Ramesh gives PP gov't 14 days to rescind Clico payout plan

Former Attorney General Ramesh Lawrence Maharaj has sent a letter to Prime Minister Kamla Persad-Bissessar giving her government 14 days to rescind its partial payout plan for Clico policy holders.

His letter is on behalf of the Clico Policy holders Protection Association, which he is representing in the matter. Maharaj claims that the plan violates the private, public and constitutional rights of citizens.

Finance Minister Winston Dookeran announced the plan in the budget speech on September 8, which states that the government with pay policy holders $75,000 and any other balances in equal instalments over 20 years at zero interest.

Since then and following protests from several persons and groups affected by the decision the government has appointed an inter-ministerial team to meet with stakeholders with a view to finding a solution to the problem.

Food production minister Vasant Bharath is heading that committee, which has already held meetings with some stakeholders who have expressed optimism that a workable solution can be found.

“The fact that a government changes in a general election does not alter or change the liability of the State admitted by a previous government. This is the foundation of constitutional government,” the letter explained.

“We wish to make it clear that unless the Government within the next 14 days rescinds its decision, the policy holders whom we represent reserve their rights to commence legal proceedings to get redress in the courts for the violation of their private rights, public rights and their constitutional rights.”

Maharaj letter added, "The contents of the letters written to you and your Government raised serious legal issues to which you and your Government have a duty to respond. The importance of this matter is not limited to the rights of the policy holders. It is important also because it involves the reneging of guarantees and promises made by Government.”

Maharaj claimed that since 2000 government institutions and the Central Bank were not fulfilling their statutory duties and responsibilities, which put the investments of the policyholders were at risk.

“The Statutory Fund did not have sufficient funds and or assets to meet the liabilities of policy holders and creditors. There was a deficit in the statutory fund of several billions of dollars. This was not the fault of the policy holders. It was the fault of government’s and the institutions of government established by statute to prevent the crisis which occurred,” the former AG noted.