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Proposed action may be blackmail

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Prime Minister Kamla Persad-Bissessar yesterday accused Clico Policyholders Group chairman Peter Permell of attempting to blackmail her Government on the issue of outstanding payments to former Clico policyholders.

She made the statement during a luncheon roundtable organised by the Powerful Ladies of T&T (Plott) at the T&T Chamber of Commerce, Westmoorings, yesterday, after Permell reiterated the group’s plan to withhold their support for the People’s Partnership and asked what her Government’s plan was regarding the matter. 

A statement issued previously by Permell, following a policyholders’ meeting on August 16, had noted that they had moved a resolution calling on the Government to pay the remaining balance due on their contractual entitlements from the Clico Statutory Fund. Barring this, the group said it would be forced to withhold its support for the PP in the September 7 general elections. 

Permell was the second speaker to pose a question when the forum was opened up for questions from the crowd yesterday. When he took to the microphone he reminded Persad-Bissessar of the resolution passed and of policyholders’ intention to withhold their support “until such time that our payments are made with respect to Clico.” 

He noted too that the group had given the Government until yesterday to respond to that ultimatum.

In response, by which time Permell had already returned to his seat, Persad-Bissessar said she shared his concern for the policyholders, but noted that “your comment that you would withhold your support may be seen as blackmail by some.”

There was applause from the audience.

Persad-Bissessar then said that Government “will act according to the law of the country and in fairness of justice.”

She then asked Finance and the Economy Minister Larry Howai, who was also present, to respond in more detail on the issue of outstanding payment to the policyholders.

Howai told Permell his position to seek the outstanding money for the policyholders was a reasonable one. He added, however, that Permell had indicated that “any payments which would be made should not come from the Exchequer and that it should come out of the statutory fund of Clico.”

Howai said he personally shared that position and the sub-committee of the Cabinet—the Financial and General Purposes Committee—was also in agreement with the position too.

But the minister noted that certain additional information with respect to the Statutory Fund was being sought. He said he was not aware of yesterday’s ultimatum, adding that he expected the matter to be advanced next week.

“Once we are clear on what our position is with respect to the ability of the funds to meet the required payments that you have asked for, then certainly we will put the arrangements in place.”

In a release issued later yesterday, however, Permell said the PM’s comment was unfortunate.

“I believe that use of the word “blackmail” by the Prime Minister, in response to the resolution of the “assenting” policyholders passed last Sunday to withhold their support for the PP Government until such time that they are paid their own hard-earned money, is most unfortunate and regrettable. 

“And it is certainly not the way you win back their support. In fact, it is somewhat reminiscent of the “take it or leave it” remark in relation to the zero-interest government bonds that was made some years ago. 

“However, personally, I have already forgiven the Prime Minister, since I am persuaded that she may have been caught off-guard by the candor and robustness of my question and therefore probably misspoke or was trying to be facetious.

“The bottom-line is that the Clico ‘assenting’ policyholders are neither fazed nor daunted by the remark, since you simply can’t blackmail someone to get back something that rightfully belongs to you.” 

More info

Clico collapsed in 2009 and was the beneficiary of a bailout, that has been estimated at $25 billion, initiated by the former PNM government. 

In March this year, the Central Bank announced that it was starting to repay Clico’s creditors and made a cash payment of $4 billion to the Government. 

That was part of $7 billion allocated to be paid to the Government in the first distribution of Clico fund. The balance of the $7 billion is supposed to come from the transfer of Clico shares in Angostura, CL World Brands and Home Construction Ltd. 

But although the Government recently announced that Clico had become solvent again and had managed to repay most of its debt to the state, the policyholders, who number some 15,000-plus, are still awaiting full payment.


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