-says time of the essence in sale of properties
Judicial Manager Maria van Beek has refuted claims by attorneys for Clico (Guyana) that the company has great liquid cash resources saying that it suffered the blow of the US$34M “badly invested” in The Bahamas, and a great number of policy surrenders earlier this year.
The Judicial Manager was responding via affidavit submitted to the High Court to one drawn up in the name of Clico Director Winston Ramalho which objected to the sale of Clico’s buildings.
Responding in the affidavit filed yesterday on her behalf by Assistant Commissioner of Insurance, Tracey Gibson, van Beek provided bank balances for the company and pointed to the investment in The Bahamas.
“…the affidavit has not touched upon the over US$34M badly invested by the aforesaid company in the Bahamas and from which substantial, if not total loss, may flow”, van Beek said.
Chief Justice (ag) Ian Chang heard arguments in the case yesterday and adjourned the matter to allow Clico to respond to the Judicial Manager.
Clico’s attorneys had accused van Beek of closing all of the company’s business offices without a single attempt to operate any line or class of insurance business, and they continue to insist that it is in a position to operate some lines of business.
But van Beek said the company has not revealed that it has incurred a great number of surrenders of policies since “its unsatisfactory financial position has been made public”. She noted that the deponent Ramalho, and his wife surrendered policies valued over $45M in February and March this year.
The Judicial Manager reiterated her original position saying that the proposal to sell the company’s assets was in the interest of policyholders and that such is the primary objective of judicial management as set out in the Insurance Act 1998.
“The Judicial Manager has requested me to emphasize that time is of the essence (in) this matter and it is delays that are not in the interest of justice. The economic crisis facing all and the propensity for vacant premises here to be vandalized are notorious”, Gibson deposed.
She also referred to the statements made by Clico in relation to former Chief Executive Officer, Geeta Singh-Knight calling the matters extraneous, but she said too that the matters are interfering in the judicial management of the company.
“It does not appear to be appreciated that with the appointment by the Court of a Judicial Manager, the Board of Directors (of Clico) are excluded from the management of the Company”, she added.
Further, the affidavit emphasized that van Beek has no intention of selling Clico’s assets without first approaching the court for confirmation of any sale and before concluding any agreement to do so.
Clico’s attorneys, Roysdale Forde and Stephen Lewis recently succeeded in obtaining a stay of an order granted by the Chief Justice that approved the sale of Clico’s immovable assets.
