Permell satisfied with govt’s NIF

Chairman of the Clico Policyholders Group Peter Permell says he is satisfied with Prime Minster Dr Keith Rowley’s announcement of a plan to consolidate Clico’s assets into a National Investment Fund (NIF).

This will result in greater accountability and transparency, Permell told Newsday, allaying one of the group’s main concerns, that assets should be sold for a fair market price. In 2009, the government rescued the beleaguered insurer, bailing it out to the tune of $23 billion. To date, it has been repaid just over $8 billion. It is still owed $15 billion, and last year the government applied to the court to liquidate assets to repay taxpayers.

Rowley said in his speech on Sunday that to ensure the widest possible public participation in ownership of these Clico shares, it was the government’s intention that the company’s major assets should be placed in the NIF, units of which will be available to all.

Permell did note, however, that nothing was said on the balance owed to some 15,000 policyholders, who are contractually obligated to be repaid once the government’s debt has been settled.

“Once the government gets back its money from the bailout, then whatever residual balance is due to the policyholders,” Permell said, adding that the group supports the government’s strategy.