On Friday 30th January 2009, the CL Financial (CLF) bailout started, so today – 30th January 2019 – is the ten-year anniversary of that fateful decision to commit Public Money to bailout the Caribbean’s largest conglomerate. The companies which were to be bailed-out were: CL Financial Ltd (CLF); Colonial Life Insurance Company Ltd (CLICO); Caribbean Money Market Brokers Ltd (CMMB); Clico Investment Bank (CIB) and British American Insurance Company (Trinidad) Ltd (BAICO).
The mismanagement of this bailout has exceeded any mismanagement which led to the collapse of CLF, that is my view.
The bailout proceeded between 30th January 2009 and 12th June 2009, with over $5.0 Billion in Public Money paid to CLF in that period, under the terms of the Memorandum of Understanding (MoU) signed between then Finance Minister, Karen Nunez-Tesheira, and Lawrence Duprey, then CLF’s Executive Chairman. That MoU governed the expenditure of this vast sum of Public Money before the 12th June signing of the CLF Shareholders’ Agreement. All of which calls into question the continued claims, in relation to the Tobago Sandals project, that MoU’s are non-binding. As we say here, is according.
There has been an incredible escalation in the cost of this bailout, from the initial estimate of $5.0 Billion, to the present expenditure exceeding $25.0 Billion. This has been a source of serious concern as priority was given to pay the claims of the CLF creditors over other urgent, public needs.
This is an update on my efforts to get the remaining details of the CL Financial bailout in which over $25 Billion of our scarce Public Money has been spent.
Although the details of over 13,200 EFPA claimants who received $10.823 Billion were provided, the Consent Order entered in the Appeal Court on 24th January 2018 has not been fully complied with. The Ministry of Finance is now claiming that the CL Financial accounts relied upon by then Finance Minister, Winston Dookeran, in preparing his 3rd April 2012 affidavit cannot be found. Also missing in action is the list of creditors of CL Financial. I am challenging that non-compliance with the assistance of my attorneys.
After ending the lawsuit in January 2018, I made further requests for information from the Finance Ministry so that we could have all the details of all the payments made in this bailout. Those requests have now escalated to the stage that I have filed a new lawsuit under the Freedom of Information Act (FoIA) for the refused details. Continue reading “CL Financial bailout – closing the circle”→
Radio station Power 102.1 FM hosted an all day retrospective discussion on the burning issues of 2018 on Wednesday 19th December 2018. Host Andy Johnson speaks to Afra Raymond on his main issue, being the two successful challenges to the State to get information in the public interest, namely, the memorandum of understanding between the State and the Sandals Hotel group for the construction of a resort in Tobago and the details of the CL Financial bailout. They are joined by David Abdullah. Audio courtesy Power 102.1 FM
Programme Date: 19 December 2018 Programme Length: 00:33:40
On 18th April 2018 I published ‘Integrity Query’ in this space on ‘the apparent failure or refusal of The Commission to carry out its duties in relation to CLF as required by the Integrity in Public Life Act (IPLA)‘. My 10th September 2012 complaint to the Commission that it had not been performing its duties in relation to the Directors of CL Financial had seemingly vanished, with no real reply to be had.
Then, on 6th August 2018, The Commission gave its written response to my 2012 complaint. That brief reply stated that The Commission considered all available information relevant to my complaint and concluded that those directors were not governed by the IPLA – a further statement was made that CL Financial and its subsidiaries, including CLICO remained a private company in which the Government (sic) had a minority shareholding. (See embedded letter below.) This article delves into that entirely unacceptable reply and its meaning. Continue reading “CL Financial bailout – Evading Integrity”→
This article summarises the total Public Money spent on this CL Financial bailout and also outlines some further concerns.
CLF BAILOUT PAYMENT SUMMARY
Interest & Finance
Services & Supplies
Source – Correspondence with Finance Ministry PS
Various payment summaries and the CL Financial Management Accounts (unaudited) for 2015, 2016 and 2017 were provided thus far in response to my requests for information of 4th May 2018. Notwithstanding those details, the Ministry is yet to respond substantively to my requests, so I have instructed my attorneys to take the necessary steps to settle this request for information.
In January 2009, this bailout started with a $5.0 Billion estimated cost. In October 2010, we were told that $7.3 Billion had been spent and that a further $7.0 Billion was needed to pay all the claims – a total of $14.3 Billion. A compilation of the Ministry’s summary data, on which I am relying, show a total of $25.95 Billion in Public Money spent at this stage, taking no account of unsatisfied creditors.
This article sets out my ongoing search for all the details of all the payments made under the CL Financial bailout. That includes my recently-concluded litigation and my new requests for information under the Freedom of Information Act.
Any unaudited financial statements of CL Financial Limited for the years 2008-2011 in the possession of the Ministry of Finance which were relied upon to prepare the affidavits of Minister Winston Dookeran filed on 3 April, 2012 in High Court proceedings CV 2011-01234, Percy Farrell and Others v Clico and others.
Any list of the creditors of CL Financial existing at the date of the request in the possession of the Ministry of Finance, the names of the EFPA holders of Clico, the dates of the repayment of EFPA holders of Clico and the identities of those whose investments have been repaid.
The Ministry’s attorneys have now stated that they are unable to locate the specified financial statements and the list of CLF creditors has not been provided. My team will be responding to press for those details, in the public interest and in accordance with the Appeal Court’s Consent Order. Continue reading “CL Financial bailout – filling the gaps”→
The National Investment Holding Fund Co Ltd (NIF) was announced (p.18) on 25th June 2018 by the Minister of Finance, Colm Imbert, as an important part of the endgame of the CL Financial bailout. That announcement, which had been prefaced in earlier statements by Minister Imbert, was stated to be part of the process to recover the public money which had been spent on the CLF bailout.
The NIF is a new State-owned and controlled enterprise into which will be transferred just under $8.0 Billion in shares. About $6.0 Billion of those shares are CLF-owned – Republic Finance; WITCO; One Caribbean Media and Angostura – with a further $2.025 Billion of the State’s shares in Trinidad Generation Unlimited making up the balance. Continue reading “CL Financial bailout – the NIF matter”→