CL Financial bailout – the Caribbean Connection

My previous article examined the November 2007 appointment of Karen Nunez-Tesheira as our Minister of Finance by then PM, the late Patrick Manning. For whatever reason, the consternation over the appointment of Christian Mouttet to investigate the #ferrygate imbroglio is reminding me of the confusion many people felt when PM Manning made that appointment. An eerie echo from the past, in this, The Season of Reflection.

This article appears the day before the anniversary of T&T’s 55th Independence Day. This week I examine the recent claims by the CLF group and its supporters as to its Black origin and so on. Those claims can be summarised as:

‘CLF is a black-owned and controlled conglomerate which has fallen into some difficulty and had to seek a bailout…it would be a tragedy to have such a company destroyed by liquidation or otherwise by the sitting black government’

This is emerging as a key element in the Duprey campaign, so it has to be seriously scrutinised by looking at the origins of CLF, the current stance of its shareholders and the pan-Caribbean aspects of this issue. Continue reading “CL Financial bailout – the Caribbean Connection”

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Open letter to Central Bank Governor on CL Financial bailout

dr-hilaire-photo-2
Central Bank Governor, Dr Alvin Hilaire

30th January is the anniversary of the infamous 2009 CL Financial bailout, so I collaborated on this open letter to the Central Bank Governor, Dr Alvin Hilaire, to raise some urgent and important questions on the Central Bank’s management of this situation.

Our letter was sent on 31st January 2017 and was signed by David Walker, Disclosure Today and I.

Please read this and spread the word…

Remember that –

Silence is the Enemy of Progress!

CL Financial Bailout – Duprey’s Gambit

Lawrence Duprey. Photo courtesy the T&T Review
Lawrence Duprey

Last week we learned that Lawrence Duprey and his fellow CL Financial shareholders are victims of a badly-handled bailout. According to the Duprey version, the State must halt all asset disposals and he must regain control of the CL Financial group of companies. In what seemed to be an immediate response, Minister of Finance & the Economy, Colm Imbert, said he was so alarmed at the gross mismatch in the bailout figures that he decided to order a forensic audit on the entire process. These two contrasting stories are the latest big news on the CL Financial bailout.

I have always objected to the CL Financial bailout and it has become a strong example of how the Public Interest can be perverted under a series of disguises.

The Duprey Gambit is just the latest attack on good values in our country. It is a nasty, shocking outbreak of moral hazard. It needs to be dismantled and discredited, nothing less will do.

The Imbert Initiative looks like a welcome move to examine the details of this scandalous waste of Public Money. The proposed forensic audit seems to signal some official appetite for disclosure. However, if this is to properly protect the Public Interest, there are some ‘litmus tests’ which can show the official commitment to disclosure

This article will examine those two proposals so that some meaning might emerge from this utter, deliberate confusion.
Continue reading “CL Financial Bailout – Duprey’s Gambit”

CL Financial bailout – Finding the Facts

Min of FInance, Colm Imbert, MP
Min of FInance, Colm Imbert, MP

On 10 August 2015, the then Minister of Finance and the Economy appealed the High Court’s 22 July 2015 judgment which ordered the release of the details on the CL Financial bailout. My protest at this action was published in this space as ‘Studied Disdain‘. Since then, the General Election of 7 September 2015 brought about a change of government – the People’s Partnership is now the official Opposition and the People’s National Movement is once again the government.

It is essential to now determine the areas in which we can expect changes in policy and the areas in which we can expect business as usual. Those perspectives informed my letter of 15 September 2015 to the new Minister of Finance & the Economy, Colm Imbert.

Imbert asked for more time to consider my request, so I consented to his application to the Appeal Court – the next hearing in this matter is therefore set for 25th January 2016.

My exchanges thus far with Imbert have been straightforward ones, but it is always important for us to be vigilant and aware.

15th September 2015
By email & hand
Mr Colm Imbert MP,
Minister of Finance & the Economy,
Ministry of Finance & the Economy,
8th Floor,
Eric Williams Financial Complex,
Brian Lara Promenade,
Port-of-Spain
Honourable Minister,
Request for Official Publication of Suppressed Details relevant to CL Financial bailout
The controversial CLF bailout is the largest payout of Public Money on a single project/issue in the history of our Republic. The entire operation has been conducted in conditions of complete secrecy with all the usual standards on transparency and accountability being ignored by the responsible public officials – a timeline showing the various official versions of the cost of this bailout is attached for ease of reference.
The PNM conducted its successful campaign for the recently-concluded 2015 General Elections on the commendable principles of Accountability, Transparency and Good Governance. I have been campaigning for the restoration of those standards to this CL Financial bailout and have gone so far as to sue the Ministry of Finance (CV 2013-00162) for the details of the bailout, at my own expense and in the Public Interest.

