VIDEO: Caribbean Economic Forum – The CLICO Debacle
This is the video of the segment from the show Making A Difference with Felipe Noguera called Caribbean Economic Forum. Appearing with guest Afra Raymond was David Walker, another prominent analyst on the CLICO debacle. Video courtesy Making a Difference
- Programme Air Date: January 2012
- Programme Length: 0:20:14
Media Integrity
THE TIMELINE OF EVENTS UP TO THIS TIME 
12:52 pm – 1,425 word column submitted. Article was intended for publication in Business Guardian of Thursday 5 January, 2012.
2:59 pm – Wilson emails “…Afra this column is not up to your usual standard…” with notes for my review.
7:24 pm – Copy submitted to my webmaster and Barbados Free Press for their publication.
12:11 pm – Final text agreed with Wilson.
4:18 pm – Wilson emails me to say that he has had legal advice that my column is defamatory. I reply that the attorney ought to have been told that all of Wilson’s queries had been satisfied.
.
.
.
For those who are only now joining the story, this is a summary of what I feel are the vital issues here. My commentary column on the former Minister of Finance, Karen Nunez-Tesheira, was sent to her for comment by the Guardian’s Acting Editor-in-Chief, Anthony Wilson. That is a completely improper action, which is a breach of basic media ethics. When I challenged that action as being surprising and unprecedented, Wilson responded that “…It is by no means unprecedented territory…”. At which point I resigned as a Guardian columnist and this broad discussion started.
This is the opening paragraph of Anthony Wilson’s seventh comment on Franka Phillip’s post on Judy Raymond’s Facebook Wall on Friday 6 January at 12:04 pm –
…In response to Mr Raymond’s comment, let me say that I have NEVER before sent any commentary to any politician or anyone else, apart from our attorneys, for pre-publication vetting. I say that without fear of contradiction and also state that that is NOT the newspaper’s policy or practice. (For Mr Raymond to pursue this point after this denial would simply be compounding the defamation.)…
Quite apart from the unnecessary legal threats, since it was never my intention to defame anyone, we are being told that this was a one-off decision to send my entire column for vetting.
Two questions arise –
- Firstly, why did Wilson seek to tell me, in relation to his decision, that “…It is by no means unprecedented territory…”?
- Secondly, if we accept that his reversal is now the true state of things, there is another issue. Why was this exceptional consideration shown to the former Minister of Finance?
That is the ‘sole and only issue’…
CL Financial Bailout – Swearing an Oath
Former Minister of Finance, Karen Nunez-Tesheira being sworn-in by President Prof. George Maxwell Richards on November 2007. Photo © TriniView.com
The former Minister of Finance, Karen Nunez-Tesheira, is once again in the news, due to her dispute with the Integrity Commission as well as her expected testimony at the next session of the Colman Commission.
The former Minister has had to defend against allegations of insider information1 related to her early withdrawals from CLICO Investment Bank (CIB). [Hansard report of February 4, 2009 calls it "PERSONAL EXPLANATION Allegations of Insider Trading."] There was a lengthy address to the Parliament on Wednesday 4 February 2009. The 7 March 2009 revelation in the Trinidad and Tobago Guardian Newspaper, that Nunez-Tesheira was a CL Financial shareholder was also the cause of further defensive statements to Parliament on 27 March 2009. In the first wave of defence, there was silence as to the fact of Nunez-Tesheira’s shareholdings in CLF. In November 2011, her attorney attempted to challenge my position on this at the Colman Commission, but I maintained that ‘If the genuine attempt was to address the perception of corruption in a forthright fashion, all the information should have been given’. In the second wave of defence, there was no mention of the fact that the insolvent CL Financial group paid a dividend to its shareholders after writing that fateful letter to the Central Bank for financial assistance. Again, through the unfolding scandal we are witness to responsible officials who chose to be selective in making the required full and frank disclosure. All to the detriment of the tax payer.
Those attempts to defend against the allegations were only partially successful, since there is little doubt that Nunez-Tesheira’s reputation has been damaged by the entire episode…
VIDEO: Afra Raymond testimony in the Colman Commission, Day 2, parts I & II
This is the recording of my actual testimony on my Witness Statement and the amended Power Point presentation.
I was led in evidence by Counsel to the Colman Commission, Peter Carter QC, with questions at the close from these parties -
- Gita Sakal, former CL Financial Corporate Secretary – represented by Justin Phelps, who had a few questions on the post-Shareholders’ Agreeement Directorships.
- Karen Nunez-Tesheira, former Minister of Finance – represented by Frederick Gilkes, who questioned my assertions on the Minister’s undeclared shareholding.
The transcripts of my testimony are located here.
VIDEO: Afra Raymond testimony in the Colman Commission, Day 1
This shows the attempts by various parties to object to my showing the PowerPoint presentation…some of those parties and their attorneys include -
- Central Bank – represented by London-based Bankim Thanki QC
- Lawrence Duprey – represented by London-based Andrew Mitchell QC
- PriceWaterhouseCoopers – represented by Russell Martineau SC, former Attorney General and former President of the Law Association
- Andre Monteil – represented by Martin Daly SC, Sunday Express columnist and former President of the Law Association
It is really instructive to consider the various arguments put forward by these parties in an attempt to limit my testimony and ultimately to deny it the benefit of clear illustration via PowerPoint.
There is going to be a real struggle to show the information on this series of financial and economic crimes. That information needs to be shown in as digestible a form as possible, which was the point of my presentation.
Between the strong opposition of the parties who were at the centre of the crisis and the refusal of the government to fund multi-media facilities, we have a fight on our hands to get at the facts.
