The timeline of the events over the last year or so on the CL financial bailout is set out for ease of reference. The detailed material can be found in the earlier part of this series at www.afraraymond.com. In doing some other reading, I came across a valuable part of the story and that is the first item in the timeline.
TIMELINE: November 2008 to December 2009
�2 November 6, 2008:
The Guardian publishes "Surviving the Storm," an extensive review by the Guardian's Associate editor (Business) Sandra Chouthi on the prospects for our local businesses on surviving whatever the global situation throws at them. The first person interviewed for that article was Michael Carballo, Group finance director of the CL Financial Group. Some of his quotes are remarkable, given the imminent collapse: "Luckily, the Group has not been impacted in any way via securities in any banks we have had to write down."
Carballo said CL Financial, with $100 billion in assets, could weather any storm. "We are not exposed in any one particular industry. That is our business model," Carballo said.
�2 November 18, 2008:
Publication of CL Financial's 2007 annual report, The Next Wave of Growth, which includes audited accounts showing profits after-tax of $1.74 billion, with "cash and cash at bank" of $9.486 billion.
�2 January 13, 2009:
CL Financial's executive chairman, Lawrence Duprey, writes to seek financial assistance from the Central Bank.
�2 January 16, 2009:
CL Financial pays dividends of $3 a share, as per their annual report.
�2 January 23, 2009:
CL Financial holds its annual general meeting at Hilton Trinidad.
�2 January 30, 2009:
The massive and unprecedented bailout is announced at a press conference at the Central Bank. A memorandum of understanding is signed.
�2 February 3, 2009:
Despite a prohibition against sale of assets in the MoU, High Court action has to be taken by the State to prevent such. That High Court action was soon being conducted in closed hearings.
�2 March 1, 2009:
Newly-appointed Clico chief executive officer declares that $5.0 billion is missing from Clico's statutory fund.
�2 March 7, 2009:
Minister of Finance is revealed to be a CL Financial shareholder in an exclusive by the Guardian's top editor, Anthony Wilson: http: //guardian.co.tt/news/general/2009/03/07/nunez-tesheira-owns-cl-financial-stock.
�2 April 8, 2009:
All CL Financial's assets are said to be pledged:
See: http://guardian.co.tt/business/business/2009/04/08/govt-left-empty-handed-cl-financial-bailout.
�2 June 12, 2009:
A new MoU is crafted and shareholder agreement is obtained at a special meeting. There is a change of boards and government takes control of the CL Financial Group for three years. The terms of that agreement, beyond what is in the Ministry of Finance press release, are deemed "confidential."
�2 November 2, 2009:
British-American Insurance Co (a CL Financial subsidiary with strong regional presence) is declared insolvent. The Eastern Caribbean Currency Union statement is here: http: //afraraymond.files. wordpress.com/2009/11/baico_resolution_strategy.pdf; and Norman Girvan's analysis of that situation is here http://guardian.co.tt/commentary/letters/2009/11/12/clico-again-oecs-bombshell.
�2 November 18, 2009:
My previous attempts at questions having been ignored by the highly-paid public servants at the Ministry of Finance, I applied, using the Freedom of Information Act, for a copy of that second MoU to be published. The time limit on that application expired on December 18 without any reply from the Ministry of Finance. I will be pursuing my other options to bring that information into the light.
�2 November 30, 2009:
In response to a motion by Basdeo Panday, seeking parity of treatment for HCU depositors, the Minister of Finance gave a stupefying rationale for the actions of the government in the entire bailout scenario.
Explanation, see: http://guardian.co.tt/business/business-guardian/2009/11/12/duprey-s-fate.
�2 December 24, 2009:
two other newspapers carry reports that Caroni workers are to receive their entitlements (said to total some $400 million) under the terms of a Clico pension plan.