Friday, Oct 18, 2019
HomeBusinessDPM: $10 mil. likely added to 2019/2020 budget for more CLICO payments

DPM: $10 mil. likely added to 2019/2020 budget for more CLICO payments

The government continues to chip away at CLICO payments, something Deputy Prime Minister and Minister of Finance Peter Turnquest said will continue to be a long-term issue for the government given the significant amount of money to be paid out.

Turnquest, who was speaking to the media yesterday, said another $10 million will likely be added to the 2019/2020 budget to satisfy more CLICO payments.

“The CLICO payment is a long term issue because it is a significant amount of money,” said Turnquest.

vments available this year and I believe there may be another one. And we will continue to do this until we wind this thing down.”

Turnquest called the CLICO issue a “mess” that has plagued two

administrations. But he said his government is doing the best it we can to continue to liquidate CLICO assets as quickly as it can, “inasmuch as our finances affords us the ability to do so”.

One year ago it was revealed that BAF Financial Group of Companies could receive 4,000 to 5,000 CLICO (Bahamas) life insurance policies, but only after the liquidator has closed down all of the failed former insurer’s medical insurance policies.

BAF Managing Director Sandy Morley said then that his company could be responsible for managing CLICO policies possibly by May 2018 after formalizing and finalizing the process with the liquidator.

However, Turnquest told Guardian Business yesterday that this has not happened.

In the last two budget cycles the government committed $10 million to make good on the outstanding funds owed to CLICO policyholders.

CLICO (Bahamas) went through a court-ordered liquidation in 2009.

The final payout of approximately $38 million was originally expected to be made in January 2017.

As of December 2016, liquidator Leno Corporate Services and other professionals were completing a business plan and funding structure that would ultimately be approved by the Insurance Commission of The Bahamas and the Supreme Court, according to the former government.

In April 2017, the former Progressive Liberal Party government had announced proposed payments for April, July and November 2017.

 

Paige McCartney

Business Reporter at The Nassau Guardian
Paige joined The Nassau Guardian in 2010 as a television news reporter and anchor. She has covered countless political and social events that have impacted the lives of Bahamians and changed the trajectory of The Bahamas.
Paige started working as a business reporter in August 2016.
Education: Palm Beach Atlantic University in 2006 with a BA in Radio and Television News
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