Duprey wanted to sell assets after making bailout deal with government: Carballo

Former Clico Financial Director Michael Carballo said on Tuesday former CL Financial (CLF) Executive Chairman Lawrence Duprey wanted to sell Clico Energy shares even after CL had signed a memorandum of agreement for a billion-dollar rescue package in 2009.

Carballo made the statement during cross examination by Justin Phelps, the attorney for CLF former Corporate Secretary Gita Sakal.

Carballo said Duprey was ready to sell after cutting the deal with government although there were no urgent discussions to sell off assets when the company's liquidity problems began to worsen.

He said no sale agreement was brought before the Board and appeared to blame Sakal for not bringing the matter before the board.

"I would say that the function of the Corporate Secretary is to encourage the Chairman to ensure that all material matters affecting the company are placed on the agenda for discussion and ratification because this is a mater that involves all Directors - and exposes Directors also."

Phelps asked Carballo about a letter he helped draft in January of 2009 to the Central Bank Governor concerning Clico's liquidity problems. Carballo insisted that the letter was only to inform the Governor about the mismatch in the group's long term assets and shorter term liabilities.

Phelps wanted to know from Carballo whether it was a fair to say that CLF was embarking on the immediate sale of assets. 

Carballo said that is not his interpretation of things. "We were looking at options. As far as I was aware, when this letter was being drafted, we were not in any final negotiations with any party for the disposal of any assets."