devise a cross-border solution to a cross-border problem. Clico failed because of bad management; exacerbated by appalling regulation, made even worse by the failure of a so-called judicial review that did not even have the power to subpoena evidence or witnesses. Barbados is a failed state.

    Like

  • This NLICO was an illconceived,, primary school level scam from the very start.
    All it ever did was send the fools further ..before their inevitable end…

    It would be interesting to know exactly WHO managed to extract some payments during the silly period before its inevitable ending….

    Like

  • The seriousness of this matter shows an inept govt who rather than pursue alternatives tried a method of a quick fix called default
    A fix that have negative and irreversible consequences
    What is so amazing to the point of hypocrisy is the many reasons given by Mia in the past ten years that the policyholders should be reimbursed
    Now with an act of ingratitude by the stroke of a pen the policy holders will receive nothing

    Like

  • @Walter

    Your contribution is required on this blog.

    Like

  • Bernard Codrington

    Hard ears ,you don’t hear. Hard ears you will feel. I advised dozens not to invest 50% did and 50% did not. Greed got hold of the reasoning of the latter.

    Like

  • @Bernard

    Understand your alarm so many educated Barbadians invested in the EFPA. IT DOES NOT EXCUSE THE LACK OF REGULATORY RIGOUR by the Supervisor of Insurance at the time.

    By the way, how is it any different to a former governor colluding with others to forced Barbadians to by savings bonds? And the cry from prominent opinion shapers for Barbadians to dump money in the credit unions given 0% interest rate?

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  • Bernard Codrington

    My recollection of this issue is that the then Regulator advised against this venture.

    In any case in a democracy it is emptor caveat. Buyer beware. We have as individuals to take responsibility for our decisions and actions. The GoB are not baby sitters and we are not babies.

    ” Colluding ” and “forced” are very strong words to describe that event. Same response.

    In this third decade of the 21st century ,did he hijack their common sense? Did they go to school only to collect certificates and diplomas?

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  • sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    Given what has happened in the past nad recent past; where do invest for the future.. what investments are not avaialble for the average man in the street?

    Like

  • @Bernard

    This is a debate for the BES debating society, we are pass the buyers beware discussion. The country is broke, some suggest if the regulator had issued a stop order there is vicarious liability to be assumed by government. However, the ResLife company established, are we comfortable that it passed the smell test of the FSC?

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  • I could never understand the attraction of CLICO!!

    One salesman spent 3 hours trying to sell me!!!

    I told him I was not interested.

    Still he persisted so I made the appointment and let him try for his ego’s sake!!

    I heard nothing that attracted me!!

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  • Gov must spread the haircut as wide as possible to reach an agreement with foreign commercial creditors. More outfall will follow, eg at NIS. The so-called middle class must pay its contribution to restore investor´s confidence since they bought their villas, SUVs, marble bathrooms and Miele kitchens out of the forex loans.

    I would also like the local so-called business magnates to pay their share … What is going on with the Apes Hill Plantation? Is COW still sucking the nipples of the NIS-ATM?

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  • Who were the middle class of Barbados?

    They were people like the Holders who the powers that be shafted.

    I am not really sure today if any such class exists!!

    Who actually makes up the lower class today?

    In the days when the middle class existed there was also a laboring class.

    Do we even have such a class today?

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  • Who is the man in the street?

    The guy behind the wheel of a spanking new Beemer.

    Cars seem to be the investment these guys make.

    Liked by 1 person

  • We are finally realising that our problems run deep. I suspect the IMF know that too, but most bajans do not and will be surprised by what actions the IMF demands. Our near term future will be more challenging than most can imagine as being broke doesnt just go away.

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  • Where is the audited list of the lands and the property owned by the former CLICO?

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  • @sirFuzzy

    Is this the rhetorical question of the day?

    You have to take what the market is giving you at the moment. Unfortunately there is no equity market if substance.

    The really rich people continue to invest in land and property. It is the only option that can be guaranteed will stay the course.

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  • Besides leaking money out of the country (or diverting).

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  • Bernard Codrington

    @ David BU

    What are you asking the taxpayers /citizens of this country to do? Are you asking Peter to pay for the sins of Paul? Where is the equity in this?

    Like

  • @Bernars

    A chain is as strong as the weakest link.

    A society is a collective that is as strong and wholesome as the most righteous household.

    Like

  • @David

    “The really rich people continue to invest in land and property. It is the only option that can be guaranteed will stay the course.”

    NOT NECESSARILY TRUE, in a country of Sovergien collapse even land and property devalues to the same extent as the currency. The situation Barbados land & property investors find themselves is one of recurring debts(taxes, maintenance etc.) with little or limited disposition opportunities. Their investment if they can preserve same over the next 10, 20, 30 or more years may result in their original investment being realised, then again they could suffer the same consequences as those holding CLICO paper.

    Liked by 1 person

  • @Wily

    In theory yes but it is the best option available that is guaranteed not to dissipate.

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  • Where is miller ! Artax!Enuff! Lorenzo asking for heads to roll because of the poor policyholders losing their monies in Clico
    Where are all those voices
    Why suddenly they have all disappeared

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  • Invest in Barbadian property NOW, get a loan in BBD and pay back the local loan after devaluation from your foreign accounts in Florida, London or Zurich. Hope that the profit from the devalued loan (including rising interest rates) is higher than the loss from the devalued property.

    Foreigners and Barbadian plantocrats will make a big profit from devaluation. As Barrow promised Barbadians many years ago: The DLP will make sure that one day you will wake up and realize that the island was sold out.

