AN INVESTIGATION WILL BE LAUNCHED INTO THE COLLPASE OF CLICO (GUYANA)

Jun 13, 2011 Features / Columnists, Peeping Tom

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The collapse of CLICO (Guyana) is not going to be an election issue. The government of Guyana put paid to any attempts to use that issue as a vote- catcher when it guaranteed that no one was going to lose their investments in the liquidated insurance conglomerate.
But while the government has effectively deflected criticism of its handling of the matter, it has failed to bring closure to the many concerns surrounding how large sums of money invested in CLICO (Guyana) could have found its way outside of Guyana, in violation of the provisions of the Insurance Act.
The CLICO issue will not win any votes for the opposition this time around but there will be demands for any new government to bring closure to this matter and to offer explanations as to just what happened, who was responsible and what can be done in the future to ensure that the same thing does not reoccur.
If by some miracle the PNCR wins the next election, it will most certainly launch an investigation. The same thing is likely to happen if the AFC secures victory at the polls.
These parties are likely to see political gains from investigating why the company collapsed, if government officials were in any way involved in the movement of sums to the Bahamas, if insider information leaked to select shareholders that allowed them to bail out in time before the collapse, and if there was any negligence or mistakes made in relation to the administration of the insurance act. If any of the opposition parties wins the next election, the chickens will come home to roost. That much is certain.
The government on the other hand seems unwilling to get to the bottom of this matter. But this has also been the case with other matters. It is grossly unsatisfactory that Guyana should have reached the stage whereby some of the most unthinkable acts have occurred on our shores, including three mass massacres, the controversial collapse of a major player in the financial sector, a sustained crime wave that cost hundreds of lives, and number of other atrocities- all of which have occurred under the watch of one single President- and yet there has never been an inquiry into these acts. There have been massive financial scandals in Guyana and no Commission of Inquiry. The country six years ago suffered its worst disaster and yet no Commission of Inquiry. I guess when you have a superman you do not need such things.
As this is being written, there has been a jailbreak and already an inquiry has been launched. There were other jailbreaks in the past, including one that precipitated a deadly crime wave. And it needs to be asked again just who was held accountable for these incidents. It makes no sense for remedial action to be taken after the fact, unless persons are also held accountable for what took place.
It does not take a detailed examination of history to indicate that merely addressing problems after the fact does not reduce the possibility of a similar thing happening in the future. However, if persons within the administration of the Prison Service are held accountable for not ensuring better security, this along with the other remedial work will certainly ensure that improved standards occur.
One of the serious shortcomings of all administrations in Guyana but particularly the PPP administration, has been its reluctance to hold public officials accountable for their actions.
And really what is at the heart of the concerns of those who wish to see an inquiry into the collapse of CLICO (Guyana)? It is true that there are forces who wish to see somebody be made an example for the collapse of the insurance company, and better yet if that person is a close associate of the government. But the issue of an inquiry is not just about getting someone. It is also about reminding those to whom responsibility is entrusted that they will be held accountable for their failures, just as how they would expect to be rewarded for their successes.
It is the principle rather than the personality that is on trial whenever inquiries are launched. In the case of CLICO, there may be an expectation that since the PPP is likely to sweep the polls this year that there will never be an inquiry into CLICO.
A surprise may be in store because no matter how much any new administration may wish to put the problems of the past behind it, unfolding events in Trinidad over CLICO will now make it impossible for any incoming administration to avoid a full-scale inquiry.
It must not be forgotten that the Trinidad government bailed out Guyana and it is Trinidad’s money that is paying the shareholders of CLICO (Guyana). The Trinidadians will want answers too about what went wrong in this part of the CLICO empire, and they will sooner rather than later impress on whoever wins this year’s election in Guyana about the need to contribute to the fuller picture of the debacle of this Caribbean Financial giant called CLICO.
Even if they do not, details about what took place in CLOCO (Guyana) is going to form part of the court case that has just been initiated. We are in for interesting times ahead and it is unlikely that any new President would wish to have the CLICO controversy shadowing his every move.

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