(Trinidad Express) Former CL Financial chairman Lawrence Duprey was yesterday described as a “very persuasive, very logical man”, by former group financial director of CL Financial, Michael Carballo.
Carballo made the statement as he took the witness stand at the Commission of Enquiry into the collapse of CL Financial and the Hindu Credit Union (HCU) at the Winsure Building located along Richmond Street in Port of Spain yesterday.
“Was his (Duprey’s) personality very persuasive?” Sir Anthony Colman, the lone Commissioner, asked Carballo.
“I would say yes, very persuasive and very logical,” Carballo said.
Duprey used his persuasive nature to manipulate the board of directors at CL Financial to ensure his will was always done, Carballo added.
“When it came to decisions, commercial decisions, who had the ultimate authority to approve or say no?” lead counsel for the enquiry, British Queen’s Counsel Peter Carter asked Carballo.
“I can talk for Angostura, even though he was Chairman of Angostura, Angostura had a board and we had independence on the board to an extent and I would say when a matter did come to the board but I think at the end of the day Lawrence (Duprey) was able to persuade his Board whenever he wanted,” Carballo said.
“That was in Angostura, from your subsequent experience that ability to persuade the board in whatever he wanted to do did you experience that in other situations?” Carter asked.
“Yes I would say so, yes I would honestly say that he was able to do that effectively. He has that strength about him, very persuasive, able to persuade a board,” Carballo said.
Carballo was the executive director and company secretary of CL Financial subsidiary Angostura before he was named the group’s Financial Director.
Carballo said Duprey felt Angostura was a “sleeping giant he would awaken” and purchased the company from international rum company Barcadi.
Duprey wanted to make Angostura a global empire, Carballo said.
Carballo said Duprey’s vision led to the purchase of several international spirit companies.
Duprey was the “ultimate deal maker”, Carballo said.
Angostura purchased scotch makers Burn Stewart Distillers Ltd from Scotland, vodka makers Belvedere from Poland and Jamaican firm Lascelles deMercado.
However the lack of “due diligence” led to the failed purchases, Carballo said.
The 300 million euro purchase (Belvedere) was the “shortest acquisition”, Carballo said as it only lasted three months.
Carballo blamed Duprey’s failed success in the expansion of his empire because his “primary commercial adviser” was a “questionable character”.
Arnaud De Trabuc, Duprey’s primary commercial adviser, was a “loose character” who had been previously arrested for fraud, Carballo said. Carballo also said when he assumed the position of Group Financial Director he discovered financial improprieties.
One such example was the fact that CL Financial owed subsidiary Clico over $3 billion, Carballo said.
