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Govt, NIS sign GYD$5 billion deal to defray losses in failed CLICO

The Guyana government and the National Insurance Scheme on Friday inked an agreement to re-capitalise the cash-strapped social security institution , the National Insurance Scheme (NIS), which had invested in the now failed Colonial Life Insurance Company (CLICO).

The first payment of $317,359,002.94 will be made to NIS in January 2017.

Finance Minister, Winston Jordan signed an Agreement with the National Insurance Scheme (NIS) for an aggregated value of GYD$5,651,431,475.34.

“This agreement is in keeping with the Parliamentary Resolution 82 of 2009 and the Government’s commitment to assist the NIS to recover its investment in the Colonial Life Insurance Company (Guyana) Limited (CLICO),” the Ministry of Finance said in a statement.

At February 28, 2009, CLICO’s liability to the NIS amounted to $5,482,446,199.00 for thirteen (13) Executive Flexible Premium Annuity (EFPA) Policies with maturity over the period 2009 to 2012.

The Finance Ministry explained that in an effort to prevent the loss of benefits to the NIS contributors and beneficiaries, Parliament approved Resolution No.82 of 2009, dated March 12, 2009 which called upon the then Government to secure the investments made in CLICO by the NIS.

Subsequent to Resolution 82 of 2009, on September 10, 2010, CLICO was placed into liquidation by the High Court. On November 22, 2011, in keeping with the Government’s decision, the Camp Street CLICO Building was transferred to the NIS at a cost of $600 million, thereby reducing the reconciled amount to $4,882,446,199.00.

By way of a Cabinet decision, approval was granted for the Government to make payments to the NIS through the issuance of twenty (20) Non-negotiable Debentures, to be redeemed annually over a period of twenty (20) years, at a fixed interest rate of 1.5 percent per annum.

  • Emile_Mervin

    Before the PNC became the Coalition, with help from the AFC, it demanded, with animated agitation, a special probe into the Clico collapse, in which billions of dollars were lost, including money from the NIS. The probe was supposed to focus on where the money was actually spent or invested by Allen Stanford of limited overs cricket fame.

    Now that the PNC-dominated Coalition is back in power, it is reluctant to investigate the Clico collapse; seemingly eager to take money from somewhere to help rebuild NIS. The same NIS that helped build the Berbice Bridge that is mow privately owned with Jagdeo’s BFF as the biggest private stakeholder.

    As far as the Coalition and the PPP are concerned, Guyanese have no right to know how Clico violated local insurance laws prohibiting insurance companies from investing more than 15% of their funds overseas. Clico actually invested 54% and Jagdeo and Ashni Singh knew! The former Insurance Commissioner, angry at Clico, was also shot in a drive by and fled Guyana for Canada. Dirty politics at work!!!

    I continue to believe the Coalition is either protecting the PPP because the PPP is a potent criminal force or the PPP has dirt on Coalition members or past/current PNC players. Small garden, bitter weed!

    • rudeo

      politicians generally sleep in the same bed… for me tomorrow for you….kith and kin….the populace remains the pawns

    • Col123

      “Coalition is either protecting the PPP ” is tantamount to saying that the PNC is a bunch of girly men!…I have said it before… these folks are not politicians …you are kind with the ” hustlers ” thingy..