Trinidad denies scaling down CLICO probe

The Trinidad and Tobago government has denied media reports, that legal teams in six separate jurisdictions investigating allegations relating to the financially troubled regional conglomerate CL Financial Group, had been terminated because of mounting financial bills.

A statement issued by the Office of the Attorney General (AG) said there was need to streamline the investigative efforts to "ensure that the state gets the best legal value for its dollar".

The statement said that there was no truth in the allegation that teams of lawyers working in at least six separate jurisdictions on the international criminal investigation against CL Financial have all been terminated.

"In fact, the Office of the Attorney General has been and remains in close contact with the principal legal advisers on the CLICO investigation." said the AG's office.

"Mr Edward Davis Jr, for example, whose services were allegedly terminated, is presently in Trinidad and Tobago at the request of the Attorney General to further the work of his US-based firm, Astigarraga Davis."

In regular contact

The statement said that the Central Authority Unit of the Ministry of the Attorney General (MOAG) has been in contact with British Queen Counsel James Lewis, and that Attorney General Anand Ramlogan has also been in regular contact with the forensic specialist, Robert Lindquist.

The statement noted that a number of local lawyers had offered to return their briefs in this matter and the decision to accept them was necessary "after a critical review was undertaken with a view to determining the nature of and necessity for the work done by the local team and the overall cost implications".

Ramlogan was confident that the MOAG legal officers can adequately deal with this matter in conjunction with the foreign assistance and advice that continues to guide the investigation.

"In so far as legal advice and representation is necessary in other jurisdictions, this will continue as and, when necessary, but the suggestion that 'legal teams' in various counties were simultaneously and continuously working on the investigation is incorrect," the statement said.

"Such expertise is normally sought on an ad hoc basis as and when required to assist the principal advisers in this matter."

A lot of money

In 2009, the then Patrick Manning government announced a major rescue package for CL Financial Group.

Under a memorandum of understanding signed between the parties, the government provided funding to the company in exchange for collateral and an equity interest in CLICO, the flagship of the cash-strapped group.

The licence of CLICO Investment Bank was revoked, and CL Financial had to divest itself of 55 per cent holdings in Republic Bank Limited, and shares in Methanol Holdings Trinidad Limited (MHTL).

Central Bank Governor Ewart Williams said the bail out amounts to "a lot of money", running into billions of dollars.

Last month, Finance Minister Winston Dookeran said he had appointed a three-member team to prepare an appraisal report on the operations of the CL Financial Group.

The AG's office said Ramlogan has "given no instructions" for terminating the services of any foreign advisers, but that there was a need to streamline the efforts of the various state agencies involved in the CLICO investigation to "ensure that the state gets the best legal value for its dollar, lest the candle cost more than the funeral," the statement said.

- CMC