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Bahamas PM makes lengthy address to Parliament on CLICO
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By Oscar Ramjeet:
Caribbean Net News Special Correspondent -
Email:oscar@caribbeannetnews.com:


NASSAU, Bahamas: Bahamas Prime Minister Hubert Ingraham has made a lengthy presentation to Parliament about CLICO Bahamas Limited, which went into liquidation because it was unable to pay US$2.6 billion to policyholders and its liabilities were $9 million in excess of its assets.

A GIS release stated that Ingraham gave a brief history of the company and its problems; that his government regards the issue as a very serious one and will continue to monitor the situation; and will provide regular updates to the public.

He said that CLICO's sales staff of 90 has been advised not to report for duty, as the company is not writing any new business. He said, however, that the administrative staff of 51 persons remains in place and at work.

The Bahamas Supreme Court made a winding up order on February 24, and appointed Craig Gomez of Baker Tilley, and Gomez, as Provisional Liquidator of CLICO (Bahamas) Limited.

He added, "I believe that in the best interest of all to allow the Liquidator to develop a financial package for discussion with the various insurance providers.”

This exercise effectively began last Wednesday, and he said, given the magnitude of the task, "We believe that by this weekend, the Liquidator should be closer to finalising a financial package.”

The Prime Minister told Parliament, “The overriding evidence suggested that in order to protect the policyholders, numbering some 23,000 in The Bahamas and 29,000 in the region, which is the ultimate responsibility of the Registrar of Insurance Companies, steps had to be taken to ensure that the assets of CLICO were not further compromised.”

The total individual and group policies amount to some 38,618 with annual premiums of $14.8 million.
Ingraham said that the many persons who own these policies would want to know if they stand to lose money.

He said, "It is still too early to determine whether or not policy holders will lose any money. However, it is quite possible that all the policies can be sold to a viable insurer here in The Bahamas.”

caribbeannetnews.com

March 3, 2009 | 6:17 PM Comments  0 comments

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