OFFICIAL CLICO THREAD

[~Vēġó~]

ah, so me getz back my money....nice!!!

[silver]

GITA PAID HERSELF $30m

STRANGE commissions, exorbitant bonuses and significant weaknesses in internal controls were the order of the day at CL Financial, former group financial director, Michael Carballo, said yesterday.

Carballo made the statement as he gave evidence for the second day at the Commission of Enquiry into the collapse of CL Financial and the Hindu Credit Union (HCU) at the Winsure Building, Richmond Street, Port of Spain, yesterday.

"There were some weaknesses in internal controls, significant weaknesses in internal controls at CL Financial," Carballo said .

"There were significant problems in terms of what we call proper segregation of duties, whereby the payee and the person approving the payment voucher under proper standards are supposed to be separate so you are supposed to have a segregation of duties so you do not have one paying themselves and this was highlighted when CL Financial had what it called a corporate oversight team," he said.

"People were preparing vouchers and paying themselves, it is hard to control situations like this whereby we have Gita Sakal controlling all banking arrangements and paying herself," Carballo said.

Sakal was the corporate secretary of CL Financial.

Carballo said a debit of US$5 million was made from CL Financial's US dollar account at Royal Bank to pay Sakal's consultancy firm, Corporate Consultants Ltd.

Sakal signed both the invoice and the bank instructions to have the funds debited, Carballo said.

CL chairman Lawrence Duprey was unaware of the US$5 million (TT$32.5m) payment to Sakal and ordered that the money be "immediately returned", Carballo said.

Sakal was paid a US$35,000 monthly salary and was entitled to a US$ 2 million annual bonus, Carballo said.

Carballo said his immediate predecessor, Andre Monteil, also sought a US$2 million consultancy fee and $194 million in commissions to help CL Financial out of its financial troubles.

CL Financial's board of directors was "outraged" that Monteil would seek such "exorbitant fee on the heels of the CL Financial seeking liquidity", Carballo said.

Carballo also told the Commission of "strange" commissions being paid during the investment in real estate projects in Florida.

Carballo said a broker named Charles Pratt told him that he was paid US$85 million on the US$300 Green Island Project.

Carballo also questioned the project management of some of the real estate projects in Florida.

"It was only after I moved to CL Financial I realised how these projects were managed, it was via an entity called DYL," Carballo said.

Carballo said DYL is an acronym for the surnames of Lawrence Duprey, John Yanopoulos and Geoffrey Leid.

"And again I wonder what is Geoffrey Leid's involvement in this especially at a time when Geoffrey Leid is a director and company secretary of an insurance company called CLICO," Carballo said.

"To my knowledge you cannot be a director and company secretary at CLICO and sneak in behind the scenes and generate significant fees on projects whereby the exact funding is coming from the same organisation that you are a director of. DYL is being funded by CLICO," he said.

Carballo is scheduled to take the witness stand today where he will be cross-examined by attorney Terrence Bharath who is representing the CLICO Policyholders Group.

(courtesy trinidad express)


THOUGH he resigned from the CL Financial Group in April 2008, former group chief financial officer L Andre Monteil continued to exert influence on the affairs of the group, long after he had turned away from the public glare of the company amid the HMB share purchase scandal.

While many had thought Monteil, Lawrence Duprey’s right-hand man, had fallen out with Duprey and did not exert the same influence on the group that he once did, the reality was, perhaps, almost the opposite.

Monteil would meet regularly with his successor, Michael Carballo, for morning coffees at the offices of Monteil’s private family firm, Stone Street Capital, to discuss the several issues relating to the group.

“I would meet with Mr Monteil on a very regular basis, have coffee and talk about the challenges facing the group,” Carballo told the Clico Commission of Inquiry yesterday. “And those meetings were normally three times a week, four times a week. At that time he was the past group CFO I had to some extent lean on some of his advice. There was always a fairly loose arrangement. He came to meetings. It was not unusual to be meeting with Mr Monteil.”

And when the time came to find a solution to the crippling liquidity problems facing the CL Financial group by January 2009, problems which stemmed from deals and practices that grew under the tenures of both Duprey and Monteil, Monteil had a plan of action to solve Clico’s woes.

