CLICO/BAICO investors preparing for court

Steadman

A group of Dominicans who invested in failed insurance company CLICO and British American Insurance Company – BAICO – says it is  making preparations to take the two companies to court in a bid to recoup their investments.

The Waitikubuli Investors and Policy Holders Alliance Limited says it represents close to 70 locals out of an estimated 400 who invested in the two companies.

According to the group’s chairman, Grayson Steadman, the sums involved total well over $126 million,  funds that Dominicans invested in good faith in CLICO and BAICO.

“Some people have their life savings in this thing,” he said, warning that if the monies were not recovered that would have a serious impact on some of those affected.

In the case of CLICO there is a judicial review underway, and policy holders here worried about their investments in the failed insurance company, were last month updated on the progress being made by court appointed Judicial Manager Oliver Jordan of Deloitte Consulting Ltd.

Jordan said at the time that a CLICO restructuring plan was being worked on, and the intention was to conclude by June/July of this year, the process involving CLICO branches in Barbados and the Eastern Caribbean which kicked off in April of last year.

Steadman told Dominica News Online on Wednesday that the Waitikubuli Investors and Policy Holders Alliance was taking both CLICO and BAICO to court and that it wasn’t alone in that action because the Grenada government was taking CLICO to court, while in Barbados the regulatory board, a government agency, was also taking both companies to court.

“Unless you take some legal action the parties will not move,” Steadman, who worked in the management and financial business for many years, said.

His group is seeking a meeting on the CLICO/BAICO matter with Prime Minister Roosevelt Skerrit, and has also scheduled a meeting for Friday (30th March) to discuss with its members the way forward.

They want matters like the insurance companies having engaged in banking-type practices, and the management of the insurance companies addressed in court.

“I think the matter is so serious, that people must be made to understand that if they are responsible and they violate that trust, they must be taken to court and pay for that.  You have to have responsible people,” the former banana industry financial comptroller told DNO.

He indicated that apart from people who made direct investments, additional Dominican funds went into CLICO and BAICO coffers.

“The National Bank of Dominica has invested between CLICO and BAICO $29 million, this is depositors money.  In the case of the Dominica Social Security, Social Security has invested $9 million, which is pensioners’ money,” he indicated, adding that the Credit Union League had also invested heavily in the insurance companies.

Dominica along with the other OECS countries and others in the region have been dealing with the fallout from CLICO’s parent company CL Financial, which was the largest privately held conglomerate in Trinidad and Tobago and one of the largest privately held corporations in the Caribbean.

It had become an investment holding company that supported a range of enterprises operating within such sectors as insurance, banking and financial services, real estate, manufacturing, energy and petrochemicals and health services.

CL Financial held investments in more than 65 companies in 32 countries worldwide with assets totalling about TT$100 billion.

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18 Comments

  1. CLICO scam
    March 29, 2012

    @DNO. There are several news reports from regional news portals, especially from Barbados, that report about that CLICO scandal and the corrupt practices of CLICO bosses. Policy holders, investors(institutions and individuals alike) need to be informed and updated.

    News reports give insights about, The forensic audit report of Deloitte consulting Inc. into operations of CLICO, the role of the Judicial Manager, the charges filed against Leroy Parris, Chairman of CLICO holdings Ltd., (Barbados), the court order to stay proceedings, the disgust of the Barbados Policy Holders and investors group, millions from CLICO going through the Law-firm of the former Barbados PM in alledegedly money-laundering, millions from CLICO to a few regional Govts. to fund election campaigns, the concerns of Antigua and St. Vincent PM’s re. effects on thousands of Caribbean nationals and on CARICOM unity.

    Since tens of thousands of Dominicans are being affected Big Time, because Credit Unions, NBD and DSS and individuals have invested heavily in CLICO, it is of paramount importance that DNO should keep the Dominican public well informed about that famous scandal, Ponzi Scheme, that will cause ‘gentile poverty’ to many, many, many citizens.

    We need at least a weekly update as regards that CLICO corruption scam. Too many times, those bosses of companies and politicians take people for their ‘Torshon Pied’ and escape unscathed. The people are hurting. Millions of $$$$$$$$$$ of people’s money squandered and somebody or bodies must be made to pay. So DNO, please help us. The more we are together fighting such corruption, the better we all would be. About $194,000,000.00 gone? How much will the policy holder get back? How much will DSS, NBD, Credit Unions retrieve if any at all? What corruption !!! The patriots must continue to chant down corrupt practices in Dominica, the region and the wider world.

  2. nature
    March 28, 2012

    Very interesting we still pay into Clico for our medical insurance but we are beginning to wonder if this is wise. We have a friend in another island who like us has had health insurance with Clico for many years. This person has recently had two big surgeries and so far has not had one cent from Clico, it is going on two months, still no money from Clico! although my friend has paid all their insurance all the time on time!! We wonder if anyone else has had a bad experience with Clico paying out health insurance?

