(Trinidad Guardian) A boldface liar. That was the charge levelled on former finance head at CL Financial (CLF) Michael Carballo by Justin Phelps, attorney for former corporate secretary Gita Sakal. Phelps’ accusation was made during his re-examination of Carballo on day four of the third evidential hearing at the Clico/Hindu Credit Union commission of enquiry on Thursday. He was questioning Carballo on his inconsistencies with regard to the sale of one of Clico’s prized assets—Clico Energy Limited—to Proman Holdings in Barbados.
Carballo had told the commission during the second evidential hearing in September that CEL was sold to Proman at an undervalue without the knowledge or approval of the full CLF board on February 4, 2009—five days after CLF had signed a MOU with the Government of Trinidad and Tobago. Carballo had told the commission the asset, which was valued at more than US$200 million, had been sold for a paltry US$46.5 million, with the knowledge of three CLF directors—Gita Sakal, Rampersad Motilal and Duprey.
However, Phelps drew Carballo’s attention to a certificate of truth which he’d signed during legal proceedings initiated by a subsequent CLF board in October 2009. That certificate had relied on a valuation of CEL of between $78 and 90 million for 100 per cent of the company. Carballo had contended that his signature in a letter giving approval for the sale was forged. Phelps observed that the same documents that Carballo had used to produce his certificate of truth was the same ones he used to support his undervalue position.
He questioned what had caused Carballo to change his mind on the CEL sale from October 2009 to the time he prepared his witness statement for the commission. He pointed out that Carballo had not produced any new information to the commission which would have give credence to his about-turn. Phelps subsequently questioned whether Carballo had been interviewed in by any government offical during the period in question. Carballo admitted that he’d been interviewed by forensic investigator Bob Lindquist and the Anti-Corruption Investigation Bureau.
Phelps asserted that it was these interviews which lead Carballo to change his mind on the deal. “You have produced nothing new to the commission,” Phelps said. Carballo, however, said he’d always had his doubts on the matter since May 2009 and he’d come to his own conclusions on the matter. He said that he’d learned many things during the intervening period such as formal consent was required from Clico before the sale could have gone through. “My final position in 2011 is that sale was against the spirit of the MOU,” Carballo told the commission.
He did admit that he’d not disclosed to the commission, the certificate of truth. Phelps, who then sought to get the language right, then accused Carballo of being a boldface liar. “You can’t tell me I am a liar…I am not accepting that, Mr Commissioner,” said Carballo. “You’re not accepting it? It’s on record,” returned Phelps.
