Clico group doesn't want advice from CB governor; proceeding with legal option

The CLICO policyholders said Tuesday it doesn't need the "unsolicited" advice from the governor of the Central Bank warning that legal action against the State could hurt policyholders’ chances of getting their money back from the collapsed insurance company.

Peter Permell, deputy chairman of the group, made the statement in reaction to comments by Ewart Williams on Monday. The Central Bank governor said all stakeholders would be “worse off” if they took action in court and refused the money the government is offering.

Read the story: Risky to refuse gov't offer, CB governor advises CLICO policyholders

Permell has advised persons with up to $75,000 in the failed institution to accept the money from government but has insisted that the group will go to court on behalf of others who have more than that invested in Clico.

He is standing firm on that position, saying it is too late for the Central Bank governor to be offering such "unsolicited advice.”

Permell said Williams should tell the nation "where has he been over the last several months, what has been responsible for his deafening silence; and what advice, if any, did he give to the Minister of Finance prior to the announcement of this measure in the September 8, 2010, budget."

He said he is particularly interested is hearing the "circumstances where the Central Bank, having intervened under Section 44d of the Central Bank Act, is the only body at this time with responsibility in law for protecting the interests of policyholders, depositors and creditors of CLICO.”

Attorney General Anand Ramlogan said on Monday that CLICO policyholders who accept Government’s proposed payout offer will not be able to sue the State afterward. Permell said the group's attorneys are checking to see if that position is legal since policyholders who accept the money would be doing so under duress.