CL Financial Bailout – Studied Disdain

Sen the Hon. Larry Howai, Minister of Finance and the Economy

SIDEBAR: How much Public Money has been spent on this CL Financial bailout?

These are the official statements as to the actual cost of the bailout since 2012. It really resembles the ‘carefully cultivated confusion‘ which I deplored recently in relation to the Invader’s Bay fiasco.

  • 3 April 2012Affidavit of then Finance Minister, Winston Dookeran, which specifies the Public Money committed to this colossal bailout as –
    Para 21 (a) $5.0Bn already provided to CLICO;
             (b) $7.0Bn paid to holders of the EFPA and
    Para 22 $12.0Bn estimated as further funding to 
    be advanced.

    Dookeran is saying in April 2012 that $12 Billion had been paid and an estimated $12 Billion remained to be paid, which is a total of $24Bn in public money to be spent to satisfy the creditors of the CLF group.

  • 1 October 2012 – Senator Larry Howai, delivering his first Budget Statement, stated the cost of the CL Financial bailout at page six –
    …The cost to the national community has been substantial—an amount of $19.7 billion or 13.0 per cent of our current GDP; yet this expenditure was necessary and decisive for containing an economic and financial crisis…
    Howai is telling the Senate in October 2012, a mere six months after Dookeran’s Affidavit, that $19.7 Billion has been spent. If we follow this official account, which fixed the total spent in April 2012 at $12 Billion, an additional $7.7 Billion of Public Money was spent in six months. I continue to contest whether this bailout was at all necessary, but it was certainly an incredible rate of expenditure, that cannot be contested.
  • 4 May 2013 – In this newspaper, under the headline ‘$25b and counting – Cost to taxpayers of CLICO bailout and enquiry‘ –
    …However, Government’s intervention into the CLICO fiasco has cost taxpayers more than $25 billion
  • 17 May 2013 – UNCTT’s website contains a formal Press Release from the office of the then Attorney General, Anand Ramlogan SC –
    …It should be noted that efforts to stabilize and resuscitate CLICO have thus far cost taxpayers over $25 billion dollars…
  • 2 April 2014 – At the Senate sitting , Minister Howai stated at page 35 of Hansard
    …Mr. President, as you would perhaps be aware, the cost to the country of the CL Financial bailout—the actual cash that has been put out—is approximately $20.8 billion. This was done in an effort to preserve the stability of the economy of Trinidad and Tobago…
  • 7 August 2015 – I was therefore astonished to hear the Minister of Finance, Larry Howai, stating on CNMG TV, that the cost of this bailout is ‘not quite $20 Billion‘.

The first item, Dookeran’s April 2012 affidavit, is the one for which Howai is now being required by the Court to produce the details.

Some of my views on this, from last week

“…Well, this is the usual practice, in which the public right to know is subordinated to private, undisclosed interests…it seems to me at these moments that the job of the State’s attorneys is to shroud the entire indecent affair in ‘something resembling an important principle’, but ultimately the effort is intended to wear me down and let the issue fade from collective memory…I am continuing to fight this very hard…what we have here is the ultimate collapse of our Republic by Public Officials who are sworn to uphold the Public Interest without fear or favour, but end up exposed as serving the toxic interests of the financial robber barons…I am reminded of Simon Johnson’s ‘The Quiet Coup‘ published in The Atlantic of May 2009…in T&T, we too, had a quiet coup…”

As the Season of Reflection and the impending election flow together, there is a bitter brew now being offered in relation to the CL Financial bailout.

Disdain is an attitude which denotes someone or something as being unworthy of proper consideration. I think that in relation to our collective interests in the CL Financial matter, we are now being subjected to Larry Howai’s ‘studied disdain’ in relation to our collective interests in the CL Financial matter.

On Tuesday 10 August 2015, the State announced its decision to appeal the recent High Court ruling that the details of the CL Financial bailout must be published. That appeal was also filed that day and the State applied to have the stay of execution extended to the end of the appeal process – the latter issue will be heard on 19 October 2015.

The Minister of Finance & the Economy is the main public official with responsibility to account for how Public Money is spent. The Public Money being used to bailout the CL Financial creditors is our money. The Minister of Finance therefore has a fundamental duty to publicly account for how our money has been spent.

