The new shareholders' agreement between CL Financial and the Government is in the final stages of negotiation and is expected to be finalised and signed by the end of February, officials told the Business Guardian on Tuesday.
Declining to reveal the amount of money being discussed, the officials would only say the new agreement would indicate the timeframe in which all matters would be settled.
One official, who is involved in the final resolution, refused to confirm or deny claims that Clico has enough cash to settle outstanding claims to policyholders who did not accept, or were not offered, the combination of cash, zero-coupon bonds and units in the Clico Investment Fund that most policyholders accepted in 2011 and 2012.
About 900 policyholders, who are owed an estimated $1 billion, did not take or were not offered the original settlement.
The official said it was not "entirely correct to say Clico has money, as they also have liabilities which need to be settled."
Referring to government's intervention, the officials agreed that the estimated $10 billion that the Government has already paid to policyholders, needed to be repaid.
"Just like the policyholders who are awaiting payment so, too, government is also awaiting payment," one official said.
In an attempt to get answers, the United Policyholders Group intends to pressure Finance Minister Larry Howai and officials of CL Financial and Clico into revealing the true financial status of those companies.
The group comprises the 350 policyholders represented by attorney Ramesh Lawrence Maharaj, private individuals who retained policies based on government's promise to honour them, and former company officials who were barred from cashing in their various policies.
The group said it intends to ask Minister Howai and other Clico officials to provide a breakdown of the company's assets and the total value; list what assets were sold and how much was received for it and when; what the proceeds of those asset sales were used for and where those monies are; what assets are remaining and their total value; and explain what criteria will be used to sell the remaining assets.
Declaring that "it was time the public, policyholders and taxpayers are told what's really happening behind the scenes," several of the policyholders said they had not been provided with any financial statements since government assumed control in 2009.
"There have been no financial reports produced for CL Financial for 2009 to 2014, but the board is making decisions such as selling off assets without informing policyholders, shareholders and taxpayers," one policyholder said.
Questioning why policyholders were being held to ransom by government, while creditors were receiving 100 per cent of their money back including interest, the united group said the time had come for "transparency and accountability."
At a press conference two weeks ago at Gaston Court, Chaguanas, Maharaj claimed that Clico had $17 billion in cash; and that it was an estimated $1.7 billion that was needed to settle all outstanding claims.
Confirming this on Tuesday, a former official produced a copy of an Ernst & Young median valuation which was done in 2013, which stated that Clico had over $9.9 billion in cash and cash instruments.
The ex-official also claimed that when Methanol Holdings was sold, those proceeds went to CL Financial.
That was estimated at approximately US$1.175 billion or $7.5 billion.
Adding that Clico has continued to receive dividends and conduct business as usual, another official estimated that the company's cash reserves now stood at $20 billion.
Several policyholders said they have been told by company officials that they would not be paid unless the Central Bank issues a directive via the Ministry of Finance; hence their renewed call for Howai to provide an update on the company's financial standing.
Meanwhile, well-placed sources on Tuesday sought to assure the policyholders that a new agreement was currently being finalised, which would soon bring a resolution to the outstanding issues.
Maharaj appeals court ruling
During the press conference, Maharaj revealed that he had filed an appeal before the Privy Council; challenging the Court of Appeal's ruling in government's favour.
Maharaj claimed the Court of Appeal erred in several areas including allowing government to withdraw its concession that the policyholders had legitimate expectations based on promises made by the previous government; that the promises made by the last administration were not clear; that government was justified in breaching the legitimate expectations of the policyholders; that there was sufficient overriding public interest to justify government departing from any legitimate expectation; and their ignorance of the judge's finding of fact and their failure to explain why it did this.
Sections 37 and 80 and of the Insurance Act speaks to a statutory fund which compels the governme.nt of the day, to ensure that an insurance company has sufficient assets or money in that fund, so that the policyholder would not suffer in the event that the company goes into liquidation.
Maharaj said when the former People's National Movement administration recognised that Clico and CL Financial were experiencing financial difficulties, the Finance Minister at the time made an open statement, promising policyholders not to remove their monies and investments - as they would guarantee its return.
Maharaj said based on the announcement and because they believed the government guarantee could be relied upon, they did not withdraw their money.
Contacted last week, Maharaj again declared his support for the policyholders whom he said, were only fighting for what "rightfully belongs to them."