The plan was this: he, or rather his company Stone Street Capital, would orchestrate a sale of Clico’s $12 billion worth of Republic Bank shares at a certain price and in exchange, CL Financial (CLF) would get cash to solve its liquidity flow problems and to pay Stone Street Capital a fee. The fee? A total of more than $206 million, made up of a US$2 million “consultancy fee” and a 1.75 percent commission–worth an estimated $194 million–for the sale.

Carballo, a man arguably caught in the middle of the real movers and shakers at CLF, objected to this proposal which Monteil put to him one morning in January 2009 at Stone Street Capital’s offices.

“Monteil suggested a sale of the 54 percent holdings in Republic Bank Limited (RBL),” Carballo said. “I indicated that given that a number of those shares were encumbered this was not going to be easy.” But he was dealing with a man of substantial influence.

“Mr Monteil further indicated to me that in quick order, he could arrange a sale of Republic Bank shares at $130 a share which would have resulted in CLF getting a significant amount of cash resources in hand, approximately $12 billion. He indicated to me that he would be a facilitator. He asked me to sign an agreement.”

Carballo stressed that the Republic Bank shares were prized, being regarded as a steady stream of dividend income because of the soundness of the institution. He rejected the proposal. But he was unaware that the top boss at CLF, Lawrence Duprey, seemed to have a very similar idea to the one Monteil had hatched.

“I was not sure if Mr Duprey was having discussions with Mr Monteil,” Carballo said. Duprey was already in talks to have the same shares swapped in a share agreement with a major international bank, he said.

But the Monteil offer would not disappear. Carballo said he later found a draft mandate letter stipulating several terms of the proposed arrangement with Stone Street Capital. Duprey advised Carballo that the only way to see if Monteil was being “serious” about the $130 per share price was to sign on.

“I immediately discussed it with Lawrence Duprey and he said he did not have any discussions with Andre Monteil,” Carballo said. But, “he felt he was not sure whether the proposal being put forward by Mr Monteil was real or not. He said the only way to see if he was serious or not was to sign the mandate.” Duprey said he wanted Monteil to handle talks with the State because Monteil had the “political connections” that would be needed. (Monteil was the treasurer of the PNM, the then ruling political party.)

The proposal made its way to the CLF board–through Duprey–at a meeting of January 27, 2009, 14 days after Duprey wrote Central Bank Governor Ewart Williams warning that the group faced liquidity problems.



“He (Duprey) informed the meeting of a plan to dispose of RBL shares and informed the meeting that Stone Street Capital, headed by former CLF group financial director Louis Andre Monteil and MG Daly–Stone Street’s recommended attorneys–was given the mandate to do this,” the board minute of that meeting notes.

“He informed the meeting that a letter to this effect was signed by himself and Michael Carballo, the present group financial director. However, when a copy was requested by the board it could not be produced.” At the meeting were: Duprey and directors: Anthony Fifi, Roger Duprey ( a cousin of Lawrence), Rampersad Motilal, Clinton Ramberansingh, Dr Bhoe Tewarie, Michael Carballo and Bosworth Monck (participating by phone.)

The board rejected the award of this mandate to Stone Street Capital.

“When this was presented to the board, the board was completely outraged that Stone Street Capital would seek to do this deal with CLF on the heels of seeking liquidity support with the Central Bank,” Carballo said yesterday.

“The board did not see the necessity of entering into any disposal of Republic Bank shares,” he said. “Board members were very concerned that perhaps a deal was already struck for the sale of the Republic Bank shares and they were concerned as to why Stone Street would have been involved in the sale of Republic Bank shares. The board was concerned that perhaps a deal was struck behind the scenes already somewhere.”

Carballo said, “CLF did not enter into any agreement with Stone Street Capital.” But he was mistaken.

On January 28, 2009, in defiance of the wishes and express objections of the CLF board, Duprey penned a letter to Central Bank Governor Ewart Williams.

“Further to our meeting with yourself and your team from both the Central Bank and Ministry of Finance held on January 25, 2009, we hereby confirm that Mr L A Monteil and Mr Peter Johsnson, representatives of Stone Street Capital are authorised to hold discussions and negotiate various proposals in relation to liquidity and statutory fund issues on behalf of the CL Financial Group,” Duprey said. He signed the letter alongside Mervyn Assam, of the Clico Investment Bank, and Karen Gardier, of Clico.