Our collective interests in this matter, of exactly how $25 Billion of our dollars were spent, far outweigh the undisclosed interests on whose behalf the Minister is now appealing.

This appeal is against every one of the orders made in the High Court judgment of 22 July 2015 and therefore represents an utter abdication of the fundamental duties of the Minister of Finance and the Economy.

Our collective interests could benefit from the unintended juxtaposition of national elections, the apparent halt of USD sales by the country’s leading bank and the hostility of the Minister of Finance to the truth. These are rare moments in which we might gain insight and regain fundamental rights, but we have to be aware of what is at stake.

The Ministry’s Press Release deserves stern scrutiny, so these are my points. Continue reading “CL Financial Bailout – Studied Disdain”

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AUDIO: Election Hardtalk interview on Power 102FM – 16 Jul 2015

Power 102 FMAfra Raymond and Peter Permell are interviewed on the ‘Election Hardtalk‘ show on Power 102FMFM by Tony Fraser about the continuing impact of the CL Financial bailout on the economy and the request to get back the company by Lawrence Duprey. 16 July 2015. Audio courtesy Power 102FM

  • Programme Date: Thurday, 16 July 2015
  • Programme Length: 1:19:47

CL Financial Bailout – False Firing?

Prime Minister Kamla Persad-Bissessar greets former Clico chairman Gerard Yetming, second left, and former Senate president Timothy Hamel-Smith, second right, after they showed up at a UNC “foot soldiers” mobilisation meeting in Debe on Tuesday. Also in photo are Oropouche East MP Dr Roodal Moonilal and UNC campaign manager Rodney Charles, left. PHOTO: RISHI RAGOONATH
Prime Minister Kamla Persad-Bissessar greets former Clico chairman Gerard Yetming, second left, and former Senate president Timothy Hamel-Smith, second right, after they showed up at a UNC “foot soldiers” mobilisation meeting in Debe on Tuesday. Also in photo are Oropouche East MP Dr Roodal Moonilal and UNC campaign manager Rodney Charles, left. PHOTO: RISHI RAGOONATH

I smiled at the page three photo in another newspaper of the Prime Minister holding hands with recently-dismissed CLICO Chairman, Gerald Yetming, at a UNC meeting in Debe on Tuesday 23 June 2015. As serious as the situation is, I just couldn’t help myself.

Yetming was a UNC Minister of Finance during the Panday administration and had been appointed on 28 September 2010 as Chairman of CL Financial Ltd, the parent company of the ‘CLICO group’ being bailed-out by the State.

I declined many requests for comment on this controversial episode, since something about it did not seem quite right. The actual CLICO dismissals were incredible to my mind, not only because there did not seem to be any conflict between the stipulations in the CBTT’s 3 June Press Release and the reported beneficiaries – that is explained in the sidebar. It is even more bizarre when one considers that Yetming, in whom all confidence was apparently lost after allegedly-unauthorised payments to former CLICO Directors, still serves as Chairman of the parent company, CL Financial Ltd.

There is a widely-held view that the CL Financial chiefs should not be recovering any of their money from this huge collapse before the completion of the Colman Commission and the publication of its Report. I share the public concern that no money should be paid to the persons who were in charge of that sinking ship. Not one cent. Nothing should be paid to the CLF chiefs until we have had the proper opportunity to consider the findings of the Colman Commission. Even with its severe limitations, that Colman Report would be our closest opportunity to understand this epic financial crime. To pay out money to those Directors and Officers who were responsible before the Report is published would be reckless in the extreme and jeopardises the public interest. Continue reading “CL Financial Bailout – False Firing?”

Our Land – The Caroni case Part 2

The previous article outlined the size of the Caroni lands and some of the intended uses to which that land would be put. I contrasted the positions taken by UWI in 2003 and my own from 2004, with the current situation.

UWI’s July 2003 Position Paper – ‘A Framework for National Development: Caroni Transformation Process‘ – was developed by diverse contributions, mostly made at a special seminar on 27 April 2003. At that time there were strong rumours that the then PNM government, headed by Patrick Manning, intended to close Caroni (1975) Ltd. The expressed fears at the time were that PNM supporters, friends, family and financiers would all benefit from a ‘land grab’. Caroni was a State Enterprise which had made heavy losses in the virtually 30 years since it had been purchased from its British owners, sugar giant Tate & Lyle.