    Liked by 1 person

  • if you bought the property cash or if you owe nothing on it yes but if you are paying a mortgage and lose your job then all bets are off.

    maybe you can then call upon a relative living overseas, offer to make them joint owner and then later gyp them

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  • @ Tron

    that was some interesting foresight by Barrow. Please point me to that particular speech Barrow made. i am sure it said was in the context as you mentioned here but i would like to see for my own edification

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  • Not one to gloat or feel comfort in the economic malaise of this country
    But cant help but to say this country is heading for a massive economic melt down similar to what happened in greece
    All the negative economic factors are in place for such a disaster to occur
    Local business already feeling several strain which includes acessing credit to replenish their shelf stock
    Govt has resorted to printing money to cover govt debt which will have a ballooning effect
    Yet govt has not offered a stimulus pkg which will encourage spending towards local business
    The banks are also smack dead in the bulls eye for potential losses due to high unemployment resulting with a downward trend towards saving and people inabilty to pay back or borrow loans

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  • @Tron & David

    Your property & land investment proposal is frought with a few difficulties, where are you going to get a LOAN in Barbados under the present financials, you’d have to be a teenager living to old age to potentially realise any return on the investment, you’d have to assume the land or property in the future would be of interest to an investor outside of Barbados, ecetera, ecetera. You’d be better off buying Barbados lottery tickets.

    Like David stated “Besides leaking money out of the country (or diverting)” is the only viable alternative, although not guaranteed.

    Like

  • millertheanunnaki

    @ Mariposa August 18, 2018 2:13 PM
    “Where is miller ! Artax!Enuff! Lorenzo asking for heads to roll because of the poor policyholders losing their monies in Clico
    Where are all those voices
    Why suddenly they have all disappeared”

    The miller is keeping his head much below the CLICO parapet because it was well known that Res Life was just a ploy to get the stupid policyholders votes for the DLP in the last elections.

    Only idiots, fools and jackasses like ac, angela Skeete and now the multi-colored yard fowl now posing as the many pussies ‘Mari’ would invest in a another ‘broke-government-backed’ scam like the bonds peddled by the last administration under the quack doc Deliar Worrell.

    What the miller would like to know is why Senator Caswell is vacillating in raising the burning matter of whether the $3.3 million received by Greenverbs has been appropriately taxed.

    Wouldn’t the tax portion arising from this ‘cleansed’ money go a long way in making payments for at least another few months to the CLICO policyholders holding pension contracts?

    The pensioners have been given a massively bad ‘raw’ deal.
    They did not play the Ponzi game on their own free will like the EFPA greedy SOBs but were caught in the web of deceit spun by their former employers or entrapped by the altruistic call of deferred gratification in order to make reasonable provision for their old age in order not to be a financial burden on their families or on the State.

    Like

  • @David
    By the way, how is it any different to a former governor colluding with others to forced Barbadians to by savings bonds?
    +++++++++++++++
    Wait aren’t Gov’t Savings Bonds part of Gov’t issued securities? Do you believe that the Gov’t will renege on its obligations or do you believe that the Gov’t is insolvent?

    On second thoughts don’t answer any of the above.

    Liked by 1 person

  • August 18, 2018 1:37 PM

    Where is the audited list of the lands and the property owned by the former CLICO? @

    If they owned the lands the court would or should have told them to sell it to pay back other and all bills, We can see CLICO do not have clear title to where a Banks can make them sell to pass on ,The court not allowed to be involved in Fraud,So as you can see the Courts are part of the Problem by the same crooks lawyers who now made judge to rule on the same cases, Remember CLICO is a PONZI so, therefore, all is Fraud,, The Law, Rule of Law does not allow you to make a profit from fraud,, So you cant use Fraud to pay Bills from the same laundered fraud funds,
    Massive Land Fraud and PONZI BLP then DLP , now BBLP 1986-2018 8/18/2018 , Bajan Free Party,

    Like

  • millertheanunnaki

    @ Mariposa August 18, 2018 2:46 PM
    “Not one to gloat or feel comfort in the economic malaise of this country
    But cant help but to say this country is heading for a massive economic melt down similar to what happened in greece
    All the negative economic factors are in place for such a disaster to occur
    Local business already feeling several strain which includes acessing credit to replenish their shelf stock..”

    There is a saying that “Hell hath no fury like a woman scorned” (by the electorate).

    Is this the same ac who under the last DLP maladministration used to describe’ informed’ persons who dared to make similar prognoses as prophets of doom and gloom?

    Oh, what a yellow turncoat of the blues we now have in the archangel of hypocrisy, the perfect harbinger of pure doom and instant gloom under the Mottley baby administration!

    Why are you acerbic ac or angry angela now posing as the many ‘Maries’- and like the astrological namesake who recently had her Assumption to Heaven to sit next to her husband- looking into a crystal ball focused only on Barbados?

    How come you never predicted the recent events which determined the fates of Stuart, Sinckler and Pornville Inniss which boldly appeared in your newly acquired crystal ball on May 23rd 2018?

    Barbados is bigger than both you and your bête noir and whipping girl Mottley.

    It’s time you become a forex earner or saver and not continue to be a 100 % consumer.

    Why not raise some real sweet-tasting hardy yard-fowls for a change?
    You can always call them ‘Free-Range’ birds able to move from the DLP cesspool now empty of corn to the Roebuck duck yard now full of grit.

