Firm stance on CLICO

Fri, February 10, 2012 - 12:00 AM

With judicial managers in Barbados and Trinidad and Tobago trying to sort out the CLICO collapse, Grenada is keeping a close eye on the court actions in Bridgetown and Port-of-Spain.

That indication came from Grenada’s Prime Minister Tillman Thomas, who told BARBADOS BUSINESS AUTHORITY that tens of millions of dollars invested in CLICO and British American by Grenadians and others in the Eastern Caribbean couldn’t be ignored in the wake of the CLICO collapse.

“We are focusing on what’s taking place in both countries. There is a judicial management team in the OECS as well,” the prime minister explained.

“There is lots of money involved in the OECS states, both British American and CLICO, and people would want to get back their money. They invested millions of dollars in both companies and they want to get back their investments so they can get involved in other things. They deserve to get some returns on it.”

Thomas said it was crucial that people in Grenada get “whatever money is due to them, not less than what they invested”.

“We are trying to work towards a solution. In recent times there were some signs with Trinidad and Tobago becoming a little more positive in its approach to a solution.

“The Grenada problem is linked to CLICO in Barbados and Trinidad and Tobago. These companies . . . had agencies working in the small islands and people invested their money in them.”

Meantime, the group representing the interests of CLICO and British American Insurance Company (BAICO) policyholders in Barbados has indicated that it will not accept anything less than every cent owed to its members. And it will head to court if it has to.

This firm stand has been taken despite Caribbean Development Bank (CDB) president Dr Warren Smith saying last week it was unlikely that all the money invested would be returned. The Barbados Investors and Policyholders Alliance (BIPA) said it remains resolute in its stance to recover it all.

That was articulated last week by chairperson June Fowler at BIPA’s first meeting this year.

“Words recently quoted in the media, including ‘unlikely’ and ‘regrettably’, are simply not in the vocabulary of the alliance,” BIPA said.

“And whilst respecting the right of the CDB president to express his opinion, Fowler reiterated that BIPA will not accept any proposed resolution to the matter which offers less than 100 per cent repayment of principal plus interest, and in a timely manner.”

BIPA members added that they were committed to using all avenues and remedies to ensure a “fully satisfactory outcome”, including via law courts.

Meantime, BIPA has asked the court to allow it to join as a co-claimant to the Judicial Management process.

The court application was first heard on January 27, followed by a further hearing on Wednesday.

The matter will come up again on Wednesday.

During the meeting, BIPA’s attorney-at-law Tariq Khan said that as a registered non-profit company solely representing the interests of the policyholders affected by the insolvency of CLICO and BAICO, BIPA was naturally concerned with the outcome of the Judicial Management process.

The Alliance therefore sought and has now received a raft of Judicial Managers’ Reports, which detail the insolvency of the said institutions and the measures taken by the Judicial Managers to date, along with other relevant details. (TB/DP)