The UWI Seminar was most timely since their Position Paper was issued in July 2003 and presented to the then Minister of Agriculture, Land & Marine Resources, John Rahael, in September 2003. Caroni (1975) Ltd was closed on Emancipation Day 2003.

The UWI study took a long-range view of the Caroni issues and as such it is an important document which set a framework for these Caroni lands. The land area was determined, at Appendix 1, to be 74,780 acres. At page 30, ‘Consultation’ is specified as the first requirement for the development of these lands.

The UWI Position Paper sets out its Recommendations at Chapter Eight on pages 71 & 72 –

  1. Govt to prepare & publish a comprehensive plan for Caroni.
  2. Govt to convene an urgent National consultation on the Caroni resources and the published plan.
  3. Any departure from the National Physical Development Plan be done through the legally- stipulated process which includes bringing those proposals to Parliament.
  4. That all terms and conditions for the leasing and tenure of the Caroni lands be detailed to the public in a public document, to meet the requirements of transparency.
  5. That Govt establish a skills bank so that the Caroni workers would have choices as to how they would be integrated in future planned enterprises.
  6. That the State establish an independent Screening Committee to stringently screen potential investors who seek Caroni lands as their location of business.
  7. That the Ministry of Agriculture Land and Marine Resources establish an independent authority charged with the implementation of plans for agriculture and agriculture-related industries.
  8. That Govt establish a comprehensive system of water control on the Caroni lands, in order to facilitate irrigation, as an essential pre-condition for the establishment of agricultural enterprise on the Caroni lands.
  9. The the Govt establish a Lease Income Funding Enterprise System and embark upon a comprehensive joint funding venture with companies in the heavy industrial sector, in order to fund national platforms for development, such as the following ones proposed by this Position Paper:
    1. A Botanical Plan
    2. A Technological & Vocational Institute
    3. A Buffalo Reconstruction program
    4. A Model Program for Untenured Residents
    5. A Food Park Plan
    6. A Research and Development Mandate, for the University of the West Indies and other research institutes in order to support Agro-Industrial Development.

As far as I am aware, none of those sensible recommendations have been implemented.

Dr. the Honourable Roodal Moonilal, Minister of Housing and Environment
Dr. the Honourable Roodal Moonilal, Minister of Housing and Environment

After Caroni was closed, there was a serious debate in the Parliament – here is Dr Roodal Moonilal MP, speaking in the Agricultural Census Order debate on Friday, 14 May 2004

“…We want to challenge the Government yet again, as we did with the Member for Port of Spain North/St. Ann’s West to come to the House and bring the plan for Caroni (1975) Limited to the House. Let us debate their plan for Caroni (1975) Limited…” (pg 601)

Chandresh Sharma MP, speaking in the same debate (pg 637)

Chandresh Sharma MP
Chandresh Sharma MP

“…Mr. Speaker, I was talking about UWI ’s recommendations based on the Caroni (1975) Limited lands that say there should be no land grabbing. These qualified minds thought of the process and they have looked at what obtains in the Government. Some of the best agricultural lands in this country were taken by the PNM —Aranguez and Trincity—and some of the best sugar came from there, and also cocoa in the earlier days. They built houses to secure PNM votes. They must not forget that the East-West Corridor—stretching from Chaguanas to Arima—has 14 seats, which the PNM hopes to control all the time. The seats that they do not control are the ones involved in agriculture like Barataria/San Juan, St. Augustine, St. Joseph, and Tunapuna would return to us soon. So they took the best agricultural lands and built houses on them. The thinkers saw the PNM at work…”

Also –

“…I have just identified some of the thinking from the University Position Paper which is A Framework for National Development Caroni Transformation Process produced by UWI in July 2003. It is instructive to note that to date the Government has not responded to any of the proposals obtained in this document. This is another clear demonstration of how they intend to treat with agriculture and those who are involved in agriculture…” (pg 638)

So, the UNC’s key speakers were insisting, in 2004, that the UWI plan must be considered.

