Attorney Fyard Hosein said on Wednesday there was a Statutory Fund deficit by CLICO of $10.3 billion in 2009.
Hosein, attorney for the Ministry of Finance, made the statement to the Commission of Enquiry into Clico and the Hindu Crediut Union (HCU).
He added that the information in relation to the exact total of the insurance company's deficit was inconsistent.
"First of all, the preliminary view was that the statutory fund was first in deficit of $2.5 billion," Hosein said. "Subsequently, it was estimated by Stone Street Capital to be $3.7 billion," he added.
"And my instructions are by a letter dated February 10, 2009, CLICO advised the Governor of the Central Bank that the projected deficit of the statutory fund as at December 31, 2008, was $10.3 billion," Hosein said.
Hosein was cross examining former Cl Financial (CFL) Finance Director Michael Carballo. He claimed that the board of directors of CL Financial was in shambles and that shares in CLICO Energy were sold "surreptitiously like a thief in the night".
Terrence Bharath, an attorney for CLICO policyholders, also raised the issue of board control. He said former CL Financial executive chairman Lawrence Duprey was granted a $78 million unsecured loan.
CLICO's lawyer, Neil Bisnath explained why Duprey needed that loan.
He said CLICO owned shares in the Home Mortgage Bank (HMB) which were kept in the statutory fund. The shares in HMB were withdrawn with the intention of selling them to Stone Street Capital, which was owned by former CL finance chief Andre Monteil.
"CLICO then lent Clico Investment Bank (CIB) $100 million. Stone Street subsequently borrowed that money (from CIB) and paid for the shares," Bisnath said. The borrower was Monteil.
Duprey then took over the loan from Monnteil, which at the time had an outstanding balance of $78 million.
"This was an asset that was held in the statutory fund to protect the policyholders of CLICO," Bisnath said.
Hosein, attorney for the Ministry of Finance, made the statement to the Commission of Enquiry into Clico and the Hindu Crediut Union (HCU).
He added that the information in relation to the exact total of the insurance company's deficit was inconsistent.
"First of all, the preliminary view was that the statutory fund was first in deficit of $2.5 billion," Hosein said. "Subsequently, it was estimated by Stone Street Capital to be $3.7 billion," he added.
"And my instructions are by a letter dated February 10, 2009, CLICO advised the Governor of the Central Bank that the projected deficit of the statutory fund as at December 31, 2008, was $10.3 billion," Hosein said.
Hosein was cross examining former Cl Financial (CFL) Finance Director Michael Carballo. He claimed that the board of directors of CL Financial was in shambles and that shares in CLICO Energy were sold "surreptitiously like a thief in the night".
Terrence Bharath, an attorney for CLICO policyholders, also raised the issue of board control. He said former CL Financial executive chairman Lawrence Duprey was granted a $78 million unsecured loan.
CLICO's lawyer, Neil Bisnath explained why Duprey needed that loan.
He said CLICO owned shares in the Home Mortgage Bank (HMB) which were kept in the statutory fund. The shares in HMB were withdrawn with the intention of selling them to Stone Street Capital, which was owned by former CL finance chief Andre Monteil.
"CLICO then lent Clico Investment Bank (CIB) $100 million. Stone Street subsequently borrowed that money (from CIB) and paid for the shares," Bisnath said. The borrower was Monteil.
Duprey then took over the loan from Monnteil, which at the time had an outstanding balance of $78 million.
"This was an asset that was held in the statutory fund to protect the policyholders of CLICO," Bisnath said.
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