VIDEO: 4th Biennial Business Banking and Finance Conference (BBF4)
This is the video of my address to the 4th Biennial Business Banking and Finance Conference (BBF4) held at the Trinidad Hilton from 22 to 24 June, 2011. The session I participated in was devoted to ‘Lessons from the Financial Crisis: The Resolution of Failed Entities.’ [See the acknowledgement letter from the conference convenor here.]Video courtesy UWI
- Programme Air Date: 24 June 2011
- Programme Length: 0:15:21
The Colman Commission – Afra Raymond’s PowerPoint presentation
Before:
This is what I submitted to be made evidence: Download The CL Financial bailout PowerPoint presentation
or view below
The Bailout Timeline aroused great concern, with one attorney going so far as to call for the removal of the photos since they might be seen “…as a rogue’s gallery…” Another area of concern was the inclusion of the phrase “…final and fateful…” to describe the CL Financial AGM on 23 January 2009…yes, folks, that is the same one that gave a glowing account of the group’s plans to find opportunity in the global storm, a mere 10 days after writing to the Central Bank for urgent financial assistance and only 7 days before the MoU was signed. Of course, all of those objections ignore the fact that this timeline was published here in ‘CL Financial Bailout – Retirement Planning‘ on 28th April 2011
The Governor of the Central Bank slide was also the source of tremendous concern as no-one even wanted to call his name or the title of his office…VS Naipaul really had it right when he spoke of ‘…a thing with no name…‘ Again, the fact is that every one of the statements cited in this slide come from the Governor’s prepared statements, as shown in the footnotes.
After:
The Commissioner, Sir Anthony Colman ruled that the requested changes would be made and that slideshow can be seen here on the Commission’s website.
The Colman Commission – The Importance of Money
The Colman Commission was established about a year ago as a Public Enquiry into the failure of the CL Financial group, some of its subsidiaries, and the Hindu Credit Union. The Commission is also mandated to report on the causes of these costly failures, so that it can make recommendations for possible prosecutions and the regulatory or systemic changes needed to avoid further collapses.
There has been a lot of fresh information revealed at the Commission and that is good, since the public now has a much better view of the various episodes behind the scenes. The sole Commissioner, Sir Anthony Colman, has now made a statement which outlines his progress in this huge and complex matter. Colman expects to take at least one more year and will be continuing his examination of the HCU matter when the CL Financial stage is completed.
Despite all the evidence about staggering sums of money and the heated public discussion that has sparked, I am perturbed by the way the essential information is being handled.
Since it is a Public Enquiry into a huge financial collapse, the financial information has to be front and centre if we are to get at the facts.
It is common knowledge that the link between performance and pay is essential in obtaining quality results in any competitive situation. That basic fact, with which most people would agree, is now seriously challenged by some of the key events in the global financial meltdown. It is beyond the scope of this article to delve into the new learning emerging from this global crisis, suffice to say that the old learning has literally been ‘tested to destruction’.
CL Financial bailout – The Truth about the Truth
Continuing from last week’s critique of the revised bailout and its implications, I have further concerns as to the process by which the legislation was passed.
I am aware that the Members of Parliament were given a briefing on this matter, so that they would be better informed on this complex matter. That briefing was conducted personally by the Minister of Finance and the Governor of the Central Bank, together with their advisers and certain CLICO officials.
The briefing provided background information on these areas –
- The status of the various outstanding audited accounts;
- A ‘profile’ of the monies owed in terms of amounts owed to certain classes of policyholders. I am told that quite a small number of these claimants held a large proportion of the monies being claimed;
- The various lawsuits/judgments against the Central Bank;
- The rationale given for extinguishing the right to sue the Central Bank in this matter was that public rights and stability were being given preference over the exercise of private rights.
I am also told that the Members of Parliament were not given copies of the presentations, which seems to have effectively limited them to gaining certain impressions or the limited notes they would have been able to take during the briefing…
AUDIO: Caribbeana Interview – 08 October 2011
Afra Raymond is interviewed on the “Caribbeana” show on WPFW in Washington, DC, hosted by Von Martin on the CL Financial Bailout, the Colman Commission and the revelations and possible consequences.
- Programme Date: Sunday, 08 October 2011
- Programme Length: 0:23:59
CL Financial bailout – The Final Solution?
The new bailout formula was approved, as two new Acts, by our Parliament on 14 September –
The first one prevents any lawsuits against the Central Bank by claimants, while the second gives the Minister of Finance the right to borrow up to $10.7Bn and places the Republic Bank Ltd. (RBL) shares formerly held by CLICO into a new investment vehicle, NEL 2.
These seem to represent what I am calling the Final Solution, in that the clamour and protest which had marked the last year seems to have been fading away. There have been queries from the various ‘Policyholders’ groups’, but those have been limited.
Whatever one thinks of the actual bailout, which I maintain is a perversion of our Treasury, there are valuable lessons to be learned from all this. The main lesson for me is the Power of the Few. In that although only about 16,000 investors were affected, they were able to mount a successful campaign to improve their position. We need to note that lobbying and campaigning can be effective in gaining benefits for limited groups. To all the weak-hearts who say nothing ever changes, please take note.
We also saw the position set out by the PM in her important speech on 1 October 2010 being reversed, in that the claimants’ rights to sue the Central Bank have been extinguished. There are rumblings about a challenge to the constitutionality of that restriction, but we will have to wait on that one to play out. The fact that the right to challenge the Central Bank’s actions in respect of the bailout has been removed opens fresh dangers in terms of the payout process…
Property Matters – Only a matter of time
The way the Ministry of Planning & the Economy (MPE) is persisting in their course of action on the Invader’s Bay development is perturbing in terms of the long term consequences of short-term decision-making.
At Section 2.0 of the Request for Proposals (RFP) for Invader’s Bay we read
…For Trinidad and Tobago this is a “major waterfront transformation” along the line of other signature waterfront developments such as Darling Habour (sic) in Sydney, Baltimore Inner Habour (sic), the Habour-front (sic) in Toronto, London Docklands and Teleport City in Tokyo. Although the genesis of the projects may vary, the result has generally been bold and dramatic. With the change in the manner in which ports operate and cargo is transported, waterfront property is now more valuable for its residential, retail and recreational function than simply for port activity with heavy industry, docks and fenced off warehouses, as is the case currently in Port of Spain…
We are being asked to consider the Invader’s Bay initiative ‘along the line’ of other leading international examples, which in itself is a good place to proceed from. The reality is that those developments cited by the MPE all took decades to conceive and what is more, the authors of the RFP know that…
Property Matters – The Needs Assessment
The Ministry of Planning & the Economy (MPE) announced last week that 10 proposals had been received in response to its RFP for Invader’s Bay.
Given that MPE has not carried out a Needs Assessment for this prime property, for whatever reason, I will continue to outline the relevant elements for the Invader’s Bay property. This is not intended to be complete, just a list of what I consider to be the critical items a proper Needs Assessment would include -
- Investment – This is a parcel of land estimated to be worth at least $1.0Bn, so any attempt to describe this process as ‘not being an investment’ would be completely wrong. In the literal sense, it might not involve any expenditure of State money, but, in every other sense, the disposal of this $1.0Bn asset would constitute a major State investment in Invader’s Bay.