It is striking to consider the identity of some of the Contributors listed at page i of the UWI Position Paper –

  • Winston Dookeran (then an MP, now Minister of Foreign Affairs, after serving as Minister of Finance)
  • Dr Roodal Moonilal (then an MP, now Minister of Housing and Urban Development)
  • Rudranath Indarsingh (then President of the All Trinidad General Workers’ Trade Union Union, now Minister in the Ministry of Finance)
  • Professor Clement Sankat (then at the Engineering Faculty, but now UWI Principal)
  • Dr Asad Mohammed (then a UWI academic, now Chairman of the National Planning Task Force)

It seems clear to me that the Caroni lands were identified as critical national resources which needed an urgent, strategic intervention from our leading thinkers to preserve the Public Interest. That UWI Position Paper is extremely important for our long-term collective interests. Sad to say, but it seems to have been sidelined and forgotten, just like the 1992 Land Policy.

What is more, we do not have any clear account as to what happened to those Caroni lands in either the period between 2003 and the PP’s election victory in May 2010, or the period between May 2010 and now.

After one time, is really two times.

UWI must, as a matter of urgency, reconvene a seminar to examine what has happened to the Caroni lands. That is imperative.

Next, I will consider the role of EMBD and the LSA in developing our lands, particularly the Caroni area.

SIDEBAR : The SIS episode

Hon. Jairam Seemungal, MP. Minister of Land and Marine Resources
Hon. Jairam Seemungal, MP. Minister of Land and Marine Resources

One of the controversial episodes arising recently in relation to Caroni land is the occupation of 35 acres of land at Couva by SIS Ltd, the contractor company linked to many controversial State projects. There were claims by farmers who had been in occupation of the land that SIS had put them off the site before fencing it, with further statements by the Commissioner of State Lands (who has responsibility for management of State Lands) that SIS did not have a tenancy for that land and were in illegal occupation. To add to the brew, the Minister of Land & Marine Resources, Jairam Seemungal, was reported in the Trinidad Express newspaper on 12 March 2015 as denying that there was no agreement for SIS to occupy that land. When asked what were the terms of that lease or tenancy, the Minister is reported to have said –

“…When you enter into an agreement the arrangement in the agreement itself is private, the State land is State land but when you enter into an agreement when the Commissioner enters into an agreement or anybody enters into an agreement with any person whatsoever then the process itself whatever documentation all these things inside of the agreement those become a private matter unless it is registered in the Ministry of Legal Affairs where one can go and do a search…”

A private agreement for Public Lands. I tell you.

To crown-off the entire episode, the Prime Minister told Parliament, on Friday 13 March 2015 –

“…I have spoken to the hon. Minister of Land and Marine Resources. He has indicated that at no time did he state that lease or other agreements with regard to state lands entered into between SIS and the Government is a private matter and therefore should not be disclosed…”

Complete denial. What is clear is that there is a serious hostility to the truth on display here. Simply appalling.

CL Financial – Bait & Switch

“They’ve got twelve Aces up their sleeve!
So who the Hell can we believe?”
—Rudder, David Michael. “Back to the Same Ole Same.” The Autobiography of The Now. Lypsoland, 2001. Used with permission

The CL Financial bailout seems to be entering its end-game, with repeated claims from the Minister of Finance that the recovery of the $25 Billion of Public Money spent is now on the cards. The consistent failure or refusal to publish any audited accounts and my ongoing research are telling. We are witness to yet another ‘Plot to Pervert Parliament’, this time it is the biggest project to ever hit this country. The CL Financial bailout.

Plots to Pervert Parliament

In January 2013, I identified the first of these, otherwise known as the ‘S.34 Fiasco’, which of course led me to the CLF Bailout Perversion, committed in January 2009 when our country was presented with its largest-ever public expenditure. The original bailout, presented to our Parliament, as a fait accompli, was the original Plot to Pervert Parliament.

I have come to the sobering conclusion, after much research and consideration, that the Colman Commission is not ever going to provide the details we were led to believe it would. I am now of the view that once again we have been misled and bamboozled by our Parliament. Yet another sick trick, a third ‘Plot to Pervert Parliament’.

The rationale stated for the Colman Commission of Enquiry is in serious conflict with the terms of reference for and consequently, the conduct of that Commission. This article will detail those assertions and show how the public interest is once again being subordinated to powerful private interests.

