CLICO must settle outstanding debts before re-entering local market- Jagdeo

Former President, Bharrat Jagdeo is urging the Government to ensure that Colonial Life Insurance Company (CLICO) settles its outstanding debts before being afforded the opportunity to re-enter the local market.

Chairman of C.L. Financial (parent company of CLICO), Lawrence Duprey recently indicated that he would like to renew his relationship with Guyana and committed to making amends for the approximately US$40M debt owed mainly to the National Insurance Scheme after CLICO collapsed in 2009.

Minister of Finance, Winston Jordan who met with Duprey agreed to a follow-up meeting after holding discussions with Cabinet.

At a Press Conference on Monday, (April 03, 2017) Jadgeo, the current leader of the political Opposition noted that “they can’t only settle the outstanding principal sums, but also at the loss income that people would have suffered because of the collapse of CLICO financial. If all of those things are done properly in a framework, we will support it wholeheartedly.”

However, he urged the Government to ensure that the matter is not dealt with “anecdotally”.

Jagdeo said, “it seems as though the Minister is dealing with CLICO anecdotally and wants to score political points.”

He explained that the Guyana government at that time of CLICO Guyana collapse would have made a decision to return monies to investors, starting from the smallest to largest sums. Monies were recovered from selling assets affiliated with CLICO, and according to Jagdeo, some of those monies are still available, so the company “may not have to put in much more.”

“A related Company had made a loan, through the parent company in Trinidad and Tobago, to Bosai and I think it was about US$13M. We got a court order to exco that money, to set it aside…CRL was an affiliated body to CLICO…in Guyana, they owned the land, just by McDoom there, we went out to public tender, and that was sold for about US$20M. We have some money sitting there to take care of these liabilities” he told media personnel.

The Opposition Leader posited that “making right” has different dimensions and therefore, in discussions with him, every side should be examined.

The Chairman of C.L Financial also informed Minister Jordan that his company is interested in investing in providing solar energy at competitive prices, affordable housing, clay brick and solar for housing as well as introduce a financial model that will generate savings and alleviate poverty.