Karen Nunez-Tesheira was testifying at the Clico/HCU enquiry. She said the Memorandum of Understanding between the Government and Clico was to deal with systemic risk and to assist third party policy holders.
The former minister added that former CL Financial (CLF) chairman Lawrence Duprey did not understand the seriousness of the situation when CLF turned to the Government for help in 2009.
"The problems of Clico and the problems of CIB had less to do with the financial crisis and more to do with mismanagement," she said.
She added, "So it would be highly irresponsible of the Government to hand over the money to CL Financial and I would say at that meeting, the things that came out of that meeting and struck me, I can't speak for anyone else, but it seemed to me that Mr. Duprey did not understand the gravity of the situation.
"That was what struck me. He was still dealing. He was still talking about a swap here with this, working on a deal, Monteil is working on a deal, and we will do this."
Nunez-Tesheira said CL Executives were not eager to tell the Government about the real situation at CLF.
She also said she wanted to set the records straight with respect to the intervention by the government.
She also said she wanted to set the records straight with respect to the intervention by the government.
"One: Mr. Monteil and all those who fell into that category did not benefit from that intervention. Two: contrary to the proposal that Mr. Monteil was asked to bring us reflected in the Board Minutes of January 31st and February 5th, the Government did not give a line of credit."
She denied having prior knowledge of the troubles at CLF. And she said understood that there would be interest penalties if she withdrew her money from Clico Investment Bank.
"I had my own personal reasons like everyone else, they have banking arrangements, and I chose to exercise my right to do that," she said in response to a question about why she broke her fixed deposit just weeks before the government intervened to help the company.
She insisted the deposit at CIB was the only investment she had with Clico and that the timing of the withdrawal was a coincidence.
"It didn’t take much to persuade me to disassociate myself of any investment with Clico and CIB. It was in the month of December, which is a few weeks before Mr. Duprey came to speak to the Governor of the Central Bank, I guess that's the coincidence."
The former Finance Minister also admitted that she encouraged her sister to withdraw her investment from CIB and that there were longstanding concerns in her family that high returns meant high risks.
She denied having prior knowledge of the troubles at CLF. And she said understood that there would be interest penalties if she withdrew her money from Clico Investment Bank.
"I had my own personal reasons like everyone else, they have banking arrangements, and I chose to exercise my right to do that," she said in response to a question about why she broke her fixed deposit just weeks before the government intervened to help the company.
She insisted the deposit at CIB was the only investment she had with Clico and that the timing of the withdrawal was a coincidence.
"It didn’t take much to persuade me to disassociate myself of any investment with Clico and CIB. It was in the month of December, which is a few weeks before Mr. Duprey came to speak to the Governor of the Central Bank, I guess that's the coincidence."
The former Finance Minister also admitted that she encouraged her sister to withdraw her investment from CIB and that there were longstanding concerns in her family that high returns meant high risks.
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