Finance Minister Colm Imbert yesterday confirmed that he is seeking legal advice on a letter from CL Financial majority shareholder Lawrence Duprey to Central Bank and Government which proposes a plan to repay the debt from the 2009 bailout of the collapsed conglomerate.
Duprey last week said he would take legal action to block the sale of his former companies. In March, he submitted a plan to get back the remaining companies in his former conglomerate but his representatives said no reply has been received from either Government or the Central Bank.
Duprey, who has been attempting since last year to regain control of the companies, renewed his bid via a letter with the plan. Following that move, the United Policyholders Group (UPG) also began agitating on issues they have with Central Bank and Government on the matter.
Imbert said while he hasn't decided to meet with Duprey's representatives yet, he has been meeting with the United Shareholders' group (USL), headed by Roger Duprey, which represents another branch of the Duprey family. He said USL is the entity that signed various extensions to the shareholders' agreements for CL Financial and had interacted with Government on behalf of the shareholders since the original agreement with Lawrence Duprey expired in 2012.
Imbert said Duprey's latest letter referred to a March 22 letter to the Central Bank but didn't make definite proposals to the Finance Minister.
"In that context, I'm seeking advice on whether I should merely acknowledge receipt of his March letter, or respond requesting further and better particulars to better understand exactly Lawrence Duprey wants or expects the Government to do with respect to his letter to the Central Bank about Clico."
Asked Government's position on UPG shareholders' issues, Imbert said: "I have to establish whether this group represents persons who sold their policies to the Government and waived their rights to any future claims, or not. My instinct tells me they may in fact have given up their right to future claims, but this needs to be carefully checked.
"Government's focus is resolving clearly, once and for all, exactly how much money is owed by Clico and CLF and/or its subsidiaries to the Government, and most importantly, recovering the large sums of taxpayers' money that were used to bail out depositors and creditors of Clico, CIB, CLF."
The minister said he has been meeting with USL and dialogue will continue with all interested parties. Government will entertain any credible proposal to repay the money pumped into Clico and/or CLF and its subsidiaries, he added.
"We have no long term interest in running Angostura, HCL, CL World Brands, CL Marine, RBL or any of these companies, and if a win-win solution can be arrived at for all concerned that would be the best solution," he said
Yesterday, Duprey's spokesman Claudius Dacon said all branches of the family are united on Duprey's plan.
Noting an April 2015 actuaries' report on Clico showing assets totalling $22 million as at December 2014, Dacon said: "The document shows the assets meet the required liability. This means the circumstances leading to Section 44G of the Insurance Act are no longer applicable. That states Central Bank must relinquish control where the circumstances on which the Bank assumed control ceases to exist. What is the legal basis for the Central Bank's continued hold on Clico?"
Dacon said Section 44F(5) of the Insurance Act allows the Finance Minister to act and direct Central Bank to release Clico.
He asked: "Has the shareholders agreement between CL Financial and the Government been renewed? If not under what legal powers is the Government operating CL Financial?"
Imbert subsequently said: "With respect to the actuarial report of 2015, I'm advised that although the position may have improved with respect to the value of the assets in its statutory fund, Clico itself is still insolvent because it has other creditors, in addition to policyholders."