Two days later, CLF entered into a memorandum of understanding (MOU)involving the sale of all of its Republic Bank shares among other group assets.

Carballo also said the sale of certain Clico assets after the January 30 MOU, occurred without his or the board’s approval. One in particular was Clico Energy, an asset which was sold at a price which he said was far lower than its value, given its projected income streams.

The sale agreement was signed off by Duprey and former company secretary Gita Sakal.

“So I was very shocked when I heard about Clico Energy,” Carballo said. “The gross sale price was a paltry US$ 46.5 million.” The assets of the company, sold to Proman Holdings Barbados, were valued at US$212 million. “I was taken aback, I was shocked.”

“CLF continued to meet formally and informally and at these meetings I would present detailed analysis of all of our investments, including Clico Energy. I was shocked that Sakal, Mootilal and Lawrence Duprey would have me presenting details of this asset which had already been sold,” Carballo said. He later discovered that Sakal had a rich consultancy contract, earning US$35,000 a month, subject to a 15 percent annual increase, in addition to an annual bonus of US$2 million.

Of the Clico Energy sale he said, “I am not sure what kind of due diligence was done to ensure that our money was protected. And key members of the board were not disclosing this transaction
(courtesy Newsday)

Carballo: CLF execs in grab for Clico $$

All CL Financial’s executives “were trying to make a buck for themselves,” said former Group Finance Head Michael Carballo as he concluded his 91 page witness statement which covered two days at the third sitting of the Commisson of Enquiry into Clico and Hindu Credit Union yesterday. Carballo’s conclusion came for a series of “self-serving, self-dealing and self-interest” manoeuvres made by top CL executives after the company, under liquidity pressure, went to the Government of T&T for help in July 2009.He lamented that executives who “thrived on the loose governing standards” of CLF did not have the company’s best interest at heart. Among those Carballo identified are:

1. Andre Monteil— Carballo’s predecessor, whose advice the Group frequently “leaned on” stepped in during CLF talks with the Government of T&T because of his political connections. “Lawrence said he wanted Monteil involved in the solution and he wanted everyone else to take a back seat. I was taken aback. Ram Ramesh was taken aback,” said Carballo. He told the COE that Monteil had engineered a plan to sell CLF’s 54 per cent shareholding in Republic Bank Limited at above market rate at $130 a share. With some 88 million in shares the deal would have secured the illiquid CLF group about $12 billion. Monteil’s Stone Street would have earned a 0.5 per cent commission valued at $60 million. The CLF board subsequently rejected this proposal. But not before Monteil earned US$750,000 for his consultancy services in negotiating the MOU.

2. Gita Sakal—CLF’s corporate secretary who sought a US$5 million bonus following her resignation from the company. Carballo told the COE, that Sakal’s contract would have ended December 31, 2011 but prior to her breaking it, she authorised a withdrawal from CLF’s Royal Bank US account for the sum of US$5 million. That sum, according to the explanatory letter, was to be paid to her company, Corporate Consultancy Limited. This, said Carballo, was done in March 2009 in preparation for her resignation. Carballo said Duprey never authorised such a payment and further, following the MOU, the chairman had said no bonuses were to be paid to CL executives. Sakal’s contract provided for a $2 million annual bonus.

3. Ian Anthony—Carballo explained that attorney-at-law Anthony was brought from abroad by Duprey to re-negotiate the MOU with the T&T Government to the Shareholders Agreement. This, he said, afforded Anthony intimate knowledge of the company’s operations. He said in June 2009, Anthony sought to get Duprey’s signature on a letter in Miami airport, which would have appointed himself an agent for the sale of certain CLF assets. A visibly irate Carballo called on the disciplinary committee of the Law Association to investigate Anthony’s ethics in relation to this matter.

4. Geoffery Leid—Carballo explained that Leid, who was a director and company secretary at Clico, formed part of a DYL consortium—Duprey, Yanapolis and Leid. DYL, Carballo told the COE, was doing project management work for a number of Clico’s real estate investments in Florida. Carballo questioned how DYL, which is a private company in which Leid is a primary shareholder, charged project management fees to Clico which were readily paid and in excess of generated market rates. He also called on the Law Association to look into Leid’s ethical conduct.

