PNCR demands answers on gov’t guarantee for Clico policy holders

The PNCR is calling on the government to inform Clico policy holders of the “arrangements, timing and procedures” to be used to honour the guarantee that they would not lose their money.

In a press statement issued at the party’s weekly press conference last Friday, the PNCR said that the “Jagdeo administration has developed a penchant of making grandiose promises to the people of Guyana during crises, but failing to implement them when the issue disappears from the front pages of the newspapers.”  The party said that it was “appropriate for the government to inform policy holders of Clico when the promised guarantee, given first by President Jagdeo, and, later, by the Parliament of Guyana, will become a reality.”

Following the disclosure of the financial woes of Clico (Guyana) in February, President Bharrat Jagdeo had issued several assurances that no policyholder or investor in the company would lose their money and had outlined several measures that the government would employ to ensure that this was done.

At Friday’s press conference, the PNCR  also noted that “the government has reported receiving millions of dollars from several sources to pay the money due to policyholders, but those affected persons are still unaware of the arrangements, timing and procedures that would be used to honour the government guarantee.”

During a recent press conference held, President Jagdeo announced that the country did receive $3 billion (US$15 million) from the Petroleum Fund to help Clico offset its liabilities.

Clico (Guyana) invested $6.9 billion in Clico (Bahamas) which represented 53% of its assets. Although these investments were liquid on paper, subsequent investigations revealed that the sum has been tied up in real estate investments that Clico (Bahamas) had in Florida through subsidiaries. When Clico (Bahamas) was ordered liquidated on February 24, the local company was subsequently placed under judicial management.

Meanwhile, the PNCR also expressed concern at the government’s failure to implement the promised increases in the wages and salaries of public servants. The party said that “with the continuous escalating cost of living, workers are struggling to make ends meet. Jagdeo must honour his promises and the workers, collectively and through their Unions, must act to ensure that he is not allowed to make political mileage at their expense.”

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