- The National Interest – At this moment the imperative is to diversify our economy so as to find sustainable replacements for our declining energy revenues, so this is an apt point. Following on last week’s column, it seems reckless that such an attractive State-owned property would be developed without consideration of the strategic issue. Even on the conventional basis of announcements of construction jobs and permanent jobs etc., it is difficult on purely financial grounds to justify most types of development on that site, especially given the generally depressed market. The decisive factor, given the level of interest such a unique offering is likely to attract, would be to have as an identified ‘Need’ that only projects which were net earners of foreign exchange would be considered. Such a condition would eliminate any offices, apartments, foreign franchise restaurants or shopping malls and set the stage for a different development discussion. A necessary discussion at this point in our country. Please note that the RFP does state that the project should generate foreign exchange, but that is only expressed as an ‘expectation’, which is far too flexible, given the influence of the traditional property developers. If the intention is genuinely to break with the past and set off in a new direction, the conditions need to be strong enough to break the grip of the past…
You might also be interested in…
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#1 by Winston Padmore on August 9, 2009 - 6:12 pm
Afra, Once more, well done.
#2 by shakey hadeed on August 9, 2009 - 8:18 pm
Afra
Congratulations………do you know that you have written some winners!
Love your by-line:”A Thinking Man’s weblog.”
Good Job.
Blessings.
Shakey.
#3 by Gerard G. Darlington on August 9, 2009 - 10:34 pm
Hello Afra ,
Good to see you have taken the conviction to the next level .
Best wishes
Gerard
#4 by Jacquie on August 10, 2009 - 2:21 am
Congrats Afra, had a quick glance, will return when I’m more alert. Best, J
#5 by Rubadiri Victor on August 10, 2009 - 7:15 am
Great stuff Afra. Web presence is a must. Should also light a fire under me to get mine and my book done…
#6 by Bliss Seepersad on August 10, 2009 - 8:10 am
Well done Afra – (timely too) – will be checking for further updates.
#7 by Wayne Kublalsingh on August 10, 2009 - 9:42 am
At this juncture in our history, there is very little more important than a critical mind attentive to our national finances and economy; a nun to get up like clockwork at four every morning, to scrub and scrub and clean out the Saturday night rumshop. Best wishes.
#8 by Russell King on August 10, 2009 - 2:41 pm
Excellent idea Afra,
Great stuff. Getting a broader scope on the thinking of the reading public.
Will be visiting very often.
Thanks for this.
Russell
#9 by Sammy on August 10, 2009 - 4:17 pm
Wow you do inspire me….
Thanks for doing this and putting it all online.
Sammy
#10 by Sherly on August 11, 2009 - 9:26 am
WOW, I like the picture how it blends in with the colours. Thanks for giving freely. You are a miracle, a genius !!!
#11 by Lara QT on August 11, 2009 - 9:56 am
Great job Afra !! Thank goodness for the internet – free speech is alive and well..
#12 by Jameela on August 11, 2009 - 1:43 pm
Now I can finally read your articles whenever I please! Brilliant. If I ever want to know what you think about things – I now know where to look.
Love from your darling daughter
P.S… Why am I not surprised that the website’s colour scheme is blue? Ha.
#13 by Afra Raymond on August 14, 2009 - 12:11 am
Hi Jameela,
Your comments are welcome and of course this is just to say that my Business Guardian series ‘Property Matters’ is available at our firm’s website http://www.raymondandpierre.com/articles. That series covers real estate, land use planning and property investment/financing issues.
Take care, Love
Afra
#14 by LBIWI Sem for Professionals on August 12, 2009 - 8:58 am
On behalf of LBIWI Seminar for Professionals, thank you and congratulations on this step. Look forward to collaborating and sharing the messages.
#15 by Stacy Christopher on August 12, 2009 - 9:45 am
As per usual you have risen to the occasion. Keep fighting the good fight.
#16 by Norman Girvan on August 12, 2009 - 9:47 am
Dear Afra,
thanks for the notification. I did catch one of your articles in the Business Guardian and was much informed by it and by liked your willingness to ask the tough questions and tackle the issues that might “mash the corns” of powerful and influential people. I had no idea that you had done so many articles and stayed with this issue over an extended period of time.
Congratulations! Its all the more important given the media’s propensity to trivialise and sensationalise these matters. In the case of the CL Financial affair, after the initial burst of publicity, what became a media event was the Finance Minister’s role in the matter and whether she should/will resign or not. Though this is not unimportant, the almost exclusive focus on this aspect of the affair diverted attention from the more basic issues, which in my view have to do with regulation, governance, campaign financing and the influence of powerful groups on policy making; issues which I am sure you have tackled, judging by the article headings.
The same issues have surfaced in a trillion dollar context in the U.S. — I am sure you have read Simon Johnson’s article in the Atlantic Monthly on the take over of countries all over the world, including the U.S itself– of financial oligarchies.
Continue to analyse and speak out fearlessly, Afra, it is our only hope. I will certainly read this series with interest, and link it to my blog and draw readers attention to it.
Norman
#17 by Roxanne Forde on August 12, 2009 - 4:14 pm
congrats fra, dey cyah keep a good man down!
#18 by Naadia Porter on August 13, 2009 - 1:50 am
Afra, I loved Jameela’s comments and yes it’ll also give me the opportunity to read what you’ve written.
So is blue your colour after all?
#19 by Thecla on August 16, 2009 - 10:03 pm
Afra,
Great look, Excellent content!
Thecla
#20 by Christopher McMaster on August 17, 2009 - 11:01 pm
Afra,
Literature resonates with the illegitimacy of social finance. Thomas More heads the list and he fits this bill, Gandhi preached against it in vain, colonialism propagated it so that silence was golden as King Midas should have heard.
The solutions exist but the guns of wealth oppose all intelligent movements to the social freedom the world needs to fallow the fields for tomorrow. Cubism resounds as commerce. Castro’s “The Rich Do Not Know Hunger,” like the silenced voice of Lloyd Best, sought sane responses to the myriad sad fleecings of our economic gains. The condonation is intelligent. Unless we concoct a region-wide political miracle we must wait. Nothing happens before its time.
