CL Financial Bailout

This is my series on the CL Financial Bailout, as previously published in the Business Guardian and other publications (* TT Review). Click on the Title links to access the article.

Date of Publication	Title	Abstract
12th March,2009	Sagacity & Veracity	The similarities between the UDeCOTT and CL Financial fiascos
19th March, 2009	The Meaning of Things	The contradictory actions of the CL Financial Board and Gov’t are considered.
23rd April, 2009	Rapid De-Rail	What did they know and when did they know it?
30th April, 2009	Who is Who and What is What	The shifting sands and tangled web are becoming clearer.
7th May, 2009	Moral Hazard, Part I	What is moral hazard and are we at risk?
14th May, 2009	Payback Time – Moral Hazard, Part II	What is moral hazard and are we at risk?
28th May, 2009	Judgment time – Moral Hazard, Part III	Contrary actions of the politicos and the media.
11th June, 2009	Do What is Right	A review of this unfolding fiasco
2nd July, 2009	Fit and Proper?	Critical examination of the new MoU of 12th June.
9th July, 2009	Party of Parties	Contrast between the treatment of CL Financial shareholders and taxpayers.
16th July, 2009	Figuring it out	So just where are these assets?
30th July, 2009	Emancipation	The Emancipation journey and its links to the CL Financial fiasco.
13th August, 2009	Condonation	Did the society condone the CL Financial fiasco?
23rd August, 2009	Finding the Assets	Where has the money gone?
5th October, 2009 *	Open letter to the Minister of Finance on The CL Financial bailout	This letter is intended to form part of the formal record in this matter.
19th October, 2009	Open letter to the Institute of Chartered Accountants of Trinidad & Tobago	I am of the view that we citizens and civil society organisations, such as ICATT, need to be active in promoting higher standards of professional and public conduct.
2th November, 2009*	Duprey’s Fate	The Business Guardian editorial of 15th October raised the topical question as to ‘Will Lee Chin avoid Duprey’s fate?’
11th November, 2009	Nothing but the truth	In terms of race, politics and finance, that statement by the Minister deserves our most sober consideration.
31th December, 2009	CL Financial – The bailout timeline	The timeline of the events over the last year or so on the CL financial bailout is set out for ease of reference.
28th January, 2010	CL Financial bailout – The Governor speaks	The main development in my view is that we had some truly remarkable statements from the Governor of the Central Bank.
1st March, 2010 *	The Official Version – Mystery of the Missing Money	The quality of our political rulers has now joined in unholy matrimony with the sheer recklessness of their anointed deal-makers to put our economy into an entirely new and perilous place.
4th March, 2010	CL Financial Bailout – A Matter of Interest	As we move forward into the deep waters of the CL Financial bailout, the picture becomes murkier and less encouraging.
13th March, 2010	CL Financial Shareholders’ Agreement	Commentary on CL Financial Shareholders’ Agreement
19th April, 2010	Ten to One is Murder	We are told that CL Financial will rise again. The picture is even more clouded than a year ago and the rumours abound.
25th April, 2010	The CL Financial bailout: Taking in Front – The NGC element	One of the abiding questions on the CL Financial issue is – ‘What main event/s caused the group to fail?’
9th May, 2010	The CL Financial bailout and the Special Purpose Entity fiasco – Joining the dots	Comparing aspects of CL Financial and the public sector construction industry
23rd May, 2010	CL Financial bailout: The Peoples’ Partnership position	It is impossible at this stage to know what the PP will do on this important public matter, but I have been considering the role of certain major players.
10th June, 2010	CL Financial bailout – Testing the terms	Analysis of the Sunday Express investigation of the dealings of HCL and FCB
23rd August, 2010	CL Financial bailout – Examining the Horns	Once again, I am returning to the need for us to grow a culture of responsible behaviour as a vital part of national development.
2nd September, 2010	CL Financial bailout – The House on the Corner	I am starting to look at the CLICO Investment Bank (CIB) and its operations, as revealed by the ongoing bailout.
