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Clico 8 billion in red, says Trinidad PM
Related to country: Trinidad & Tobago

Translations available in: English (original) | French | Spanish | Italian | German | Portuguese | Swedish | Russian | Dutch | Arabic

By Oscar Ramjeet:
Caribbean Net News Special Correspondent -
Email:oscar@caribbeannetnews.com


PORT OF SPAIN, Trinidad: The Trinidad and Tobago government’s multibillion dollar bailout of Clico - CL Financial continues to dominate headlines in Trinidad and Tobago newspapers as well as in other Caribbean countries.

He was speaking during a debate on the Central Bank Amendment Bill and the Insurance Amendment Bill.

The Prime Minister, in his presentation, said he could not understand how in this context that the Opposition Leader Basdeo Panday is insisting, instead of government taking control of the company, that the government lends to Clico. Manning asked how can the government "lend this kind of money to the fellas who brought the company into disrepute, to its knees, and who caused much anxieties among depositors and policy holders to help retrieve the losses they incurred?”

The Trinidad Express reported that Manning said he could not understand how Panday could ask "what the fellas at Clico did wrong in circumstances where Clico has a run on it of $250 million per week.” He said that the Opposition Leader was seeking to give the impression that if anyone was culpable it was the government of Trinidad and Tobago.

The prime minister added that he could not figure out why Panday was trying his best to prevent the "newly elected PNM government from putting it hands on the assets of Clico.”

Speaking on the amendment, Finance Minister Karen Nunez-Tesheira said inadequate accounting problem caused the company's downfall. She said there were serious management shortcomings and inadequate systems that contributed to the group's downfall

She said that the memorandum of understanding for the bailout gives government the authority as far as possible by mutual agreement with CL Financial to appoint a chairman, directors and senior management personnel.

Prime Minister Patrick Manning, speaking in the House of Representatives on Monday, said that CLICO is $8 billion in the red, and that is far from the final figure.

caribbeannetnews.com

February 4, 2009 | 6:06 PM Comments  0 comments

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