CLICO probe in Barbados widens net
Thursday September 22 2011 | 03:29 AM

The investigation into the financial dealings of troubled insurer CLICO International Life Insurance Limited is about to deepen.

CLICO will be subjected to a forensic audit to answer questions about the existence about $356 million assets it says it owns, but which have not been authenticated.

News of this came today from Judicial Manager Deloitte Consulting Limited, represented by Oliver Jordan and Patrick Toppin, as the company announced it submitted its restructuring plan for CLICO to the Barbados High Court yesterday.

In their Interim Report to the court Deloitte reported that while CLICO had provided documentation up to the middle of April showing assets worth $802 million, it had only been able to verify $446 million.

Deloitte said the High Court had now “approved the recommendation of the Judicial Manager to commission a forensic audit given that a high percentage of the company’s stated assets could not be verified”.

As for its recommendations related to  restructuring, the Judicial Manager said it had advanced “several restructuring options believed to be most advantageous in the interest of the Company’s policyholders with each option having its own funding implications”.

It was quick to add though that financing from regional governments was an issue to be resolved and as such it “will now engage in discussions with the governments of Barbados and the Eastern Caribbean to confirm available funding”.

“Upon confirmation of available funding the Judicial Manager will seek final approval of the Court for the restructuring of CIL,” the company stated.

It was also announced that Deloitte would “shortly commence the hosting of policyholder forums to provide policyholders with a comprehensive update on the financial condition of CIL and the various options considered for restructuring”.

“These forums, scheduled to commence next week, will be held in Barbados and in all the Eastern Caribbean territories where CIL has a presence. Individual letters will also be mailed to all policyholders in Barbados and the Eastern Caribbean providing policyholders with the potential impact on their policy of the alternative restructuring options,” it said.

The Judicial Manager again urged policyholders to keep their commitments to the insurance entity.

“In the interim, it should be noted that the operations and coverage of CLICO International Life Insurance Limited’s existing policies remain in effect subject to premiums on such policies continuing to be paid by policyholders. These premium payments should be made in the normal manner to the company,” it said.