CAL awards $27M insurance contract to company with family ties to its chairman

A report in the Guardian on Sunday said Caribbean Airlines (CAL) has awarded a three-year, $27 million dollar contract to CIC Insurance Brokers, which has family connections to the chairman of the airline, George Nicholas.

Howver, Nicholas declared his family interest in CIC Insurance Brokers and left the Tenders Committee meeting that made the decision on which company would get the contract.

The contract, which is to provide Employee Benefits Brokerage and Consulting Services at CAL, was awarded on February 4, 2011, the paper said.

It added that the company is a wholly-owned subsidiary of CIC Holdings, in which Issa Nicholas Holdings Limited is the fifth largest shareholder. CAL's chairman is a director of Issa Nicholas Holdings Ltd.  

The Guardian said CIC Insurance Brokers was one of three companies shortlisted; the other two companies were Risk Management Services, an independent broker which was formerly a member of Guardian Holdings Ltd and Global Financial Services and 21st Century Ltd.

The paper said Risk Management scored the highest during the evaluation with CIC Brokers second and 21st century placing third.

Risk Management Services was selected in 2007 when it was part of Guardian Holdings Limited (GHL). Former CAL chairman Arthur Lok Jack is also the chairman of GHL. 

The Guardian reported that 21st Century has filed a complaint to CAL’s board contending that it was not treated fairly in the selection process.