‘CLICO issue will be no easy fix’: Eustace

It will be no easy fix dealing with the troubled Colonial Life Insurance Company (CLICO) – British American issue. However, Arnhim Eustace, Opposition Leader, said that a New Democratic Party (NDP) led government would sit with the other countries of the OECS to try deal with the issue.{{more}}

Eustace made the point during a town hall meeting last Thursday evening.

He contended that the matter has even more legal implications than first realised, after it was discovered that British American is not a registered entity here.

Recently, the Guyanese government said that investors would be repaid their investments after the Bharrat Jagdeo led administration was able to secure the GUY$3.6 billion to do so.

Similarly, Trinidad has indicated that they will begin giving back policy holders moneys owed to them.

The Trinidadian government indicated that it will give policy holders $75,000 initially, with the rest being paid over a period of time, minus the interest, according to Eustace.

He, however, spoke of the proposed plan by the OECS to set up a company that will take over the policies.

He was referring to an agreement reached by member governments of the Eastern Caribbean Currency Union which said that they had accepted the recommendation of judicial managers that a new company be set up to take over some of the assets and liabilities of British American in the Eastern Caribbean.

Eustace said that he had his own issues with this arrangement, as he was unsure as to whether or not this new company will make enough money to pay all the affected policy holders.

He, however, gave the assurance that the matter will be addressed, although admitting that there was no easy solution.

“It requires the OECS to do it. No one person can,” he said.

According to the Opposition Leader, this country’s investors had invested $190 million, which included $38.6 million and a further $23 million in CLICO Barbados invested by the National Insurance Services, and the former National Commercial Bank had invested $13 million in CLICO Trinidad. (DD)