What Lies Beneath

The public is being told that the CL Financial bailout is being resolved, while at the same time the Minister of Finance & the Economy is withholding the fundamental information which any prudent person would need to make a decision.  So, what is the secret?

Apart from the details I have been asking for, there are other questions which occur to me -

  1. Directors’ Fees – What is the comparative level of Directors’ fees before and after the bailout on 30 January 2009?  In particular, what are the fees & expenses payable to CL Financial Directors?  Have those increased?  If so, to what level and on what rationale?
  2. Related Party dealings – We were told that one of the main causes of the CL Financial collapse was excessive related-party transactions.  Has that pattern of dealings has really changed? What are the contracts between the group and companies in which Directors hold an interest?  Does the group, or the Minister of Finance, keep a record of these connected contracts?  Does the group have a robust procurement procedure which would ensure value for money in all its significant transactions?
  3. Asset disposals – Which of the group’s assets have been disposed-of since the bailout and on what terms?  Were proper valuations obtained before these disposals?

The original complaint is here -


———- Forwarded message ———-
From: Afra Raymond <afraraymond@gmail.com>
Date: Mon, Sep 10, 2012 at 11:12 PM
Subject: Compliance of CL Financial Directors with the Integrity in Public Life Act
To: registrar@integritycommission.org.tt
To – Mr. Martin Farrell, Registrar of the Integrity CommissionDear Sir,
The Integrity in Public Life Act requires that “Members of the Boards of all Statutory Bodies and State Enterprises including those bodies in which the State has a controlling interest” are required to file returns and declare interests with the Integrity Commission.

Clause 3.1. of the CL Financial Shareholders’ Agreement of 12th June 2009 – see http://afraraymond.files.wordpress.com/2010/03/mou21.pdf – specifies that the Board of Directors of CLF shall consist of seven Directors, four of which shall be nominated by the Government. The GORTT has a controlling interest and it is public knowledge that the GORTT has exercised those rights, amounting to strong influence evidencing control.

It seems clear that the directors of CL Financial Ltd are therefore persons who should file declarations, and therefore also the directors of subsidiaries under their influence and control, but having visited your offices earlier today to examine the Register of Interests it seems that these Directors have not been filing returns with you.

For your information, your staff confirmed to me today that none of these people have filed declarations or been required to file such for 2009, 2010 or 2011 -

  • Gerald Yet Ming (CLF’s current Chairman)
  • Hayden Charles (CLICO Director)
  • Ronald Harford (Republic Bank’s Chairman)
  • Dr Euric Bobb (former CLF Chairman)
  • Rampersad Motilal (Managing Director of Methanol Holdings Limited)

I am therefore requesting, in the public interest, your confirmation that Directors of CL Financial and the companies within its control are required to file declarations or your confirmation that those Directors are not required to file or such other informative response that will satisfy this complaint of apparent non-compliance.

I await your early reply.
Yours faithfully,

Afra Raymond
B.Sc. FRICS

http://www.afraraymond.com


IC-response2013-full

Click image to enlarge

SIDEBAR: Integrity and the CL Financial bailout – the nexus as noted by Afra Raymond on 28 May 2009

There is an interesting nexus between the Integrity in Public Life Act (2000) and the CLF bailout.

The Act obliges that public officials make a declaration of their income, assets, liabilities and interests to the Integrity Commission on or before 31 May of each year.  There are penalties for non-compliance.  We have seen high-profile investigations and prosecutions with the proposed amendments to the Act now being debated in the Senate.

The Integrity Commission website lists ten classes of persons in public life who must file declarations with them.  That list can be found at http://www.integritycommission.org.tt/whofile.html.  The ninth class of person is “Members of the Boards of all Statutory Bodies and State Enterprises including those bodies in which the State has a controlling interest.”

CL Financial has already signed over its shareholdings in Republic Bank Ltd. (55%) and Methanol Holdings Trinidad Ltd (56%) to the State under the MoU, and the State has taken complete control of CLICO.  Will CLICO, MHTL and Republic Bank Directors be filing returns on or before 31 May?

