The Central Bank of Trinidad & Tobago has hired retired Canadian forensic investigator Robert Lindquist to analyse the records of CLICO to determine whether the insurance company's financial troubles have been caused by bad judgment or corporate malfeasance. The Trinidad Express reported Thursday that the Lindquist, who is already on the job, is not making any public declarations. "No disrespect to you but I am not talking to the press," the paper quoted him as saying.
In January the Government announced that it would step in to help the country's biggest insurance company, CLICO, and British American Insurance in return for equity interest in order to protect depositors and policy holders.
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CLICO has more than 100,000 policy holders and provides group pension plan services for thousands of workers in the country and in the Caribbean. CIB was closed and the state took control of the operations of CLICO and appointed former Central Bank Governor Dr Euric Bob to head the financially strapped insurance company.
Lawrence Duprey, chairman of CL Financial, the CLICO parent company, admitted that he had underestimated the global and local financial troubles. He approached the Central Bank for help on January 13 seeking assistance.
The deal with the government involved the sale of some of CL Financial's lucrative assets in return for Government's cash and support. It included surrendering CL's 55 per cent stake in Republic Bank Ltd, the country largest commercial bank, and a change in the ownership structure for CL's media business, which includes the country's top private television station, TV6.
The Express said the initial Lindquist investigation will be conducted within the context of the January 30 Memorandum of Understanding signed between Finance Minister Karen Nunez-Tesheira and Duprey.
It said the terms of reference could change to include the whole CL Financial group. The government has insisted that Duprey resign as chairman of the group's holding company, CL Financial.
Last week it handed Duprey with a list of demands for that would give the state management control of the privately-owned conglomerate.
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The CL bailout has become a political hot potato with accusations that Nunez-Teshiera breached conflict of interest rules by dealing with the issue when she was a major shareholder in the company. Her shares are valued at more than $11 million.
The opposition has also claimed that the minister did not declare her assets in CLICO to the Integrity Commission and could be charged with breach of the Integrity in Public Life Act. The minister has denied everything and had ignored calls from the opposition and civil society for her resignation.
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