Once again another interesting document has anonymously turned up in the CPG's inbox. This time it appears to be one of the four proposals, which we understand were submitted to the Government, over the last few months, by former Clico and CL Financial Chairman, Lawrence Duprey in a bid to rescue the troubled company and make policyholders whole again. The following is just a teaser from the document:
"The fact that this great company Clico and CLF is responsible for an average of 30 per cent of GDP; and the fact that a vast number of persons are touched through the quality employment of citizens throughout T&T; the fact that we are the second largest employer after the Government of T&T; the fact that the company played a significant role in culture, independence celebrations etc the following should be followed:
That a loan should be given to the company in the region of $12 Billion to be repaid in 10 years, that the company should not be broken up, rather the entities of the company be directed to pay all profit to the state until the loan is paid off eg Let's say that our shareholding in Republic bank is 40 per cent and that in 2011 Republic Bank were to make a profit of $500 Million it would mean that 40 percent or 200 Million would be payable to the state and if viewed over a 10 year period it would mean revenue paid of at least $2 Billion. The need to appease investors and so ensure that investors are paid during their lifetime should be treated as follows:
Categories of investorsAny person 80 years and over be paid in one yearAny person 75-80 be paid in 2 years...etc."
To put the above in context, readers may recall a story published in this newspaper, on December 14, which revealed that Duprey, in a letter dated October 28 from his attorney to the Finance Minister Winston Dookeran, was concerned that bailing out Clico could drain the country's Treasury. The letter disclosed that Duprey asked the Government to give him 14 days to submit a proposal for Dookeran and the Bharath led inter-ministerial team to consider. Duprey had promised the terms would be more favourable than other proposals under consideration without any more Government money being invested. The letter also stated Duprey's advisors felt they could offer a solution that will not require any Government money although some sort of "underwriting" arrangement may be essential to put the deal together.The letter indicated Duprey has been engaged in discussions with international financiers towards putting together proposals, which should adequately address the concerns of all the stakeholders, including the policyholders, the Government and the shareholders." However, the article concluded by stating unnamed Government officials scoffed at this offering.
This was on the heels of another media house having reported on December 12 that a close associate of Duprey who requested anonymity, said "with proper management, neither the Clico policyholders nor taxpayers will have to suffer and he (Duprey) has been seeking advice from global financial experts in the UK, Paris and as far as Japan."The solution, according to him, was to bring in external financial experts, ensure that the policyholders were paid their money and salvage the once very profitable billion-dollar company.He also disclosed that four different plans were put forward by global advisers which were rejected by the Government.
Clearly, the above once again begs the question why is the Finance Minister and by extension the Government maintaining this cloak of secrecy and lack and accountability on the Clico issue? When what they should be doing is disclosing to the policyholders and the taxpayers of T&T, what is the true financial status of Clico and CLF.What are the various proposals that have been submitted thus far? And on what bases were they purportedly been rejected relative to the Dookeran zero percent over 20 years Plan?
There can be no doubt that we, taxpayers and even more so policyholders would like to see the persons who are responsible for this Clico Fiasco brought to justice and I hasten to add face the full brunt of the law. However, the Government has to get its priorities in order.The first order of business has to be honoring its sovereign guarantee to policyholders by making them whole again, at minimal or if possible no cost to the taxpayers.Accordingly, we are calling on the Government to immediately disclose the above Duprey proposal along with the other three for public scrutiny and debate.
Peter Permell
Chairman, Clico Policyholders Group