Corbin calls for detailed framework for paying CLICO policyholders

May 22, 2010 News

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Leader of the Peoples National Congress Reform, Robert Corbin, has challenged President Bharrat Jagdeo’s position that nothing can be done at Colonial Life Insurance Company (Guyana) because of the pending court case.
Corbin made the declaration during his party’s weekly press briefing yesterday. He stated that the court matter does not preclude the government from “telling the nation how they are preparing to honour their guarantee,” adding that this guarantee was ratified in the National Assembly.
Corbin said that the Members of Parliament were told of receiving money from Venezuela for the repayment and that the money was in an account at the Bank of Guyana but a check by his party failed to locate that money.
“We could find no trace of the money…One needs to get information…The fact that it is before the court does not prevent the government from being transparent.”
Corbin wants the administration to inform the nation about the National Insurance Scheme’s investment as well as the millions of dollars invested by policyholders. The nation needs to know who were the beneficiaries following the purchase of the bonds in the Berbice Bridge.
Corbin said that the news that the Liquidator of CLICO (Bahamas) has rejected almost US$34M worth of claims made against the insolvent insurer by its affiliate in Guyana comes as no surprise.
He said that information on irregularities with respect to money from CLICO (Guyana) being transmitted directly to purchase real estate in Florida was in the public domain since the Company filed for liquidation.
This, he said, required a full investigation to determine if any illegality was involved and who was culpable.
Corbin said that the report of the CLICO Bahamas Liquidator is therefore significant when he stated that his “preliminary view of the documentation suggests that policies were never issued by [CLICO Bahamas]. Moreover, the premiums received by Guyana and Suriname were never paid to [CLICO Bahamas].
…. “It appears that the funds were remitted directly to a bank account held in the name of [CLICO Bahamas] at Ocean Bank, Miami, Florida, and to another account held by the company in Trinidad.”
Corbin posited that the ruling administration has been resisting any attempt to have an investigation done at CLICO (Guyana).
He drew reference to the previous call by his party to hold an urgent and impartial inquiry into the CLICO matters, including the disbursement of the funds obtained from the sale of the Bonds held by CLICO in the Berbice River Bridge Company.
“It was not the first such call…the Leader of the Opposition moved a Motion for the adjournment of the National Assembly to discuss a matter of urgent public business, to wit, the debacle at CLICO…The Speaker disallowed that Motion, on the grounds that the matter was before the courts.”
He said that this does not, however, prevent President Jagdeo from causing such an investigation to take place, with the very terms of reference identified at that time by the Leader of the Opposition.
Corbin said that among the terms of reference in that call was to, “examine whether there was any breach of fiduciary duty to policyholders, depositors and/or shareholders, on the part of the management or any particular official of CLICO (Guyana), in the management of the Company’s affairs, that contributed to the present financial state of the Company; to examine whether there was any malfeasance, irregularity and or misconduct by any official of CLICO (Guyana) in the recent management of the Company; more particularly, to determine whether there were related party dealings and/or the misuse of insider information which led to the speedy dissipation of the $2.6B received by CLICO (Guyana) from the sale of its Bonds in the Berbice River Bridge and to identify the beneficiaries if any; 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.”
Corbin said that to date, several questions about CLICO (Guyana) remain unanswered and the Jagdeo Administration must take full responsibility.
“The Bahamas Liquidator has already signalled his intention to call on the US$58 million guarantee its Trinidadian parent made to it, to cover any shortfall in sums due to policyholders and creditors.”
Corbin stressed that Guyana is not included in that guarantee, but it was President Jagdeo who on repeated occasions gave the assurance to all Guyanese that no one will lose any money from the CLICO debacle.
“The latest development in the Bahamas signals the urgency for the Guyana Government to make a reality of their guarantee and provide a timeline for repayment to CLICO policyholders and depositors the moneys due to them by CLICO.”
Corbin stressed that thousands of policyholders were assured that not a single cent would have been lost.
“The Government reported receiving millions of dollars from several sources to pay the money due to policyholders, including, US$15M from the CARICOM Petroleum Fund.”

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