Charting our losses: ‘A picture is worth a thousand words’
The last four articles in this series have focused on what I call ‘two sides of the same coin’ – the coin being the large-scale and improper use of Public Money.
I examined the THA/BOLT office project called MILSHIRV being undertaken with the Rahael group and the Calcutta Settlement land scheme in which the HDC acquired developed lands at several times the proper price the State could have paid.
Throughout this type of critique one has to strive for effective balance and fundamental integrity. The extent of the waste and/or theft is never easy to pinpoint when one is working from outside and relying solely on published documents, but my best efforts to establish those facts is what is presented. Of course it is impossible to say for sure that any amount of money was stolen in a particular project, hence the phrase ‘wasted or stolen’.
Objectively, it does not matter whether the money is wasted or stolen, if it is ultimately unavailable for the benefit of the Public. Once spent, that Public Money is gone forever, which is why Value for Money is of such importance in any proper Public Procurement system.
Subjectively, however, the errors of inexperience or poor process must be differentiated from an active conspiracy to defraud. Although the objective measure of loss might be identical in terms of the dollar-amount, there are different long-term consequences. Innocent errors and miscalculations can be rectified over time by ongoing review processes. Deliberate conspiracies to defraud require concerted and well-grounded attacks in order to be eliminated. What is worse about the deliberate conspiracies is that they affect the very atmosphere in which public business is conducted.
Order granting leave to file judicial review in Afra Raymond vs Ministry of Finance and the Economy
This is the Order by Justice Boodoosingh to grant me the right to have the Judicial Review heard in Court…our first hearing is set for 1 May 2013
Application for judicial review in Afra Raymond vs Ministry of Finance and the Economy
This is my filing for the Judicial Review of the continuing refusal of the Ministry of Finance to reply to my Freedom of Information request of 11 May 2012 along with my sworn affidavit.
The case is a critical challenge to the detrimental notion that $24Bn of Public Money can be spent without Accountability or Transparency. That notion does violence to any healthy conception of the Public Interest, so I expect this contest to be a sharp one.
“Power concedes nothing without a demand…”
Frederick Douglass…Freedom Fighter and esteemed ancestor…
“Sunlight is the best disinfectant!”
Former US Supreme Court Justice Louis Brandeis…
Calcutta Settlement review
The simple, inescapable fact is that the State could have lawfully acquired the ‘Eden Gardens’ property for less than $40M. The HDC paid $175M in November 2012 to Point Lisas Park Ltd (PLP) for that property, which is the reason I am calling this an improper use of Public Money.
Despite having available the advice of the Commissioner of State Lands, the Commissioner of Valuations and various attorneys at HDC and so on, the Cabinet approved this transaction. This Cabinet, with two Senior Counsel at its head and several other seasoned legal advisers, appears to have been unaware of, or intentionally ignoring, the legal safeguards.
Some readers may be surprised at those assertions, so here are my reasons for making such.
The last two articles examined the steps leading to the HDC’s purchase of land at ‘Eden Gardens’ in Calcutta Settlement. In my opinion that transaction, as well as the one which preceded it, are both highly improper and very probably unlawful. The HDC purchase must be reversed and the responsible parties investigated/prosecuted as required by our laws.
Pre-Action Protocol letter to Ministry of Finance pursuant to FoI Application of 11 May 2012
What is being pursued here is our right as citizens of a modern republic to the details of these huge expenditures of Public Money – the CL Financial bailout is costing some $24Bn, about $3.5Bn USD! – and the background to how critical legislative support is obtained. It is my view that S.34 was not the first time and that the spectre of ‘regulatory capture’, which underlines much of the discourse around the Great Depression 2, is in fact founded on a sinister degree of ‘legislative capture’.
Having had a series of ‘cat and mouse’ exchanges with the Ministry of Finance since my Freedom of Information Act application made on 11 May 2012, this is my pre-action protocol letter sent to them by my attorney on Thursday 7 March, seeking their proper reply in 7 days…that time expires at midnight today, Wednesday 13 March, so stay tuned, because we are going to the High Court after that…
Calcutta Settlement again
In light of the many questions raised by readers after the last article on the HDC’s purchase of land at ‘Eden Gardens‘ in Calcutta Settlement, I am continuing there.
The previous article discussed the Calcutta Settlement scheme and its relation to implementation of national housing policy. There is little, if any, connection between the provision of affordable housing and the acquisition of those ‘Eden Gardens‘ lands, at what is surely the highest price in Central Trinidad. How we create and implement a progressive housing policy is a critical part of this discourse, but there is more.
Another important aspect of this episode is the fact that sound land administration policy appears to have been abandoned for expediency. Expediency should never eclipse proper policy, especially when neither the process nor end-result advance the ultimate objective of serving our citizens.
The sidelining of sound land administration policy was essential in order to get the Calcutta Settlement scheme approved. National Land Administration policy is important so that we can be strategic in using the country’s property assets for proper national development, as opposed to the enrichment of a select few.
The State is a unique player in our country’s land arena, so we need to place this Calcutta Settlement episode into proper context from a land administration viewpoint.
Afra joins the top 1%TEDxTalks featured on the TED.com website
Afra Raymond’s talk at TEDxPortofSpain 2012 is part of the 1% of TEDxTalks that get featured on the TED.com website. Congratulations to Afra. So far there have been 5,900 events held in 1,683 cities producing 25,500 talks worldwide. Only 247 TEDxTalks have feature on the TED.com website and now Afra is one of them.
From THA/BOLT to Calcutta – tangled webs: Part 2
Last week I set out my main concerns in relation to poor procurement processes with the THA/BOLT project. A large amount of Public Money was being committed to a project with little apparent regard to Value for Money concerns in an arrangement which seems to expose the THA to the principal risks at a time of limited financial resources.
