Over $36.1 million has already been paid out to former Clico directors, chairman of the Clico Policyholders Group, Peter Permell, said yesterday.
The payments were processed between April 30, 2015 and June 2, 2015, represent some half of what the ex-directors are entitled to and was paid out at accrued interest rates ranging between two to 12 per cent.
It was only on Wednesday that the group had issued a statement indicating it was very troubled by media reports that Minister of Finance Larry Howai, and by extension the Government, appears to be unaware or uncertain as to whether any payments had been made to the former Clico directors.
“Since this seems to suggests that the left-hand (the Ministry of Finance) does not know everything that the right-hand (the Central Bank and Clico) is doing in the Clico matter," Permell said in that release.
But after further media reports, a statement from the Central Bank that former bosses Lawrence Duprey, Andre Monteil and Gita Sakal would not get any money and information the group received on the payout transactions, Permell yesterday said they were more concerned that the PP Government has now apparently amended the well-established 2009 Government policy that the “Clico bailout” is a guarantee to pay strictly third-party policyholders and creditors of Clico, “and as such by definition excludes former directors and senior managers of Clico, their immediate family members and private companies.”
“In fact, it appears that the “floodgates” have now been opened to include all former directors with only one minor exception, that is, persons who are subject to civil proceedings initiated by the State. It therefore begs the question who, when and most importantly why,” Permell added.
Permell said they took comfort over Howai’s statement that an investigation into the matter is currently taking place, “since it’s our considered opinion that former directors should not be paid at this time and if any of them were paid they have no right of confidentiality by virtue of their related party status.”
He also called on the Government, upon completion of their investigation, to not just tell the country who is not being paid, but to disclose all former directors who may have already been paid already or are about to be paid and the quantum of such payments.
Permell said he also felt oblige to address the statement issued by the Central Bank in its capacity as the regulatory/supervisory body that took control of Clico pursuant to its powers under section 44D of the Central Bank Act as follows: “In respect of the other former directors and officers of Clico, where Central Bank and Clico have not, based on forensic findings and legal advice, contemplated or initiated any litigation against such persons, to date, there would be no legal basis on which Clico may now withhold payment to them as policyholders/ creditors at the point of liquidating its debts to creditors from its own assets.”
He said this suggests that there is some trepidation as it relates to potential litigation that could be taken against Clico by these former directors if the Central Bank were to withhold or delay payment.
In this regard, he reminded the Central Bank that pursuant to the Central Bank (Amendment) Act, 2011, such litigation claim could not be made.