5. Clico Energy Limited—the sale of an asset valued at over US$200 million for a mere $46.5 million to Proman Holdings around February 4, 2010, angered Carballo, as it was done with the knowledge of three people-Sakal, Duprey and CLF director Rampersad Motilal. Carballo said he could not understand why such a profitable entity was undervalued and sold without the CLF board’s knowledge, save three, the Central Bank of T&T and the Government of T&T.He said one broker, Charles Pratt, made a US$85 million commission after he negotiated the sale of Florida-based Green Island for US$300 million to British American.

At the Clico Investment Bank, Carballo said, signature bonuses were paid to the executive of CIB and commissions were paid on booking a loan. He explained that despite Duprey’s agreement to cease conducting deals after the ambitious acquisition of Lascelles de Mercado, he agreed to buy out Jamaica Money Market Brokers’ 49 per cent shareholding of CMMB for US$42 million. That arrangement, he said, never came before the CLF board and also increased CLF’s debt to its subsidiary CMMB. Despite the company’s internal feeding, Carballo said when word got out of liquidity problems being experienced by the Group, from the period November 2008 to January 2010, the CL Group of companies paid $700 million to some big depositors- Caribbean Airlines, the National Gas Company, a few wealthy EFPA policyholders. Carballo lamented that while Duprey was a “very unique individual” and having an insatiable risk appetite, he lacked an honest core-team of executives and advisors.

[Dizzy28]

Unethical behaviour by corporate Trinidad - say it isn't so!!!!

This is something that ingrained into the culture of the country. Whether it is billion dollar companies like Clico or small firms that steal VAT and NIS payments.

At the end of the day only the working class loses.

[civic minded]

nobody cares about ethics and morals, its 'see how much i can get for free' mentality. Really disgusting.

[Country_Bookie]

The Commission of Enquiry has been showing live on Channel 4 all this week. Really interesting viewing. Carballo is bussing everybody files.

He just said that Gita Sakal had a TT$90M contract (when u count monthly salary and bonus) and she would have been paid that amount even if she had left the company after one month. Additionally, she might also have been receiving compensation from Methanol Holdings. Anyone knows if she single?

[Greypatch]

4. CLICO

The Government of the Republic of Trinidad and Tobago has sunk BILLIONS of tax dollars in this entity since its collapse almost 2 years ago.

Just last night a debate was taking place in parliament to use Republic Bank shares to repay depositors.

YET the CEO and the entire BOARD of CLICO have remained untouched..not held accountable for the hardship thousands of its depositors are facing.

We the citizens have to pay for their folly.

[crazybalhead]

And I have to justify my salary EVERY DAY by getting sales. Hear nah...STEUPS.

[neilsingh100]

Look like EFPA policyholder have an offer they can consider.

RBL shares are a good long term investment.

[Redman]

High salaries
No financial controls
Self dealing
Cabals
Money missing

This is CLICO or de facking govt???

Later

[Greypatch]

In a real country all those in "office" would be busy trying to pay back the $$ mis managed

[Redman]

True,
in a real country the idiots at CBTT and SOI would have lost their jobs long time

This was a regulatory failure over the long term.
This now sets precedent for govt to refuse to back ALL annuities and what ever else they feel like.

Hope the people calling for the policyholders to feel the hurt recognize this

Later

[shogun]

would love to see these people also carted away, in the back of a police pick-up truck.....nothing but greed.

[Terran]

For anyone interested in live daily streams or reading the transcripts, check out www.clfhcuenquiry.org

[RIPEBREDFRUIT]

see the other thread, the man was getting $ 90 Million a year and allyuh investors get sh1t

[Grudge]

Where was the CENTRAL BANK ??????????????
Where was EUWAT WILLIAMS???????????????

[bushwakka]

^^ewart tie tongue idiot.....no one is being held accountable, policyholders gettin the stick for being greedy when the real greedy ones getting away with murder.....literally

[teems1]

Where was the CENTRAL BANK ??????????????
Where was EUWAT WILLIAMS???????????????

not just Central Bank and Ewart Williams
where were the
SOI
AM Best
Standard and Poor
Internal auditors
PWC
etc. etc.
?

