Arthur says CLICO bosses to blame for company’s demise

Blame the demise of CLICO International Life Insurance Company on the leaders of the failed company and not local regulators.

That was the position of former Prime Minister Owen Arthur as the House of Assembly last night debated and passed the CLICO International Life Insurance Company Resolution.

Government is seeking to establish replacement companies for CLICO and bring closure for hundreds of policyholders and investors whose savings were at risk.

“There are other countries where people learn from their errors. CLICO was not an error of supervision. The supervisor and regulator, properly so, brought to CLICO’s attention and gave it a directive to stop writing a particular policy that it was not authorized to do.

“He sought to protect the public’s interest. He was not allowed to protect the public interest by having CLICO stop writing those instruments,” Arthur contended.

The former Minister of Finance said the assets of the old CLICO “would have been sufficient to cover life insurance policies”.

However, he argued the insurance company’s troubles revolved around the controversial Executive Flexible Premium Annuities (EFPAs).

According to the Independent Member of Parliament for St Peter: “Were it not for [the EFPAs] we would not be here today. If we had only to match the liabilities of CLICO in respect of insurance policies with the assets of CLICO, CLICO would be in surplus.

“The problem with CLICO is that the assets of CLICO would not cover simultaneously the life insurance policies as well as the [EFPAs].

“The point is the company was given a directive to stop writing the annuities that have now turned out to have caused the problem that puts this House in a position where we now have to guarantee hundreds of millions of dollars for a Government that is already too heavily in debt.

“The question is what remedies should now be put into the law where a directive is given to an insurance company by a regulator to stop doing something that can be invidious to the interest of the public and the interest of policyholders and shareholders,” he pointed out. (IMC)

22 Responses to Arthur says CLICO bosses to blame for company’s demise

  1. Suga Pun De Hill
    Suga Pun De Hill December 9, 2017 at 12:19 pm

    Them too greedy

    Reply
  2. MARIA Holder December 9, 2017 at 12:47 pm

    Good thing for you all – you have been forewarned so you better be fore-armed. I hope you are on your knees day and night asking for mercy and doing all in your power to help make wrong things right

    Reply
  3. De Original RallyMan
    De Original RallyMan December 9, 2017 at 1:00 pm

    Every since them should be lock up and look them still have lots of money them should be made to pay back every since

    Reply
  4. Sherla Gilkes
    Sherla Gilkes December 9, 2017 at 1:14 pm

    I so agree with Mr Arthur only one thing they should all be behind Bars(prison).

    Reply
  5. milli watt December 9, 2017 at 1:52 pm

    I would have you know he is my friend and he is not a leper

    Reply
  6. Helicopter(8P) December 9, 2017 at 1:55 pm

    Thanks Honorable Member for the representation of St. Peter.Honorable Owen S. Arthur; for an exquisite and informative discription of this discrepancy at large. The citizens of Barbados are now well informed and are now armed with the confidence of counteracting such delinquencies in the future. Sir to have a Merry Christmas and a better New Year. Felise Navidad!!

    Reply
  7. milli watt December 9, 2017 at 1:57 pm

    such harsh words for a white collar criminal…….that said this island has regulations say the Barbados Securities Act. The real charlatan ain’t my friend who is not a leper the real charlatans are the regulators who draw money under false pretense every month and allow these things to continually happen.

    Reply
  8. Angela Griffith
    Angela Griffith December 9, 2017 at 3:04 pm

    God in sleeping

    Reply
  9. Barker Antony
    Barker Antony December 9, 2017 at 3:25 pm

    we will be paying for this for years

    Reply
  10. Tony Webster December 9, 2017 at 3:25 pm

    @Arthur Collymore: thank you, Sir! I can think of one other person, or perhaps two, who cud well keep him company there.

    Reply
  11. david gibbs December 9, 2017 at 4:40 pm

    I think that the issue as to the role of the Supervisor of Insurance and the Minister of Finance in the Clico debacle needs some further clarification. I am not comfortable with the notion that the Supervisor of Insurance simply warned Clico against selling these Executive Flexible Premium Annuities (EFPAs) and that that was all that was done and/or could be done under the existing laws and regulations

    Reply
  12. Jack Ryan
    Jack Ryan December 9, 2017 at 5:08 pm

    Mr Arthur…. as such they should all be locked away snug in Dodds all now.why lock up a man for stealing spark plugs and the same courts cant seem to lock away these obvious thieves for stealing millions from the investors.TWO FORMS OF JUSTICE IN ONE COUNTRY

    Reply
  13. hcalndre December 9, 2017 at 6:01 pm

    That was the real reason David Thompson went out on a limb and brought in his Chief Justice when in Barbados they were plenty of persons that could do the job without changing the legislation, he wanted to have all the holes covered.

    Reply
  14. Neval Greenidge December 9, 2017 at 6:40 pm

    PM Arthur you are absolutely correct. That’s exactly why Commizsiner Dottin was sacrificed. I will get a chance one day to tell the full story..

    Reply
  15. Sherlene Phillips
    Sherlene Phillips December 9, 2017 at 7:11 pm

    The bosses need putting in court, a thorough forensic investigation of the company….would not be surprised if nuff of de money hidden offshore

    Reply
  16. Brian Killuminati Davis
    Brian Killuminati Davis December 10, 2017 at 3:32 am

    …..but that’s common sense, if something fail who else to blame ….seem like only poor people go to jail

    Reply
  17. Sue Donym December 10, 2017 at 8:06 am

    Another episode in The Land of the Toothless Tiger – the Supervisor of Insurance directs, the Auditor General reports, the Town Planning Department orders, the Ministry of Health issues notices… and the band played on.
    Stay tuned for the next debacle.

    Reply
  18. Angus Benn
    Angus Benn December 10, 2017 at 8:50 am

    You was one of the first person to get back your money. None of these insurance company ain’t safe .This same government said that they would put laws in place to protect people after trade conformers collapsed .That never happened.

    Reply
  19. Peter Lowe
    Peter Lowe December 10, 2017 at 9:51 am

    Only poor people goes to jail….and people tell me life is fair…de only thing that is fair is death

    Reply
  20. Ras Small
    Ras Small December 10, 2017 at 10:35 am

    ALL AH WUNNA!!!

    Reply
  21. Patricia Sealy
    Patricia Sealy December 10, 2017 at 10:51 am

    Tell us some new we all knew that all along we want to see people do time for it that would be refreshing

    Reply
  22. Tony December 11, 2017 at 10:47 am

    there are two things which will make me happy
    1. fa de clico management thieves to get lock up at dodds
    2. fa d people dem to get back dem money

    Reply

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