Ramesh says gov't must pay Clico investors, threatens to take CB to court

The CLICO Policy Holders Group met on Sunday to show their disapproval of measures announced in the new Trinidad and Tobago government's first budget to deal with the CL collapse, focusing their anger on Finance Minister Winston Dookeran.

The government has offered Clico investors $75,000 in cash and any other outstanding money in the form of IOUs to be paid in equal instalments over 20 years at zero interest. Dookeran said it was the best of three options that the government had to deal with the problem created during the previous Manning PNM administration.

But the Clico investors are not pleased with that and their legal adviser, former Attorney General Ramesh L. Maharaj, has advised them that the government is in breach of the law and must pay all the monies owing to them.

But the finance minister is not bothered by the protest and told the Trinidad Express Sunday they group is "making a mountain out of a molehill".

He told the paper, "I believe the Government had a fundamental right to deal with this matter and it has done so within the context of the laws of the country." 

Maharaj told the Clico group the finance minister does not have jurisdiction over the matter, an argument that Dookeran dispute, noting that he does have the authority to act in the matter.

Maharaj's position is that it is the Central Bank that has the responsibility in the matter, based on the Memorandum of Agreement signed between CL Financial and the Bank last February and according to the amendment to the Central Bank act, passed last year.

He called on the Bank to act independently in the matter and promised to carry on the fight on behalf of the group if the government does not change its mind and pay the investors. 

"The Government has to back down or they will be forced to back down. The Minister of Finance is making statements he is not legally competent to make," Maharaj declared, adding that he plans to court to court over the issue.

He also warned that if the bank fails to act it could become "personally liable" for the money.

The former cabinet minister called on the Bank to state what is the present value of the assets of Clico and suggested that the assets be liquidated to pay the $12 billion in deposits that the company owes investors.

The group decided to picket the office of the Prime Minister and to register a no-confidence vote in the People's Partnership as part of the solution to the problem.

Maharaj told the group there is nothing to worry about, noting that he plans to to send a legal pre-action protocol letter to the Government. "If they don't respond after that we will have the court determine the next step. I am committed for the long legal battle," he said.