Former Central Bank Governor testifies as Clico lawsuit goes to trial
The Clico lawsuit, stemming from the 2009 collapse of the insurance company, began trial with testimony from former Central Bank Governor Ewart Williams.Summary
The long-running High Court lawsuit concerning the 2009 collapse of Colonial Life Insurance Company (Clico) commenced trial with testimony from former Central Bank Governor Ewart Williams. Williams was extensively questioned regarding regulatory oversight of Clico prior to its failure, specifically a 2005 investigation that highlighted compliance issues. He defended his assessment of a $600 million deficit, explaining it was a technicality related to fixed deposit maturities. The lawsuit, filed in 2011, names the late Lawrence Duprey, Andre Monteil, Gita Sakal, and affiliated companies as defendants, alleging gross mismanagement and misappropriation of funds totaling several billion dollars. The Central Bank and Clico claim funds were diverted to support personal lifestyles and private companies, jeopardizing the national economy. Clico and its subsidiaries were taken over by the government in 2009 after liquidity problems became public, requiring a $5 billion public bailout and facing numerous lawsuits from policyholders.
(Source：Trinidadexpress)