Government seeking $20B from CLF: Dookeran

File: Finance Minister Winston Dookeran

Finance Minister Winston Dookeran on Saturday told the Express newspaper the Government is seeking $20 billion from CL Financial (CLF). A claim for the amount has been made just three weeks before the Shareholders Agreement expires. 

Dookeran told the paper while the claim is for around $20 billion, the state is only expecting about half of that. The paper said the minister did not give exact figures.

"Things are happening. I don't know how much I can make public," he told the Sunday Express.

The Shareholders Agreement was signed on June 12, 2009. It was the successor deal to the Memorandum of Understanding of January 30, 2009 signed between the Manning PNM administration, CLF and the Central Bank. It gives government controlling interest of the CL Financial board.

Former Finance Minister in the Panday government, Gerry Yetming, is the chairman of the board. Other Government appointed directors on the CL Financial board include former Citibank executive Steve Bideshi, Krishna Boodhai and Marlon Holder. Shareholders have appointed two other directors - Steve Castagne and Andrew Mitchell.

Dookeran said the lawyers will negotiate with a limited liability company called United Shareholders Ltd (USL), comprising CLF shareholders.

CL Financial was a billion-dollar enterprise comprising about 65 companies in 32 countries. However, three years ago the conglomerate was facing financial collapse and CLF executive chairman Lawrence Duprey went to government for help.

Government agreed to help but revoked the licence of CLF's subsidiary Clico Investment Bank's, installed new boards at CLICO and CL Financial and provided the required liquidity for survival and to pay investment annuities that had matured.

Government has so far transferred $8.2 billion in cash and bonds to the CLICO policyholders and has spent an estimated $17 billion on CL Financial and its subsidiaries.