Clico policyholders are demanding that the Government honour promises made to them by the previous administration.
They are also calling for a meeting with Finance Minister Winston Dookeran in the next 48 hours. In a meeting held by the recently-formed Executive Flexible Premium Annuity (EFPA) Policyholders Group at the Trinidad Hilton yesterday, policyholders slammed the Government's plan for Clico despositors. Dookeran announced in his budget presentation that the People's Partnership Government had decided to override the commitment given by the former administration and proposed a $75,000 initial payment to Clico depositors and 20 bond coupons (one for each year) at zero interest.
But Government's proposal poses a systemic risk to all financial insitutions, said Clico agent Kerry Ramjag. Ramjag explained that people had used Clico policies in commercial banks as collateral for assets such as mortgages and cars. He questioned what will happen to these assets when the value of the collateral was depreciated. Above all, what is causing concern in this group is the broken Government guarantee which undervalues their investment. Investors want all their money back. Los Angeles investor Christopher Acquart said he represents 25 investors from New York, Washington and Los Angeles. His group has invested millions into Clico.
Acquart said he hesitated to take his money out of Clico, given Government's promise made in January 2009. The Government's action does not send a good message to the international community, he said. "If T&T wants to continue in the international forum, they have to abide by international rules. What they are doing is getting away with highway robbery. I just hope the present Government puts the word 'integrity' with transparency," he said. Acquart said his group is trying to find the best avenue to get their money back either through the United States courts or the local courts.
"I don't think one administration should break a promise given by the other," stated Norris Gomez, chairman of EFPA Policyholders Group.