From: Afra Raymond [mailto:afraraymond@gmail.com]
Sent: Thursday, 20 March 2014 09:56 PM
To: Registrar, Integrity Commission
Subject: Fwd: Compliance of CL Financial Directors with the Integrity in Public Life Act

Dear Mr. Farrell,

I am seeking an update from you on your progress in relation to this formal report made to the Integrity Commission on 10th September 2012.

Apart from a brief telephone conversation we had a few days after its submission, I have had neither acknowledgment or reply to this report.

I await your early reply.

Regards

Afra Raymond

http://www.afraraymond.wordpress.com

pointing-finger-md

On Fri, Mar 21, 2014 at 4:54 PM, Registrar, Integrity Commission <Registrar@integritycommission.org.tt> wrote:

Dear Mr Raymond

Our recollection in the office is that a response was sent to you and we are examining our records.

In any case, a response will be sent to you.

Registrar

pointing-finger-md

On Fri, Mar 21, 2014 Afra Raymond <afraraymond@gmail.com> wrote:Hello Mr. Farrell,

I appreciate your early attention to my query.

Regards

Afra Raymond

pointing-finger-md

From: Afra Raymond <afraraymond@gmail.com>

Date: Thu, May 22, 2014 at 11:44 AM
Subject: Re: Compliance of CL Financial Directors with the Integrity in Public Life Act
To: “Registrar, Integrity Commission” <Registrar@integritycommission.org.tt>

 

Hello Mr. Farrell,

I wrote to you on 20th March 2014 seeking an update to my formal report of 10th September 2012 to the Integrity Commission on this matter. You replied the next day indicating that you thought that a reply had already been sent but that in any case a reply would be sent to me.

To date I have had no response to my formal complaint or the request for an update as to its status. In the interim, I have carefully examined the Commission’s 2012 and 2013 Annual Reports and found no mention of my complaint in the sections which provide an outline of the various investigations being undertaken. According to those Reports, the status of those investigations seem to fall into three categories – ‘Closed’ – denoting those matters which have been effectively dismissed, due to lack of evidence or irrelevance; ‘Completed’ – denoting those matters which have been investigated or ‘Continuing’ for those matters which are still under investigation. I am starting to wonder if my formal complaint has been relegated to some new, as yet undisclosed, category.

I am also going to point out that, according to the Integrity Commission’s Public Notice at pg 49 of the Sunday Express of 6th October 2013, the Integrity in Public Life Act applies to State Enterprises. At the fourth para of that Public Notice, which was intended to clarify published concerns as to the implications of the Appeal Court ruling in #30 of 2008, you state that State Enterprises are companies which are controlled by the State, so I would again invite your attention to the particulars of my original complaint in this matter. As you would appreciate from my published analysis, the position taken by the Commission in that Public Notice is one with which I strongly disagree, nonetheless, that position is the Integrity Commission’s formal statement on the matter.

For ease of reference, that Public Notice is here -
http://afraraymond.files.wordpress.com/2013/10/ic-response2013.pdf – since I was unable to locate it on the Commission’s website.

I am closing by pointing out that this is a matter of the gravest possible public concern, since CL Financial has been the recipient of over $25 Billion TTD in Public Money and its affairs remain shrouded in an intentional obscurity which does violence to the modern notions of Transparency, Accountability and Good Governance. That obscurity includes the channelling of those huge sums of Public Money via the Central Bank which is exempt from the Freedom of Information Act; new laws to approve the exemption of the Central Bank from any judicial review of its actions in this matter (that has now been ruled as unconstitutional by the High Court in #4383 of 2012, of course the State has appealed that, so the fight is on); the failure/refusal of CL Financial to publish audited accounts and the failure/refusal of CL Financial’s Directors to comply with the Integrity in Public Life Act.

That is the factual background against which I lodged my formal complaint. The delay and ambiguity with which the Integrity Commission appears to be treating my complaint on this most serious matter is sobering, to say the least.

I trust that you can give this matter your early attention, in the meantime, I will be publishing this as a record of these developments.

Afra Raymond

http://www.afraraymond.wordpress.com

pointing-finger-md

Registrar, Integrity Commission

May 22
to me

Dear Mr. Raymond

 

On behalf of Mr. Farrell I do apologize for  not responding to your query.   Please note that your query was not classified as a compliant so you would not find it in the complaints section of the 2012 or 2013  Annual Report.   With respect to  your query we have sought and obtained legal advice.  However the Commission is not properly constituted ( a Commissioner having resigned and not yet replaced by his Excellency the President) at this time and therefore cannot make decisions.  As soon as the Commission becomes properly constituted the matter will be placed before the Commission for a decision.

