Auditor calls for more probes

Fri, Mar 20, 2015

Deloitte Consulting Limited, CLICO’s judicial manager, says more investigations should be conducted into the past operations of the controversial insurance company.

The observation was made in its June 21, 2013 forensic audit report, a copy of which was obtained {{more}}last week by the MIDWEEK NATION, hours after the Barbados High Court last week gave the green light for its release to the public.

“We recommend that further work be completed to secure documents, further analyze these balances and trace funds to confirm the uses to which they were put. In addition, we recommended that the investigation of related party transactions be completed,” the report noted in its executive summary.

A transaction involving over $3.333 million paid to Thompson and Associates, a law firm under the direction of late Prime Minister David Thompson, again came under heavy criticism by the judicial manager.

“The Thompson and Associates invoice, purportedly for legal fees and retainers and used to make payment by CIL (CLICO International Life Insurance Limited) was false. It was not an invoice issued by that law firm and was created solely to facilitate the payment and conceal its true nature, which was partial payment of a substantial gratuity to the benefit of Mr Leroy Parris, the former chairman of CIL and CHBL (CLICO Holdings Barbados Limited),” it added.

The judicial manager also commented about some other shortcomings discovered during the investigations into CLICO’s operations.

“We identified a considerable number of related party transactions over and above the transactions that were declared to us in response to requests we made of CIL and its subsidiaries.

“We noted a substantial payment of commissions to a company controlled by Mr Parris on May 8, 2009, shortly before the appointment of the Oversight Committee under the terms of the Memorandum of Understanding (MOU) between the Government of Barbados and CHBL dated May 12, 2009.”

The report also disclosed that certain CIL executives and advisors paid less than third parties for real estate from development companies under the CIL umbrella.(Barbados Nation)

(The full report may be downloaded from www.searchlight.vc)