(Trinidad Guardian) Depositors with millions of dollars in Clico are encountering major problems to recover their funds, despite assurances by the Government to honour their claims, as well as those of policy-holders. There are two categories affected: locals with policies and investments, and foreign banks and other financial institutions.
Foreign banks and financial institutions in the Bahamas, Belize, Cayman Islands and the Eastern Caribbean, with as much as US$100 million invested in Clico, have been coming forward with their certificates of investment in the failed financial institution. Tabaquite MP Ramesh Lawrence Maharaj said on Saturday that he had been approached by these parties to find out what legal course they could take. He also had been asked to raise the matter in Parliament on their behalf. The depositors, Maharaj said, claimed they were assured by Clico that they would honour their obligations, because the Central Bank had made a commitment to them to do so.
“These banks and financial institutions said efforts to get funds, although securities have matured, have proven futile. They have not got them and have not been told when they are likely to get funds,” Maharaj added. He said some of these foreign investors felt the situation had shaken their confidence in the Government’s expressed intention to become the international financial centre of the Caribbean. Policyholders, too, have been given the run-around. Some of them have not been able to get their monies—capital or the interest—which are on fixed deposits that have matured.
One policyholder told the Sunday Guardian he was getting his monthly payments from interest “very, very late.” “Some people depend on this interest to pay expenses—some of them medical—while others depend on the money to meet their daily living expenses.” With respect to agents, the Sunday Guardian found out that some 600 individuals and companies had lost jobs and commissions. Maharaj said he also had been approached by several agents for representation.