    Like

  • Our Story
    Coalition of Unified Parties Hon: Alex-Mitchell:El, President·Sunday, January 14, 2018
    THE TRUTH about corruption involving massive land fraud in BARBADOS that the BLP and DLP are hiding. THE ‘CUP’ knows the answers to all of your questions. The President, Alex Mitchell of Barbados, is THE LEADER OF THE PEOPLE, BY THE PEOPLE, FOR THE PEOPLE. Rule of Law Must take Root in Barbados , Corruption from the GG ,PM,Sirs CHURCH to Lawyers and Ministers, Clerke of the Court,COP, UDC, NHC, CLICO ,Land Tax, Inland Revenue,Archives,Library,Town & Country,Water Company,Land and Survey Department,QEH,High Court, Judges,First Caribbean Bank CIBC had to swap Names now called CIBC First Caribbean,Fraud, PONZI, Money Laundering,Land Laundering, Name it the DBLP has done it.24 year+ of Crime , 14 Years BLP and 10Years DLP and they need 90 More to Hide the FUNDS stolen and to make agreements to cover each other Asses, Remove All 30 Crooks, Liars, Scumbags and PIMPS, The only way for Barbados and Bajans to Win is by removing both Parties in the 2018 Elections of upcoming Fraud and early vote buying, Inquest&Full Forensics Audit of Sir Richard L Cheltenham and Sir C.O Williams for Money &Land Laundering PONZI of the Economy of Barbados. The History Books and records were rewritten to MATCH their Massive Fraud,From 1838-2018 =180 years After Slavery We all were removed from books and records to have Sir COW as our New Jesus,National Trust cannot be Trusted With Fraud Books being sold on Wrong named dates and Persons, To Have Us believe Sir Crook COW is the only man that has one cow and own all the land and Plantations,, has one Truck and to own the largest construction company in the Caribbean. The Only Sir worth being GG is Sir Gary Sobers, A land tax bill is not proof of ownership of land you must have a “Clear Title” deed of 70years+ or lead back to the Plantation deed, Barbados is made up of over 491 Plantations and the Barbados Library only List 396, More than 95 are missing this is why cannot get funding or Loans from the IMF, IDB or World Bank. “Land Tax NUMBERS are being Transfered but no land being convey” The High Court of Barbados is also in a trespass of 230 Million, 80 million for the land and 150 million for the court House recorded, this is why we can not get justice in a court built on Fraud, Sir Richard L.Cheltenham has been said to be the Person who Leases the land to Sir David Simmons, once Attorney General Back in 1997 who was told of the Fraud by the Owners of the land and this information was used to be come Chief Justice of Barbados, PM David Made his mission to removed Sir David Simmons as CJ, The True Owenrs of All the land in Barbados is a Black Woman A “Moor” Names Beatrice Jemmott Henry 1892-1985=93 years of Life Her Heirs Violet Agard- Beckles 1918-2010=92 years of Life now to Her Heirs and Children still living in Barbados, Violet never had a passport or never left Barbados at any time , So please no talk of people left Barbados and never came back , After being De Fraud by more than 60+ lawyers most of them made QC Judge and Sirs and GG still sitting on the Bench today,This is My Affidavit By Hon:Alex-Mitchell: El of the Bajan Free Party Of Barbados Happy Good Friday March 30th 2018

    Like

  • Heather 1.37

    We have had a judicial review and ten years of reflection. We have the regulatory institutions, but they do not work. Persaud was brought in as the financial guru, the man with the answers, why has it taken him nearly three months to come up with solutions? Barbados is a failed state.

    Like

  • And Hal Austin is a failed RH bajan scrounging of her Brittanic Majesty’s pension dole.

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  • Nice spin Miller but nothing in your rant and rave diatribe eases the pain of the policyholder who flooishly belived the sway of the blp govt to invest in Clico only to sit back and watched it collapses because of the blp govt policies which lacked the teeth to regulate
    Now to add even more smoke to the remnants left over some what to ease the pain Mottley decide it best to close the one avenue by which the policy holder was allowed to go through

    Like

  • John Liesalot should know that Ellsworth Holder was elected to parliament long before 1966 and is notorious for not contributing to debates in the chamber such that it was abroad that on the one occasion he spoke he asked the clerk of the house to be so kind as to close the window to keep out the sun.

    Like

  • sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    RES LIFE is a resurrected CLICO? Why did clico died? As far as i gathered it was sheer regulatory incompetence by govt regulator(s) under both the BLP and DLP administrations that allowed this to occur her policy holders.

    Why is it that not a bunch of managers etc are not facing ther law courts or prison. HAve we changed the rules or decided to get tuff with the rule breakers? Are we doing tougher enforcement? Have we investigated the big insurance companies to see if they are above board? Are thise ships sinking are they frogs in the hotter and hotter water?

    We got nuff rules written down on paper but almost zero enforcement. What about GHL and SFC are these time(atomic) bombs waiting to explode. We need to protect ourselves even if it means exposing the grifters in high finance(society.)

    Like

  • Hall@ nothing can be fixed until they deal with the Land, the longer they take the turn around will be a Killer, No matter who comes, race creed, color, sex, they can not run from the land fraud as you can see today Ministers/ fake lawyer still looking to live off the Older people, Crooks for life BBLP and Mia, So call AG,

    Like

  • Someone please tell Mariposa that I was (and remain) serious when I declared that I was no longer responding to fools.

