The Clico Policyholders Group (CPG) says it has new evidence that Clico is in a position to pay its outstanding debt to policyholders contrary to reports from Central Bank and the Finance Ministry.
CPG chairman Peter Permell said he planned to present Finance Minister Larry Howai with the information he obtained when they meet on Wednesday to discuss outstanding Clico policyholders’ payments and related issues.
Yesterday, Permell told Sunday Guardian that the group found evidence of a 180-degree turnaround in the financial health of CL Financial in the 2013 audited statement of one of its major subsidiaries, CL World Brands Ltd (CLWB.)
The audited statement, which was signed on May 28, by then Clico chairman Gerald Yetming and Malcolm Holder, points to a £191.9 million or circa $2 billion (TT) net asset, $1.3 billion (TT) of which represents "cash at bank and in hand."
“This is good news for the policyholders, in the first instance, and the Government because it means that the Government can get back its money. It means that more value is restored to CLF,” Permell declared.
He said he intended to present the CLWB audited report to Howai when they meet to show that CLF has money to pay its policy holders.
Permell said even though it was a 2013 statement, it was the most up-to-date report from CLWB, especially since it included post statement sheets with information on transactions outside after the audit date.
He also said, in a media statement, that the discovery of the information came on the heels of confirmation by the Governor of the Central Bank and the Minister of Finance that Clico was now solvent and its statutory fund was fully funded.
Permell contended that the CPG had always questioned why financial reports were taking so long to be completed and released to the public.
He also questioned why, with all the excess liquidity floating around at Clico and CLF, the Government was taking so long to put appropriate mechanisms in place to pay assenting policyholders the balance of their money that is “morally and legally due to them from Clico.”