(Trinidad Express) Four former directors and their companies, who were classed as “related parties” when Colonial Life Insurance Company (CLICO) went bust in 2009, have already been paid TT$36,188,690.90.
They are Ian Garcia and his company Events Unlimited; Clinton Ramberansingh and his connected parties (Bianca Ramberansingh and Martina De Silva); Vishnu Ramlogan; and Nigel Salina and his company Nigel Salina and Associates.
The directors were among ten identified to be paid TT$48.5 million.
However, their connected parties will take the final sum that CLICO has to pay to TT$63,207,849.78.
All their policies will be paid with interest.
The directors include people who were summoned to the Sir Anthony Colman-chaired commission of enquiry into CLICO to be cross-examined on how the company had found itself in an illiquid position but opted to pay the TT$2,000 fine instead of giving evidence.
On May 1, Salina, who had long lobbied the Government for the money he invested in the company but had made himself available to the Colman Commission, received his money, which amounted to about TT$2 million.
Salina had four policies—two in US dollars and two in TT dollars.
On May 4, former financial controller and chief marketing officer Garcia and his company Events Unlimited received close to TT$16 million.
Garcia, who never appeared before the Commission, had five policies—three in TT dollars and two in US dollars.
One of his policies, worth TT$6.4 million, was in his company’s name, Events Unlimited.
Garcia and Events Unlimited were publicly named in the commission of enquiry by CLICO’s attorney Neal Bisnath.
Bisnath had said Garcia was one person who benefited financially from his job at CLICO by creating a company (Events Unlimited) and awarding it work from CLICO.
Bisnath had explained how CLICO had made a US$3 million draft to Events Unlimited which was authorised by former CEO Karen Gardier (who is also identified to be paid) and Garcia.
Bisnath had said the US$3m payment was wire transferred to a US account of Events Unlimited and then US$1 million was returned to open an EFPA (executive flexible premium annuity) policy.
The Express verified that the documents on that transaction remain available on the commission’s website, but that policy has now been cashed out.
On Tuesday, Ramlogan collected his TT$3.5 million from CLICO.
On Wednesday, the Central Bank issued a statement which said that the directors are being paid as creditors, and not directors who may have helped the company to collapse.
“In respect of the other former directors and officers of CLICO, where the Central Bank and CLICO have not, based on forensic findings and legal advice, contemplated or initiated any litigation against such persons to date, the Central Bank said there would be no legal basis on which CLICO may now withhold payment to them as policyholders/creditors at the point of liquidating its debts to creditors from its own assets,” the Central Bank has said.
The Central Bank only initiated civil proceedings against former CL Financial (CLF) chairman Lawrence Duprey and former CFO Andre Monteil, but joined former CLF corporate secretary Gita Sakal months after.
So why has the Central Bank, which was managing CLICO under Section 44D of the Central Bank Act, not taken civil action against the directors for breach of their fiduciary duty when all the documents were publicly available after the commission of enquiry?
That’s what Clico Policyholders Group (CPG) chairman Peter Permell wants to know.