To understand this crime, one must take a stern view of dates and time.

  • 30 January 2009 – The bailout is announced at a Press Conference on Friday 30 January 2009 at the Central Bank. At that time, we were told that the estimated cost was about TT$5 Billion.
  • 12 June 2009 – Ministry of Finance signs the ‘CL Financial Shareholders’ Agreement’ which, for the first time, discloses that shareholders’ interests were to be specifically protected.
  • 8 September 2010Winston Dookeran’s first budget statement as Minister of Finance, following the Peoples Partnership electoral victory in May 2010, was notable since Dookeran announced a dramatic policy shift. The entire CL Financial bailout was declared to be the first of the ‘great uncertainties’ to be resolved. Dookeran outlined the problem before reducing the rate at which Public Money would be paid for this bailout. A huge storm of protest erupted, with several ‘Depositors and Shareholders groups’ emerging to represent those interests. With Dookeran isolated and the government under mounting pressure from these new protest groups, laws were swiftly drafted to stifle the protestors’ legal options.
  • 1st October 2010The PM’s historic address to Parliament on 1 October 2010  at which the Commission of Enquiry was announced. Most notable was the PM’s outrage at the mystery of the bailout – at pgs 25-26 –

    “…The $5 Billion has been spent—we are advised—to repay matured  EFPA policies in an ad hoc and unstructured manner where payment arrangements were entered into based on levels of funds invested. What criteria did you use to repay investors? Whom did you choose to pay? How were they chosen? These questions need to be answered. Because if it is today after the $7.3 Billion, all these EFPA people, the policy group and so on, they are out there, where is their money? Where is their money? Did you have a priority listing of who should be paid? Why did you go—and you are now crying crocodile tears about trade unions, credit unions, the poor man and the small man—why did you not pay them first? Why did you not pay them first? Where did that $7 Billion go? We need those answers, Mr. Speaker. We deserve those answers. The taxpayers need to know. Because when a parent  has to buy school books and bags to send his/her children to school but they have to pay tax out of the little money, they need to know where that money has gone…Where, how and why; we need to know…”

    The main argument made by the PM was that this was a case which needed serious investigation to establish what had caused this huge collapse and where had over TT$7 Billion of Public Money gone. I could not agree more.

  • 17 November 2010 – The Colman Commission with its Terms of Reference published in the Trinidad and Tobago Gazette. Those were divided into two limbs, causes and consequences. The first to examine the causes of the crisis and the second to make recommendations for prosecutions or other policy changes to prevent a repetition of the crisis.
  • In September 2011, the Parliament voted unanimously to pass two laws related to the CL Financial bailout. The first was to permit the Minister of Finance to borrow a further TT$10.7 Billion to fund the bailout and the second was to grant the Central Bank, which was administering the bailout on government’s behalf, immunity from any legal challenge. For those who consider these assertions of mine to be harsh, just look at Winston Dookeran’s closing words to the Senate on 16 September 2011 –

    “…I just want to give you the assurance which I gave to the Lower House when we debated this, that already the Ministry, along with the Central Bank and Clico, have begun the preparation of a public document—many questions that are still to be answered—to provide the necessary information. In addition to that, we did present to the hon. Senators, for those who afforded us the opportunity to accept our invitation, a document that is in the vicinity of 57 pages as of now, outlining all the necessary information that led to the story that assess what is the current challenges and why the proposals to go forward have been put forward. This document, I assure you, along with the questions and answers, will be converted into a simple, easy to read, hopefully, document for the sake of establishing that this Parliament has mandated us to put this as an anchor document for the purposes of evaluating our performance in the future…”.

    I requested that document via the Freedom of Information Act but it was not provided, which is why my litigation started.

In the course of recent research it became clear to me that the PM’s outraged demands for detailed information as to how the huge sums of Public Money spent in the bailout had been discarded, just like a flimsy Carnival Costume. At no point in its Terms of Reference was the Colman Commission required to examine the details of the actual Public Money spent on the bailout. A new species of lie is born here in T&T, once again…we used to have one called the ‘White Lie’ in those bad-old-days, now we have the ‘Bright Lie’. Right up in our face, as the Parliament is told one thing, with an entirely different thing being done. The Carnival was over, but the Ole Mas was now starting.

