Government Senator Patrick Watson wants those responsible for the elaborate "Ponzi scheme" that has affected thousands of investors to be jailed.Watson was speaking at a breakfast meeting in Port of Spain Monday.
He was emphatic. "If I had my own way, they would be in jail," Watson said, in reference to the people involved the the CL Financial and CLICO affair.
"I think some people should go to jail. It was an elaborate Ponzi scheme that was inflicted on an unsuspecting population," he added.
Last Wednesday Finance Minister Winston Dookeran described the CL and CLICO fiasco as a "colossal, inexcusable multi-billion mistake" that was "handly badly from the start" by people engaged in what he called "reckless corporate governance". And he said those responsible would have to face the consequences.
At the same time he offered some relief for investors.
Watson said, "It is going to cost us money. It has already cost you $7 billion and the debt is $12 billion over 20 years."
The Senator explained that government has allocated an initial $1.3 billion who will receive $75,000 each, and another $1.8 billion will be available for amortisation payments over 20 years.
He admitted that while the budget exceeded expectations on the financial relief for investors "not everyone will be totally happy" because many of them will see some losses.
"The good news is that 225,000 insurance policyholders are in the clear because they will be covered," he said.
Watson said 40 per cent of Of the 25,000 investors who bought into financial instruments offered by CLICO are covered by the $75,000 payment proposed in the budget. However, 14,000 others will lose some of their principal investments over the 20-year period.
They will receive one-twentieth of their principal in Government IOUs every year for the next 20 years with no interest.
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