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Appeal Court halts payout of US$13M by CLICO (Guyana) to Trinidad companies
The Court of Appeal has halted the payout of US$13M (approximately GYD$2.795 billion) to three Trinidad and Tobago companies, namely CL Financial Limited, First Citizen Bank and CLICO Investment Bank Limited (CIB).
Last June, High Court Judge Navindra Singh ordered Governor of the Bank of Guyana, Dr. Gobin Ganga, in his capacity as Liquidator of CLICO Life and General Insurance Company (South America) Limited, to transfer the cash which is being held by the Registrar of Deeds pursuant to a court order made back in 2009 by the late Chief Justice Ian Chang.
Following Justice Singh’s order, Dr. Ganga through lawyers, Senior Counsel Ashton Chase and Pauline Chase, lodged an appeal with the Court of Appeal where they also petitioned for a stay of execution to be granted against the judge’s order. Kaieteur News understands that the stay of execution which was recently granted is in effect for three months.
In a Writ of Summons, the lawyers had asked the Court of Appeal to stay Justice Singh’s order until the hearing and determination of the appeal. CLICO had also sought an injunction restraining the Respondents, their servants and/or agents from uplifting from the Registrar of Deeds the sums held pursuant to an order made by the late Chief Justice Chang on March 24, 2009, and such further and other order as the court deems fit.
CLICO also wanted another injunction restraining the Registrar of Deeds from disbursing and/or transferring and/or paying the sum to the three companies.
CL Financial Limited was the largest privately owned conglomerate in Trinidad and Tobago and one of the largest privately held corporations in the entire Caribbean, before the company encountered a major liquidity crisis and subsequent bailout in 2009, says Wikipedia. As it is, CL Financial Limited owes CLICO (South America) US$34M pursuant to a court order handed down by Justice Gino Persaud.
CLICO suffered loss and damages to the tune of US$34M after CL Financial Limited unlawful directions and instructions to transfer the said sum to CLICO (Bahamas), which collapsed in 2009, along with CLICO and CL Financial Limited. Based on information, CL Financial Limited instructed that the millions of US dollars be transferred from CLICO (South America) to CLICO (Bahamas).
According to court documents seen by Kaieteur News, the over US$13M was due under certain debentures. CLICO laid claim to the monies following the collapse of CL Financial Limited and resulting crisis. However, Justice Singh struck out the Writ and Statement of Claim of CLICO, laying claim to the aforementioned sum.
The judge also discharged the injunction under which the US$13 was being held. CL Financial Limited is also under liquidation.
As a result, Dr. Ganga argues that this represents a greater danger in the circumstances that the sums would be irrecoverable should they be dissipated prior to the hearing and determination of the appeal as CL Financial Limited has not honoured its financial obligations to (CLICO South America).
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