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Guyana government to bear cost if efforts to recover Bahamas investments fail, says president
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GEORGETOWN, Guyana: President Bharrat Jagdeo says the Guyana government may phase an allocation of US$34 million over a ten-year period to be borne by the treasury should the monies invested by CLICO Guyana in CLICO Bahamas not be recovered, further bolstering the guarantee he made to policyholders and investors some weeks ago.

Speaking to reporters at a press conference on Thursday, the president explained that if done in a phased manner, this ‘bailout’ package would not be a large liability that the treasury cannot handle, should the government not get anything back from the Bahamas. The president said that it may not be necessary for the government to cut any of its allocated spending because of the projected outlay.

Knocking the opposition, he said that the money will have to come from taxpayers’ pockets. “We have sought to take further action in the CLICO Guyana matter,” he said. The president spoke of the successful injunctions that CLICO Guyana secured against subsidiaries receiving monies from Guyana.

He said that these resources, which have been ‘frozen’ by the injunctions, will go towards the settling of some liabilities in Guyana. “If we are successful in securing those resources then our exposure will be cut significantly”.

Jagdeo said government is hoping that through the disposing of local assets, it can clear up the small policyholders, adding that government may discuss ideas for returning over a period of time revenues on investments made.

Turning his attention to the members of the opposition, he said contrary to the statements of the Alliance for Change (AFC), Guyana is not experiencing a financial crisis, noting that Guyana has not seen the mass layoffs as witnessed in other countries of the world. But he acknowledged that because of the fallout of the economic crisis globally, companies may have to part ways with some staff.

The Guyanese leader has justified retaining Geeta Singh-Knight, although she is no longer the CEO of CLICO Guyana, saying that she is needed for her institutional knowledge and intimate familiarity with the details of insurance policies and investments.

President Jagdeo said that Singh- Knight was the person who realized that the authorities in the Bahamas wanted to classify CLICO Guyana’s investment in CLICO Bahamas as an inter-company loan and not as a policy, which would see it being handled in a way that is more favourable to Guyana.

He confirmed, however, that the authorities in the Bahamas have noted that there is evidence of an investment made by CLICO Guyana to CLICO Bahamas.

April 4, 2009

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April 5, 2009 | 9:58 AM Comments  0 comments

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