Join forces against CLICO
Sun, August 22, 2010 - 12:00 AM
Open letter to the policyholders and investors in CLICO
The Barbados Labour Party has been gravely concerned about the state of affairs at CLICO for some time. However, over the last two months the Government’s prolonged failure to take any action to protect the thousands of Barbadians who have invested in life insurance policies, pension plans and Executive Flexible Premium Annuities with the company has heightened our concern.
Your financial security has always been and continues to be paramount to us. We know that recent revelations by the Barbados Association of Retired Persons (BARP) and a letter issued by CLICO admitting its inability to honour its financial obligations have been the cause of much worry to you.
What makes your plight more critical is that the life of the Oversight Committee appointed by Government to monitor Clico’s expenditure over the last year expired two months ago on June 12, 2010. It has not been reappointed.
We know from the chairman of that committee that he had grave misgivings about payments to officers of the company and great difficulty in receiving information from the company. He said that there were only two options – winding up the company or judicial management. Neither has happened.
The Barbados Labour Party can think of no valid reason why the Government is dragging its feet on putting judicial management in place to protect you. Every other country in the Caribbean from The Bahamas in the north to Guyana in the south has done so in the interest of its nationals.
On March 15, 2010, the Prime Minister addressed Parliament and admitted for the first time that it might be necessary to place the company under judicial management.
We heard from the Governor of the Central Bank in April that the Government was committed to “a resolution of the affairs of Clico Holdings Barbados and its affiliated companies that does not result in a loss of principal to any member of the public”. Both the Prime Minister and Freundel Stuart repeated this assurance.
More recently, however, Senator Darcy Boyce admitted that the options for safeguarding your investments “have still to be discussed”.
Further, that the Government has to consider whether we should be looking out for persons who ought to have known the risks because of the moral hazard.
There is no clarity as to the Government’s position.
The end of August is fast approaching. They have put Parliament on recess until near the end of October despite our objections. There is nothing forthcoming from the Government about its plans to protect you. There is no clarity as to the Government’s position.
A clear and unequivocal statement, followed by decisive action, is needed so that you can plan your affairs with certainty.
Given the past behaviour of Clico and the Government’s neglect of your interests, the Barbados Labour Party urges you to establish your own organisation so that you may make representation to Government to have:
• CLICO placed under judicial management without delay; and
• The immediate reinstatement of the Oversight Committee until such time as judicial management becomes a reality.
The Barbados Labour Party will continue to lobby Government on your behalf as we have done from the outset of this crisis. I have an open-door policy for anyone who has been affected, since I do not believe that you have been protected by this Government in the way that you deserve. If there are any issues which concern you, please contact the Opposition’s Office at 310-5413 or at blpopposition@gmail.com.
Yours faithfully,
Mia Amor Mottley QC, MP
Leader of the Opposition,
Political Leader, Barbados Labour Party
- Editor's Choice
- Most Read Stories Today
- Red zone
- Done deal
- Cry for help in Vaughn Road
- Double blow
- Choose Good News!
- Bajans lose to Jamaica in 3 days
- Unger quenches triathlon thirst
Recent Comments
- Paul Worrell commented on ‘Gone to heaven’ together
- MIKE LINDO commented on Stoute defence of talent show
- MIKE LINDO commented on Bobby Brown reacts to Whitney's death
- Marc Menard commented on Hair row
- Bim Bum commented on Not in US!
Share your thoughts
Please sign in or register to post your comments.
Page 1 of 1 pages
In reviewing the comments of the Ms. Mottley, I wonder who she is really interested in, the policyholders and investors of Clico or her political advancement at the expence of the policyholders and investors of Clico.
1. The Heading alone seeks to establish a confrontational situation between the Clico and it’s policyholders. The result can only be increased demands on the company and further erosion of the value in the company. How can this be in my best interests?
2. I went back and read the comments of the Chairman of the Oversight Committee regarding the solutions for Clico and he did indicate that there are two solutions as stated in the article but he went further to state the preferred option. His recommendation was a separation of the the business and allow the other lines of business to continue while extending out the repayment of the EFPA’s. That seems like a sensible solution in the interest of all policyholders.
- 0
- 0
Comment Link3. I ask myself what is the benefit of judicial management to me as a pollcyholder? If the intent is to wine the company down and sell off the assets then judicial management is required but in these difficult economic times, what value would be placed on the assets of Clico. Most likely policyholders would not get back 100% but rather pennies on the dollar. However, if the intention is follow the recommendations of the Chairman of the Oversight Committee, I can’t see how judicial management will be of value.
It is also misleading to state that all countries have implemented judicial management. In fact the article should state that those countries who sought to close the company down implemented judicial management. Trinidad and Tobago has not implemented judicial management because as they have said that it is their intention for the company to continue as a going concern.
- 0
- 0
Comment LinkSo the question I ask again is whose interests Ms. Mottley is seeking? I do not believe setting up the policyholders against the company is the solution in the interest of investors and policyholders. The solution must come from Government.
I totally agree with Ms. Mottley that it is taking government to long to act and they must stop dragging their feet and bring this matter to an end in such a way that policyholders and investors are secured. It is almost two years and it is time this chapter.
- 0
- 0
Comment LinkThe DLP administration has allowed itself to be guided by friendship and not prudent management in its response to CLICO. Alibaba and his forty thieves were allowed to loot CLICO and the DLP has effectively dealt with the matter as if it is some sort of Robin Hood fiasco and they need to protect the masses ...
- 0
- 0
Comment LinkWhy is the Government not taking any action on CLICO. This company has been under judicial management in most EC states for some while, but Barbados? - nothing.
In most democratic societies certain members of CLICO management would have been called to account for their negligence and mismanagemenmy, but Barbados? - nothing.
The way the whole issue has been mishandled throughout the Caribbean has been closely observed by international businessmen, and on more than one occasion has led to Caribbean business deals being cancelled due to concerns at integrity.
- 0
- 0
Comment LinkPage 1 of 1 pages