    • Anonymous
      March 28, 2012

      So far I have not had any problems on my claims, but they have not been huge sums like what might be covered for surgeries and such. I guess they have a benchmark on what they payout. Not sure at all.

  3. CANDID
    March 28, 2012

    So do we cancel our policies or continue paying till the case is over and we get back our monies?

    • bloggerd
      October 8, 2012

      The longer people keep paying premiums to clico and BAICO, the longer the company can cary on without being forced to liqidate.

  4. Fairplay
    March 28, 2012

    Good initiative Mr. Stedman. I trust that should financial contributions be needed, the stakeholders will be prepared to contribute and not leave the burden on you. Hope they do not treat you like Ron Abraham who dared to fight “a giant” and is now left out in the cold!

  5. Met Yo
    March 28, 2012

    Stedman,

    I’m sorry but I got to remind you. It’s people like allu that put “them” there.

    Anyways Good Luck getting back allu hard earned money.

    • WIKILEAKS
      March 28, 2012

      Steadman put CLICO where? How do some people think…Geez.

      Always a bagai meypuis for some idiotic persons

      • Met Yo
        March 28, 2012

        I am sure Stedman understand exactly what I mean. How it could be clico I mean? People does vote for insurance companies nuh?

        Wikileaks who beat you, you crying? Calm down, there’s a rolla costa coming for allu, lol

      • WIKILEAKS
        March 29, 2012

        To Met Yo, ALl U is Dominica and Dominicans…so go back under your spell and your rock with your nonsense.

        It seems you are the one doing the crying, always talking crap. Go meet your hero “Blessings”

  6. Deborah Peters
    March 28, 2012

    very good somebody is willing to start the ball rolling since i lost some myself and will be at the next meeting. Good job Mrs. Steadman

  7. Our money gone
    March 28, 2012

    DSS, Credit Unions as well as other individual Dominicans have invested haevily, altogether millions of $$$$$$, into CLICO and BAICO. All DSS contributors, all Credit Union members and others have a stake in the struggle to get our monies back. Unfortunately, the bosses of CLICO and BAICO have squandered the people’s monies. It is freightening to read the news on Barbados Free Press or the Barbados Nation as understand the kind of corruption that was going on in CLICO. Read. Please read.

    Media reports that CLICO was a major contributor to the DLP Govt. in the 2005 election campaign, suggest a link between this and Govt. reluctance to pay attention to the plight of Dominicans.

    A recent disclosure that as far back as 2007, the DSS was directed by the Ministry of Finance to stop all investnments in CLICO, seem to suggest that Govt. knew that Dominicans who had continued to invest in CLICO would have lost their money. Why wasn’t the entire nation informed?

    What happened in the dark is coming to light. Wasn’t the CEO of CLICO (Barbados) Dominica’s Ambassador-At-Large and in possession of our Diplomatic passport? Dominicans knew nothing about that. See what Dominican investors into CLICO get in return?

    Rides on private jets. Money, money for DLP elections, big big salaries and bonuses, involvement in all kinds of bogus deals. That was what the people’s money was being used for.

    The Govt. has failed to give any clear committment to assist investors in recovering their money from the failed CLICO. Tens of Thousands of Dominicans will lose millions as a result of the scams and scandals involving CLICO authorities. What a calamity !!!!!

  8. fatty batty
    March 28, 2012

    well done sir keep the pressure up these companies took poor people monies like my self and waste it and do their own business,they MUST BE TAKEN TO COURT AND THE COURT MUST FIND THEM GUITY AND TO PAY BACK.

  9. Happy
    March 28, 2012

    I am so happy that I didn’t invest, and I didn’t ask my family and friends to invest. I was asked to invest in the company, but when I learned how much money some of the early investors got back the red flag, and the little voice in my head wouldn’t go away. I just knew it was a Ponzi Scheme. No one gets such huge return so quickly on investments. Oh God I am so pleased with myself. I am also sad for all the people and companies who were taken advantage of. Greed is a disease.

    • Tiger
      March 28, 2012

      Not you alone nah. I almost put my money in that Ponzis scheme. A friend recommended it but because of tax liability issues, I decided it was not worth it to transfer my money to them. Am I ever glad I did not do that.

      I have a friend who has a lot of money tied up in that mess. But the way these executives were pocketing that money, if the claimants get 50 cents on the dollar, they should count themselves lucky.

  10. curious
    March 28, 2012

    How can one join this group of investors???

  11. Satelite
    March 28, 2012

    Put on the pressure, it is high time that these companies realise that they WERE AND ARE STILL responsible for peoples monies and lives.

    They must be made to pay, wherever and however they pay it, that is the final stone to be turned.

  12. simple mind
    March 28, 2012

    Grayson,I know that seed will come to bear,you’ve respond to an SOS call.Thanks.

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