The CLICO Policyholders Group said Thursday its last resort will be to take legal action against the Central Bank of Trinidad and Tobago (CBTT), the Government, former directors of Clico and CL Financial, Clico's parent company.
And the group has denounced a statement from the Central Bank, calling it "misleading, fallacious, egregious and offensive".
The CBTT took out media ads this week stating that it did not make promises to pay Clico policyholders.
In the ads, the Bank stated, "...the Bank, working together with the Government of T&T (GORTT), was seeking to assure that, in the developing situation, the Clico policyholders would have been offered the best possible protection, subject to reasonable public policy constraints," the CBTT said.
"The Bank was not able in law to give any binding assurance of the nature claimed, since the bank had no power to provide financial assistance to Clico, but was conveying and supporting the financial resolution strategy of the GORTT, in the best interest of the policyholders," it added.
Read the story: Central Bank made no promises to pay Clico policholders: statement
However Deputy chairman of the Policyholders Group Peter Permell told reporters Thursday he believes the Central Bank is misleading people with its response on its level of responsibility to protect investors and protect their assets.
Permell referred to statements made last February by Central Bank Governor Ewart Williams and former CLICO executive Claude Musaib-Ali making a guarantee.
And the group has denounced a statement from the Central Bank, calling it "misleading, fallacious, egregious and offensive".
The CBTT took out media ads this week stating that it did not make promises to pay Clico policyholders.
In the ads, the Bank stated, "...the Bank, working together with the Government of T&T (GORTT), was seeking to assure that, in the developing situation, the Clico policyholders would have been offered the best possible protection, subject to reasonable public policy constraints," the CBTT said.
"The Bank was not able in law to give any binding assurance of the nature claimed, since the bank had no power to provide financial assistance to Clico, but was conveying and supporting the financial resolution strategy of the GORTT, in the best interest of the policyholders," it added.
Read the story: Central Bank made no promises to pay Clico policholders: statement
However Deputy chairman of the Policyholders Group Peter Permell told reporters Thursday he believes the Central Bank is misleading people with its response on its level of responsibility to protect investors and protect their assets.
Permell referred to statements made last February by Central Bank Governor Ewart Williams and former CLICO executive Claude Musaib-Ali making a guarantee.
He said the Central Bank must accept its responsibility for the Clico situation because it is the regulator of the country's financial sector. He said the Bank has an obligation to provide financial assistance to Clico policyholders.
"We have read the letters and heard the comments that policyholders were greedy, but policyholders acted responsibly and, if necessary, as a last resort, we are prepared to take legal action. We have a solid basis for a case," Permell said.
He said while there is a solid legal case to be made the group has no problems with the current Government and had held "amicable meetings" with the interministerial team led by Food Production Minister Vasant Bharath to help resolve the problems CLICO investors faced.
The government is considering a proposal from the group for a payment to investors of 40 per cent of their principal investments in Clico up-front and the remainder over the next five years with interest.
That is an alternative to the offer made in the budget for the payment of $75,000 with the remainder to be paid over 20 years with no interest.
"We have read the letters and heard the comments that policyholders were greedy, but policyholders acted responsibly and, if necessary, as a last resort, we are prepared to take legal action. We have a solid basis for a case," Permell said.
He said while there is a solid legal case to be made the group has no problems with the current Government and had held "amicable meetings" with the interministerial team led by Food Production Minister Vasant Bharath to help resolve the problems CLICO investors faced.
The government is considering a proposal from the group for a payment to investors of 40 per cent of their principal investments in Clico up-front and the remainder over the next five years with interest.
That is an alternative to the offer made in the budget for the payment of $75,000 with the remainder to be paid over 20 years with no interest.
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