[sMASH]

hoss, allyuh askin where the watchdogs,
u all don't find it strange that as soon as the trouble began to escalate at the economic turndown time, that pnm govt and clico came up with a magical agreement in record time, and it might have been overnight as well, from the time we heard about the trouble to the time they told of the bailout?

teifchera an dem pong out ah deal so quick it nearly cause an earthquake.... they have the links and linkage to do that with the govt and allyuh aksin where the watchdogs?


in nigeria, sum bank went in the same distress due to the same shoddy causes, and all the board members were jailed nearly immediately,,,, nigeria, eh!!!!!

[sMASH]

oh yeah, the govt did not prop up the bank, they let it fall, and the investors understood why the investments are actually 'risks' and not guaranteed

[rspann]

The Commission of Enquiry has been showing live on Channel 4 all this week. Really interesting viewing. Carballo is bussing everybody files.

He just said that Gita Sakal had a TT$90M contract (when u count monthly salary and bonus) and she would have been paid that amount even if she had left the company after one month. Additionally, she might also have been receiving compensation from Methanol Holdings. Anyone knows if she single?

Country bookie you go deal with something looking so cuz she have money?Any way she family say she planting garden in penal,ah will get the address for you.Any tuners interested in Moteil,he minding sheep in Tamana.

[rspann]

If tuners know who get money from the first tranche,I think it was $7B,THAT THE PNM paid out,they would be shocked.Karen didn't only take out hers,like other people was warned.A very rich black man got his$400M and an indian road paver (not junior)got$500M.

[pugboy]

monteil running gym in long circular mall along with flavourite and cold stone ice cream

The Commission of Enquiry has been showing live on Channel 4 all this week. Really interesting viewing. Carballo is bussing everybody files.

He just said that Gita Sakal had a TT$90M contract (when u count monthly salary and bonus) and she would have been paid that amount even if she had left the company after one month. Additionally, she might also have been receiving compensation from Methanol Holdings. Anyone knows if she single?

Country bookie you go deal with something looking so cuz she have money?Any way she family say she planting garden in penal,ah will get the address for you.Any tuners interested in Moteil,he minding sheep in Tamana.

[Dizzy28]

Motilal: I know nothing about Clico Energy sale

Story Created: Nov 14, 2011 at 11:48 PM ECT

Story Updated: Nov 14, 2011 at 11:48 PM ECT

RAMPERSAD MOTILAL, chief executive officer of Methanol Holdings (Trinidad) Ltd, yesterday denied having any input in the sale of CLICO Energy.

Motilal was identified by former group financial director of CL Financial, Michael Carballo, as one half of a team of CL Financial directors that organised the sale of CLICO Energy amid controversial circumstances.

Carballo also pointed to former CL Financial corporate secretary Gita Sakal as being an integral part of CLICO Energy's sale. Sakal is expected to take the witness stand today.

During his testimony in the last evidence hearing in the Commission of Enquiry which ended on September 27, Carballo stated that Sakal and Motilal had "complicity" in the controversial sale of shares in CLICO Energy.

Some 84 million shares of CLICO Energy, which amounted to a 51 per cent stake in the company, were sold to a Barbados company called Proman Holdings after a Memorandum of Understanding was signed with Government for a billion-dollar bailout of CL Financial.

The shares were sold for US$20 million but the company was valued at US$200 million, Carballo noted in his witness statement.

The sale was also made without the knowledge of the CL Financial's Board of Directors, Carballo stated in his witness statement.

Motilal yesterday appeared on the witness stand at the Commission of Enquiry after being served with a subpoena.

Senior Counsel Fyard Hosein, the legal representative for the Ministry of Finance in the enquiry, yesterday read the portion of Carballo's statement which implicated Motilal in the sale.

Motilal said he was "distressed" when he read Carballo's claims.

"I was not in any away involved with the sale, I was not aware of the sale until I heard about it on the February 15 (2009)," Carballo said. The sale of CLICO Energy took place on February 5.

Motilal was part of a sub-committee of the CL Financial Board organised to ensure the sale of CLICO assets and payment of executive bonuses were not approved in accordance with the guidelines of the MOU.

The sub-committee never met to discuss the disposal of CLICO Energy's shares, Motilal said.

Motilal joined the CL Financial Board of Directors in 2005 and tendered his resignation on April 7, 2009.

The decision to leave the CL Financial Board was made after he was told that former chairman of the board Lawrence Duprey had held talks with the Ministry of Finance to organise a sale of MHTL.

