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Govt. promises criminal probe into CLICO, Globe Trust
Head of State Bharrat Jagdeo making a point.
Head of State Bharrat Jagdeo yesterday told media operatives that despite the fact that no criminality has been discovered at Colonial Life Insurance Company (CLICO) Guyana, so far, he is prepared to have a criminal investigation facilitated.
He noted that he will also ask that the motion calling for an investigation into CLICO by Leader of the Opposition, Robert Corbin, be amended to extend the investigation to Globe Trust and Investment Company Limited (GTICL).
He said that he has already told his Ministers to support the motion.
In Corbin’s motion he is seeking to have the National Assembly call for a Commission of Inquiry to determine whether there were related party dealings and/or the misuse of insider information that led to the speedy dissipation of the money received by Colonial Life Insurance Company (CLICO) Guyana from the sale of its bonds in the Berbice River Bridge and identify the beneficiaries.
This motion is scheduled to come up for debate in the National Assembly, soon.
The motion submitted by Corbin is also seeking to have the House cause the Commission of Inquiry to determine whether there was any irregularity and/or malfeasance in the use of money invested/entrusted by the National Insurance Scheme in CLICO (Guyana) and to present the details of all transactions involving NIS funds.
There is also a call for the House to request the President and the Government of Guyana to establish a separate Commission of Inquiry, into the investments made by NIS, with terms of reference which include the investigation of all investments made with NIS funds, with a view to determining if there was any malfeasance or irregularity and to determine whether all decisions, on the investment of NIS funds, were approved by the duly appointed Board.
As it relates to the report that was presented to the High Court, Jagdeo said that he was optimistic that much more of the assets could be recovered, contrary to the pronouncements.
According to the President, the media reported what was proffered as the worst-case scenario. A lot of the investment properties were placed at 75 per cent of their current value in the best-case scenario and at 50 per cent in the worst-case scenario.
He noted that in the investments in groups “they are suggesting that only $401M of the $2.1B could be recovered. We think much more can be recovered.”
As it relates to the $922M owed to CLICO (Trinidad) that money will not be paid.
“I urge you to read it (three scenarios presented) as a range and not an absolute figure.”
He also stated that out of the petroleum fund that is set aside for OECS (Organisation of Eastern Caribbean States), he is seeking to acquire some money from there to assist in covering some of the liabilities, given that it was agreed that the CLICO fiasco is a regional problem.
He noted also that the company will also seek to garnish the funds held by BOSAI for the CL Financial group.
He pointed also to the funds owed by Caribbean Resources Limited. If the company was sold then he was confident that the entire sum of $2B would be recovered, given that attached to that company is a timber sale agreement, which is valuable.
“I am not going to be pessimistic and go cry into a corner.” The president also noted that lawyers are currently in The Bahamas seeking to ensure the correct classification of Guyana’s investment there so that it could be repaid.
Commenting on the rational behind his guarantee to policyholders, the President said that there was a need to ensure that there was no loss of confidence in the system.
The majority of the liability of CLICO Guyana was for pension funds. “These are people’s money…it’s a lot of pension money.”
The President admitted that when a person invests anywhere it comes with a risk of losing but, “When you are dealing with people who have saved all of their lives and have their pension…the luxury is not mine to just walk away from them…anybody else can afford to do that but not a government.”
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