President Bharrat Jagdeo yesterday asked that the information in the report submitted by Judicial Manager of CLICO Guyana, Maria van Beek, be viewed as a range, not as an absolute figure. The President was addressing the media at a press conference at the Office of the President before leaving for the Fifth Summit of the Americas today in Trinidad.

Maria van Beek, Tuesday, submitted her report on the affairs of CLICO Guyana to Chief Justice, Ian Chang, highlighting the assets and liabilities of the company, what she has done during her appointment and her findings on the activities of the company.

President Jagdeo was referring to the figures contained in the report submitted by Nizam Ali & Company which show that if the company was liquidated, its liabilities would exceed its assets by $11.9B in a worst case scenario. In a best case scenario, the liabilities would be greater than the assets by $8.1B.

The President has indicated that while the report has discounted investment properties by 25% in the best case scenario and 50% in the worst case scenario, and expects to recover only $401M of $2.1B invested in the group, Government believes much more can be recovered.

“A lot of the investment properties were discounted by 25% in the best case scenario and 50% in the worst case scenario…then in the investments in groups – here they are suggesting only $401M of the $2.1B which is in the book could be recovered. We think much more can be recovered there,” the President said.

Also, it is expected that the gap can be reduced further by paying the policyholders’ liabilities in cash and withholding payment to CLICO Trinidad.

“Where you have the policyholders’ liabilities, the actuaries have shown that if you pay this out in cash…you can reduce this $8.1B by another $840M and then you will see also another $922M here as part of what we owe CLICO Trinidad…if that is not paid, then the best case scenario is close to $6B (liabilities exceeding assets).”

The Government is also taking steps to recover the investment in the Bahamas and holdings of the CL Financial Group in Guyana, and will also seek to access the CARICOM facility that is being set up to help the Organisation of Eastern Caribbean States (OECS).

“We are taking steps to recover our money through the Bahamas. We’ve already taken steps to recover other holdings from the CL Financial Group in Guyana, the BOSAI holdings, and we are also looking at the CARICOM facility because from the petroleum fund, there is some money being set aside now to deal with the OECS countries. We’re arguing it’s not only the OECS countries that are exposed,” the President said.

CLICO Guyana was put under judicial management on February 25, one day after CLICO Bahamas, in which the local company had invested 53% of its assets, was ordered wound up. In his provisional report, the Bahamian liquidator, Craig Tony Gomez, while confirming Guyana’s investment, has sought to classify it as an inter-company advance rather than a policy, reducing the likelihood of investment being reimbursed. However, President Jagdeo has reiterated that Government will challenge this determination by the Bahamian liquidator. (GINA)