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Guyana goes after CLICO Bahamas
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By CANDIA DAMES,
Guardian News Editor -
candia@nasguard.com:



As creditors of CLICO Bahamas line up to collect debts owed by the beleaguered insurance firm, authorities in Guyana have assembled a legal team of Bahamian and Guyanese attorneys charged with recovering what the country claims is millions of dollars in investments.

The Nassau Guardian understands that Bahamian attorneys Georgette Dahl-Butler and Damian Gomez have been hired by the Guyanese authorities to begin laying out their case.

Guyana's President Bharrat Jagdeo has claimed that 53 percent of CLICO Guyana's assets are tied up in CLICO Bahamas, which was forced into liquidation on February 24.

Prime Minister and Minister of Finance Hubert Ingraham has said it will be for the liquidator, Craig Tony Gomez, to determine Guyana's claim. Ingraham was expected to come face to face with Jagdeo at a CARICOM heads meeting held in Belize late last week.

The prime minister has said there appears to be no record available at this time to support Jagdeo's claim. Since CLICO Bahamas was placed into liquidation, Guyana has put its CLICO operation under judicial management.

Guyana's Commissioner of Insurance and Judicial Manager of CLICO Guyana Maria van Beek has said US$34 million was invested in CLICO Bahamas and may not be recoverable. According to Guyana press reports, the 53 percent of assets invested in CLICO Bahamas is an infringement of that country's Insurance Act, which states that insurance companies must invest at least 85 percent of their statutory funds in Guyana.

Van Beek said late last week the legal team had already been in communication with Gomez to share information, but she said the liquidator had yet to confirm the investment. Van Beek said she expects the process may take some time to conclude.

Ingraham said two weeks ago the Government of The Bahamas had undertaken to keep Guyana updated on the progress of matters relating to CLICO.

As Gomez continues his assessment of the assets of CLICO Bahamas, authorities in Guyana have launched their own investigation into the financial status of the insurance firm there.

Meanwhile, ordinary policyholders in The Bahamas are fearful that they may lose out due to claims being made by creditors, and by investors like the Guyanese. FirstCaribbean International Bank has already called in a nearly $500,000 debt owed to it by CLICO Bahamas and other creditors are also demanding payments.

Gomez has told The Guardian that policyholders will be considered top priority if any pay-outs are made. He was expected to finalize financial packages by the end of last week for the insurance companies interested in purchasing CLICO Bahamas' portfolio.

A notice on a special web site created to keep policyholders updated said it is the liquidator's intention to have the company's life, health and pension portfolio transferred to a new buyer as soon as possible.

March 16, 2009

thenassauguardian

March 16, 2009 | 8:00 AM Comments  0 comments

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