THE JUDICIAL MANAGER of British American Insurance Company (Barbados) Limited (BAICO) has identified several irregularities in its operations in his 90-day report to the Supreme Court of Barbados.
According to the report by fraud investigator David Holukoff, who was appointed judicial manager by the court last October, BAICO participates in the group pension plan of parent company British American Insurance Company Limited (BAICL).
The liability in the company’s balance sheet at September 30, 2010, relating to the plan was almost $8 million to $7 973 427.
Holukoff, who is the director of advisory services of auditing firm KPMG, states, however, that “it is understood that neither the company nor its parent have been making payments to support the level of the plan’s liabilities nor are there plans to deal with the deficiency”.
According to the document, the judicial manager of BAICL, which is incorporated in the Bahamas, has been investigating the matter since his appointment.
The report states that no related pension asset is held on the company’s balance sheet and company management is not aware of any cash being transferred to a separate trust deed or trust fund for pension scheme assets.
Holukoff noted that since the company was insolvent, all policyholders were unlikely to be paid in full, and in order to ensure equitable treatment it was necessary to cease payments in respect of policyholders’ claims.
He also said he had approached the Barbados Government through the office of the Supervisor of Insurance, requesting funding to ensure that all claims in respect of policies issued for health care be paid immediately for the period of, at least, the tenure of the office of the judicial manager.
