Former PNM treasurer facing $100M lawsuit

The Central Bank of Trinidad and Tobago has filed a lawsuit against Andre Monteil, former treasurer of the People's National Movement (PNM), a media report in Trinidad states.

According to the report the bank is suing Monteil for $100 million dollars in relation to a 2007 transaction in which Monteil acquired 25 per cent of the shares in the Home Mortgage Bank valued at $110 million.

The central bank wants to recover the money, which amounts to a loan of $78 million and interest.

The report states that the action names the defendants as Andre Monteil and Stone Street Capital, a company owned by Monteil and his wife Sherlyn Monteil, and Richard Trotman who was the Chief Executive Officer at CLICO Investment Bank at the time of the transaction and First Capital Limited.

The issue was first raised in the House of Representatives during the 8th Parliament by opposition MP MP Ganga Singh who alleged that Monteil had acted improperly by transferring the shares to Stone Street Capital while he was also Chairman of the Home Mortgage Bank.

Monteil subsequently resigned from the Home Mortgage Bank after which The Colonial Life Insurance Company (CLICO) transferred its 43.8 per cent shareholding in the Home Mortgage Bank to Monteil, who was at the time the finance director of CL Financial, the parent company of CLICO.

The 2009 report of Transparency International raised the issue of overlapping directorships as a major concern in Trinidad and Tobago, highlighting the Monteil matter.

"When not properly regulated, overlapping directorships leave state resources and private shareholder equity vulnerable to allegations of manipulation and insider dealings," the report stated.

Read the report: Transparency International highlights Monteil scandal in 2009 report on T&T

Monteil told the Sunday Exxpress news of the lawsuit has "shocked the daylights out of me". He said he did not know about the proceedings filed against him.

"I have received no pre-action protocol letter. I have received no writ of any action filed against me. Full stop! Full stop! Full stop!" he told the paper. "I would have expected that if somebody is going to sue me, they would go through the process," he added.