The Chairman of CL Financial says government would have to work out a new agreement with former CL boss Lawrence Duprey in order for the state to work on recovering billions of dollars it invested in the conglomerate.
Gerald Yetming, who is a former finance minister, made the statement Thursday in an interview with the Trinidad express. Yetming said there are two areas of concern in the Memorandum of Agreement (MOU) signed between the Manning PNM government in January 2009 and CL.
That deal, which expires in 2012, allowed the government to inject billions of state funds into the CL group to rescue CLICO and CLICO Investment Bank.
Gerald Yetming, who is a former finance minister, made the statement Thursday in an interview with the Trinidad express. Yetming said there are two areas of concern in the Memorandum of Agreement (MOU) signed between the Manning PNM government in January 2009 and CL.
That deal, which expires in 2012, allowed the government to inject billions of state funds into the CL group to rescue CLICO and CLICO Investment Bank.
Under the terms of the agreement, Duprey had to resign as chairman of the group, which comprised more than 70 companies in 32 countries.
"To some extent, I have to look after the Government's interest, and the first area of concern is that the agreement expires in June 2012. The other area of concern has to deal with the sale of assets," Yetming told the paper.
He added, "The agreement as crafted does not give the Government sufficient flexibility, and it is clear that a new agreement has to be negotiated with Mr Duprey."
Yetming said he is preparing a recommendation for Minister of Finance Winston Dookeran on what would be involved in negotiating a new agreement with Duprey. "The ability to recover any money needs to be strengthened so that the public purse is protected," he said.
The former cabinet minister noted that Government remains in control of CL Financial. However he said it needs to strengthen its position. There are three Government directors on the board and two from CL.
"To some extent, I have to look after the Government's interest, and the first area of concern is that the agreement expires in June 2012. The other area of concern has to deal with the sale of assets," Yetming told the paper.
He added, "The agreement as crafted does not give the Government sufficient flexibility, and it is clear that a new agreement has to be negotiated with Mr Duprey."
Yetming said he is preparing a recommendation for Minister of Finance Winston Dookeran on what would be involved in negotiating a new agreement with Duprey. "The ability to recover any money needs to be strengthened so that the public purse is protected," he said.
The former cabinet minister noted that Government remains in control of CL Financial. However he said it needs to strengthen its position. There are three Government directors on the board and two from CL.
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