    Like

  • Bernard Codrington

    @ David BU at 1: 52 PM

    Why is it that the weakest links must always carry the weight of the stronger links?

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  • @Bernard

    Let us agree the chain will break at its weakest link, how we deal with the weak component will be a function of leadership and available resources. Agree?

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  • All the links are weak for none can face Truth with corrections,Welcome to the World of the BBLP 2018-2020! BFP

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  • How can we be discussing this disgraceful episode of the history Ponzi schemes in Barbados and not mention the roles played by Mr Thompson and his partner in profit Mr Partisan. To those who continue to speak of regulatory malfeasance, lest we forget Mr Thompson on assuming office assured worried policy holders that it was a well run company and proceeded to inject ten million of the taxpayers money into the floundering company out of which both Mr Parris and Mr Thompson appeared to benefit
    Justice would be served to some extent if the assets of both of these gentlemen could be seized and divided among those who suffered

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  • Not a good response Enuff. Shame it must be got you in hiding reafing the news that Mia default is another cause fie the policyholders casualty
    Also tell Mia that the damage she has already inflicted on the poor would have a more severe effect on the country than the twenty downgrades of pastgovt
    Enuff was it you who told me that govt had resumed as policy the printing of money to pay local govt debt

    Like

  • It is amazing how we rush to mimic the stupidity of our political leaders. All of a sudden we are now hearing of the “Lost Decade”.
    The simple truth is that neither the BLP nor DLP, has demonstrated any real capacity to solve the structural problems within the economy. The public service is a convenient scape goat for mis-management going back four decades not one decade. Even a simple Auditor General report serves no purpose when every government has dipped its hands in the coffers. How long are we going to keep making excuses for these two decadent bankrupt of ideas and ideals political misfits ? The IMF will not solve our problems -this is the third trip to these international loan sharks and we are still in a mess.
    Imagine a government on assuming office wrote off millions owed by the Barbados Turf Club (DLP). Now in enters the twin and writes of millions of income tax due to the treasury(BLP). Everytime a Dee says something negative about a Bee the Bee can strike back and vice versa. Intellectually dishonest party apologists want the world to believe that corruption and bad management started in 2008 and will now suddenly stop in 2018. Keep dreaming-light up your noisy firecrackers and hold your little starlights in your hands………

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  • Reading your comment it seems that Barbados has achieved nothing positive under D or B. In the land where you reside there is the flow of rhetoric between Republicans and Democrats from Jim Crow to now. in the UK there is Labour and Tories. What Barbados is experiencing is the process a young democracy of 50 years old has to grapple. We can build on what we have without rubbishing all and sundry that has gone before.

    Liked by 1 person

  • Both parties have to take the blame. Why didn’t the Supervisor of Insurance do his job. Well Mr.David Thompson for reasons known only to himself made the smart move to inject millions of tax payers money in what some here have called a ponzi scheme. He assured Bajans that the company called CLICO was solid. I remembered the prime minister making the statement to the people of Barbados I am sure if this had happened in the USA Mr. Parris would be spending time in jail. The whole political swamp needs draining.

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  • @Gabriel August 18, 2018 5:08 PM “John Liesalot should know that Ellsworth Holder was elected to parliament long before 1966 and is notorious for not contributing to debates in the chamber.”

    The people in my St. James village referred to him, behind his back of course, as the Minister of Silence.

    Like

  • @Anne August 18, 2018 8:02 PM ” Why didn’t the Supervisor of Insurance do his job. ”

    Wasn’t the Supervisor of Insurance sent on leave for doing her job?

    Liked by 1 person

  • @SS
    The people in my St. James village referred to him, behind his back of course, as the Minister of Silence
    ++++++++++++++
    Wuhloss, that is stranger than fiction, not even six degrees of separation from George Payne.

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  • The shiite that happens to some Bajans.

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  • Bernard Codrington

    @ Hants at 12:16 am

    We are going to need several outfalls then?

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  • @ David
    “Reading your comment it seems that Barbados has achieved nothing positive under D or B. In the land where you reside there is the flow of rhetoric between Republicans and Democrats from Jim Crow to now. in the UK there is Labour and Tories. What Barbados is experiencing is the process a young democracy of 50 years old has to grapple. We can build on what we have without rubbishing all and sundry that has gone before.”

    Once more you have rushed into print without reading the comment. I said specifically that both parties have failed to solve the structural problems within the economy. Secondly I stated that we are now confronting four decades (forty years) of mismanagement. Not one decade that you called the “Lost Decade” No where did I state that “nothing positive” was achieved under B or D.
    Less than seventy two hours ago, I stated on BU that there have been at least four positive things, since adult suffrage:
    Independence (DLP)
    Freehold Tenantry Act (BLP)
    Introduction of Free Education (DLP)
    **the return of Free university education (BLP)
    ** I said I partially agreed because I still feel that those who can afford to pay should pay.

    I am not here discussing Republican, Democrat o, labour or Tories. You should notice that I seldom spend my time on those. I am concerned with my our country and like many Barbadians continue to hope that we find a model of sustainable socio-economic development. Not only for our country, Brother David, but the entire Caribbean.
    After sixty three years of collective leadership, both the Barbados Labour Party and the Democratic Labour Party have failed miserably at this task. Unlike you and others , I have never seen the IMF as our saviours.

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  • @ Bernard Codrington,

    I am amazed it has been 24 years since the Government acquired the lady’s land and the “deal” is not finalised.

    If I didn’t know better I would say that “waiting for people to die” is a business plan.