One can imagine the ebb and flow as these public promises were neutered in private discussions. Reasons are never given. I suspect that the influence of party financiers and voting blocks was a great element in this travesty. The public right to know how and why these vast sums of Public Money were spent is obviously of low priority for the highest public officials in this Republic.

Truth has a Power all of its own. At this point, in litigation against the Ministry of Finance for that information – the Ministry is represented by a five-member team headed by former AG, Russell Martineau SC and CL Financial is represented by three attorneys. Something resembling legal overkill to prevent publication of information which the PM told the Parliament it was her intention to unearth. Information which then Finance Minister Dookeran assured the Parliament he was compiling into a public document. Another writer has labelled the situation – ‘Afra, the Deviant‘. I tell you.

At every turn, the public interest has been subordinated to secretive private interests. The Courts are literally the last refuge to uphold the lawful rights of the public to obtain detailed information on these matters of the highest importance.

Accountability Calamity

Safeguard Status of query
Audited accounts for CL Financial? NONE
Details of Management accounts, Estimates, Drafts or any figures used by Ministry of Finance? NONE
Details of official briefing to Independent Senators in September 2011? CLAIMED TO BE EXEMPT
Details of Public Money paid out to people and institutions owed money by CL Financial? NONE
CL Financial is now under State control, so do its Directors comply with the Integrity in Public Life Act? NOT ACCORDING TO MY EXAMINATION OF INTEGRITY COMMISSION RECORDS.
Do we understand why the CL Financial group is enjoying this beneficial exemption from the lawful obligation to file declarations? NO WORD YET FROM THE INTEGRITY COMMISSION.

All of the usual integrity, accountability and transparency safeguards have been disconnected. All.

The Code of Silence rules.

Money is the Problem

One of the big unanswered questions arising out of the recent ‘grand corruption’ cases in relation to the Public Sector remains – ‘How can we lawfully punish those wrongdoers who are looting our country?

Most discussions proceed along the lines of what I call the ‘bag of money‘ idea, in which we are looking for the actual stolen money.  The belief being that the stolen loot can actually be located and linked to the thieves, who will then face a harsh penalty.  My preferred solution is for full disgorgement of all the stolen monies as a starting-point, even if that is a remote goal.

In re-examining the issue practically, one has to ask “Why do we persist in these ‘pipe-dreams’, while ignoring the ‘low-hanging fruit’ all around us?”  So I am considering a new strategy for action on these critical issues.

‘Public Money’ is the term used to describe money due to or payable by the State, including those sums for which the State would be ultimately liable in the event of a default.  Public Money is sometimes called Taxpayers’ Money, it is our Money. Continue reading “Money is the Problem”

CL Financial bailout – Paying the Devil

paying the devilToday is the 30th of January 2014: five years since the State bailout of CL Financial was announced to a shocked nation and region. It is necessary to mark this moment in time with solid facts and stern meditation.

The Carnival season is upon us, so J’ouvert is near the front of my thoughts. J’ouvert is simple, yet tremendous, because of the experience of passing from night into daylight and of course those around you becoming clearer as the light overcomes the darkness. For me, the defining feature of Jouvert is the terrifying portrayals of ‘Devil mas‘ in its various forms – ugly and dirty, covered with mud, oil or paint; real noisy, beating pitch-oil tins and such; forceful, in demanding payment from you before you could pass. You have to pay the Devil to go away. Pay the Devil, so he could leave without dirtying you up.

The vast amount of detail which has emerged in the last five years, means that I can only focus on one key aspect of the CL Financial bailout scandal.

My main theme is that vast amounts of Public Money have been committed to repay the debts of CL Financial, while the chiefs who directed and controlled that conglomerate seem free to come and go as they please. Or, in the case of Duprey, who refused to testify at the Colman Commission, to go and refuse to come. Once again, Trinis in the running for some awards for innovation and so on, with Duprey being the world’s first ‘Penniless Philanthropist‘.

How much Public Money has been spent on this exercise? How much of that Public Money will the State recover? That is my focus.

When the Memorandum of Understanding was signed on 30th January 2009, it was on the basis that CL Financial assets would be sold to recover the Public Money being advanced, which was estimated to be about $5Bn.

