President Bharrat Jagdeo says that had he found any case of fraud at Clico or “even a slight inkling of fraud” the administration would have been first in conducting a full scale Commission of Inquiry.
At a press conference on Friday he said that he does not have a problem with a joint investigation into Clico (Guyana) and Globe Trust and Investment Company Limited (GTICL) but asked whether members of the main opposition party also “do not have a problem” particularly with a probe that includes the collapse of GTICL.
He was unaware that the People’s National Congress Reform (PNCR) had offered its support for the joint investigation when questioned by this newspaper.
“I have not seen where the opposition said that, so I don’t know maybe we will have to get together and do a formal investigation”, he added.
But back in April the PNCR had said that it holds no brief for the directors of Globe Trust and it has never objected to any investigation into that entity, in response to a letter published in the April 21, 2009 edition of the Stabroek News.
The party contended that the institution collapsed as a result of irresponsible management by its directors and the failure of the Bank of Guyana and by extension the Government of Guyana to carry out its supervisory function efficiently. It said too it would have supported an investigation since many PNC supporters lost valuable resources and in fact it had provided legal representation to many persons affected by the collapse.
But Jagdeo questioned on Friday whether the members would be comfortable with an investigation.
“… I hope that some of the PNC members [don’t have a problem with it] because they took positions on the Globe Trust matter and AFC members including (Raphael) Trotman… [I hope] that they would not be too embarrassed”, Jagdeo stated. The President continued that some of the current PNCR members of Parlia-ment were part of an arrangement to deprive over 3,000 poor people of their small savings in the entity, adding that “they can’t wash their hands of that issue”.
When pressed as to why he insists on a joint investigation, rather than simply looking into what happened with Clico (Guyana) the President stated that he wants to point out the inconsistency of the opposition. He explained that when the financial institution failed, culpable people were identified, but that the opposition not only did not want an investigation, but that they even frustrated solutions “so that ordinary people can get back their money”.
No fraud
However, the President stressed that the administration found no evidence of fraud at Clico (Guyana) . He said that the big issue to date has been the investment made in The Bahamas – the investment of US$34M which he acknowledged that Clico is not getting back.
According to him, an investigation into Clico (Guyana) would currently find inter-locking directorates and excessive inter-company transactions. Things, he said, the government does not need an investigation for.
“Maybe our legislation now would look at these things like how to regulate in a greater way connected- party transaction and inter-locking directorate which is so prevalent in our country”, he said.
Public companies
The President criticized the media for not investigating whether some public companies are serving the interests of small shareholders.
He questioned whether there has been any examination in Guyana of what the compensation packages are in the public companies- both visible and invisible packages. He also asked whether there has been any examination of the adequacy of information “about dealings of these companies”.
“I recall the Securities Council taking a few of these entities to court and I have not seen a single word in any of the newspapers here, none of you have ever written about the findings of the Securities Council in relation to some of the corporate entities”.
“… and you know why many of you will not write about it, your editors rely for ads on some of these companies, you do not want to get into the bad books of some of these companies”, Jagdeo declared.