The High Court ruled in my favour on 22 July 2015 and ordered the publication of the requested details, but on 10th August 2015 the Ministry of Finance appealed that ruling (P201 – 2015). Our next hearing is set for Monday 19th October 2015, to argue the State’s application for extension of the stay of execution. It is my intention to strongly oppose that application for any extension of the stay of execution.I am formally requesting that you take the necessary actions to restore the Public Interest in the Accountability, Transparency and Good Governance in relation to this vast, opaque expenditure of Public Money.In specific terms, I am requesting three actions from you –

  1. Formal withdrawal of the State’s appeal in this matter;
  2. Urgent publication of the details of the CL Financial bailout to include the audited accounts for CL Financial 2008-2014 or any interim, preliminary, draft or unaudited statements of CL Financial Limited; the full details of the official briefing to Independent Senators in September 2011 preparatory to the debate on The Central Bank (Amendment) Bill and The Purchase of Rights and Validation Bill 2011 (to include copies of all slides. Power-Point slides, tables, charts, schedules, text or other information which comprised that presentation) and details of the funds paid in the bailout to include – a full list of creditors as at the commencement date of the bailout and at the date of my FoIA request (8th May 2012); the names of the EFPA holders; the dates of the repayments of the EFPA holders, together with details of the amounts received; the identities of all those who have received public money in the conduct of this exercise, together with details of the amounts received. These details are no doubt electronically stored, so I would request that the answers be provided in a searchable database;
  3. Refund of my reasonable legal fees in this matter – The High Court awarded 70% of my costs.

In anticipation of objections to disclosing these details on the grounds of the right of private investors to confidentiality, my response would be to point out that all other recipients of Public Funds are liable to having detailed information disclosed, upon request and without notice. A request for information on the details of a Public contract would include the identities of the parties; the contract itself; the dates and amounts of payments. Such requests are routinely handled without resort to attorneys or even the Courts, even if administrative delay is also a reality. That is the common and accepted practice in relation to all Public contracts and payments, which is fortified by the provisions of the Freedom of Information Act, under which my litigation was successful. There is no case made for any special status of financial investors to enjoy rights of confidentiality which are not available to other recipients of Public Funds.

The only way for the required level of transparency and accountability to be achieved is by the responsible officials publishing all the details of all the payments of Public Money.

The equation for the reality check is –

         Expenditure of Public Money
Minus    Transparency
Minus    Accountability
Equals   CORRUPTION    

I can appreciate that the impending 2016 budget would likely demand your attention for the next three weeks. I would like to know the State’s position in this matter before the next Appeal Court hearing on Monday 19th October 2015, so I would appreciate your reply by Friday 9th October 2015.

This request was made in the Public Interest, so I trust that it will receive your positive attention.

Yours sincerely,
……………………………………………….
Afra Raymond

c.c. – Dr. Keith Rowley MP, Prime Minister,
Mr. Faris Al Rawi MP, Attorney General

http://www.afraraymond.wordpress.com

How much has the CL Financial bailout cost?’
TIMELINE

DATE

EVENT

SOURCE

with live hyperlinks

30th January 2009

Bailout announced at an estimated cost of $5.0 Billion

CBTT Statement of 13th February 2009

12th June 2009

CL Financial Shareholders’ Agreement signed, which for the first time made it a priority to protect shareholders’ rights.

https://afraraymond.files.

– see Para ‘A’ of the Preamble at page two.

8th September 2010

Winston Dookeran’s first Budget Statement, in which he formally proposes to drastically reduce the rate of payout of Public Money in the bailout.

2011 Budget Statement 

pages eight through ten.

1st October 2010

Then PM confirms that $7.3 Bn had been spent and that a further $7.0 Bn needed to be spent (pg 31). The burning need for an explanation of where the $7.3 Bn went…(pgs 25-26)

Hansard for 1st October 2010 

pages 19 through 34.

3rd April 2012

Then Finance Minister Winston Dookeran confirms that $12 Bn had been spent.

Affidavit to High Court in Percy Farrell & Ors vs AG 

para 21.

1st October 2012

New Finance Minister Larry Howai confirms that $19.7 Bn had been spent, which is an additional $7.7 Bn in six months.

2013 Budget Statement 

page six.

17th May 2013

Formal confirmation of bailout cost “over $25 Bn

Formal Press Release from Office of the AG 

para eight.

2nd April 2014

Then Finance Minister Howai confirms bailout cost as – “… the cost to the country of the CL Financial bailout—the actual cash that has been put out—is approximately$20.8 billion...”

Hansard for Senate sitting of 2ndApril 2014 

page 35.

7th August 2015

Then Finance Minister Howai confirms bailout cost as ‘not quite $20 Bn‘.

CNMG interview

AUDIO: The Power Breakfast Show interview on 102.1 FM – 14 October 2015

Power 102 FMAfra Raymond is interviewed on the ‘The Power Breakfast‘ show along with Peter Permell on Power 102 FM by Richard Ragoobarsingh talking about the ongoing CL Financial bailout saga now that there is a new government. 14 October 2015. Audio courtesy Power 102 FM

  • Programme Date: Wednesday, 14 October 2015
  • Programme Length: 29:42