The Government gives up on Clico. More bad news in a series for the people of T&T. After a failed Petrotrin restructuring and CAL in deep trouble again (and by the way, how any highly-subsidised air carrier can go bust is another interesting question) now it is giving up on Clico.Let's look back at some of the reasons given by both governments (the former and current) for actually rescuing Clico as a going concern:
1. Severe impact on the T&T economy and its financial market
2. Severe impact on the policyholders
3. Severe impact on T&T's pensioners due to the high amount of pensioners insured at Clico
4. Severe impact on customers overall but specifically the group health sector due to the high number of companies that insured their staff with Clico
It is only a few months ago that our Honourable Minister of Finance Larry Howai stepped in front of TV cameras, unionists and Clico staff and announced the build of a new Clico–Atrius Life. Asked for its status weeks ago he answered they are going "full steam ahead."Now it can be read Clico is to be sold out to recoup debts from CL Financial.
Now there are some questions I would like to see answered: So all those severe impacts will just disappear?What about any transparency on those deals? How can the people of T&T see proof that this proposed agreement is actually in the interest of the citizens of T&T, the stakeholders, the policyholders, the customers and vendors and the pensioners?The figures published sure don't add up and CLF Financial statements for the last years are yet to be published.
What about the Clico staff that worked without pay increase, limited benefits and without any bonus for five years while being accused and threatened for health and life? Not to forget the mess wasn't their fault.How will the existing health and life policies' and pensions' continuity be assured? Clico did not miss any claim or pension payout over the last three years despite the circumstances.
Who is really profiting off this "sweet deal" where the Government supposedly gets all money back (does it?), some CLF shareholders keep assets and continue to obtain dividends and stakeholders seems to be happy?The cost is another profitable T&T company destroyed and some hundred families on the breadline as well as insecurity regarding the policyholders, the existing traditional portfolio and its resulting claims.
Another loss will be the significant investment already made towards Atrius as there were extensive new equipment purchases, re-branding advertising campaign costs etc.Does this look like an agreement in favour of the people of T&T?Oh well, election will come...
D Hoechst