Seasnarine Singh’s naivety will hurt CLICO policy-holders.

Sep 23, 2010 Letters

Dear Editor,
Its election season again and yes, the birds are chirping. I am not surprised at this however; the quest for power remains their driving force. After reading (SN 22-09-10), one deceptive letter stood out to me more than the others. “President has no lotus standi in the liquidation process”, Sasenarine Singh. I was much intrigued.
So much so, that I was impelled to read the Misir column referred to by Singh; (“Lest we forget the Jagdeo EPA injection”, GC, September 19, 2010). Misir said that the meeting was not the time and place for a “political power play”, but rather to reassure the policy-holders that all of their money will be repaid.
He was quite correct in that assessment. Christopher Ram had as much a right to be there as any other policy-holder, and to air his concern about his investment as a policy-holder, but nobody cared about his personal sentiments concerning Jagdeo and his government. Yes, Jagdeo is the President.
Consequently, everything he does is political, but that was not the time for a ‘political power play’ on the part of Christopher Ram.
The only concern on people’s minds at that meeting was retrieving the investments that they made in CLICO. Who headed the meeting was the least of these people’s concerns. I suspect that the President chaired the meeting because only he could give these people, the kind of assurance that the liquidator could not render; the assurance of all of their monies being returned to them. Singh mentions the “methodology for conducting liquidations”, but falls short in providing his readers with the facts of liquidation, the protocols that are observed and followed in this process.
In order to repay policy-holders, the Bank of Guyana, vis-à-vis the liquidator in this process, must, as Singh mentioned, liquidate CLICO’s assets. However, after these assets are liquidated, there is a hierarchical system of payments, and the liquidator must ensure that this hierarchy of payments is followed. What I am saying here will expose the inaccuracies in Singh’s letter, but the truth must be told, so that the people of Guyana will understand the importance and inaccuracies of President Jagdeo’s intervention in the CLICO flop.
There is only so much that Bank of Guyana can do as liquidator of CLICO’s assets. I applaud Jagdeo for intervening because without his intervention, the process of repayments would be dragged out and prolonged, the common policy-holder would be placed on the back burner for repayment.
These people would be the ones who would have to wait, first of all, for the assets to be liquidated, and secondly, for creditors and other investors to be repaid. Only after this, would policy-holders have been paid from whatever money was left back, in order to get some of what they initially invested.
What President has done here, is create a way for these people to get all of their money back. His initiative ensures that each policy-holder will be repaid every cent of their money.
The President will draw resources that are not available to the liquidator to cater for this demand. The liquidator could only act within the confines of the amount of money generated from CLICO’s assets, and in the hierarchy system of payments. Thus, there was no guarantee that a policy-holder would get 100% of their money back.
Proverbs 21:1 assures that “The heart of the King is in the hands of Lord”, I sincerely believe that people who invested in CLICO were hurt after its collapse, and got down on their knees and cried out to God for a solution.
Politics aside, the President’s direct intervention in this fiasco was absolute and necessary to effect the change policy-holders so desperately hoped for, since as liquidator, the capacity of the Bank of Guyana to do this is severely limited.
Raymond Edwards

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Seasnarine Singh’s naivety will hurt CLICO policy-holders.

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