#21 by Kwasi Mutema on August 18, 2009 - 12:29 pm
Hi Afra,
Congratulations. Your information and thoughts can now reach a wider population of readers. This is a good strategic and intelligent decision. You are now further onto the world stage.
Stay focussed,
Kwasi
#22 by Afra Raymond on August 18, 2009 - 6:21 pm
Hi Kwasi,
I would be very interested in your reaction to the ‘Emancipation’ piece.
Thanks for the support
Afra
#23 by Lisa James on August 19, 2009 - 6:10 pm
Raymond,
Indeed…! What can I say!
As a regular recipient of your ‘thinking’, I’m delighted to know that this ‘Thinking Man’s Weblog’ will now provide a platform for you to share your thoughts with thinking people across the globe.
As I’ve often said, what seems to be missing in today’s world is ‘cerebration’, in favour of action (or inaction, as the case may be). But you, my dear friend are one of the few, who can be counted on for subjecting the issues of the day to your scrupulously thinking mind, and…for having the courage of your convictions to not let up, in spite of popular sentiment or opinion.
Through this website, you have positioned yourself for even further greatness, and I pray that you will continue to be blessed by your effort and hard work, as you continue to bless us all with your pure, unadulterated thinking.
Yuh sistren,
Lisa
#24 by Christopher McMaster on August 20, 2009 - 8:25 am
“CLICO opens new agency to take up slack” by
Curtis Rampersad Business Editor.
http://www.trinidadexpress.com/index.pl/article_news?id=161520223
Express, Thursday, August 20th 2009
This is just another delaying tactic.
#25 by Ingenium on August 21, 2009 - 9:48 pm
Sir, you are on the button in so many aspects of this matter, I must applaud your work and add there is one more (known) conglomerate fitting the CL Financial ‘profile’ and it is important that something is done before it reaches the current state as CL. That Company is the GHL Group, with an almost identical model to CL re its political strings i.e. Duprey/Panday- Naz (now Lok Jack)/Manning etc. and CBTT equally directly under its influence currently attempting to cover-up more than four investigations into this group on Pension fraud, Insurance fraud and cooking books literally to the value of TT$Billions!
#26 by Afra Raymond on August 23, 2009 - 7:26 pm
Ingenium,
I am always wary when replying to these nicknames – it seems that that is a part of our culture which has moved into the virtual world along with much else…The question of other regulatory shortfalls and the ongoing issues of ‘different strokes for different folks’ continue to bedevil us here.
I have a personal interest in the health of the Guardian Holdings group since most of our retirement investments were moved there a few years ago when we withdrew from CLICO, so I will certainly be looking closely at that situation.
#27 by Rae on August 23, 2009 - 12:16 pm
Keep up the good work Afra. Too many of us keep silent on matters that we should have an opinion. I will be reading all the back items and have shared this blog with others. hope you can get some good discourse going!
all the best.
#28 by Afra Raymond on August 23, 2009 - 7:27 pm
Many thanks for your support and passing on the word, Rae.
I would be interested in your take on the events as reported in this blog, or any Bajan perspectives you might be able to share.
All best wishes
#29 by Ashvin Akal on August 24, 2009 - 6:50 pm
Dear Afra,
Both the Financial Institutions Act and the Company’s Act have been breached.
The Regulatory authorities have failed to prosecute anyone….a travesty of Justice.
Who turned a blind eye to CL Financial’s wrongdoings? How did Audited Financial Statements fail to significantly sound loud Alarm bells?
Trinidad sadly remains an old boys club. For the love of Money the Country continues its rampant decline. Money is more important than human life, Money over integrity, Money over the issues so fundamental to a well run country.
I feel lost as a Trinidadian not knowing where to turn…unable to support any Political Party. The bicameral method of Governance a dismal and resounding failure.
I applaud you for your patriotism and bravery.
But I fear Afra…it is far too late….as a people, as a Society and as a Nation…we reward ourselves for being clever, for not getting caught as we continue to sell “Snake Oil solutions” to a very gullible public.
When 85 plus employees of CIB lost their jobs in January, no one asked any of the numerous multi-millionaires to pay these peoples salaries for 6 months…so that they could live with dignity, have time to find new jobs, pay their mortgages and look after their children.
The day before, $160 Million in bonuses were paid out to senior Executives.
What a caring, compassionate and responsible people we have become.
Publicus Defutatus Est.
#30 by Stephanie on August 24, 2009 - 7:16 pm
Afra
Very interesting.
Continue the good work
#31 by Orson Noel on August 26, 2009 - 9:48 am
Afra,
Keep the fires blazing, on the CL. issue, great write up.Thank for the blog. Keep up the good works.
Orson.
#32 by Deryck on August 30, 2009 - 5:39 pm
Very nice job, Afra. Hope that all is well…from one of the other Raymonds.
#33 by Christopher McMaster on October 17, 2009 - 10:22 pm
Afra
On Fri, Oct 16, 2009 at 8:29 PM, Christopher Mc Master wrote:
Afra, (With ref. to the data on the link below)
This is serious. Where does truth lie? How can we teach morals when the leaders of finance in a capitalistic world practice immorally. It is unconscionable, impractical and almost wasteful because they will be slaughtered. Who rights these wrongs? You remember that Building 7 that was demolished on Sep. 11, 2001 housed the US Securities and Exchange Commission. Many documents must have conveniently disappeared as a consequence. We need a Third World Order, separate and apart from all first world intervention. They may only interact on our terms. We have the money, skill, resources and time. We need the will.
Christopher McMaster
48 Erthig Road
Belmont
Port of Spain
Trinidad
West Indies
Home, 868-624-5451
Cell, 868-682-0678
e-mail: cmcmaster@tstt.net.tt
e-mail: mc.masterchris@hotmail.com
Alternate: c.a.l.mcmaster@gmail.com
Date: Thu, 15 Oct 2009 20:45:41 -0800
Subject: Re: CLICO
From: afra@tstt.net.tt
To: cmcmaster@tstt.net.tt
Chris,
I had read those reports before…will be resuming coverage of this issue soon
Check this one out…http://www.kycbs.net/PriceWaterhouse.htm
#34 by REGINALD FRANK on October 19, 2009 - 12:24 pm
Informatively and immensely interesting. Please keep up that torch that enlightens and educates.
