CL Financial majority shareholder Lawrence Duprey has defended his family’s vision for the insurance giant against criticisms from Sir Anthony Colman, chairman of the commission of enquiry into the collapse of Clico and the Hindu Credit Union.
The CoE was commissioned under the past People’s Partnership in November 2010 to probe and ascertain the reasons for the failure of CL Financial, CL Investment Bank, British American (T’dad) Ltd, Caribbean Money Market Brokers Ltd (CMMB) and the Hindu Credit Union Co-operative Society Ltd.
On Wednesday, Colman submitted his report on the enquiry into the collapse of both companies.
In a statement on the report, Colman took issue with the Central Bank’s regulatory control of insurance companies— which he labelled “deficient”—as well as the vision of Duprey and HCU chairman Harry Harnarine.
Colman referred to both in seeking to identify the one characteristic which linked the collapse of HCU with that of Clico and its associated companies
“It was repeatedly claimed that the one motive that drove both Harry Harnarine and Lawrence Duprey to ever bigger deals was ‘vision’. Yet, in spite of all the warnings received from the Central Bank and the auditors they went on, like Icarus, only to be destroyed by the sun of their own vision,” Colman said.
But in his own statement yesterday, Duprey said: “The founding fathers of Colonial Life Insurance Company and consequently the CL Financial Group spent their formative years as immigrants living in the United States of America. There they endured the disadvantages of all people of colour at that time living in the USA. They became involved in the struggle, and got involved politically to fight for the betterment of people like themselves, who left their island homes in search of improvements.
“The results of their experience motivated them to become engines of change and led them to embrace the culture of change in a society that was emerging from the shackles of the British Empire and the colony’s bureaucratic civil servant-led administration.”
Duprey added: “It was against this background Cyril Duprey and Cyril Monsanto took on the challenge of starting a life insurance company, a saving institution that would secure the small savings of ordinary people and later deliver adequate funds for providing shelter and other necessities.
"With the help of this institution, many thrifty people were able to secure shelter and education for their children.”
He said these activities created a start of wealth formation among the disenfranchised classes of people who were excluded from economic participation under the colonial regime.
Describing Clico as an instrument through which these people achieved these fundamental goals, Duprey added, “By developing the attributes of supporting ordinary people to achieve these goals, the company went beyond the day to day business of insurance transactions into the very fabric of the society, thereby becoming a household name, many times filling the gaps created by the exit of the British Colonial institutions...
“Because of the genesis of the role the company assumed in its foundational years, its vision evolved as a matter of necessity rather than choice. The company has survived several political regimes and its growth and progress has validated its choice. A vision that has served stakeholders well and has become known throughout the Caribbean for service to its communities.”
Yesterday, Clico policyholders and other stakeholders again repeated calls for Government—with whom the Colman report now resides—to reveal it.
Policyholders will protest outside Parliament today to highlight this and other concerns regarding Clico. Government has said the report will be sent to Cabinet first.
United Policy Holders Group head Angeli Gajadhar said if she could see a copy of the report she’d be able to respond on it and would know if citizens got value for money concerning costs estimated so far.
Clico Stakeholder Alliance head David Walker said if the report guided T&T to avoid a future crash, then value for money has been had.
“It depends on what it says and whether we deal with identified weaknesses effectively. That in turn means the entire report must be published. We shall provide a more considered response once we have the report. One might also wish to ask who bears the cost. It has been suggested that it is Clico,” he said.
The Privy Council will also rule next Tuesday on the UPG’s appeal on recent judgements against paying them certain monies they claim are owed to them.