The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A prominent CLICO (Bahamas) client yesterday admitted he thought he would recover his full investment “in a matter of months” rather than the near-decade it has taken since its collapse.

Bishop Simeon Hall, confirming that the fifth payout to the insolvent insurer’s customers has begun, told Tribune Business it had “been an incredibly long” time for so many Bahamians to wait to recover their life savings and major investments.

Praising the Government for coming through with the latest payment, Bishop Hall said he never expected the asset recovery process to take so long with the 10th anniversary of CLICO (Bahamas) February 2009 collapse into court-supervised liquidation just weeks away.

“I thought it would be a matter of months,” he told this newspaper, “perhaps no more than a year or so, but it’s been incredibly long. Some people have died waiting for this. That’s the tragedy.

“If you put your money somewhere that has a government-issued licence, it should be protected. There are some of us who have other reserves, but I’m thinking about Grandma and Grandfather Lou who do not have anything.”

Bishop Hall confirmed that the fifth payout to CLICO (Bahamas) former annuity, pension and surrendered life insurance clients, which many had hoped to receive before Christmas, had begun early in the New Year.

“They have begun, and I just want to commend the Government for keeping its promise to the policyholders,” he added. “It’s been almost ten years but it’s never late. Money has a way of coming at the right time, so it’s better late than never. Complete the process and let’s make absolutely sure it does not occur again.”

Craig Tony Gomez, the Baker Tilly Gomez accountant and partner who serves as CLICO (Bahamas) liquidator, is gagged by the Supreme Court from speaking publicly on the matter.

However, Tribune Business understands that the latest payout from the Government - thought to total around $8m - has been split into two tranches, or slices, that are roughly equal in value.

Bishop Hall said those former customers sharing the first slice are elderly clients above a certain age. Also receiving funds are understood to be those owed relatively small sums, with the Government wanting to settle their claims now.

These clients are now being contacted by Mr Gomez and his team to come in and receive their payments. All those not included in the first tranche will receive a payout in the second, with that process thought likely to begin within weeks.

Bishop Hall said it was “difficult” to determine whether insurance and other financial serviced-related regulatory reforms would prevent a similar CLICO-type situation from happening in The Bahamas in future.

“The golden rule is he who has the gold makes the rule,” he added. “People with power and money make the rules. People at the bottom rung of the ladder have to wait until it comes through. Thanks be to God we’ve got over this hurdle.

“I don’t think it would happen again, but I think we should see people are protected once they put their trust in a government-licensed institution.”

Bishop Hall called on more Bahamians in positions to do so to, “particularly pastors, to agitate on behalf” of those unable to do so when injustice occurred. “We should be proactive rather than reactive,” he added. “I’m just glad it’s over for some of us, and there appears to be hope for the rest of us.”

CLICO (Bahamas) collapse occurred after the insurer moved $73m out of The Bahamas without the necessary permits and approvals. This sum was transferred to CLICO Enterprises, the vehicle for the insurer’s non-insurance activities, and invested in Wellington Preserve, an illiquid Florida-based real estate development.

Mr Gomez, in his last report to the Supreme Court, said he was only able to recover $38 million - just over half of the $73m invested - in selling Wellington Preserve to a host of real estate buyers.

This resulted in a $35.8m loss to CLICO Enterprises, with its parent, CLICO (Bahamas), suffering a $55.817 million solvency deficiency at end-June 2017.