Board knew nothing of CLICO Energy sale

(Trinidad Express) Before the ink on the Memorandum of Understanding (MOU) between CL Financial and the State was dried, Gita Sakal, the conglomerate’s corporate secretary, was conspiring to ensure the Government did not get “control” of one of the group’s most prized assets.
This was yesterday revealed in a string of e-mail correspondence between Sakal and directors of Barbados firm Proman Holdings tendered into evidence at the commission of enquiry into the collapse of CL Financial and the Hindu Credit Union (HCU).
The e-mail correspondence was yesterday tendered into evidence by Senior Counsel Fyard Hosein, legal representative of the Ministry of Finance.
On January 30, 2009 CL Financial received a billion- dollar taxpayer bailout and signed a MOU which prohibited the sale of any group asset without State approval. On that same day Sakal sent an e-mail to Proman Holding’s representative on the CLICO Energy Board, Joseph Cassidy, informing him that she and CLICO Energy’s Managing Director Claus Cronberger “will ensure that GOTT (the Government of Trinidad and Tobago) does not get control”.
“The chairman (Lawrence Duprey) has appointed (former CL Financial group financial director Andre) Monteil’s company to negotiate on behalf of CLF without CLF board approval. (Motilal) Rampersad (ceo of Methanol Holding Trinidad Ltd and director of CLICO Engery) and others are mad because Monteil is getting rid on (of) energy and Republic (Bank). It is evident that the chairman has put the company’s future into the hands of Monteil. The GORTT has already announced that they will now have MHTL (Methanol Holdings Trinidad Ltd) shares. We will have a buy back option but that is impossible,” the e-mail stated.
The e-mail continued: “Note that I have not been part of negotiations of the MOU because Monteil’s view was that I supported the energy investments which ‘bust down’ the company. It is highly likely if at our board meeting tomorrow the chairman continue with his pie in the sky talk and insist that Monteil continue to represent us, I will resign. I will only stay on for a while to discuss the strategies we talked about with Claus.”
“It is likely that Geoffrey Leid, who is Mr Duprey’s personal adviser, a director of CLICO etc will succeed me. That same CLICO whose pension and salary bill Rampersad had to assist with this month and whose management will be changed next week. Claus and I will work and if it’s the last thing I do is to ensure that GOTT does not get control.”
Hosein then produced subsequent e-mails which showed a valuation of CLICO Energy shares and a form to transfers shares was approved between Sakal and Proman directors.
By February 3, 2010 CL Financial’s executive chairman Lawrence Duprey had signed over the conglomerate’s 51 per cent stake in CLICO Energy to Proman Holdings, based in Barbados.
CL Financial owned a 34 per cent stake while CLICO had a 17 per cent ownership in CLICO Energy.
After the sale was completed, Sakal, Duprey, former government minister Carlos John and the executives from Proman Holdings held a “celebratory party” at the Hilton Trinidad Hotel, Hosein said.
Sakal described the hotel meeting as an “emotional” one.
Sakal yesterday slammed the State for not doing proper “due diligence” on the assets owed by CL Financial before entering into the MOU.
The onus was on the State, she said.
The sale of CLICO Energy was done without the knowledge of the CLICO Board, Sakal said because Duprey requested “confidentiality”.
Sakal said Michael Carballo, former CL Financial former group financial director, knew about the sale.
Former CLICO director, Hayden Charles, yesterday took the witness stand for the first time yesterday.
Charles was the only CLICO director to remain on the board after the government’s bailout. He yesterday said he joined the CLICO board because he felt it was “a well-respected, well-run company”.
He was fingerprinted as part of the process of being named as a director of the insurance giant.
Charles is scheduled to return to the witness stand at the Winsure Building, Richmond Street in Port of Spain today.