Sakal tells inquiry government representative on CL Board also got hefty fees

Gita Sakal admitted on Thursday that he approved payments to herself ranging from hundreds of thousands to millions of dollars.

The former corporate secretary of CL Financial (CLF) was giving testimony at the CLICO/HCU commission of enquiry.

Sakal said she earned a multi-million dollar salary and multi-million dollar bonuses. She added that it was common practice at CLF, noting that a former finance director at CLF, Andre Monteil, also paid himself large sums.

“There were no policies and procedures put in place to prevent such a thing from occurring,” she said.

Sakal said her company, Corporate Consultants, earned $17 million a year, tax-free, from CLF. She said that was in addition to her 2008 emoluments of $12.25 million, paid to Discreet Logic Limited, another company she owned.

Sakal told the commission she earned her salary by providing legal services to CLF and its subsidiaries, noting that her salary of US$20,000 a month was lower that those of other CLF executives.

Sakal noted that one executive, Ram Ramesh was hired in January 2008 as chief financial advisor to the chairman at a salary of US$45,000 a month. Former CLF finance director, Michael Carballo, earned US$35,000 a month, exclusive of benefits, she said.

In addition to the huge compensation packages, CLF directors also got a fee of US$5,000 for attending a board meeting.

Sakal also told the commission the Government appointed “representatives to the CLF board (which included the permanent secretary in the Ministry of Finance) increased and extended board meeting fee to:

• US$10,000 for the chairman
• US$8,000 for ordinary directors (which included Carballo)
• US$2,000 for committee members

She added that the same system of payment was introduced at Methanol Holdings (MHTL)at the insistence of Government-appointed directors.

“MHTL for the first time introduced directors’ fees: chairman US$10,000 and US$5,000 for ordinary directors,” Sakal said.