-restates liquidation recommendation
In a final report to the High Court on the financial status of CLICO (Guyana), Judicial Manager, Maria van Beek has said the company is faced with a severe liquidity crisis and may have to consider disposing of major assets to source the necessary financing.
Van Beek also commented on the general status of the insurance company saying that it has suffered a significant decline in business over the last two months and that, “it is highly unlikely that the company will be able to restore the confidence of the public in the foreseeable future. “
She said too that allowing the company to continue in operation will further deplete the resources available to settle its liabilities, adding that “liquidation of the company may be regarded as the option most advantageous to the general interests of the policy holders”. The report, which had been delayed for some time, was submitted to Chief Justice (ag) Ian Chang on Monday ahead of a hearing yesterday.
The judicial manager, who is currently overseas, had recently urged the court in an affidavit to liquidate the company now given its financial position.
The completed report stated among other things that CLICO has a liquidity deficiency of $1.5B as of February 28, 2009 and further disclosed that the company has no immediate means of sourcing additional financing to meet its payment obligations.
But attorneys for CLICO are expected to challenge van Beek’s financial assessment of the company. CLICO’s lead counsel, Roysdale Forde yesterday filed a motion seeking orders for van Beek to make certain documents available to Company Director, Winston Ramalho.
Justice Chang commented yesterday in court that CLICO’s former Chief Executive Officer, Geeta Singh-Knight is likely to be the person with information on the documents.
Forde’s recent action is focused on the audited and unaudited financial reports of the company for the years 2006, 2007 and 2008. The company is also calling on the judicial manager to hand over copies of the contracts in favour of the National Insurance Board, Guyana Revenue Authority and the Dependents Pension Funds.
Forde said yesterday that the documents being requested are critical to CLICO’s rebuttal in court. He said the documents were locked down by the judicial manager when the company was placed under judicial management, blocking access to them by company officials.
Van Beek’s role as Commissioner of Insurance/Judicial Manager will be taken over by the Bank of Guyana when the legislation catering for this is assented to by the President. This move came shortly after van Beek survived an attempt to kill her.
CLICO (Guyana) was placed under judicial management when its sister company in The Bahamas was put into liquidation. The Bahamas company held US$34M or 53% of the local company’s assets and van Beek recently said that only around 7% of this may be retrievable over time. The entire C L Financial Group of which CLICO (Guyana) is a part entered stormy seas after the Trinidad government was forced to bail out several of its financial services subsidiaries at the end of January, 2009. The Guyana Government has said that it will guarantee all of the deposits of Guyanese in CLICO but many questions abound including the details of withdrawals from CLICO in the days leading to it being placed under judicial management. These withdrawals were financed by the sale of a bond in the Berbice Bridge to the New Building Society.
I am happy to note that van Beek is well and overseas – hope she remains wherever she is. Folks do not want to accept failure so they will fight to the bitter end to refute van Beek’s assessment. How foolhardy!!!!
Something fishy about the last minute sale of bonds to NBS!
WONDER WHERE ALL THE MONEY FROM THE SALE OF BONDS WENT DURING THE 80,S
monies were paid on te defense bonds Bishnu R nice try.
I had a few of those my parents had purchased for me.
I cashed them out and got the money. Can you tell us why your government cannot pay NIS pensioners their monies?
Only an independent forensic audit will help depositors and Guyanese contributors to the NIS know where exactly their US$34M or GY$6B in deposits and controbutions went after leaving Guyana for CLICO (BH), because if the Bahamain authorities said they did no find records of monies wired from Guyana to the Bahamas, then where did the money go after leaving Guyana?
This rush by the government to place CLICO (GY) under a Judicial Manager, followed by an attempt on the JM’s life an d then a second rush to put the Insurnace Commissioner’s Office and CLICO (GY) under Bank of Guyana supervision reek of suspicion that something was amiss with the transactions between CLICO (GY) and CLICO (BH) that government wants to cover up.
I still think the Auditor General should mount his own probe and there should be a class action lawsuit demanding one!
Jagdeo doesnt want to hire no one to do a forensic audit you know why?
it will clearly show how the monies were diverted from NIS into clico and then off to Florida for some bogus real estate deal.
PPP and jagdeo are masters of deception and mismanagement of the Guyanese Economy.
When will it end people when will it end.
Dem chap dis mekkin forbes look like a puddy kat.
It would be interesting to note what CLICO’s assets are worth based on the most recent financial report. One would have thought that the new building in Camp Street alone is worth a substantial protion of the 1.5 billion liquidity deficit. The question then is, why could these assets not be used to garner a loan? Any reason why a bail out was not possible and a shake up in management? Who is likely to gain most from CLICO going under because certainly, someone (or set of people) will benefit from accessing its previous business/clientele. Moreover, what price can it liquidate its assets for, if its back is against the wall? How will be purchasing valuable assets at knock down prices? I am sure all of this will become much clearer soon.
So much speed to have the Bank OF Guyana taking over makes this situation SMELL. Mrs Van Beek almost paid the price with her life for taking on these shady characters and provide a decent report for the court. She is even the niece of Cheddie Jagan so something SMELLS. Keep your eyes on the ball US 34 million dollars was exported to MR duprey with a paper stop at Clico Bahamas. Now the Bank of Guyana has taken control of Clico’s affairs this is a big “SMELLY”situation. Are they going to investigate themselves????????..The corruption will continue.
Now that every thing come to light i prayed for miss vanbeek saftey.
Thank goodness Mrs. Vanbeek has found safety oversees. It is too bad she cannot return to Gy,
where’s the money? they are living on milk and honey; while the next man fright for water.