    Liked by 1 person

  • On what basis are you suggesting that the Barbados economy needed restructuring in the 80s?

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  • @ David
    The topic of restructuring Barbados and or Caribbean economies goes back to the late 60s, when progressive forces were lamenting ,and correctly so, especially during the period immediately following independence, that there was critical need to transform the economies away from the inherited colonialist styled features. I am quite certain that you are aware of the
    works of Eric Williams, Nettleford and others. It is time we stop thinking that all our problems magically arose in the last decade.
    The whole real reason why we are constantly begging for money to sustain ourselves, has its genesis in a failure to seriously produce leaders of the intellect of Llyod Best and others who actually think and not the empty vessels, that are repeating the same thing they have been saying for the last forty years; delivering the same backward thinking budgets and so on.
    Why do you think that even Trinidad, an oil rich economy is floundering ?
    You need to approach other peoples’ positions with some seriousness and stop being so facetious. As much as we malign Castro, we ought to ask ourselves why we are sending people there to have cataracts removed and why our children are going to Cuba to be trained as doctors. You need to ask yourself why is it that with all his apparent negatives, it is now accepted that Burnham had some very progressive ideas. In the Politics of Change Manley said why he/we failed. You and others seem to believe that Chris Sinckler single handedly ruined this economy. It has been ruined by every single minister of finance, to some degree. They are all culpable and until we understand that simple truth , we will meet here in another twenty years and have the same old tired debate.

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  • The Barbados economy was agrarian driven in the 60s because of our colonial legacy. Through the years it shifted to a combination of agriculture and services with manufacturing featuring in the 70s and 80s. Trying to understand your point with great difficulty.

    Liked by 1 person

  • Barbadians keep rehasing the past
    Isnt there one person in Barbados that have a positive vision for the future of all barbadians
    The country has now been placed in the hands of a financial institution that serves as a collection agency for international loan institutions
    Can such action be called a vision of hope and prosperity
    Or is this action be categorized as a nation that had lost its way and its people abilty to find answers

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  • Hello David @ BU, I’m here smiling to myself after reading your response to the Gentleman William Skinner’s post at 7:28 pm last night. Yours was at 7:35 the same night. You see, why I’m smiling is because on numerous occasions there were many Barbadians with similar mindset who are keen to responds to me in similar fashion, So many times I was set upon or ganged up on by individuals who for whatever reason think it’s their right to overlooked the relevant facts and other material presented. Before reading your response, I did not sense in any way this gentleman was claiming that nothing was accomplished by either parties during the period mentioned. In my case, I’m usually told that I don’t ever have any thing positive to say about Barbados, at which time i:m invited to ”guh long back then.” What hurts most is that my heart bleeds for Barbados and the shit my people have to go through.

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  • @whiteHill

    Smiling is good!

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  • @ David
    I tried. Perhaps you would have understood it if it came from Roebuck or George Streets. You might have also understood it if it came from one of the governors of the central bank………..I tried my brother that’s all I can do.

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  • @ BU’s David, have a good Sunday, maybe you can take a ride out the East Coast, even pass through White Hill.

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  • What Barbados is experiencing is the process a young democracy of 50 years old has to grapple. We can build on what we have without rubbishing all and sundry that has gone before.(Quote)

    What Barbados is experiencing is unparalleled political and managerial incompetence and stubbornness. Until we face reality there is no way back. What have we achieved in 50 years? We have people now in their early middle age who were not born when Barbados became independent – a year after Singapore, and starting from a more advanced base. In 1965 Singapore was a swamp, used by British troops to train in guerrilla warfare. Just ask any of the Bajan soldiers who served in the British army in the 1960s. Rumshop culture can only take you so far. Barbados is a failed state.

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  • Ministers cannot recruit people direct to the conventional civil service. However they can recruit special advisers, called Spads, see below:

    Special Advisers
    Special Advisers are, as their name suggests, a special type of civil servant. This part of this website provides introductory information (below), as well as a little history, and gives advice (below) on how regular civil servants should best work with Special Advisers. More detailed information, and useful advice for Special Advisers themselves, may be found on the UCL Constitution Unit website as well as here. Some statistics may be found here.
    There are a number of reasons why Ministers find it helpful to have the modern form of Special Advisers (aka SpAds or Spads) within No.10 and within Ministerial Departments.
    The first and obvious reason is that it gives Ministers immediate and simultaneous access to a friendly and familiar face offering political advice to be considered alongside that from mainstream civil servants. It is not surprising that many Ministers prefer to have near them devils that they know rather than devils they don’t know – especially at the beginning of their time in government. They have chosen them (rather than had them imposed upon them) unlike their civil servants and often their departmental junior Ministers – and they are likely to have compatible personalities.
    The second, equally obvious, reason is that SpAds can give strong political advice, help draft political speeches etc., thus providing an extra pair of hands when there is ever-increasing pressure on Ministerial time.
    (Note, however, that mainstream officials’ advice should take politics into account, including the likely strength and nature of any Parliamentary opposition, constituency factors, and so on. But SpAds’ advice may be stronger and/or better informed.)
    And the third, also very strong, reason is that Special Advisers can often provide a different perspective – a counterpoint, if you will – to the advice emanating from the official machine. Officials’ recommendations may require Ministers to take unacceptable political risks – or indeed operational and financial risk. (The NAO’s view is not that civil servants are risk averse. It is that civil servants too often do not understand the risks that are associated with what they want to do.) Or officials’ advice may be too cautious and/or reflect a certain inertia carried over from the policies of a different Minister – including a different Minister within the same party. As one SpAd put it:
    The last thing any Secretary of State needs is another Civil Servant. They’ve got enough of them and that’s not really meant as a criticism, it is just you inevitably inherit a policy inertia … You were eyes and ears for policy going awry and also the eyes and ears for policy initiatives that you’ve inherited perfectly innocently that of course are now contrary to government policy or government intent. We were a third party, a devil’s advocate.
    All Ministerial departments therefore have one or more Special Advisers (often abbreviated to “SpAds” or “Spads”) who are personal appointees of the Secretary of State, but employed as temporary civil servants.