Kind regards,
Reginald.
#35 by AfraRaymond on October 19, 2009 - 12:28 pm
Reginald,
Thanks for your support on this. I am shortly going to be posting some new material on the CL Financial bailout and the first 2 parts of my ‘Property Matters’ series on the government’s property tax proposals.
Please spread the word.
Afra
#36 by ingenium on October 26, 2009 - 3:14 pm
AFRA/ ALL
I need some help with this one, it is personal but I hope ‘instructive’.
Is there such a scenario in (Trinidad) law where in my case a very Powerful Corporate entity (former Employer) upon realizing the strength of my case against theirs’ filed a ‘tangential’ action against my lawsuit of “Wrongful Dismissal and Blackballing” for over Eight (8) years, on the (frivolous) grounds that as a consequence of the pre-action dialogue between being ‘slow’ i.e. the parties’ lawyers in some instances taking months to get back to each other for reasons beyond my control that it (the pace of the lawyers’ dialogue) in itself shows the Plaintiff (me) is not interested in the matter and ‘petition’ the judge to throw the case out on this ground, and that such ‘secondary’ action when brought by the Billion Dollar conglomerate (Defense) whether successful or not could result in the Plaintiff (unemployed with family) having to pay the cost of all counsels?!!!! Think carefully before answering as this could mean that any corporate giant can file such action against the “little man” and pile expensive counsels in the matter as he would have to pay their cost anyway thus negating the value of any settlement he would have gotten if he wins the substantive case frustrating him to death, is this a fair and just law according to natural justice?!!!! Do Unions know of this law in our law books most grievously against the average citizen???
Any feedback would be appreciated as the judge rules on Friday 30th October 2009 and note this is (according to advice given) ‘Trinidad law’ so it could happen to you or your family in future as long as it remains!!!
(NB: The Statutory period is not a factor, the case has been successfully filed and its pro bono hence I felt further ‘limited’ in my ability to impact the process, this is happening after the filing.)
#37 by allan on November 13, 2009 - 5:01 pm
afra/all
I “ve read your piece on12/11/09 and I”m as disgusted as you are by the whole CFH bailout. What really gets me is madam minesters happy and cheerful attitude,asif the gov.was the one getting the bailout. Also Mr central banker saying he could”ve stomp the feet of the centipede that is clico but stomping the feet could n”t turn the head. Now in the absence of proof opperant conditioning is befall us all, we cant demand that proof.Sad ,for all we know gov and CFH may be splitting invesrers profits as CFH was paying 10% and fcb ?3% a spred of 7%. It”s strange that oil & gas at that time was $40. & $4 and gov would do bailout, then trintoc forced? to float a bond six month thereafter. good luck in finding truth. allan/
#38 by sean ifill on December 10, 2009 - 9:33 pm
the biggest conspiracy is that of silence. keep pressing for more information. there should be a legal obligation for information concerning the public use of funds to be made available.
Another issue which seems to be seditious and often overlooked is the fact that companies particularly private ones are not sufficiently regulated because the accounting rules are at best feeble. Public companies themselves should be obligated to disclose more information on their balance sheets and that should be given foremost concern; even more than the income statement.
As well strengthening of the rules governing auditors and the roles they play in a small society needs to be examined. Who guarding de guards, eh?
keep on trucking, ‘fra.
#39 by Afra Raymond on December 12, 2009 - 12:13 am
Hi Sean,
Many thanks for your supportive comments, it is good to know that some people at least are not dumbstruck by this cascade of events. Many of the good people we formerly held in esteem have now joined the conspiracy of silence and the open looting of our treasury continues at an increasing pace. I have to say that these days have acquired a strange and unsavoury flavour, much like the whining just before the last crash here.
I am very interested in your points on the relative value of the Balance Sheet as against the Cash Flow Statement…can you please let us have some more of your thoughts in this forum?
In my reply to that, I am also going to share some of my views on the CL Financial 2007 accounts. Next Friday is 18th December and that is the legal deadline for the Ministry of Finance to reply to my application (under the Freedom of Information Act) for the second MoU. I await that reply with interest.
Yuh done know that it go be a next fight to get a hold of the 2008 audit for CL Financial, since that is likely to be as revealing as the Jouvert Sunrise, eh? But I will keep you posted. This piece by Norman Girvan is a good review of the ECCU restructuring of the insolvent British-American Insurance – http://www.normangirvan.info/wp-content/uploads/2009/11/clico-again.htm. You should check his website and Barbados Free Press.
Til later, my brother
Afra
#40 by sean ifill on June 13, 2010 - 7:17 am
u must comment on the Marlon Holder issue since this is another case of slight of hand.
#41 by AfraRaymond on June 13, 2010 - 9:27 am
Sean,
I wrote about the Home Construction Ltd. borrowings from First Citizens’ bank on Thursday 10th – ‘Testing the Terms’.
As I said then, that facility appears to have been an over-concentration of risk, at a preferred interest rate, to a troubled company. All capped by the fact that its essence is that of an ‘excessive related-party transaction’, to cite Ewart Williams’ prime cause for the collapse of the group.
As to the allegations over Directors’ Fees and the special price on the apartment, I do not have any ‘inside info’, beyond what is in the Express, and have commented as far as it seemed necessary. Let me explain that the Directors’ fees seem reasonable for an exercise of this nature – and I see that today’s Express has once again focussed on that aspect – if anything, they are on the low side. As to the apartment sale, the group is in distress and is well-known to be offering significant discounts to un-connected purchasers on their units, so there seems little merit in the idea that Holder’s deal is something decisive in all this.
Is there another aspect to the story you are seeing?
Many thanks for re-appearing.
Afra
#42 by Simpleton on September 14, 2010 - 8:23 am
I hear yah bro…do some investigation into Holder – lies and cover u fuh so – yet another duprey or worse??? check it out…never see someone with little or no scrupls in every area of life. truth will come out bro..keep diggin…
#43 by C. McMaster on January 23, 2010 - 12:48 pm
Two quick points, one local and one regional
On Thursday 21st January 2010, Afra Raymond made a most interesting observation about our political and economic consciousness on CTV. With reference to the mismanagement of taxpayers money by Colonial Life (CLICO) or CL Financing that it has matured into, he ably demonstrated how Trinbagonians who know finance have generally remained silent on this issue. In particular he cited the PNM, UNC and the COP that all have certified economists at their disposal, who collectively have the moral, social and ethical responsibility to guide public opinion have been very silent on the disappearance of 76 billion dollars of invested dollars in just over two months, Dec and Jan of 2008/9. The media can only report what is offered and we are fortunate to have access to this level of public debate on state issues but our lack of specific data-balance sheets and audit reports- can only lead to rumour spreading and speculation.
