Credit Unions did nothing wrong when they invested in Clico

The president of the Co-operative Credit Union League of Trinidad and Tobago told the Trinidad Express Tuesday the credit unions in the country did nothing wrong when they invested in Clico.

Brian Moore was responding to claims by Government Senator Patrick Watson who has accused credit unions of manipulating the rules to take advantage of high-yielding investments at the insurance company.

Watson made the charge at a seminar at the St Augustine campus of the University of the West Indies (UWI) on Monday,in respect to the Executive Flexible Premium Annuity (EFPA) that Clico offered.

The senator said the EFPA was designed specifically for individuals and not organisations and charged that credit unions fixed the system to get in on the investments by investing credit union funds under personal names.

Moore admitted that the EFPAs were under personal names but said that was a requirement of the insurance company.

"Clico said we had to name one of our officials to become a representative for the organisation, Clico said in order for us to legitimately participate, we need to name a member, and that member would sign on behalf of the institution. And that is what we did," Moore explained to the paper.  

"We in the Credit Union League take great objection to Watson's characterisation of credit unions participating in a legal product on the market," he added.

He told the paper, "When Clico offered this product to credit unions, Clico indicated it was all right for credit unions to participate. Credit unions and other institutions were approached and asked to participate. It was not the credit unions that approached Clico; it was Clico that approached the credit unions."

Moore added that he was a board member of a credit union when the Clico investment deal first came up. He said at that time he though it was a good idea but cautioned his colleagues to ensure that "it was above board," he said.

He told the Express based on that the credit union met with the Central Bank and the Commissioner for Co-operative Development who cleared the investment.