 

In the interim I would appreciate if you can provide us with a copy of the CL Financial Shareholders Agreement.

Yours respectfully

Lisa Phillips

Acting Registrar

Integrity Commission

pointing-finger-md

From: Afra Raymond [mailto:afraraymond@gmail.com]

Sent: Thursday, 22 May 2014 05:12 PM
To: Registrar, Integrity Commission
Subject: Re: Compliance of CL Financial Directors with the Integrity inPublicLife Act

Hello Ms. Phillips,

I thank you for your swift reply and trust that this matter can now receive proper attention.

The Ministry of Finance made a Press Release on 12th June 2009 -http://www.afraraymond.files.wordpress.com/2011/03/minoffin_pr_12jun2009.pdf – which I received prior to the actual Shareholders Agreement being released to me pursuant to my Freedom of Information request. As requested, the actual CL Financial Shareholders Agreement of 12th June 2009 is here – http://afraraymond.files.wordpress.com/2010/03/mou21.pdf – for your consideration.
I await your reply.

Afra Raymond

http://www.afraraymond.wordpress.com

pointing-finger-md

On Friday, May 23, 2014, Registrar, Integrity Commission <Registrar@integritycommission.org.tt> wrote:

Dear Mr. Raymond

Thanks for your understanding. However used the link provided but most of the pages of the Agreement are blank.

Regards

Lisa Phillips

Acting Registrar

pointing-finger-md

From: Afra Raymond [mailto:afraraymond@gmail.com]

Sent: Friday, 23 May 2014 09:06 AM
To: Registrar, Integrity Commission
Subject: Re: Compliance of CL Financial Directors with the Integrity in PublicLife Act

Hello Ms. Phillips,

The Shareholders’ Agreement is showing ok at my end, the scanned copy I was sent seemed a little faded, that was all.

The link I sent you yesterday was included in my original email of 10th September 2012, so it’s not clear whether that actually received proper attention.

I suppose that the Finance Ministry would provide a copy if you asked, seeing that they sent it to me.

Thank You

Afra Raymond

http://www.afraraymond.wordpress.com

pointing-finger-md

Registrar, Integrity Commission      May 23

to me

Mr. Raymond

Noted. Thanks

Lisa

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  1. #1 by BFP on June 21, 2014 - 3:42 pm

    Reblogged this on Barbados Free Press and commented:
    The cover-up of the CLICO – CL Financial fraud continues, and our old friend Afra Raymond asks all kinds of very inconvenient questions…

  2. #2 by David on June 21, 2014 - 5:18 pm

    Reblogged this on Barbados Underground and commented:
    The inability of the authorities in Trinidad AND Barbados to fully unravel the CL Financial mess and by extension CLICO in Barbados shines a bright light on an inadequate regional governance system.  There is also the insight to be gained by Barbadians from a Trinidad jurisdiction where Transparency Legislation is enacted and operationalized.    What have we learned that has forced to improve how pan-Caribbean institutions are regulated.

  3. #3 by Buun on June 21, 2014 - 10:18 pm

    They do not care about us and they will continue to play with words and no action.

  4. #4 by Christopher McMaster on June 23, 2014 - 9:48 pm

    David Rudder has observed that we have united as a region but that mode is politically unsavoury. What Lies Beneath is a great punishment for our children. Lies beneath lies create unguided lives. Our children have no truth in their lives because each day we spew lies at them. The truth is that lies overwhelm the truth. We believe in God yet we allow the devil to dictate how we profit from our daily peregrinations. People die and no one is guilty. We are grounded in half-truths, blatant lies and outrageous mismanagement yet we are sweetly coaxed to love and unite and trust and support the political-sin-phonies of those entrusted to lead. Stalin projected in 1983, “better days are coming” so we must live like we play we mas and plan for those halcyon tomorrows…when ever they come.

  1. What Lies Beneath – Black In Barbados
  2. Trinidad & Tobago: Secrets of the CL Financial Bailout? · Global Voices

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