The majority ownership of MHTL has to be approved by a German financing firm first, said Motilal.

CLICO and CL Financial held a majority shareholding of 56.53 per cent in MHTL, Motilal said. CLICO's share accounted to 49 per cent.

The dividend payments were however paid to CL Financial.

Sir Anthony Colman the lone commissioner in the Commission of Enquiry described it as "a pretty incomprehensible agreement".

[RIPEBREDFRUIT]

^the statutory fund not supposed to be in deficit in the first place....that is part of the whole shiznick......we have all heard the rumour that someone dipped their hand in the fund to pay out the high rollers

or perhaps to pay off a ridiculously LArge gambling debt that was amassed by someones son, hence why someone wanted to put an END to the gambling.

[Dizzy28]

Karen: I was in the dark on CL/CIB affairs

By Andre Bagoo Thursday, January 12 2012
click on pic to zoom in
Firm point: Former Finance Minister Karen Nunez-Tesheira makes a firm point during her testimony at the Clico Commission of Inquiry, Winsure Building,...
Firm point: Former Finance Minister Karen Nunez-Tesheira makes a firm point during her testimony at the Clico Commission of Inquiry, Winsure Building,...

FORMER Finance Minister Karen Nunez-Tesheira was a woman trapped in the middle of a series of events orchestrated by male figures who – through secret meetings and mysterious failures to comply with reporting requirements–effectively kept her in the dark as to the true state of affairs at CL Financial (CLF) and the Clico Investment Bank, according to testimony yesterday.

The former Finance Minister, who gave evidence yesterday at the Clico Commission of Inquiry at the Winsure Building, Richmond Street, Port-of-Spain, painted a picture of being a finance minister who occupied the key post while others around her pulled the strings in January 2008. In evidence in chief which lasted about two hours, the former minister said:

* former Minister in the Ministry of Finance Mariano Browne, who was in charge of the portfolio related to State enterprises, failed to tell Nunez-Tesheira that State enterprises had, up to December 2008, pumped billions of taxpayers funds–unsecured–into CIB;

* Browne also failed to alert her that the State enterprises were having trouble withdrawing their funds and that he was approached, one evening, by CLF financial fixer, and former UNC minister, Carlos John who asked Browne to attempt to exert influence to stop state enterprises from taking their money out;

* that even as he met with Nunez-Tesheira to seek government help, former CLF executive chairman Lawrence Duprey was still “wheeling and dealing”, attempting to pitch deals to the State, as CLF officials withheld the true story of the trouble of CLF;

* Central Bank Governor Ewart Willliams did not inform Nunez-Tesheira of problems at CLF/CIB, even after he had at least one secret meeting with former CLF director Dr Bhoe Tewarie; and

* the first person Nunez-Tesheira turned to for advice and instructions after ascertaining the extent of the trouble at CLF was former boss, former Prime Minister Patrick Manning.

Of the investment of billions of Investment Note Certificates (INCs) by State entities such as National Gas Company (NGC) and the National Insurance Board (NIB), Nunez-Tesheira, who for most of her tenure was focussed on key legislative reforms of the financial sector, said she only learned of this practice in January 2009.

“I was so shocked,” she said when she learnt of the practice during a meeting with the then Prime Minister and Central Bank Governor Ewart Williams.

“Because I did not know about it. Minister Browne has the responsibility for State enterprises....I never knew about INCs and Minister Browne never told me about it.” She said she would meet with Browne on Tuesday mornings to be briefed and this was never raised.

“That was why I was floored. I was absolutely floored that we had that amount of exposure,” she said.

“I said how could all of this be happening, State entities investing in the billions and I am told nothing?” She added, “I had to imagine that he (Browne) was not aware. I don’t want to speak for Mr Browne.”

Later, the NGC contacted Nunez-Tesheira in relation to the INCs.“I said how could you be taking billions of taxpayers money and investing in an entity and not making sure it was secure?” she said. “They did not get a good reception from me.”

Also at the meeting with the Governor and the Prime Minister, it was revealed that Browne had been approached by Carlos John.

“John had approached Mr Mariano Browne about trying to persuade those entities to re-invest,” she said. “When the Prime Minister called him in, the Prime Minister asked him if it is accurate that he had been approached and he said yes.” It was unclear how the Prime Minister knew Browne had been approached.

