Join forces against CLICO

Open letter to the policyholders and investors in CLICO The Barbados Labour Party has been gravely concerned about the state of affairs at CLICO for some time. However, over the last two months the Government’s prolonged failure to take any action to protect the thousands of Barbadians who have invested in life insurance policies, pension plans and Executive Flexible Premium Annuities with the company has heightened our concern.Your financial security has always been and continues to be paramount to us. We know that recent revelations by the Barbados Association of Retired Persons (BARP) and a letter issued by CLICO admitting its inability to honour its financial obligations have been the cause of much worry to you. What makes your plight more critical is that the life of the Oversight Committee appointed by Government to monitor Clico’s expenditure over the last year expired two months ago on June 12, 2010. It has not been reappointed. We know from the chairman of that committee that he had grave misgivings about payments to officers of the company and great difficulty in receiving information from the company. He said that there were only two  options – winding up the company or judicial management. Neither has happened.The Barbados Labour Party can think of no valid reason why the Government is dragging its feet on putting judicial management in place to protect you. Every other country in the Caribbean from The Bahamas in the north to Guyana in the south has done so in the interest of its nationals.On March 15, 2010, the Prime Minister addressed Parliament and admitted for the first time that it might be necessary to place the company under judicial management. We heard from the Governor of the Central Bank in April that the Government was committed to “a resolution of the affairs of Clico Holdings Barbados and its affiliated companies that does not result in a loss of principal to any member of the public”. Both the Prime Minister and Freundel Stuart repeated this assurance.More recently, however, Senator Darcy Boyce admitted that the options for safeguarding your investments “have still to be discussed”. Further, that the Government has to consider whether we should be looking out for persons who ought to have known the risks because of the moral hazard.There is no clarity as to the Government’s position.The end of August is fast approaching. They have put Parliament on recess until near the end of October despite our objections. There is nothing forthcoming from the Government about its plans to protect you. There is no clarity as to the Government’s position. A clear and unequivocal statement, followed by decisive action, is needed so that you can plan your affairs with certainty.Given the past behaviour of Clico and the Government’s neglect of your interests, the Barbados Labour Party urges you to establish your own organisation so that you may make representation to Government to have: • CLICO placed under judicial management without delay; and• The immediate reinstatement of the Oversight Committee until such time as judicial management becomes a reality.The Barbados Labour Party will continue to lobby Government on your behalf as we have done from the outset of this crisis. I have an open-door policy for anyone who has been affected, since I do not believe that you have been protected by this Government in the way that you deserve. If there are any issues which concern you, please contact the Opposition’s Office at 310-5413 or at blpopposition@gmail.com.Yours faithfully,Mia Amor Mottley QC, MPLeader of the Opposition,Political Leader, Barbados Labour Party