    They are exempt from mainstream civil servants’ obligation of political impartiality,
    they can assist Ministers on any aspect of departmental business,
    they can convey to officials Ministers’ views, instructions and priorities,
    they can ask officials to prepare and provide information and data, including internal analyses and papers, and
    they are allowed to engage in limited political activities outside the office, such as telephone canvassing.

    But …
    they cannot engage in public canvassing such as for Parliamentary candidates in constituencies,
    they cannot line manage regular civil servants,
    nor may officials’ advice be transmitted to Ministers via Special Advisers.
    And SpAds may not formally represent the Government or their Minister, nor commit the Government in any way.

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  • “Intellectually dishonest party apologists want the world to believe that corruption and bad management started in 2008 and will now suddenly stop in 2018. Keep dreaming-light up your noisy firecrackers and hold your little starlights in your hands”

    Not true Mr Skinner; it was Mr Thompson and his men of integrity who wanted us to belivee it started under Owen Arthur with Mr Thompson proudly brandishing the cheque which Mr Arthur purportedly received from Clico and which all but demolished the chances of the BLP in the 2007. election.
    but Karma turned the tables around to expose Mr Thompson’s involvement with CLICO; Mr Carrington’s withholding of client’s money and now the unkindest revelation of all party wise the Don in name an nature.

    Like

  • @ charles Skeete

    You should have quoted the context. I wrote:

    ” Everytime a Dee says something negative about a Bee the Bee can strike back and vice versa. Intellectually dishonest party apologists want the world to believe that corruption and bad management started in 2008 and will now suddenly stop in 2018. Keep dreaming-light up your noisy firecrackers and hold your little starlights in your hands………”

    You have confirmed my position- Bees and Dees have been going back and forth since Barrow broke away from Grantley Adams. One day a man running the DLP to be come Prime Minister ; next day he in the papers with a portrait and is called a BLP stalwart (Mascoll) One day a man can insult the a woman and call her and her other women 1000 lbs of blabber. The next day he join she party and sits at her right hand. (Symmonds) One day the bees can criticise the Dees for hiring Avish Persaud ; the next day the Dees can criticise the Bees for hiring the same man. You know the truth. Arthur cheques; Cammie dope in the diplomatic bag. What benefits do they really bring to our country. Slashing women car tyres and pulling guns on each other and eating thousands of dollars in food every Tuesday. Same old same old Charles and you know it better than most. See ya, buddy.

    Like

  • @William Skinner August 19, 2018 12:56 AM

    Indeed, nobody should claim the IMF is some economic Jesus. It is the lender of last resort and executor of international capitalism.

    Barbadians can only help themselves. The IMF cannot and will not force Barbados to implement prudent governance. That is the reason why so many IMF programmes fail, since govs are often unwilling to give up the privileges of the ruling class, eg introducing transparency policy and implementing good governance, compliance and the rule of law.

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  • @William Skinner August 19, 2018 1:43 PM “insult the a woman and call her and her other women 1000 lbs of blabber.”

    Blubber=fat

    Not blabber=lotta long talk.

    And admittedly some of the political partisans are kinda chunky, well on their way to CNCD’s=chronic non-communicable diseases.

    The IMF should cut out ALL parliamentary meals.

    make the fellas and gals bring cucumber sandwiches (whole wheat bread, no butter, and thin-thin slices of cucumber) and skim milk from home. Save the taxpayers hundreds of thousands of dollars, and maybe protect the health and prolong the lives of some of our honourable members.

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  • @ Simple Simon

    Thanks for the correction. Just for a laugh if he had said Blabber, he would have been kinder. LOL

    Like

  • Enuff August 18, 2018 5:46 PM

    “Someone please tell Mariposa that I was (and remain) serious when I declared that I was no longer responding to fools.”

    Enuff,
    If all of us adopted the policy of “no longer responding to fools’, you would exist in a perpetual state of solitude, ignorance, and bewilderment on BU.
    That’s not a desirable outcome, is it?

    Like

  • Enuff cannot respond honestly to the article
    Reason she now looks like a fool .”fools” after ten years of adopting a hardline stance by present govt seizing nuff political rhetoric and attacks on past govt by Mia with a concern that even at taxpayers expense the policy holders should be paid
    Now only retort Enuff uses is one having Enuff digging inside an empty soul finding herself not being able to defend the poor policyholders
    Hence Enuff pitful attack
    Poor soul

    Like

  • sirfuzzy (i was a sheep some years ago; not a sheep anymore) August 18, 2018 5:08 PM

    “RES LIFE is a resurrected CLICO? Why did clico died? As far as i gathered it was sheer regulatory incompetence by govt regulator(s) under both the BLP and DLP administrations that allowed this to occur her policy holders.”

    sirfuzzy,
    Any law-abiding insurance company in the world, which is interested in providing value for its shareholders (or its policyholders if a mutual company), and meeting its obligations to investors and policyholders, has to pay close attention to the support and control mechanisms which have been established worldwide.
    In the Barbadian context, these mechanisms amount to::
    The company’s actuary
    The company’s management
    Auditors
    Regulators
    The Minister of Finance
    The Prime Minister

    The insurance company has control over 3 elements of the support mechanism. Government has 3.

