The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Government was yesterday slammed for its “deafening silence” over CLICO (Bahamas), with a prominent policyholder accusing it of treating the debacle as “a trifling matter”.

With less than two weeks to go before hundreds of CLICO (Bahamas) policyholders lose their medical insurance coverage, Bishop Simeon Hall told Tribune Business that persons would “draw their own conclusions” over the Christie administration’s seeming inaction.

“I’m disappointed that with all that we have tried to do to encourage Mr Christie not to forget us, it seems that CLICO has been forgotten,” Bishop Hall told Tribune Business.

“While I’m sympathetic to the financial obligations and challenges he has, I thought he would at least have said something direct to us after his undertaking [in June] that he was drafting something for CLICO.”

Bishop Hall also criticised Michael Halkitis, minister of state for finance, saying that he “can never get through to” him. He also alleged that Mr Halkitis cancelled a meeting with himself and other policyholders just 30 minutes before it was due to start.

“It’s this kind of trifleness with which the Government seems to be treating this issue affecting 13,000 Bahamians and their families,” Bishop Hall told Tribune Business.

“I had leadership responsibilities for 30 years, and know what it’s like when you don’t have the money you wish. At least you say something to the people, and that’s what I fault Mr Christie for.

“There’s a deafening silence. I’m disappointed that nothing has been done and nothing has been said. In the absence of information, people are making their own conclusions.”

Tribune Business reported last week that a government official told a meeting of CLICO (Bahamas) creditors earlier this month that the Christie administration planned to make an announcement on its proposed resolution by year-end.

However, Basil Christie, a creditors committee member, said no payments would be immediately forthcoming to the insolvent insurer’s annuity holders and creditors.

Rather than the initial $30 million guarantee promised by the former Ingraham administration, the current Government is dividing CLICO (Bahamas) clients into annuity holders and insurance policyholders.

The last proposal, presented in late June 2015, is to pay out annuity holders with products worth less than $10,000 or less. Those holding annuities worth $10,000 or more will get that sum up front, and be paid the rest in Government bonds with a seven-year maturity.

Former CLICO (Bahamas) employees will also be paid the severance pay and pension benefits due to them, while insurance policyholders will be transferred either to a new underwriter or special purpose vehicle (SPV) created by the Government.

Without the Christie administration delivering on the long-promised resolution, Craig A. ‘Tony’ Gomez, CLICO (Bahamas) liquidator, cannot transfer the insurance policy portfolio to the SPV or a new carrier.

No other underwriter is willing to acquire it without the Government guarantee being in place to cover the solvency deficiency it will inherit, which becomes important given the scenario facing CLICO (Bahamas) medical insurance policyholders.

Mr Gomez, in his latest report to the Supreme Court, confirmed that all medical coverage would be discontinued as at New Year’s Eve 2015.

The Baker Tilly Gomez partner has little choice but to cancel the medical insurance policies because high claims payouts are eroding the $11.893 million in CLICO (Bahamas) bank accounts.

This undermines his duty to preserve and maintain the asset for the benefit of creditors.

Bishop Hall, meanwhile, told Tribune Business that the impending cancellation of CLICO (Bahamas) medical policy portfolio was “too much”.

Pointing out that the insolvent insurer’s clients had been waiting almost seven years to recover their life savings and long-term investments, he said Bahamians tended to be “too passive” in agitating for justice and their rights.

“The Bahamian community is too passive, and passivity is not always a virtue,” Bishop Hall said. “Sometimes you have to demand things if you want them.

“I’ve been praying and asking for some pastors to come on board with me on this issue, but I’ve not gotten more help. We’ll [policyholders] take it up in the New Year and agitate some more.

“Evil prospers when good people do nothing. I wonder sometimes where we put our priorities.”

Bishop Hall also expressed disappointment that no MP from either party had consistently agitated for resolution on behalf of CLICO (Bahamas) 13,000 policyholders.

And he reiterated that the Government had an obligation to deliver, not merely because of its promised guarantee, but because the insolvent insurer’s path to collapse had been smoothed by regulatory failings from the then-Registrar of Insurance and Central Bank of the Bahamas.

“They fell down in the regulation,” Bishop Hall told Tribune Business. “The company blatantly violated the regulatory policies of the Bahamian Government, and both governments were asleep at the wheel.”