A lawyer for CLICO told the Clico/Hcu enquiry Thursday former CL Financial (CFL) executive chairman Lawrence Duprey collected $1.1 billion in the five years prior to CLF seeking a billion dollar bailout from the Government.
Bisnath said the money came from the deposits of CLICO policyholders. The day before Bisnath told the commission Duprey was paid $5 million a month from Clico's funds in addition to hueft consultant fees. Bisnath said in 2007 Duprey's income was $90 million.
Bisnath asked former Group Financial Director of CL Financial, Michael Carballo about that matter.
"Were you aware that for the period 2004 to 2008 CLICO paid through CLF for the benefit of Mr Duprey through his company DALCO, the sum of $1.1 billion?" Bisnath asked Carballo.
"I was not aware of that at all," Carballo responded.
"And if we were to do the math Mr Carballo, Mr Duprey in effect collected between the period 2004 to 2008 a sum in the excess of $200 million per year," Bisnath said.
Another lawyer - Bankim Thanki, representing the Central Bank - stated that in addition to Duprey's billion dollar income in the five years prior to approaching the Central Bank for "urgent liquidity support", CL Financial paid a $21 million dividend to its shareholders.
"We know that CLF had gone to the Central Bank and Government seeking urgent liquidity support in what could clearly be categorised as a dire emergency. Would you agree with me that it was wrong to pay those dividends to shareholders at that point in time?" Thanki asked.
Carballo said the dividends were paid to quell a potential "internal uprising".
"Probably, but at the time what we thought when one looked at the potential effect of those dividends whereby shareholders made commitments for it and obviously most of them are family members within the Duprey trust it was that there would be a significant internal uprising that would have had much more catastrophic effects on CL Financial," Carballo said.
Commission chairman Sir Anthony Coleman inquired whether Duprey has CLF's the Investment Committee "in his pocket".
Bisnath asked former Group Financial Director of CL Financial, Michael Carballo about that matter.
"Were you aware that for the period 2004 to 2008 CLICO paid through CLF for the benefit of Mr Duprey through his company DALCO, the sum of $1.1 billion?" Bisnath asked Carballo.
"I was not aware of that at all," Carballo responded.
"And if we were to do the math Mr Carballo, Mr Duprey in effect collected between the period 2004 to 2008 a sum in the excess of $200 million per year," Bisnath said.
Another lawyer - Bankim Thanki, representing the Central Bank - stated that in addition to Duprey's billion dollar income in the five years prior to approaching the Central Bank for "urgent liquidity support", CL Financial paid a $21 million dividend to its shareholders.
"We know that CLF had gone to the Central Bank and Government seeking urgent liquidity support in what could clearly be categorised as a dire emergency. Would you agree with me that it was wrong to pay those dividends to shareholders at that point in time?" Thanki asked.
Carballo said the dividends were paid to quell a potential "internal uprising".
"Probably, but at the time what we thought when one looked at the potential effect of those dividends whereby shareholders made commitments for it and obviously most of them are family members within the Duprey trust it was that there would be a significant internal uprising that would have had much more catastrophic effects on CL Financial," Carballo said.
Commission chairman Sir Anthony Coleman inquired whether Duprey has CLF's the Investment Committee "in his pocket".
"One of the problems is you find senior executives would fail to challenge the decision of a chairman because it is that exact chairman who would have to review and approve their incentive packages and contracts," Carballo said.
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