Nigerian playwright, Wole Soyinka says in his 1972 prison notes: “The man dies in all who remain silent in the face of tyranny” and we are doomed to persistent domination (poverty) until we face ourselves in a Caribbean Court of Justice and have the perpetrators repay these monies. Our integrity is at stake and we are taught that these issues are too big to be challenged by us. Is that so? See this link: http://www.afraraymond.com
If the world is as determined to “restore Haiti” as so many tear-filled reports claim, can we not design a “Venus Project” type of city there as a prototype of our collective will to advance the world since a chain is as strong as its weakest link and Haiti has been branded “weakest” by every text published on it?
See: http://www.thevenusproject.com
Please comment freely.
Christopher McMaster
#44 by Orson Noel on February 2, 2010 - 4:16 pm
#45 by Orson Noel on February 2, 2010 - 4:18 pm
Hey Afra, let’s hook up, long time nuh see. Give I a call man. 398-5647.
I am back home, bro.
Orson.
#46 by MICHEAL ESPINET on February 19, 2010 - 9:58 am
ALL OF THIS IS JUST WOOL OVER THE PEOPLE EYES, PRATICK WILL JUST COVER UP FOR DUPREY, WHO IS FLYING HIGH, WITH THE MONEY HE THIEF, FROM CLICO. SOME OF IT WAS DONATED TO THE pmn.
#47 by L. E. Edwards on March 16, 2010 - 11:44 am
This company must have been in trouble before January 5, 2009. All their prospectuses looked good. So, as a good citizen, and wanting to diversify, I move Money from my US go nowhere accounts, and THE UNIT TRUST Corporation, to put a six figure sum into CLICO Investments. Six day later, they go bankrupt. Did they use my Unit Trust Check for one final fling for somebody? They will pay! Now, I want to shoot somebody, but since I am non-violent, and have publicly professed this over and over, I will send a plague of disease on all those who deprived and continue to deprive my child of his inheritance. May cancer eat them all up.
#48 by ASHVIN AKAL on March 18, 2010 - 9:39 am
March 18th 2010 at 9:25AM
Hey Afra,
Great to see the comments that keep rolling in. You have been speaking with a great deal of clarity on another Financial Disaster…the almighty UDeCOTT…
How could CH Development, incorporated 10 days before a Tender upon which they bid ever have been a valid entrant?…and then when they won the bid, change their name to Sunway Corporation? Please look into the career profile of the two key members of Sunway..you will be flabbergasted to learn their real occupations in Malayasia prior to winning Trinidad’s newest Lotto! run by the Untouchables…
our new breed of Super Zeroes!
#49 by Paulie C on March 29, 2010 - 3:04 pm
From the Tribune (Bahamas) of today’s date – 29 March 2010. Despite her “hold strain” rhetoric, events outside of Trinidad will probably force the sale of CLF assets, if there are in fact any unencumbered ones to sell.
Mr Gomez, in his Supreme Court report, said he has consulted his attorneys, Callender’s & Co, about “the enforceability” of CL Financial’s guarantee, given his concerns on the issue and the fact it represented a key potential source of recovery for CLICO (Bahamas) creditors.
“I was advised that a statutory demand had to be first made before a debt recovery action could commence in Trinidad,” Mr Gomez said. “I have instructed the attorneys in Trinidad to proceed with the statutory demand.”
The guarantee, executed by CL Financial and its chairman Lawrence Duprey, the man many hold most responsible for CLICO (Bahamas) collapse, pledged that the Trinidadian parent would reimburse its Bahamian subsidiary if CLICO Enterprises failed to repay the collective $58 million advanced, plus interest at 12 per cent. CLICO Enterprises, Mr Gomez concluded, was established as the holding company for CLICO (Bahamas) non-insurance investment activities.
#50 by tamana on May 4, 2010 - 10:21 pm
And another thing.
http://www.caa.com.bb/2009_Presentations/A_Forensic_Review_of_Pension_Plans_Al_Kiel.pdf
Slide 17.
Yes we KNEW.
And would write CYA.
But I will also say…
never did I think… it would come to this.
But … as I said… who cares.
#51 by David J. Comma on May 18, 2010 - 9:00 am
Excellent interview (18/5/10). Well done!
David
#52 by sean ifill on June 30, 2010 - 5:40 pm
Afra, I don’t know if u spoke to this issue raised last year by Republic Bank:
Approximately $200 million was set aside by Republic for bad loans, of which $134 million was needed to cover CL Financial, he said in an interview later. In its report for the six months ending March 31, Republic recorded profit after tax of $819.5 million, 31 percent less than recorded one year ago. See the June 2009 issue of the Newsday.
Have u and what has the government done to increase regulatory compliance on related party txs?
What has Republic Bank done to remove the effects of Clico?
#53 by sean ifill on June 30, 2010 - 5:49 pm
‘Fra, the underlying issue that I was raising with the Holder issue was the need for holder (no pun intended) of government positions or even positions in institutions where government has majority interests/influence to disclose any transaction to which they have beneficial interest. The optics make this perhaps genuine transaction seem fishy given the situation. Was there equal knowledge apparent to all and available to all? Therein lies the seat of my own frustration ethics are about information being readily available and accessible for there not to be an arbitrage opportunity. Information that is not free is not fair.
nuff said
#54 by dennis ramdeen on July 4, 2010 - 5:27 pm
Afra, you should add a “share” option to your blog (unless you have it and I could not find it)…i would share your stuff with the world; it’s exceptional, dr
#55 by AfraRaymond on July 5, 2010 - 8:34 am
Hello Dennis,
Yes, there is an option to share the site – just go to the right-side panel, the fourth item down contains the sharing options.
Please spread the word and thanks for your support.
