Two groups representing Clico policyholders and shareholders are escalating action against the Central Bank and Government over their respective issues concerning the controversial insurance giant.
Members of the United Policy Holders Group (UPG), headed by Angeli Gadjadhar, will demonstrate outside the Central Bank next Wednesday, following a lack of response from the Bank on issues concerning Clico’s fate and if it will be wound up.
And the recently formed Clico Shareholders’ Association (CSA), headed by David Walker, has written the Bank, Government and Clico expressing concern about the Bank’s continued control of Clico and seeking answers on the issue.
Gadjadhar told the T&T Guardian yesterday that the group’s upcoming demonstration follows non-response from the Central Bank to a May 20 letter sent on Clico issues.
“We gave them time to respond but nothing has arisen, so we’re mobilising for next week’s demonstration,” she added.
UPG wrote the Bank and Finance Minister Colm Imbert in April and early May on its issues.
But in the May 20 letter, the UPG said the Bank’s responses to their previous letters “did not at all assist in clarifying the matters we raised previously...”
Among matters UPG took issue with was the Bank’s response on determination of residency status of policyholders.
“We remind the Central Bank that its duty to protect and act in the best interests of policyholders extends equally to all policyholders and not just those conveniently deemed T&T policyholders.”
The UPG sought answers on whether Clico is being wound up or not. “It’s our understanding that it is only in a wind up situation that T&T policyholders may take precedence in being paid over other policyholders. In any other circumstance, such as you have described in your response, all policyholders have the right to be treated equally,” the group said.
UPG also queried Clico’s current balance of cash, cash equivalents and tradable securities, adding, “Why are policyholders still waiting to be paid if the assets pledged to the statutory fund is in surplus and has been since December 2014?
“Is Clico being wound up or not? If not, why are policyholders not being allowed access to the cash value of their policies?
If it is being wound up, why has no application to the court been made?”
Gadjadhar said the UPG also expects a Privy Council judgment in the next few weeks on monies owed to UPG by Government, following court action by the group, now under appeal.
Meanwhile, CSA’s Walker, in his letter to the Bank, Finance Minister and Clico’s managing director, said, “We’re troubled by the continuing control of Clico by the Central Bank, despite the law requiring that control be relinquished in the circumstances that now prevail.”
Walker added, “We believe Section 44G(2)(a) of the Central Bank Act now applies, since the circumstances on the basis of which the Bank assumed control of the institution under Section 44D have ceased to exist.
“We’ve noted the statements of former Governor (Jwala) Rambarran as to the adequacy of the statutory fund. We further believe that any risk of contagion in the economy has long since been extinguished.
“Given your failure to relinquish control of Clico, we seek clarification and evidence that the circumstances on the basis of which the Bank assumed control of the institution under Section 44D have continued to exist. Alternatively, kindly specify on what legal basis the Central Bank chooses to ignore Section 44G(2)(a).
Given the gravity of the matter at hand and the possible dire legal consequences, please inform us whether you’ve sought and obtained learned legal counsel.”
CLF FATE IN 2017 BUDGET—IMBERT
Contacted yesterday, Finance Minister Colm Imbert, with whom the Central Bank must liaise, said the United Policy Holders Group’s issues were a matter for Central Bank, not the ministry. He also said the Clico Shareholders’ Association had raised issues with respect to the takeover by the Central Bank of Clico, “not any issue that is the ministry’s responsibility.” Imbert, however, said the fate of CL Financial will likely be detailed in the 2017 Budget, “barring unforeseen circumstances.” He denied continuing speculation that sale of some CLF assets—including Angostura—is ahead.
Imbert said, “In the mid-year review, I spoke about the sale of Clico's assets by the Central Bank, in accordance with the status reports on the Clico Resolution Plan that have been laid in Parliament on many occasions over the last several years, not CLF. In my April 8 (review) statement, I didn’t mention any sale of CLF's assets.”
On the status of ongoing talks with Clico’s Roger Duprey and other board members, Imbert said, “The CLF board is meeting and I’m told that issues are being resolved in a productive manner.” However, he said he was not “aware of any ‘moves’” on the part of CLF majority shareholder Lawrence Duprey. The latter wrote the Central Bank and Imbert in April proposing a plan for the company and seeking to regain control of it. Duprey hinted at legal action in pursuit of this. The CSA was “born” soon after.
Imbert said, “All he sent me previously was a copy of the letter that he wrote to the Central Bank about Clico. Clico is under the control of the Central Bank not the ministry, so Duprey's request was to Central Bank.”
Meanwhile, Attorney General Faris Al-Rawi said yesterday that the report by the Colman Commission of Enquiry into Clico/HCU should be in T&T by next week. He said the commission’s secretary was due to bring it to T&T.