10th September, 2010	CL Financial bailout – The House on the Corner 2	The examination of CLICO Investment Bank (CIB) continues, based on the affidavits in the Central Bank’s winding-up action.
22nd September, 2010	CL Financial bailout: Disturbing Arrangements in the 2011 Budget	Winston Dookeran’s budget proposals to re-order the ongoing CL Financial bailout have sparked considerable controversy.
29th September, 2010	CL Financial bailout: What is this campaign?	We are witness to a second wave of assault on our Treasury.
3rd October, 2010	CL Financial bailout: Closing the Circle	Amidst the raging debate on the rights of the disappointed depositors versus those of the anxious taxpayer, I am continuing to examine some more of the fundamental issues.
15th October, 2010	CL Financial bailout: The Code of Silence	Throughout this series of articles on the CL Financial bailout I have touched on the existence and effect of a Code of Silence amongst our ruling elite.
24th October, 2010	CL Financial bailout: These Turbid Times	Last week I wrote about the Code of Silence observed by our ruling class.  I gave examples to support my idea, but there was not enough space to mention everyone.
10th November, 2010	CL Financial bailout: A Season of Unreason	We are now entering a bizarre endgame in this rounds of musical chairs. The children’s game has returned for us adults, but with a vengeance.
30th November , 2010	CL Financial bailout – Amazing scenes	Finance Minister, Winston Dookeran, addressed Parliament on the Finance Bill (No. 2) 2010 on Wednesday 24th November.  It was a lengthy and detailed statement, which put things into a necessary perspective.
5th December, 2010	CL Financial bailout – Testing the Code of Silence	The Code of Silence has formed the subject of several columns in this series. I am referring to the unwritten agreement amongst the leadership group in our society to maintain silence in matters of white-collar crime.
16th December , 2010	Did CMMB collapse or not?	Given that all four of KSBM’s Executive Directors are ex-CMMB chiefs, there is an inescapable question… ‘Did CMMB collapse, or did they not?’
7th January, 2011	The CMMB story	The audited accounts for CMMB for 2006, 2007, 2008 and 2009 were obtained from the SEC. They allow a view of CMMB’s financial affairs for the 5-year period 2005 to 2009.
10th February, 2011	CL Financial bailout – Smashing the Code of Silence	I have been preparing my submissions for the Colman Commission and took some time-out to start reading the Report into the USA’s financial crisis.
14th February, 2011	CL Financial bailout – Sunlight Disinfectant	We are attempting to understand our situation in this financial fiasco – how was the entire collapse caused?
23th March, 2011	CL Financial’s Annual Return as at 17th February 2009	This is the official copy of CL Financial’s Annual Return from the Companies Registry, as at 17th February 2009 – it bears the official stamps and is signed by CLF’s then Corporate Secretary, Gita Sakal
28th April, 2011	CL Financial Bailout – Retirement Planning	Central to the growth and long-term success of the CL Financial group was its ability to mobilise the retirement savings of the Caribbean people in pursuance of its wider commercial objectives.
14th May, 2011	Setting the Standard	I am very concerned at the fact that the CL Financial collapse has cast a literal shadow over our country.
20th May, 2011	CL Financial bailout – The final AGM	CL Financial’s final Annual General Meeting was the most interesting meeting in the saga of its collapse.
16th June, 2011	CL Financial Bailout – The big question	The current talking-point is the major lawsuit launched by the Central Bank against CL Financial sowatees, Lawrence Duprey and Andre Monteil.
23rd June, 2011	The Duprey Letter	This is the CL Financial letter of 13th January 2009, signed by their ‘Trinity Chief’ Lawrence Duprey, for readers’ comments.
27th July, 2011	CL Financial Bailout – Lessons from the Financial Crisis	This is an edited version of my address to the 4th Biennial Business Banking and Finance Conference (BBF4) held at the Trinidad Hilton from 22 to 24 June, 2011.
9th November, 2011	CL Financial bailout – The Final Solution?	The new bailout formula was approved, as two new Acts, by our Parliament on 14 September.
14th November, 2011	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.
4th January, 2012	CL Financial bailout – Swearing an Oath	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.

