Gov’t overstepping bounds at Clico, says former CEO

These instructions, according to Dacon, are to dispose of assets — particularly HCL sharespledged to the CLICO policy holders statutory fund without first securing the necessary actuarial valuations.

Dacon, in a statement issued on Saturday, suggests that board members are uncomfortable with this and has even reportedly triggered at least three resignations. But this could not be confirmed by Newsday up to press time even through Finance Minister Colm Imbert who would only say, “The term of office of the present CLICO Board, appointed under the tenure of the previous administration, is coming to an end.

That is all.

Boards do not continue forever.

They have an expiry date. I am advised that a new board will be put in place by the Central Bank shortly.” Dacon said, “Under our laws and regulations, assets pledged to the policyholders statutory fund cannot be removed without first obtaining an actuarial valuation that says the fund will still be in surplus after the removal.” He questioned the legality of any such instructions to the Central Bank appointees to the board, adding that this is what has triggered the reported resignations.

“If there is gross negligence in the performance of their (the government’s) duty, or what lawyers call malfeasance, people appointed could be held personally liable for damages.” He argued this is “a criminal issue” to which Newsday, on Sunday, asked Dacon if Duprey intends to take legal action.

“Ultimately that will come but the first action is to re-take control of CL Financial; the holding company that owns 51 percent of CLICO.

Then, from within CL Financial, we are going to claim (sue) for all the damage, all the destruction that Government has brought upon this company.” Dacon told Newsday the majority shareholder would pay back what Government spent since the 2009 bail-out of CLICO, before resuming management of the company, with regulation by the Central Bank.

“The company should be returned to the shareholders and the action of shareholders should be regulated by the Central Bank.

“The Central Bank should no longer be holding on to CLICO.

According to its own laws, the Central Bank should release Clico to its shareholders and regulate and supervise their (shareholders) activities.” Lamenting that it was always an “accident in waiting” to appoint a regulator (Central Bank) to run an operation (CLICO) it regulates, Dacon theorised that while the Central Bank has not answered questions on the legal basis for its continued control of Clico, “perhaps these resignations are an indirect answer.” “Whatever has been paid, will be repaid fully and will be paid with interest.

More than $6.5 billion has already been repaid to the Ministry of Finance. More money has been taken out of CLICO by the Government than they’ve actually put in (by way of the bailout),” Dacon claimed.

Contacted on Sunday, Central Bank Senior Manager (Industrial and External Relations) Nicole Crooks, said she was at a function and requested we send our questions to her via email.

Queries were emailed and up to press time yesterday, no response was received.