The Guyana High Court has taken control of the assets of Clico (Guyana) Limited following the collapse of its sister company in the Bahamas.President Bharrat Jagdeo told reporters in Georgetown Friday the court action was precipitated by a Supreme Court order in the Bahamas on Tuesday for Clico (Bahamas) Ltd to be wound up. The Bahamas company was holding 53 per cent of the assets of Clico (Guyana) Ltd and there was thought to be significant impairment.
The court appointed Commissioner of Insurance, Maria van Beek, is expected to make a full assessment of Clico’s financial position and report to the High Court within a few days.
She has now taken over the management of all the affairs of Clico. The company faces liquidation due to its heavy $6.9 billion investment in the Bahamian subsidiary. Jagdeo said winding it up is just one of the options available to the judicial manager.
However he was optimistic that the assets might be recovered from the company in the Bahamas therefore government is not yet treating the assets as "lost".
Jagdeo said the government has ordered Clico (Guyana) not to offer any new policies. He said van Beek would also have to make a decision as to what role, if any, Clico (Guyana)’s chief executive officer, Geeta Singh-Knight, would now have in the company.
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