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A quick-guide to key original documents/speeches etc. on the CL Financial Bailout Fiasco.

ORIGINAL DOCUMENTS (from source)

• Republic Bank’s Notice to Shareholders on proposed CL Financial takeover, 15 July 1996- Link
• CLICO’s 2007 Annual Report – http://www.clico.com/pdf/AR07/AR2007.pdf [Alternate Link]
• CL Financial 2007 Annual Report – http://www.clico.com/pdf/AR07/CL%20Financial%20Annual%20Report%202007.pdf [Alternate Link 2]
• 30th January 2009 Memorandum of Understanding – http://www.finance.gov.tt/content/mr03183E.pdf [Alternate: MoU 30JAN2009]
• Minister of Finance statement on 30th January 2009 – http://www.finance.gov.tt/content/sp2C1EC5.pdf
• Governor of the Central Bank remarks on 30th January 2009 – http://www.central-bank.org.tt/sites/default/files/CIB%20CLICO%20Media%20Conference%20by%20the%20Governor%20Central%20Bank%20January%202009.pdf [Alternate Link]
• Minister of Finance statement to Parliament on 4th February 2009 quoting the CLF ‘trigger’ letter – http://www.ttparliament.org/hansards/hh20090204.pdf (starts at page 628)
• Governor of the Central Bank media update of 13th February 2009 – http://www.central-bank.org.tt/sites/default/files/CIB%20CLICO%20CMMB%20Update%20February%202009.pdf
• CL Financial’s Annual Return as at 17th February 2009 – Link
• 1st June 2009 Shareholder Agreement between CL Financial Ltd. et al and the Government of Trinidad and Tobago - Link (Retrieved via FoI request)
• 12 June 2009 Ministry of Finance media release announcing signing of agreement between government and directors and shareholders of CL Financial – Link .
• 16 June 2009 The Central Bank commits to a transformed and vibrant CLICO – http://72.29.70.120/sites/default/files/Central%20Bank%20commits%20to%20a%20transformed%20vibrant%20CLICO.pdf
• Affidavit of Maria Daniel, Ernst & Young representative in CIB winding up – Link
• Affidavit of Carl Hiralal, Inspector of Financial Institutions in CIB winding up – Link
• Petition before High Court to wind up CIB – Link

PUBLISHED and CITED DOCUMENTS (from newspapers, other media sources)

• Newspaper article on missing $5 billion from Clico’s Statutory Fund -
  Hassanali, Shaliza. “Where the money gone?” Trinidad and Tobago Guardian. 01 Mar. 2009. 1 Mar. 2011. <http://test.guardian.co.tt/?q=news/general/2009/03/01/where-money-gone>
• Newspaper article on Central Bank Governor’s disclosure that CL Financial’s $100 billion assets are otherwise committed -
  Webb, Yvonne. “Govt left empty handed in CL Financial bailout.” Trinidad and Tobago Guardian. 08 Apr. 2009. 1 Mar. 2011. <http://test.guardian.co.tt/?q=business/business/2009/04/08/govt-left-empty-handed-cl-financial-bailout>
• Published notice to Shareholders of Angostura Holdings Ltd. informing them of non-publication of audited financial statements for 2008 by approved deadline – Newspaper: Saturday Express | Date: 27 June 2009
• Published notice of resignation of Dr. Shafeek Sultan Khan as Chairman of CL Financial – Newspaper: The Daily Express | Date: 23 June 2010
• Press release: Central Bank’s response to CLICO Policyholders Protection Association – Newspaper: The Daily Express | Date: 28 October 2010
• Published letter to the People’s Partnership Government asking for financial justice for poor people re the $12 billion bailout demand – Newspaper: Trinidad and Tobago Guardian | Date: 29 October 2010
• Published advertorial: CLICO Policyholders’ Questions Answered – Newspaper: Trinidad and Tobago Guardian | Date: 04 November 2010
• Published notice from Harold Sookhan, To the Government of Trinidad and Tobago: “What Have You Done With CL Financial’s Assets?” – Newspaper: ___________ | Date: __________ 2010