When she first learnt of the troubles at CLF, which she said was on January 14, 2009, Nunez-Tesheira contacted the then Prime Minister.

“The first thing I would have done is speak to the Prime Minister. I would have spoken to him about what I discovered and look for guidance,” she said.

Of the Central Bank Governor, Nunez-Tesheira said she never took steps to investigate what went wrong in terms of regulation of CLF.

“I had a lot of confidence in the Governor and I have no reason to indicate otherwise,” Nunez-Tesheira said. “Why would I do a forensic investigation?”

Of the January 30, Memorandum of Understanding (MoU) drawn-up after meetings of CLF officials, Nunez-Tesheira said, “It was done with a lack of information. CLF was less than forthcoming with giving us their portfolio.” Eventually, at one meeting in January 2008, former CLF corporate secretary Gita Sakal gave the game away.

“After going around in circles and they being less than forthcoming, Sakal said words to the effect that ‘the game is over. Forget it we don’t have any assets to sell’,” Nunez-Tesheira said. At the same time, at a similar pre-MoU signing meeting, Duprey, was “wheeling and dealing.”

“What struck me at that meeting was that there was no question of a credit line or of handing over money to CLF as the crisis had less to do the with global economic situation and more to do with mismanagement,” she said. “It seemed to me that Mr Duprey did not understand the gravity of the situation and he was still wheeling and dealing,” she said. “I was in utter amazement to hear Mr Duprey speaking in that manner and that he still wanted to cut a deal.”

Even after the MoU was signed, things were hidden. The sale of Clico Energy was not disclosed.

“That was never disclosed to us,” Nunez-Tesheira said. “They had not only sold their share but they had sold the share they held in trust.” She said the State was not even aware that CLF held shares in the company as it had not been disclosed on a list of assets.

She noted already disclosed reports that she refused to give in to pressure to allow former CLF officials to be able to take out their money as “Third Parties” under the MoU.

“Mr Monteil and all of those who fell into that category did not benefit from that proposal,” she said. “The Government did not give a line of credit....You cannot take taxpayers dollars and hand it over to these people. I could not defend it as a minister. It would not reflect well on the Ministry.”

Of Angostura, she noted that, “Angostura Holdings had been mismanaged.” The profits of that company had been pumped into CLF.

Of CLF generally, she noted the need for more regulation

.

[sk1111]

Hi,

I apologize in advance for not searching. Just needed a quick answer.

What's going on with the people that have more than the 75k in deposits ?

[Country_Bookie]

^Then you get paid in government bonds. Bonds which mature in 1-10 years can be sold to any of the commercial banks. Bonds which mature in 11-20 yrs can be exchanged for shares in NEL 2, which is a holding company for CLICO's shares in RBL.

[W2J]

^Then you get paid in government bonds. Bonds which mature in 1-10 years can be sold to any of the commercial banks. Bonds which mature in 11-20 yrs can be exchanged for shares in NEL 2, which is a holding company for CLICO's shares in RBL.

.

[sk1111]

[quote="Country_Bookie"]^Then you get paid in government bonds. Bonds which mature in 1-10 years can be sold to any of the commercial banks. Bonds which mature in 11-20 yrs can be exchanged for shares in NEL 2, which is a holding company for CLICO's shares in RBL.[/quote]


OK, thank you for the answer. Any word on when we're suppose to send in paperwork ?

[W2J]

^Then you get paid in government bonds. Bonds which mature in 1-10 years can be sold to any of the commercial banks. Bonds which mature in 11-20 yrs can be exchanged for shares in NEL 2, which is a holding company for CLICO's shares in RBL.

OK, thank you for the answer. Any word on when we're suppose to send in paperwork ?

Surname Processing Date
A-B Dec: 1, 2, 5, 6, 7, 8, 9
C-D Dec: 12, 13, 14, 15, 16
E-H Dec: 19, 20, 21, 22, 23
I-L Jan 2012: 4, 5, 6, 9,10, 11
M Jan 2012: 16, 17, 18, 19, 20, 23
N-Q Jan 2012: 25, 26, 27, 30
R Feb 2012: 2, 3, 6, 7, 8, 9
S Feb 2012: 13, 14, 15, 16, 17, 22
T-Z Feb 2012: 23, 24, 27

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