    The process is supposed to start with the company’s actuary. Who was the actuary at CLICO Barbados?
    Collaboration and discussions often have to take place among the actuary, and members of the competent, educated, and professionally qualified management team of the insurance company. Who were the members of the management team? We heard that CLICO Barbados had a qualified accountant in Terrence Thornhill. That’s it. Not good enough.

    From this simple analysis so far, we can detect and understand the “great divide” between the unknown company actuary, and the relatively weak, poorly trained and uneducated company management team led by an uneducated company President.

    The incompetent management team presumably chose the auditors.

    Given the obvious structural weakness and management deficiencies within CLICO, the Prime Minister and Minister of Finance of Barbados ought to have ensured that competent regulators were put in place to make sure that the hard-earned premiums paid by policyholders and investments made by investors, were used for legitimate business purposes, and not to enrich a group of ruthless thieves.

    Does the evidence suggest that any Prime Minister and Minister of Finance of Barbados exhibited such concern about CLICO being raided and the policyholders being robbed?
    Did not Owen Arthur appoint Carlos Belgrave as Supervisor of Insurance? What was Mr. Belgrave’s qualification and experience in insurance?
    Did not PM Owen Arthur, rather than making sure that no policyholder’s money left CLICO and its subsidiaries without a valid business reason, cash a cheque personally issued to him from a CLICO subsidiary? As PM, what services could Owen Arthur have possibly provided to CLICO and its subsidiaries to account for him receiving $75,000? Where is the invoice? Where are the taxes paid? Where is the VAT?

    Did not David Thompson expose the $75,000 “Owen Arthur/CLICO subsidiary scandal”, and after becoming PM and Minister of Finance, proceed immediately to illegally extract $3.3 million from CLICO? Didn’t PM Thompson refuse to charge VAT on a phony invoice for work that was not done, proceed to launder the money, and then pass it through to Parris’ account? Did Thompson & Associates pay any corporation tax on that $3.3 million?

    Did not PM David Thompson travel up and down on CLICO’s private jet, with his travels paid for by CLICO policyholders’ premiums? Government business cannot be conducted in this way, so the value of the jet trips Mr.Thompson enjoyed must be viewed as “income” to Mr. Thompson and taxed accordingly.

    Given the many financial laws that were broken, and given the evidence that came out of the Judicial Manager’s report and that was published on BU, do you mean to tell me that not one “complainant” can be found in Barbados to contact the Commissioner of Police to start criminal proceedings?

    Why has BRA remained totally transfixed and paralyzed when there are clear breaches of the laws and regulations which that department is responsible for enforcing?

    Why did the only two members of the “regulatory and enforcement” team who made any attempts to prosecute this nasty, stinking, crooked CLICO raid get removed from their desks and paid a salary for years for not driving a stroke? Can you imagine that our national GDP is made up of these salaries being paid for no work being produced? And then some jackass is going to get up and start spouting worthless concepts like debt to GDP ratio, fiscal deficit being some % of GDP. etc. Rubbish..

    CLICO died because the collective greed of the “political” and “company” thieves was much greater than the hundreds of millions of policyholders’ premiums available. When people in Barbados have latched on to a “thiefing” scheme, they would kill their own mother if she got in their way.

    RES Life was conceived by a group of small-minded “hoodwinkers”, dressed up in political robes, as the solution to a raid and robbery.problem. These “hoodwinkers” never cared one iota about the well-being of CLICO policyholders. They still don’t.

    From 1987, up to May 24, 2018, the persons who had to make the major political decisions on CLICO also had to make major decisions about Barbados.
    CLICO is dead. What state can a reasonable person expect Barbados to be in, at this point in time?

    You asked: “RES LIFE is a resurrected CLICO?”
    I am now going to ask: ” Is it just possible that RES LIFE is an insurance hospice?”

    Like

  • Nearly all these points are regulatory failures. Should the scheme actuary not be named in the annual report? Is there any compulsion for the scheme actuary to be on the executive board of the insurance company? In terms of the investment vehicles, all these should have received regulatory clearance before they went on sale.
    Also the firm’s hiring and firing of influential people, ie those who had an influence on policy, should have been approved by the regulator; so should its investment policies.
    As I have said before on this very topic, the business models of banks and insurance companies are diametrically opposite. The business models of banks is to borrow short and lend long; that of insurance companies is long-term liabilities. So, it is important that the regulator monitors insurance companies investment policy with a very close eye.
    But this was not all; before the Clico meltdown we had the global financial crisis and the collapse of AIG. In his evidence to the New York authorities, the former CEO of AIG, Greenberg, said in sworn evidence that they7 had opened a subsidiary in Barbados for the explicit purpose of avoiding US tax authorities. Instead of launching an investigation in to the matter, the Barbados authorities issued a statement saying Barbados had one of the best regulatory systems in the world. It was blatant stupidity.
    The of course we had the global crisis from which – even ten years later – neither the local or regional authorities seem not to have learned a single lesson.
    The Clico debacle has been dealt with differently by the Trinidadians, St Lucians, Guyanese and Bahamians and Barbadians. Of all, the Barbadians were the most incompetent. Even now, CARICOM//Csme have failed to put in place a cross-border regulatory system.
    The thinking behind the creation of Res Life was right and proper, the creation of a ‘good’ Clico and a ‘bad’ Clico;one to continue the business as a going concern and the other to liquidate the old liabilities. But as I understand it, Res Life is headed by a former banker (see above) and there does not seem to be a moral purpose behind its formation.
    Annuitants buy annuities because they want to provide for their retirement years and therefore are likely to be older people. To not treat such annuitants are urgent is unethical. It has been reported that people have died while awaiting the resolution of their claims.
    Then we had the nonsense of a so-called judicial review without any real judicial powers (the key one of which is the right to subpoena witnesses and evidence).
    If Res Life is a resurrected Clico, then history will simply repeat itself. We now wait to see if the new BLP government will implement any effective new regulatory policies not only to resolve the scandal of Clico, but to prevent any similar chaos happening again.

