Former CL Financial director Rampersad Motilal tendered his resignation from the Lawrence Duprey-led conglomerate after he lost "faith" in Duprey's decision making.Rampersad, an engineer and the chief executive of Methanol Holdings (MHTL), told the continuing Commission of Enquiry into the failure of Clico and the Hindu Credit Union (HCU) yesterday that Duprey had written to the then Minister of Finance with a proposal to dispose of MHTL shares shortly after the MOU.
Rampersad explained that MHTL was encumbered by a US$1.3 billion loan from a German financier unbeknownst to the Trinidad and Tobago Government when they signed the MOU on January 30, 2009.However, he did appraise them of this a few days later. He told the COE that he was not consulted on Duprey's offer despite being on the CLF board because of his tenure at MHTL.This, he said, "represented a loss of faith."
"An initiative of that nature taking place and I was not brought up to date," said Motilal who had been chief executive of MHTL since 1995.He also denied being a party to the sale of Clico Energy Limited (CEL) to Proman Holding on February 5, 2009.When questioned by Fyard Hosein SC, attorney for the Ministry of Finance, about this statement contained in former finance director Michael Carballo's witness statement, Motilal responded: "I am equally distressed as you when I read that paragraph."
He said he "had nothing whatsoever to do with the sale of Clico Energy to Proman."Under these circumstances he felt the proper thing to do would be to tender his resignation after four years on the CLF board.Motilal did not give a witness statement to the COE since he felt he did not have documentation to establish a witness statement.Instead, he provided documents requested by the Commission which had to be redacted over several hours last Friday by parties to the Commission because of "commercial sensitivity."
Motilal, who was asked to speak up several times because of his soft answers by Commissioner Colman, gave measured, consistent responses during his testimony which at times were at odds with Carballo's witness statement and CLF board minutes.For instance, Motilal said the minutes of a board meeting on January 31, in which CLF directors expressed concern over the group and former finance director Andre Monteil's role in negotiating with the Government, did not reflect a true picture of events.He conceded that he was unaware of Monteil's role in negotiations.
"I knew there were always parallel activities taking place so I wouldn't be surprised," he told the COE.And while he had learned of the Group's distress during a golf tournament in Tobago the week before, he did not believe the MOU was designed to destroy the Group.While he admitted that "much information came after the fact," he conceded that the CLF board lacked the "rigour" of his MHTL board.As far as he was aware, CLF subsidiaries had ran into problems but the board did not have a good opportunity to address those problems.
"My concern would have been a set of processes to be carried out before an attempt was made to sell shareholding," he said.When asked by counsel to the Commission Peter Carter QC whether he'd consider CLF at risk, Motilal responded: "I never considered that possibility."And while he was concerned about a once a year board meeting at CLF, he never voiced his discontent."I'm not the complaining type," he told Hosein in answer to why he did not officially write his objection.Asked whether he had abdicated his fiduciary duty to the shareholders and policyholders of CLF by not objecting, Motilal responded: "Not at all."He said he had made necessary sacrifices to make a contribution to the company.
Different MOUs
Attorney Joanne Julien told the COE yesterday the draft MOU which she proposed was different from what was eventually signed by the T&T Government, the Central Bank and then CLF chairman Lawrence Duprey on January 30.Julien, who acted on behalf of Stone Street Capital, the company charged with negotiating an agreement on behalf of the CLF Group, said the only thing consistent in both MOUs was the winding up of the Clico Investment Bank (CIB).Julien had proposed a strategy of selling assets to the Government but not one for them taking ownership of subsidiaries such as MHTL.
Colman to speak on Commission
Sole Commissioner Sir Anthony Colman intends to make a statement of the progress of his Commission on Thursday.The Commission is on its third evidential hearing with another scheduled to begin on January 3.Colman was appointed in November 2010 with the COE expected to last one year.The Commission has been hit by several snags-over 15 parties to the COE; a legal challenge by former CLF chairman Lawrence Duprey to halt the COE by not giving evidence; difficulty with finding witnesses; witness intimidation and confidentiality issues with parties producing documents.
Yesterday, Colman directed all parties to provide a list of witnesses they intend to call for the COE which he said is important for scheduling.Further, he directed all counsel to be fully conversant with the Commission's core bundle during cross examination.