Afra Raymond
#56 by sean ifill on July 8, 2010 - 4:23 pm
I hope EY wasn’t the auditors for Clico because Soo Pin Chow would have to recuse himself from that committee (Bideshi, Mottley, & Soo Pin Chow) because if the audit had be compromised initially. The role of the auditor is not to detect fraud but to make sure that if it exists that it be detected. The role of the auditor is not to detect misstatements but to detect material misstatements. It seems that Clico needs a forensic audit to be conducted by an independent body/person before any money can be entrusted to the body coporate.
#57 by AfraRaymond on July 9, 2010 - 8:38 pm
Sean,
The CLF auditors for the past decade or so have been PWC and yes, they do have serious questions to answer.
As I wrote in the published version of ‘Finding the Assets’ (BG of 19th November 2009) – see http://guardian.co.tt/business/business-guardian/2009/11/19/finding-assets – the issue is the production of the $23.9Bn Asset Value for the 13th January 2009 CLF letter – who calculated that, hm?
Talk soon.
Afra
#58 by sean ifill on July 10, 2010 - 8:41 pm
The thing is PwC had made a qualified opinion then indicating that something was amiss although to my mind the reason for the qualification seemed to indicate a significant departure from GAAP to warrant a Denial of opinion. In fact there seems to be a failure by PwC to use more rigorous stds in the FS evaluation.
There seems to be a need for application of Sabanes-Oxley regulations where the directors are held responsible for the contents of the FS; they must sign a commitment that the company employed good internal controls; and that no deliberate error or fraud was commited in the compilation of the information.
#59 by sean ifill on July 15, 2010 - 11:04 pm
I can’t believe that Dennis is dead. Wow! This is cataclysmic to say the least. He was a friend and some kinda family thru my sister and Raoul.
I wish his family all the condolences in this moment of grief. He taught me at one point and then we shared some thoughts on a pragmatic evolution of the West Indies to a Caribbean embrace. That was then; this is now.
He, like some others before, Best, Thomas, Girvan, Polyani, Demas advocated a unifying theme: Political and economic convergence for the Caribbean English, Dutch, French and Spanish. Now we have lost another voice………
#60 by Simpleton on September 14, 2010 - 8:19 am
Afra – take a hard look closer you will find more than you know…there are people around the company who will be willing to speak to you…u not gettin the 2008 budget bro too much incompetence and friends in wrong places covering up that cl report – it not comin….take a look at not just what is going on with former directors like monteil, carballo, duprey, patel, etc who should be jailed for looting the company of mucha dinero – and operating ponzi schemes – when the irs catch them it will be serious jail for all – and the united states is on their trails – but why not take a look at what is happenng today at the company – there are schemes and friends taking advantage and deals being cut at side – these pnm ppl doh play nice – company filled with only pnm ppl doh let them fool yuh….what they doing at clico and cl put tings in place to make it difficult for ppp people to get any proper job done. do ur homework.
#61 by AfraRaymond on September 14, 2010 - 8:40 am
Simpleton, whoever you really are…
The limited amount of time available to me does not allow me to investigate that kind of allegation.
I have limited myself to the published record and even that is vast – in parts imponderable, to an amazing degree – with no end in sight to the work.
Thank you for blogging
Afra
#62 by BAICO Depositor on September 22, 2010 - 9:47 pm
Dear Sir,
Please, all this economic jargon is absolutely confusing to me. What I really need help with to find out is exactly where does BAICO stand in all of this confusion. They have not been mentioned a lot in the articles or news. I have a 5 year deposit with Baico and it should mature in two years time. Its my retirement money from the sale of my house in Trinidad before I went abroad to reside.
Kind Regards.
#63 by lester on September 26, 2010 - 9:07 am
My concern is for the persons who have life insurance policies and pensions with clico and B.A. that are registered with Inland Revenue and should be covered by the statutory fund. Mr. Raymond is there a clear way forward for this group?
#64 by ASHVIN on September 27, 2010 - 8:36 am
With all the talk about CLICO, suing the Central Bank is really not the issue. The Central Bank where an Insurer becomes bankrupt is only obligated to Protect the Capital deposited and NOT the interest earned. This is All that the Statutory fund deposit provides. I think the more appropriate Strategy is to file a “Class action Lawsuit” against the owners, family shareholders and members of the BoD All Liable under the Company’s Act of 1995 among others…How come no talk of action against the very Wealthy Owners of this Private Company??? Interesting….should there not be both civil and criminal lawsuits?
#65 by Brian Stone on September 30, 2010 - 10:29 pm
Afra, is the MOU signed between Duprey/CLF and the government in the public domain? Does the media/public know the details of the MOU? I understand Duprey is still the major shareholder, and consequentially has a legal claim to assets.
#66 by AfraRaymond on September 30, 2010 - 10:34 pm
Hello Brian,
The MoU is available from the Ministry of Finance website at http://www.finance.gov.tt/content/mr03183E.pdf or on this blog at the Quick Guide on the page for CL Financial.
The 12th June 2009 Shareholders’ Agreement is also available on this blog.
Yes, Lawrence Duprey is still the major shareholder, with his rights intact and that is the most outrageous part of this entire situation.
Thank you for joining-in.
Afra
#67 by Jameela Raymond on October 22, 2010 - 2:45 pm
Just having a browse via my blackberry! Oh wait.
#68 by Delphin on October 29, 2010 - 10:40 am
I saw you on TV this morning and I think this was one of the few times you missed the mark on the Clico plan. I have read the Ramesh Maharaj comments on the 100% plan and with years spent on Wall Street I know that this is a Principal Defeased Debt Offering, similiar to what the US Federal Government does, so it does not earn 300% in months but is pledged for debt issuance at 3 times value
#69 by AfraRaymond on October 29, 2010 - 11:15 am
Hello to you, Delphin, whoever you really are…
I was merely reacting to the reported details of the proposed Ryan ALM plan announced by Prem Beharry of the CPG at their Woodford Square meeting on Sunday 23rd October – that incredible proposal is, as I outlined this morning on CNMG, for the State to invest $600M USD with that firm and within 3 months have $1.8Bn USD to repay so-called ‘policyholders’ – although we all know that the entire discussion has been captured by depositors. The link for that article is at http://www.trinidadexpress.com/news/40__NOW-105651543.html.
Quite frankly, that seems to be a continuation of the same unrealistic and ruinous high-interest strategies which wrecked both CL Financial and HCU. If it were that feasible a proposal, maybe the CPG should just accept the proposal which has now been approved by both Houses of Parliament – i.e. the budget – and invest their reduced sums with Ryan ALM. That would be a real win-win.