This article is a critical examination of the controversial proposed purchase of 50.6 acres of land at Calcutta Settlement by the Housing Development Corporation (HDC).
Today TED featured Afra Raymonds TEDxPortofSpain talk as a talk of the week.
Each week TED selects four of their favourite talks, highlighting just a few of the enlightening speakers from the TEDx community, and its diverse constellation of ideas worth spreading. Afra’s talk was chosen. Congratulations to Afra and the TEDxPortofSpain Community.
From THA/BOLT to Calcutta – tangled webs: Part 1
Artist Impression of THA Admin building courtesy Amera Caribbean Development Ltd.
With the THA elections having become a kind of national contest, the issues of governance and integrity loom large. The two relevant controversial issues, both of which emerged late last year, were the THA/BOLT office project and the HDC’s proposed purchase of land at Calcutta No. 2 Settlement.
Both those projects have given me serious cause for concern in terms of proper public procurement practice, so much so that I see them as being two sides of the same coin. Both these cases are models of inadvisable dealings in Public Money of a type which no prudent or reputable company would undertake. I am choosing my words carefully since recent reports are that litigation has already started on the THA/BOLT project and there may well be further legal action on both projects as we go forward…
VIDEO: The three sides of corruption: Afra Raymond at TEDxPortofSpain – 12.12.12
Replying to the Ministry of Finance on our Freedom of Information application of 8th May 2012…
I was trying to find out these four things -
- CL Financial accounts and if those are not available, the figures on which the Minister of Finance has been relying
- The presentation made to Members of Parliament in September 2011 to brief them prior to the debate on the Central Bank (Amendment) Bill and the Purchase of Certain Rights and Validation Bill 2011
- Details on the composition of the creditors of the CL Financial group, in particular EFPA holders. I was asking who was owed money and who got paid. That is at the centre of this issue
- Declarations filed by Directors and Officers of the CL Financial group under the IPLA - I have since established that those declarations are not being filed, so this pursuit is about the first three questions.
A fuller background on all this can be read here.
This is my reply to the letter sent by the Ministry of Finance on 14th August 2012.
Stay tuned, because this is going to be a real battle to get at the truth.
The Plot to Pervert Parliament
We have witnessed two grievous Constitutional outrages. We have to keep our eyes on the ball in this season of mass distractions. For the government, there is every reason for us to ‘move on’ and forget about these deliberate violations of our constitution.
- The first was the State of Emergency – declared on August 21 2011 – with no proper reason ever being given for the suspension of our Constitutional rights. All the persons arrested were poor people. All of whom had to be released for lack of evidence, in a situation where the Police had the complete freedom to search for evidence. But what is worse, the suspension of our Constitutional rights was not used to gather evidence against the White-Collar bandits who have this nation by the throat. That State of Emergency would have been an ideal opportunity to gather evidence against this most evasive, well-advised and malodorous class of criminal.
- The second was the S.34 scandal – on August 31 2012 – which I have called the Plot to Pervert Parliament. This abuse of our legislative process allowed high-profile White-Collar Criminals to escape justice.
An abusive double-attack, so how do we speak the Truth to Power?
According to Abraham Lincoln “…Nearly all men can stand adversity, but if you want to test a man’s character, give him power…”
These scandals continue to echo in the mind of so many people that it is only a matter of time before we have a thorough Public Enquiry. We must record who abused their office. Also, we need to remember clearly, who are these apologists who are now insisting that nothing big happened and in any case, it is all over.
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
#78 by Theodora Ulerie on February 16, 2012 - 4:35 pm
Well thought out and a considered approach to national consciousness-raising. Thank you Afra Raymond! Keep us informed!
Theodora Ulerie
Director
Culture House
Government Quarters
3 Zoo Road
#79 by AfraRaymond on February 17, 2012 - 9:51 am
Thanks, Theodora!
Please spread the word and share the links…
#80 by enoch john on February 26, 2012 - 11:24 am
Mr Afra Raymond. It is heartening to see and read of your interest in these public matterts.I like your methodical approach.
#81 by vshe01 on February 21, 2013 - 6:59 pm
My Dear Mr. Afra Raymond.
Your speech on Corruption was outstanding! I think you gave many people around the world something to be outraged about! Your definition of corruption speaks billions no trillions in American tax dollars. This energy gets so like water it grows anywhere and leaves a wet trace. Thank you for the insight
Sheree Victorian, Chicago, IL
#82 by G King on February 23, 2013 - 9:02 pm
Afra,
Good Stuff. Also, re: The S Fdo-Point Highway, which is by far the largest capital project ever undertaken, why was this not financed through the standard channels ie lending agencies? Is the financing coming from thru current expenditures? Hmm., is it because the lending agencies would have much stricter controls, requirements, procedures etc in place?
#83 by Jeff on March 2, 2013 - 3:36 am
Hello sir,
I was watching Ted’s tv and found your expose. I am from Gabon/ Africa, and I can relate in understanding the deep sorrow and incredible events that you have been talking about. I just wish one day, we will be able to face the reality.
Good luck!
With all my respect!
#84 by Christopher McMaster on March 2, 2013 - 1:10 pm
Jeff,
It is so refreshing to know that Gabon shares our vision. In the diaspora we assume that we are isolated and that ours is the only ‘problem’ and indeed your support encourages those like Afra to continue his gargantuan task since so many like him have paid with their lives for much less than he has already done. R. K. Narayan teaches, “The truth is like the sun. Few can stare at it for more than a few seconds.” Please keep letting us have your views too.