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by CLYDE MASCOLL

IT IS SAID that the devil is always in the details and so the more details that are made available, the less confidence one has in the decision-making of the Prime Minister with respect to the CLICO affair.

In the first Press conference both he and the Supervisor of Insurance assured the public that CLICO was financially sound and met the statutory reserve. Yet, CLICO (Life Barbados) is now for sale. This is what needs to be explained.

When pressed to respond to the identified $93 million deficit in the CLICO's statutory reserve, the Prime Minister reduced the debate to blaming the last administration and more recently to campaign funding. As if haunted by my spirit, the Prime Minister once again seeks to use innuendo and invective to bring me into the spotlight.

The real issue is what information did the Prime Minister use to create the following package for CLICO: (1) a deposit up to $10 million with CLICO Mortgage Finance Corporation (CMFC); (2) a facility in the event that CMFC needs to access liquidity support; and (3) a proposal to provide inter-bank guarantees, which cover lending by other banks to CMFC, if necessary.

Since the Prime Minister's first Press conference on CLICO, the companies in The Bahamas, Guyana and Belize joined the Trinidad operation with respect to their financial woes. Now the Prime Minister, not the president of CLICO (Barbados), announced that the life insurance component of the company would be sold.

It has not been announced that the Barbados Government has taken over the operations of CLICO (Barbados), but yet the Prime Minister made the announcement. May I ask in what capacity?

Furthermore, the Prime Minister of Barbados stated that CLICO would not be allowed to sell a "flexible premium annuity" package any longer, without giving the reasons for the decision. Again the lack of confidence comes in the decision-making!

As if to divert attention away from the substantive issues, it is being suggested that CLICO made a contribution of $800 000 to the last election campaign of the Barbados Labour Party and this in some way was responsible for the failure of the last administration to enforce the regulations on the insurance company.

Former Prime Minister Owen Arthur has already stated in public that CLICO (Barbados) had indicated that its parent company CL Financial was in a position to assist in the event of any unforeseen circumstances.

Unfortunately the operative word is "was". CL Financial is no longer in a sound financial position.

What struck me most from the Press conference was the Prime Minister's comfort with the affairs of CLICO; but then again he was the attorney-at-law, and his former legal team are still the attorneys of record representing CLICO.

Furthermore, is the Prime Minister suggesting that the relief given to the Barbados Turf Club of $19 million may be construed as a favour?

Apparently, it was asked of me to tell the public what CLICO contributed to the Democratic Labour Party's campaign in 2003. I had promised never to speak about the affairs of the Democratic Labour Party and I have refused to respond to some very personal attacks from members of the party in the last election.

In 2003 I refused to visit the office of the president of CLICO to accept a campaign contribution because I cannot value an individual's/company's worth by its wealth. I was however told that it was a paltry sum when compared with the 1999 contribution and the "loan" which the party received from the company when the current Prime Minister led the party, before his double resignation.

If forced to, I will find the necessary forum to explain much more and unlike some others, I have never had cause to be intimidated by hardwood.

Source: Weekend Nation of March 6, 2009.
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