Offers
for Clico
operations

A LOCAL MORTGAGE COMPANY seems set to take over the operations of CLICO Mortgage Finance Company.

And four more bids have been made to the Oversight Committee in relation to the other operations of CLICO Barbados Ltd.

Prime Minister David Thompson disclosed yesterday that a "serious offer was on the table" which would see the absorption of CLICO's mortgage's portfolio into another mortgage company here.

He made the announcement in the House of Assembly as he introduced the Financial Institutions (Amendment) Bill 2009 to widen the definition of "banking business" and related matters.

The Prime Minister said the Oversight Committee, which was set up by Government to supervise the sales and major expenditures of CLICO Holdings' financial subsidiaries, had accepted bids.

"It is attractive enough to get bids," he said, pointing out that Bahamas had followed the Barbados model and was also selling CLICO's operations there.

He reiterated that CLICO had not been put under judicial management.

"If there was ever a time that CLICO should have been put under judicial management, it was in 2004 when the deficit in the statutory fund was first discovered," he suggested.

He charged that only one country in the Caribbean had put CLICO under judicial management, pointing out that it resulted in dire consequences.

Thompson further explained that Trinidad and Tobago had not placed their CLICO operations under judicial management, but had signed a Memorandum of Understanding.

"People lost their jobs in Trinidad, but in Barbados not a single job has been lost - the business is still operating and all claims have been honoured.

"There has been no bailout by the Government and the extent of our involvement is to have a Memorandum of Understanding in relation to the oversight of the sale only of the supervised assets".

He said Government had given no undertaking in the MOU.

"What we have been giving undertakings on is that the Barbados operations will meet all of its legitimate obligations in Barbados and the Eastern Caribbean," Thompson said.

The Prime Minister added that if Government had to look for a sum of money to bail out CLICO Barbados, it would be a significant sum.

And he assured that the injunction registered in Trinidad would not be registered in Barbados.

"Our first commitment is not to any individual in CLICO. It is to the 1 500 jobs and the 1 500 people who are still working and the people who have pension funds," he said.

In addition, he said, the only correspondence he had received in respect of CLICO was from "people living in the islands" asking Barbados to intervene and assist them in getting their money from the Trinidad operation.

He said Government had realised how severe the situation was and that was why it had placed $10 million into the regional fund. (MB)