Latest update January 1st, 2025 1:00 AM
Latest News
Taxpayers will ultimately have to foot the bill – Corbin
Robert Corbin
Leader of the People’s National Congress Reform, Robert Corbin says that taxpayers will ultimately have to foot the bill of the guarantee to policy holders at Colonial Life Insurance Company (CLICO) Guyana.
The PNCR Leader was speaking, yesterday, at his party’s weekly press briefing held at Congress Place, Sophia.
As such Guyanese have a right to know exactly what transpired within the company.
He noted that there were several questions that needed to be answered.
One of them concerns what prompted that $1.6B withdrawal just in the nick of time.
The PNCR leader said that there needs to be an investigation into the actions of the company to see if inside information caused the withdrawal.
He added also that there must be an investigation into the dealing of the directors and their affairs to see if at anytime they were not effectively addressing the interests of policy holders. If not they should be held accountable.
Alliance for Change Leader, Raphael Trotman, prior to the CLICO debate, had called for an independent investigation into whether the company was allowed to flout the law following the recommendations from the Commissioner of Insurance more than a year ago that it repatriate investments above the stipulated limit from abroad.
According to Trotman, the nation needs to know the answers to the apparent inefficiency by the regulator to have CLICO flout the law for such an extended period of time.
“Was it deliberate?” Trotman questioned.
During the debate he pointed out that there is also the pointed question of whether there was any abuse of insider information, which allowed a select few to withdraw their money from CLICO prior to the move by Government.
CLICO (Guyana) sold its shares in the Berbice River Bridge to New Building Society prior to the move to the Courts for Judicial Management by the Commissioner of Insurance.
It was explained that the move came as depositors were making a rush to collect their money from CLICO (Guyana) following reports that the parent company, CL Financial, as well as the various CLICO assets in the Caribbean, was being frozen or divested.
The problem of liquidity thus forced CLICO (Guyana) to move to dispose of some of its short-term assets to satisfy the need for immediate cash.
Withdrawals by policyholders between the sale and the move to the courts amounted to about $1.4B.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
Guyana recorded over 10 000 dengue cases in 2024
Kaieteur News- Guyana recorded just over 10,000 dengue cases in 2024, Health Minister Dr. Frank Anthony revealed during an... more
Breaking the Chains of Poverty: A need for political will
By Sir Ronald Sanders Kaieteur News- The year 2024 has underscored a grim reality: poverty continues to be an unyielding... more
Weekend Cartoon