Winston Dookeran’s first budget speech on 8th September 2010 was a critical turning-point, as it appeared to me that he was attempting to stem the flow of Public Money out of the Treasury. Dookeran made a case which was based on the huge and unprecedented liabilities facing the State at pg 9 –

“…The total funding provided as at May 2010 by the Government and the Central Bank, excluding indemnities and guarantees to First Citizens Bank amounted to approximately $7.3 billion. As of June 2010, CLICO and British American combined total liabilities were approximately $23.8 billion but total assets were $16.6 billion…” .

Immediately, in protest at Dookeran’s attempt to limit the cost to our Treasury, there were several ‘Policyholders’ and Depositors’ groups‘ formed. The word ‘Depositors’ was soon omitted when it was realised that it would not suit their purposes.

With Dookeran isolated and the government under mounting pressure from these new protest groups, there were new laws drafted to stifle the protestors’ legal options. At this point, we had the historic address to Parliament by the PM on 1st October 2010 – historic because even with the required majority of votes to pass the intended new laws, the PM chose to explain and persuade the public. The bailout was extended to Hindu Credit Union and the Commission of Enquiry was announced to find the causes of the collapse of the CL Financial group and HCU.

Most notable was the PM’s outrage at the mystery of the bailout – at pgs 25-26

“…The $5 Billion has been spent—we are advised—to repay matured  EFPA policies in an ad hoc and unstructured manner where payment arrangements were entered into based on levels of funds invested. What criteria did you use to repay investors? Whom did you choose to pay? How were they chosen? These questions need to be answered. Because if it is today after the $7.3 Billion, all these EFPA people, the policy group and so on, they are out there, where is their money? Where is their money? Did you have a priority listing of who should be paid? Why did you go—and you are now crying crocodile tears about trade unions, credit unions, the poor man and the small man—why did you not pay them first? Why did you not pay them first? Where did that $7 Billion go? We need those answers, Mr. Speaker. We deserve those answers. The taxpayers need to know. Because when a parent  has to buy school books and bags to send his/her children to school but they have to pay tax out of the little money, they need to know where that money has gone…Where, how and why; we need to know…”

In September 2011 Parliament approved a new law authorising the State to borrow an additional $10.7 Billion to fund the bailout.

Winston Dookeran’s affidavit of 3rd April 2012 specifies that $24 Billion of Public Money is committed to the bailout, at paras 21 & 22…

Para 21         (a)      $5.0Bn already provided to CLICO;
                (b)      $7.0Bn paid to holders of the EFPA and
Para 22                  $12.0Bn estimated as further funding to be advanced.

Recent estimates have now risen to ‘$25b and counting‘ according to the Sunday Express report of 4th May 2013. Given the shock with which the estimated bailout cost of $5 Billion was received a mere five years ago, it is sobering that $25 Billion can now be bandied-about by Public Officials in this fashion.

Will our money ever be repaid? If so, how and when?

Now and again, official statements are made to assure the public that the matter is being resolved and the CL Financial Shareholders Agreement is extended for this reason or that. There is an appearance of diligence and purpose, but there are also other statements which we must consider.

Finance Minister Howai is recorded in Hansard of 30th January 2013, speaking about the CL Financial bailout – at pgs 16-17

“…Mr. President, we shall never recover all the funds that have been put into the group, but our focus is to try and maximize what we can and to reduce the borrowing that we need to do…”.

Even more concerning is that there has been secretive disposal of assets of the CL Financial group – to cite one example, Valpark Shopping Plaza was recently sold to Courts, without any public advertisement.

All the while, the State is mounting strong resistance to my lawsuit to force publication of the details of this bailout. The secrecy is inimical to the wider public interest, which is being sacrificed for the comfort and benefit of the ruthless few.

Every single established mechanism for oversight, transparency and accountability in public affairs has been sidelined in this sordid CL Financial scandal. Integrity in Public Life Act – nothing. Audited Accounts – not available. Freedom of Information Act – legally disputed. Briefing to Parliament – exempted.

Ask yourself – “Would you trust a public official with $1M to spend if there were no requirement for them to account properly?” If not, why should we trust any public official or institution with the authority to spend 24,000 million dollars with no oversight or accounting.

Hence my title – we really Paying the Devil.

cl-bailout-timeline