Clico Commission starts enquiry tomorrow

The Commission of Enquiry investigating the downfall of the CL Financial group and the Hindu Credit Union will hold its first sitting tomorrow at 9.30 am at the Winsure Building on Richmond Street, POS.

The sole commissioner, English Queen’s Counsel, Sir Anthony Colman, is expected to set the agenda for the enquiry, which is expected to hand in its report within six months. Colman received his commission to conduct the enquiry on November 17, 2010 from President George Maxwell Richards.

Among the terms of reference of the Commission are to enquire into:

1) the circumstances, factors, causes and reasons leading to the January 2009 intervention by the Government of the Republic of Trinidad and Tobago for the rehabilitation of Clico, Clico Investment Bank Limited, British American Insurance Company (Trinidad) Limited and Caribbean Money Market Brokers Limited (CMMB);

(2) the legal and fiscal bases which informed the decision of the Government of the Republic of Trinidad and Tobago in January, 2009 to inject capital or funding into Clico, Clico Investment Bank Limited, British American Insurance Company (Trinidad) Limited and Caribbean Money Market Brokers Limited (CMMB); how that injection of capital was structured; and what policies, procedures and processes were used in the distribution of this capital or funding;

(3) the causes, reasons and circumstances leading to the deterioration of the financial conditions of CL Financial, Clico, Clico Investment Bank Limited, British American Insurance Company (Trinidad) Limited, Caribbean Money Market Brokers Limited (CMMB) and the Hindu Credit Union which threatened the interest of depositors, investors, policyholders, creditors and shareholders of the said companies;

(4) the effectiveness or suitability of the accounting and auditing firms, the institutional, regulatory and statutory bodies with oversight responsibilities (including but not limited to the Central Bank and the Securities and Exchange Commission) governing the business and affairs of the said companies; the weaknesses, shortcomings, failures, deficiencies, breaches and omissions (if any) of the accounting and auditing firms, the institutional, regulatory and statutory bodies with oversight responsibilities (including but not limited to the Central Bank and the SEC) governing the said companies in respect of their obligations to fulfil or comply with the responsibilities and duties imposed upon them by best practices and such other institutional, regulatory and statutory framework; and the extent to which the failure or omission to fulfil or comply with such responsibilities and duties contributed to or facilitated the creation of circumstances which threatened or compromised the interests of depositors, investors, policyholders, creditors and shareholders of the said companies.