Former CL Financial Director Michael Carballo made the point Tuesday on his second day as a witness at the commission of inquiry into Clico and the Hindu Credit Union (HCU).
Carballo said although he was CL Financial's Group Financial Director in January 2009 CL Chairman Lawrence Duprey chose Monteil to work the deal with the government. Monteil was treasurer of the PNM.
"Mr Duprey told me that he wanted Mr Monteil to be involved and that I should take a back seat," Carballo said, adding that Duprey told him that the selection of Monteil was a "political intervention".
Monteil had a plan to sell Clico's shares in Republic Bank at a price of $130 per share to raise $12 billion for CL Financial, Carballo said.
He said when Duprey presented the plan to the CL Board just days before a Memorandum of Understanding was signed no one supported it because they objected to Monteil's involvement. Monteil was forced to step down as CL Financial group financial director less than a year earlier.
He said despite that Duprey still let Monteil and his private company, Stone Street Capital, handle the bailout.
Carballo said although he was CL Financial's Group Financial Director in January 2009 CL Chairman Lawrence Duprey chose Monteil to work the deal with the government. Monteil was treasurer of the PNM.
"Mr Duprey told me that he wanted Mr Monteil to be involved and that I should take a back seat," Carballo said, adding that Duprey told him that the selection of Monteil was a "political intervention".
Monteil had a plan to sell Clico's shares in Republic Bank at a price of $130 per share to raise $12 billion for CL Financial, Carballo said.
He said when Duprey presented the plan to the CL Board just days before a Memorandum of Understanding was signed no one supported it because they objected to Monteil's involvement. Monteil was forced to step down as CL Financial group financial director less than a year earlier.
He said despite that Duprey still let Monteil and his private company, Stone Street Capital, handle the bailout.
Carballo also spoke about the close relationship between Duprey and Monteil that continued long after Monteil left CL. He said both men would meet regularly at the offices of Stone Street Capital to discuss several issues relating to the group.
“I would meet with Mr Monteil on a very regular basis, have coffee and talk about the challenges facing the group...And those meetings were normally three times a week, four times a week.
"At that time he was the past group CFO I had to some extent lean on some of his advice. There was always a fairly loose arrangement. He came to meetings. It was not unusual to be meeting with Mr Monteil,” Carballo said.
He added that when CL was facing severe liquidity problems by January 2009 it was Monteil who proposed the plan for Stone Street Capital to sell Clico’s $12 billion worth of Republic Bank shares.
For that, Monteil's fee was more than $206 million comprising US$2 million “consultancy fee” and a 1.75 percent commission – worth an estimated $194 million – for the sale, Carballo said.
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