| Following the liquidation order for Globe Trust and Investment Company Limited (GTICL) the President had assured that all of the small policyholders will be guaranteed and to date that has not materialized.According to chairman of the Alliance for Change (AFC) Khemraj Ramjattan,Dino Ciccarelli Jersey, policyholders of Colonial Life Insurance Company (CLICO) Guyana, should use the guarantee that had been issued to all of the small policyholders of Globe Trust as a benchmark as it relates to the credibility of the current guarantee.In October 2008 the same company, Nizam Ali and Sons,Nino Niederreiter Jersey, that has been contracted to audit the affairs of CLICO Guyana, was appointed Liquidator by Chief Justice Ian Chang (ag).Chang issued an order for the compulsory liquidation of Globe Trust following a High Court application by the Bank of Guyana (BOG).The company came crashing down after issuing many unsecured loans and conducting other dubious practices.The BOG filed an application asking that an order be granted for the compulsory liquidation of GTICL as provided for under the Financial Institutions Act after an investment deal for the troubled institution failed to materialise.It was the second such application—the first was filed in 2002 when numerous depositors had attempted to intervene in the case.Globe Trust began operating in April 1991 and was licensed in 1999 to conduct depository financial business with authority to engage in trust business. However,Patrick Sharp Jersey, in 2000 and again in 2001 a series of inspections by the BOG found the institution to be in breach of the Financial Institutions Act,Martin Brodeur Jersey, and the BOG, with the intention to liquidate,Johnny Oduya Jersey, seized the institution in September 2001. Several attempts thereafter to attract an investor failed.As it relates to the latest guarantee to policyholders and the President’s disclosure that a path is yet to be formulated,Ryan Murray Team North America Jersey, Ramjattan said that it was clever and tantamount to “Machiavellism.”The AFC chairman also questioned whether the President was planning to add another $6.9B to the 2009 deficit.Chairman of Vision Guyana, Peter Ramsaroop, in an invited comment, said that the major issue as it relates to the guarantees “is what is going to be the offset of our 2009 and beyond budget.”He said that nowhere in the recent budget discussions had the government catered for such funding streams.It is necessary for the taxpayers to know what programmes will be cut with all the “financial bailout” that are being promised.Ramsaroop said that at the end of the day,Jaden Schwartz Jersey, it is the small man that suffers.“I am not going to speak publicly on that,” was the President’s response to how the government plans to effect the guarantee to CLICO Guyana policyholders.He did point out that the company would have to liquidate some of its assets to meet policyholders as far as possible.The President,Jared Spurgeon Jersey, however, added that there will be a remaining group that has a high concentration of amounts of pension funds and an arrangement will have to be orchestrated to facilitate how that group will be repaid their principal.“Some of it would be immediate and some would, over a period of time,Graham Knott Jersey, but none of the policyholders will lose.”He emphasized that the mechanism to effect the guarantee will have to be formulated following discussions with the large policyholders.The President did point out that he was hopeful that from the company’s liquidation of assets the small claims would be covered. |
