Former Minister in the Ministry of Finance Mariano Browne says fired Clico chairman Gerald Yetming and managing director Carolyn John were used as scapegoats in the controversial payment of more than $36 million to former directors of the company.
He made the comment yesterday during CNC3’s Morning Brew, as he commented on the duo’s sackings by the Central Bank following disclosure of the payments.
Browne, however, suggested that the two were only fired because of mounting public pressure on the issue.
He said the basis for which they were fired could not hold water, since Central Bank Governor Jwala Rambarran, Minister in the Ministry of Finance Vasant Bharath and Finance and the Economy Minster Larry Howai had all said clearly that the payments were to be made.
“It is clear that they knew what was in the offing. It was only after when the information (payment) was leaked on Friday as to the quantum of payments and who was paid that they conveniently found two scapegoats,” he said.
Yetming also insisted yesterday there was no need for any forensic probe into the payment issue, adding to have such an investigation was to conclude that something illegal was done.
The probe was initially called for by the Clico Policyholders Group when news of the payments were made public.
But during the same programme, Yetming insisted that “nothing illegal, nothing dishonest and nothing fraudulent has taken place.
“They never told us stop making payments to these directors. They never asked why have you not come to us for approval to pay these things, which is what they are now hiding behind,” he said.
The Central Bank, in a statement last week, said the two were fired after Clico failed to follow the March 26 instructions given by the bank on the procedure for all disbursements to policyholders and creditors under the Clico Resolution Plan.
But yesterday, Yetming said if Rambarran had a problem with the manner in which the payments were issued he should look at his own staff at the Central Bank.
“If they failed in their duty to him to have done what they were required to do or what he expected them to do to stop the payments to these people, then he should address them,” he said.
Yetming said he was a non-executive chairman at Clico and John should also not have to answer any questions about the issue. He said during their tenure he and John were successful in their attempts to return confidence to the company which collapsed in 2009.
More than $36.1 million has already been paid out to four former Clico directors. According to reports, those payments were processed between April 30 and June 2. The payments represent half of the entitlement of the former Clico directors.