No, I have not read Ramesh Lawrence Maharaj’s comments on this aspect of the fiasco, but if you have a link that should be interesting.
Afra
#70 by trutrini on December 19, 2010 - 3:43 pm
thank you very much afra for continuning to bring this information to the public. even some people who worked in the cl financial group did not have all the pieces that you are putting together. some were forced out when they tried to act in the public interest, perhaps they will never even be recognised. thank you and please continue to do this, to challenge a system which tells you that you must conform or be eliminated. evil prevails and continues to prevail when good men do nothing and continue to do nothing.
#71 by sean ifill on December 21, 2010 - 12:20 am
I cannot but wince at the fact that the Gov. of the CB has anointed ‘public confidence’ as the key potential cataclysm for the continued demise of the T&T economy. He did not see fit to clearly identify that the erosion of public expectation has been a systemic failure by legitimate institutions to function. There continues to be a denial that Clico would not have happened had key people/institutions been performing their duty.
The failure of the CB, the SEC, Supervisor of Insurance, The Minister of Finance and the PS in the Ministry of Finance continues to avoid taking responsibility. These are the institutions that are obligated by taxpayers to function on their behalf. If the Minister fails to perform then society/taxpayers can vote them out. If the Gov.CB acts ultra vires or alternatively intra vires there is no ‘visible’ recourse. The same goes for the conduct of the CEOs of the other semi-Ministerial institutions.
The Taxpayer was held hostage by the former regime. The situation showed that taxpayers have no real leverage other than the power of the vote; they cannot translate that power into a legal recourse in which past malfeasance can be punished. The hostage can only plead that should they be released no further action would be taken to rectify or remedy the situation. The hostage taker having that power can play the game where the hostage is provided with consensual relief but not…never remedy.
Why is it 2 years later that there has been no one held responsible. Is this ‘Code of Silence’ or ‘Conspiracy of Conduct’ more insidious; more clandestine; more a carefully matriculated Madoffian scheme. Some have drawn a similarity between Bernie Madoff and Lawrence Duprey. But was it really? To me that would be construing too much intelligence to Duprey which I doubt he has. This was pure incompetence at every level. It was incompetence at the CB, the SEC and PSs. It was incompetence drawn through each successive political regime and their manifestation. Indeed this was no simple mismanagement but instead it shows that even those astute ‘learned’ professors of UWI could not discern through their ‘theoretical’ glasses the complete morass of stupidity which was the foundation upon which CL was built.
What in my mind is the reward for incompetence? Immediate Termination aka fire those who were incompetent. Then the investigation should be directed, no longer attributing responsibility and restitution. This should not be left to the AG. The highest authority in the land is Parliament. A body of competent parliamentarians should be directed to hold live testimony of all the parties to this calumny. From former PMs, Manning, Panday et al, to CB governors Dookeran and Williams and all others.
This ‘Code of Silence’ to which you so correctly speak is an identification that a ‘group’ has co-opted a body of information which inures them by a common fallacy. They are immune because the hostage has no insurance against moral hazard. The public/hostage does not know his or her rights. There is the mistaken belief that the role of the Government is to act as surrogate ‘Parents’. Daddy and Mommy always know best. From such a perspective, although chosen by the people become mistakenly ‘protectors’ of the people. This confusion leads both the people and the Government to implicitly conspire to act in such a way as to take responsibility.
The ‘Code of Silence’ is parents not believing that their children need be bothered with unnecessary information much of which they are too stupid to understand. The public on the other hand believe unwittingly that ‘their’ government would only do what is in their [the publics] best interest. So it goes on the Yellow Brick Road. Had the public understood the actions of legitimate institutions; they would have demanded that Clico be allowed to fail and all who had their hands in the machinations be made to account with jail and loss of personal assets.
Some say that would have been to the demise of the T&T economy. That is utter foolishness. It would have led to the demise of the vacuous political and intellectual class which have together foisted this upon us. Should GHL fail in the future should the taxpayer be made to bail them out without a public referendum. How can any money be paid to any party without a plan being put forth to say:
1) Why did this leech occur?
2) How can it be prevented from happening again?
3) Who will pay both in terms of money and in terms of jail time?
4) When will it end? (memories of SWAIT, ITL and others come to mind. Note no one then was punished).
Clico was indeed a ‘black’ Caribbean Company in the most malevolent misinterpretation of that word.
#72 by Andrew Abraham on January 23, 2011 - 8:26 pm
Hello Afra,
You have long been calling for the CLFinancial 2008 financial statements. I think it does not exist as they have not been prepared as yet for the board to review them. It actually has not been done for the auditors to look at. They hired a accounting company to prepare them to give to the board and to give the auditors. You would think that that the people that running the company would have said this all along. I think they shame that in 2011 they have not prepared the books for 2008 yet. Maybe they should all get fired and new people put there to run it.
#73 by Bishop Dr Victor Phillip on February 15, 2011 - 8:31 am
How good and pleasant to view your site.
TTCA need to take a page and make the change just for their membership.
What is the position with contractors payment? open dialogue on line.
The small business sector is suffering. This sector that will kick start the economy. We done in the US and other countries.
Thank you for my brother.
Rev. Member of TTCA
#74 by AfraRaymond on February 16, 2011 - 12:36 am
Brother Victor,
Very good to hear from you and I hope you can share this blog with any friends you think might be interested.
The monies owed by the State to the JCC members is an issue, but one I am dealing with elsewhere, so will contact you separately on that.
Best wishes
Afra
#75 by brian krebs on June 12, 2011 - 5:11 pm
Good website! I truly love how it is easy on my eyes and the data is well written. I’m wondering how I could be notified whenever a new post has been made. I have subscribed to your RSS feed which must do the trick! Have a great day!
#76 by Dean Gouveia on November 25, 2011 - 1:03 pm
Afra
My wife and I have a substantial amount of money in Clico that we cannot get access to do you have any idea when policy holders will be paid out …I am not up to date with what is going on as I am based in the UK.
#77 by paulie on November 26, 2011 - 6:20 pm
Check the Ministry of Finance website to see if you are covered under the payout plan.
http://www.guardian.co.tt/business/2011/11/26/early-christmas-payout-clicoba-investors