Stakeholders: Open Clico bailout accounts

Members of the alliance were astonished, Heeraman said, as Finance Minister Colm Imbert, during the mid year review of the budget on Wednesday, “spoke about the increase in the CLF debt, when shareholders of the company have played no role in this colossal mismanagement of a private company for almost nine years.” Imbert’s announcement that CLF owes Government $27.7 billion, he said, “means that Mr Imbert and his agents have attached a dollar value to every conceivable adverse probability that can possibly occur as a result of the ‘bail out’ and is now demanding actual payment by the shareholders through the sale of its assets for these contingencies.” “It is time Mr Imbert opens the accounts of the bailout.” He questioned how it was possible for the company to run up such a huge bill under Government’s control while not engaging in most of its primary business functions.

He questioned also $3.2 billion for “funding costs, advisor fees and other costs”.

“It appears that no one was seeking shareholders, policyholders and taxpayers interest,” he said, and it “also appears that CLF has clearly become the newest feeding ground under Government control.” Shareholders have confirmed through independent auditors, he said, that the total debt CLF owes Government is about $19.34 billion inclusive of claims that may be brought against Clico Investment Bank.

He said, Imbert did not mention that Government has received a payment of $6.8 billion towards monies owed, and repayment from the sale of Methanol Holding.

Imbert also did not mention, he said, “what happened to the $6 billion missing from the Clico statutory fund.” Government is incapable of managing private companies that require strict financial and management control, he said.

Imbert continues to speak, he said, of transferring the traditional portfolio of Clico even after “the dismal failure of Project Sparrow”. Project Sparrow was the name Government gave for selling Clico’s insurance portfolio. “The minister should now tell the nation how many millions were wasted on this venture,” he said.

The alliance is also concerned, he said, about Government selling off CLF’s assets without consultation and approval of shareholders.

The sale was being done, he said, with disregard for rules and procedures established in the original agreement between Government and owners of CLF, and in the absence of no renewed shareholder’s agreement.