(Trinidad Express) As she exposed as a “scandal of monumental proportions” the Clico “tragedy,“ Prime Minister Kamla Persad-Bissessar on Friday announced a commission of enquiry to investigate the CL Financial crisis as well as the Hindu Credit Union collapse.
“Mr Speaker, the root causes of this financial collapse must be fully ventilated. The persons deemed responsible must be held accountable,” she declared to supportive table-thumping, as she concluded her statement to the Parliament on Friday.
In an impressive presentation, Persad-Bissessar laid out a cogent case to all groups, outlining the reality of the situation to the policyholders and depositors, standing forcefully in defence of the citizen and taxpayer, and pulling no punches as she slammed the “incompetence” of the former People’s National Movement administration.
The House listened in rapt attention, as she stated: “The previous administration injected $5 billion into Clico and they spent $2.3 billion to bail out the other distressed entities such as CIB in particular… A total of $7.3 billion has gone into that hole and yet today the government, and therefore the taxpayers of this country, have been called upon to come up with another $16 billion to $19 billion.
“So what happened to that $7.3 billion? Where did it go? Who are the people who were paid?… $7.3 billion dumped… And to make matters worse… what we got in return for the taxpayers? A 49 per cent minority share interest in Clico… a minority interest… in an insolvent bankrupt company.”
“Shame!” one Government MP cried.
“That is the deal they brokered,” the Prime Minister stated.
Looking directly at the silent PNM bench, she asked: “Whom did you choose to pay? How were they chosen?… Did you have a priority listing of who should be paid? … And you are now crying crocodile tears about trade unions, credit unions, the poor man and the small man! Why did you not pay them first?” she thundered, to desk-thumping support.
“Where did that $7 billion go?” she asked.
“Where de money gone?” Jack Warner chimed in.
Persad-Bissessar also emphasised that the People’s Partnership bailout plan included a wider category of people than the PNM plan—which excluded approximately 1,100 investors in Executive Flexible Premium Annuities (EFPAs).
“This group, I am advised, is worth $1.2 billion,” she said.
She also stressed that the PNM repayment plan also excluded 2,800 investors in the mutual fund group. “And they are owed, I am advised, $1.2 billion as well,” the Prime Minister said.
“Both of these groups were left out completely… They are now covered by the plan and the proposal being made by the Minister of Finance,” she said, generating another healthy round of table-thumping.
“We would love to pay every single person every single cent… but the economic circumstances will not permit it,” she said.
