Taking the stance that Guyana is open for business, Finance Minister Winston Jordan on Friday said Government is prepared to accept the proposals of the Colonial Life Insurance Company (CLICO) Chairman, Lawrence Duprey, once he is able to settle his debt here.
The chairman of this insurance company which left thousands of Guyanese reeling from a major financial blow after it collapsed in 2008, met with Jordan late last month and offered some proposals that could see him re-entering Guyana’s
Winston Jordan
business arena.
Among those proposals are investments in housing, providing solar energy at competitive prices, as well as introducing a financial model that would generate savings and alleviate poverty.
But that was not before he offered his apology for the damage done and a promise to settle the debt owed here.
Speaking to the media, Finance Minister Jordan said Guyana remains a space that is open for business. “It does not mean that we are open to business to rogues and so on, but the guy made some overtures to us and he is willing to repay the money, he’s willing to apologise. He asked for the evidence for what is outstanding and he also said he is interested in doing business in Guyana.”
On that basis, the Minister said, he gave the thumbs up to the proposals. However, this will not be done until Guyanese receive the sums of money they are owed.
“We are open to any suggestions of investment. This time around, unlike in past
administration, the investment will go through scrutiny and we would be able to say ‘yea’ or ‘nay’, ” he said.
According to Jordan, Duprey has already begun the process of reconciliation as CLICO has already contacted Bank of Guyana Governor and liquidator Dr Gobind Ganga to gather the necessary information that would provide the outstanding figures.
CLICO Guyana had approximately $6.9 billion invested in the regional insurance company when it collapsed in 2009. Among the local investments was an investment of $5.2 billion by the National Insurance Scheme (NIS).
Over the years, the NIS would have also been experiencing a situation wherein its annual expenses began outstripping its revenue – a situation compounded by the billions it had invested in CLICO for a number of years.
To this end, Government in September last year announced that it would be absorbing the $5.2 billion NIS loss incurred when CLICO Guyana crumbled. This “lifeline” money is to be paid in tranches over a 20-year period.
