Disclosure Today seeking answers from Central Bank on Clico

The letter was cosigned by Afra Raymond and David Walker and sent by email to the governor.

Raymond and Walker say that so far they have neither received an acknowledgement nor any response and so they decided to deliver the letter by hand.

In the letter, they expressed their concern about the direction of the “rescue” of CLICO and its associated companies after more than eight years under the control of the bank and government.

They also expressed concerns about the legality of the ongoing control of the institutions being maintained by the bank and any “untoward consequences” arising from that extended control and the inordinate delay in returning billions of dollars to taxpayers and its impact on economic decision making.

Raymond and Walker also questioned some ministerial statements which, they say, appear to be at odds with the stated goals of the “rescue” as set out in the Central Bank Act. They want to know whether the bank considers the principals of CLICO and its associated companies, British-American Insurance Company; Caribbean Money Market Brokers and Clico Investment Bank, to be fit and proper persons.

They said the bank has a duty to enforce its regulations to ensure the stability of the financial system by disqualifying unfit and improper people from acting as directors, officers, actuaries and controlling shareholders in financial institutions.

Raymond and Walker said the bank issued a press release on June 7, 2011 advising of its lawsuit against Lawrence Duprey, Andre Monteil and others after certain forensic investigations. They said since the bank arrived at that position over five years ago, it is “entirely unacceptable” that no action seems to have been taken to have the responsible parties declared unfit under the fit and proper regulations.

“Is it the case that such action is still in progress or is it that the clear view as then articulated is no longer the official position? Either way, in the light of previous statements, what is the Central Bank’s current position on the matter?” The letter writers point to sections of Section 44 of the Central Bank Act which stipulate the conditions under which the bank may retain control of an institution, questioning whether “given the removal of the risk of contagion and the stated solvency of the Statutory Fund, does the Act not now require (and) demand that control be relinquished? Given that the former governor of the Central Bank and other officers have made statements to the effect that the Statutory Fund is now in surplus and that the company is no longer in deficit, is it not now mandatory that the Section 44 control be relinquished?”