To Barbadians who do not have insurance policies with CLICO International Life (CIL), the revelations emanating from the judicial manager’s forensic audit are more tragic twists in the ongoing saga of this once powerful conglomerate.
We can shake our heads in disbelief at how the money of trusting people was misused with little regard for transparency and accountability by a company one would have expected better from.
And I thank God that I never put a cent of my hard-earned cash into anything that company was selling.
But for the 27 000 CIL policyholders who did invest, this heart-rending public drama is their reality.
This sad, sordid story on CIL is not only a disillusioning tale about bad management of a multimillion-dollar entity, a lack of stringent regulation by the appropriate Government agencies, questionable money deals by prominent individuals and, now, posturing by politicians from both parties instead of a bipartisan approach to plug the legislative holes this tragic episode was allowed to slip through.
Rather, this affair is about people and how they have been disadvantaged. In the last few weeks I have encountered some of these individuals and today will share some of their stories.
Following a column I did last month I was contacted by a woman who explained how she returned to Barbados after living overseas for more than 30 years. She had a personal accumulation of about $300 000 and with a child preparing to return overseas to study, and her not being able to get a job here, she put her lifetime savings in a fixed deposit with CIL as that company offered the highest interest rate.
“I made a deposit with a reputable company with a guarantee that I would get my money back with more interest,” she said.
Today this woman is in her early 50s, still unemployed and admitted that sometimes she does not know where she will get money from to just buy food. She owes everyone money, and her child, now overseas, is struggling as she cannot support him as planned. Her CIL policy has long matured but she cannot get any of her money.
Another woman related her story: “In 2004, I wanted to find a no- to low-risk home for my life savings so that I could either convert them into an annuity, or take the cash and decide how best to ensure my continuing financial stability. I was introduced to a CLICO agent, who offered me a ten-year plan which served the purpose well. After eight years, I could even take out my savings plus interest with no penalties, or convert the accumulated amount into an annuity.
“Being in receipt of a pension, I set aside enough savings for additional expenses during those eight years. At the time, interest rates were around 4.5 per cent, so contrary to popular belief, the interest rate for a ten-year savings plan of 6.5 per cent was not that outstanding, and was not even guaranteed for the entire period.
“However, I looked at CLICO’s history and its sheer size and regional presence, and when I asked around, comments included the perhaps prophetic, “it is as safe as it gets. If CLICO goes down, Barbados goes down”.
“Now I have had to borrow money and run up debt and may have to sell my house in order not to face my final years in misery.”
The third is a 55-year-old female who now finds herself working late-night hours for a minimum wage just to survive.
This mother of three married early but literally had to run from her abusive husband. She said: “I was not 30 yet, with three children who the court had awarded me sole custody of. Both my parents were dead, and I wanted no contact with my ex – therefore no support.
“I worked hard for many years; I held two jobs, 8 a.m. to 4 p.m. at my day job, then 6 p.m. until at my night job. This was necessary in order to support my children.
“Later I was in a long-time relationship, and after about ten years of living together I decided to go after my dream of owning my own home. I secured a mortgage from CLICO, paid all the fees myself, and moved into my dream home. Two years later, because my partner did not live up to his commitments, I could not continue to make the mortgage payments alone. CLICO did not hesitate to take my home.
“In 2008 and in my own business, my trusted insurance agent suggested it would be better to transfer my pension to CLICO. This I did, and in September 2008, a cheque was deposited with them. Exactly one week later, the news broke of CLICO’s financial situation, and from that day I have been trying to get my money.
“CLICO took my home. I have no business, just scraps left. I have sold almost everything I own to pay bills . . . all because CLICO has every cent I have slaved for for 33 years.”
