True to its word, the Government of Guyana has approached the High Court to seek the US$20 million currently lodged in an escrow account, in order to compensate the state for the billions it spent covering CLICO’s liabilities in Guyana after its 2009 collapse.
The Government of Guyana has taken CLICO Investment Bank Limited to the High Court, as the battle for US$20 million lodged in an escrow account held by the Deeds Registry, continues.
According to the Statement of Claim, the government is seeking the release of the funds to its possession, to compensate it for the money it spent covering CLICO’s liabilities in Guyana.
CLICO was a Trinidadian financial company that had policyholders throughout the region, including Guyana.
When CLICO collapsed throughout the region in 2009, many policyholders throughout CARICOM were unable to receive the monies they had invested, at face value.
According to the claim, the defendant and other members of the CLICO group knew they would be unable to compensate policy holders in Guyana.
The claim notes that they stood by and watched as the Government of Guyana took on those responsibilities.
The claim states that the Government of Guyana paid as much as $5.6 Billion to the National Insurance Scheme (NIS), which was at risk of collapsing around the same time as CLICO.
Moreover, a judgement was already issued against CL Financial Limited, the parent company of the defendant. To date, this judgement has never been enforced.
That judgement, issued in 2019 by Justice Gino Persaud, included special damages of US$34 million.
Guyana, represented by Attorney General Anil Nandlall, is therefore seeking the release of the US$20 Million in the escrow account, as partial payment of the total US$34 Million, in addition to an order to levy on any assets owned by CLICO in Guyana.
They are also seeking an interim order blocking the release of the money in the escrow account, until their case is determined.
An order is also being sought to trace, and make a claim on, CLICO’s assets.
The filing of this case comes a month after the High Court barred Clico Investment Bank from accessing the US$20 Million in the escrow account.
At the time, Nandlall had announced that the Government of Guyana would be going to court to seek the money on behalf of the State.