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  • Please enlighten the blog how the creation of ResLife is a good idea given the damage to the CLICO brand and knowing that insurance is a confidence sensitive business? Then add the nuance of a small market where CLICO has operated with the political and other considerations. Look forward to Walter’s input here. The blogmaster admits ignorance.

    Liked by 1 person

  • Concentrate: you form two companies, a good company and a bad one. The good one will run the remaining business as a going concern; the bad one will then manage the liquidation of the company, including paying out old liabilities. It is not radical, it is how most developed economies got through the 2008 crisis.
    In any case, whether there is a law in place or not, government is seen as the lender of last resort. In other words, people buy insurance from these companies because implicit in their doing business is state approval.
    The so-called damage brand is in the mind: every leading bank in the developed world has been caught up with heavy fines for money laundering or some other regulatory infringement – Barclays and Libor rigging, RBS and its global restructuring group, HSBC and the Mexican drug dealers, etc. It is the tidying up that is important. About the so-called small market; modern capitalism is not affected by borders. Look at the Icelandic companies, or those in Singapore.
    What about the Clico legacy investments? What about their poor investments? The problem is poor regulation and the Barbadianisation of jobs for which the incumbents are not sufficiently qualified or experienced.
    Question: Has the university offered any new courses on financial regulation since 2008? They have however offered new courses in Mandarin. We must get our priorities right.

    Liked by 1 person

  • Hal Austin August 20, 2018 11:55 AM

    “Nearly all these points are regulatory failures.”

    Hal,
    I defined the overall regulatory process as STARTING from the actuary and ENDING at the PM. So in essence, your observation is fair.

    However, what BU readers should detect from my defined regulatory process is that, the way the CLICO raid was designed and packaged, the process had to be reversed. Given the evidence revealed by the published cheque, instead of being the last person to defend the interests of CLICO policyholders, the PM became the first person to breach the process.

    Once the process was breached, the Minister of Finance was compromised (same person as PM), the regulators operate under the control of the Minister of Finance so no independent or contrary action on their part was allowed, the Auditors ought to have known about the cheques and ought to have followed the money trail (Did they? If they did, what happened? If they did not, why not?), the management of CLICO was wrapped up in the raid and robbery with the politicians from the start, and the actuary?………

    You were rather sharp when you said that NEARLY ALL of these points are regulatory failures.
    Other contributing factors to the CLICO raid point to the darkest side of human nature – greed, corruption, collusion with evil intent, the belief by some “criminals” that they are above the laws of Barbados, and the betrayal of the public’s trust by individuals who turned out to be unfit to hold public office.

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  • Hi Hal, is Mandarin a fruit like the orange, the citrus family? lol

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  • Walter,

    You make the point that the insurance regulator reports to the minister of finance. This is one of the structural problems. The regulator should be independent reporting annually to parliament. The minister’s responsibility should begin and end at hiring and firing.
    The Clico debacle has become party political, with nonsense about $3m cheques, which should have been sorted out by good auditing and by the judicial review. As you are aware, globally auditors are in serious trouble. Again, the executive team at Clico should have been approved by the regulator, this seems not to have been the case, a regulatory failure.
    You talk about human frailties, greed etc, good regulation provides the checks and balances to individualised weaknesses. Part of it is also cultural; we live in a society that tolerates such unethical behaviour, especially when it comes to friends and relatives. Just look at the make-up of our Senate and you see signs of what someone on BU once called heritage.
    @Walter, we still have not had a proper account of the legacy business at Clico (nor, for that matter, the Mutual), which is treated as something in the past.
    Until we accept that having the offices and officers, the institutions and laws, do not in themselves mean that we are well governed things will not improve. Outcomes are important. We have a limited talent pool; if we do not have the right people locally, then import them on limited contracts.
    I divert for a minute, but back in the 1970s I was offered a job by the government of Bermuda on a three-year contract. I accepted on condition that the position be made permanent. They refused; the rest is history. There are experienced people in Canada, the UK, Australia, etc who would work on limited contracts.
    Our financial sector is badly regulated and all the problems we experienced go right back to poor regulation. Political interference only clouds matters.

    Liked by 1 person

  • @Walter Blackman

    Now, this is the real Walter Blackman posting on August 20, 2018. 11:32 AM.

    Like

  • All directors appointed to the boards of insurance companies have to be disclosed for vetting by rhe regulator.

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  • What does vetting mean? I am talking about being qualified and experienced to do the specific job. A retired banker running an insurance company is not ‘vetting’.

    Like

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