Letter: The 'weepers and wailers' didn't act to prevent CL fiasco

The weeping and wailing concerning the Clico fiasco leaves me to appreciate how short are the memories of many in this country including members of both political parties, Trade Union Officials, and senior members of the business community.

In July 1996, Republic Bank issued a Circular Letter to all shareholders requesting that they reject Clico's attempt to take control of the Bank and giving their reasons, in particular highlighting a history of their business failures to that time.

Do you remember Axxon Ltd in Receivership?

The Auditors declared that the Company was trading illegally while insolvent yet the company paid a dividend to the shareholders notwithstanding losses totaling $3 million for 1990 & 1991.

Other 'investments/involvements ' by the Clico team included Plantation Holdings in Barbados, Grenada Telephone Co. Pension Plan, Caribbean Resources Ltd & Essequibo Timbers Ltd in Guyana, Caribbean Tyre Co and S & G Telerentals.

In his defense to not pay up under a guarantee/agreement supporting the Axxon debacle Duprey claimed that he was induced to sign the guarantee and agreement without benefit of legal advice and that he was induced to sign by a misrepresentation that if he did not sign a judgment would be entered against him etc.etc.

Is he going to use this excuse for the 'agreement' he signed with government in Jan 2009?

I was privileged in those days to be a member of a small committee of Republic Branch and Middle Managers who worked assiduously every evening well in to the night devising ways to bring the powers that be that take over of the Bank was not in the best interests of the country.

We were supported by the very senior management of the bank and it would be fair to say the majority of the staff to the extent that hundreds of the staff participated in both north and south Trinidad in a silent march of protest one Friday afternoon. 

No one listened when in fact Clico had admitted that in 1994 their statutory fund requirement was in deficit to the tune of $110million.

All, I repeat all, political parties, Trade Union officials and senior members of the business community were visited and spoken to and shareholders were visited in an effort to obtain their proxies for the upcoming General Meeting.

In many cases we were accused of having a 'dog in the manger' attitude and in some cases individual shareholders abused our officials. Many of them are now weeping and wailing.

When BCCI, Southern Finance and other Finance Houses collapsed, depositors got what they were due under the Deposit Insurance Scheme, nothing more. Clico is being treated with an abundant generosity in comparison while their directors, who paid themselves handsome salaries, perks and bonuses still have their abundant assets in their hands.

That is where the money should come from.

As I cast my mind back to those days I realize how extraordinary the staff of the Bank performed during those trying times, despite all the criticisms and their fears. I say thank you to them.

Dallas Kidman (via email)