Barbados' taxpayers asked to help foot $372 million CLICO bill
Taxpayers in the Caribbean region are being asked by the judicial manager in the CLICO fiasco to foot the bill of the beleaguered company, whose parent company CL Financial of Trinidad and Tobago, collapsed in 2009
By: Jeff Gill - Monday, Jun 11, 2012 - 07:11:49 PM
BRIDGETOWN, Barbados -- $372 million is being requested by
JUDICIAL MANAGER DELOITTE CONSULTING to resolve the pressures due to the
collapse of CLICO International Life Barbados.
The consulting firm which was given the responsibility to be CLICO's judicial
manager after the government of Barbados applied on March 17, 2011, to the High
Court in a bid to have CLICO International Life Insurance placed under judicial
Deloitte has now brought to the fore its recommendations which has asking the
governments of Barbados, Trinidad and Tobago, and the Eastern Caribbean to foot
the bill. Theses recommendations take into account the 30 000 investors and
policyholders of the failed company.
Under the proposal, Executive Flexible Premium Annuity (EFPA) investors would
receive a maximum of $25 000 in cash while the remainder of their investment, as
well as that of traditional CIL policyholders, would be handled by a new entity.
According to the Guardian newspaper of Trinidad and Tobago. the judicial
manager has asked that the Government of Trinidad and Tobago to allocate $660
million (EC$300 million) as part of a proposal to resolve the status of holders
of (EFPAs) in Barbados and the islands of the Eastern Caribbean.
The judicial manager proposes that a bond be floated whose proceeds would be
used to acquire qualifying assets. The majority of these assets appear to be
real estate or real estate-backed.
Trinidad and Tobago Finance Minister Winston Dookeran, said that the previous
administration had allocated US$50 million to resolve the issues of Eastern
Caribbean citizens who had purchased non-T&T EFPAs.
He said that at the recent heads of government meeting in Suriname, Prime
Minister Kamla Persad-Bissessar had committed a further US$75 million to enhance
the bailout on the condition that Eastern Caribbean countries provide similar