...PM to make statement today
Gail Alexander
Published: 1 Oct 2010
Gail Alexander
The Government yesterday bailed out at the eleventh hour from proposed legislation which would have blocked legal action against its plans regarding the Clico dilemma. Leader of government business in the House of Representatives, Roodal Moonilal, confirmed that the legislation—the Central Bank Amendment (CBA) Bill—has been withdrawn from today’s House debate agenda.
Moonilal added yesterday: “The Prime Minister will make a comprehensive statement on the situation in the House on Friday (today).”
Among provisions pertaining to the Central Bank, the bill sought to empower the Attorney General to act on issues—such as the Clico problem—arising out of circumstances that resulted in a threat to the stability of the local financial system. It would have also empowered the Attorney General to apply to the courts for the appointment of a chief restructuring officer for an institution that is given assistance under this legislation. A three-fifths’ special majority of votes—26 of the 41 MPs—was required for the bill’s passage since it would have affected sections of the Constitution concerning constitutional rights. The bill was expected to have been passed in the House since the ruling People’s Partnership has 29 MPs. The Opposition PNM has 12. Instead, however, Government would now present a bill on procurement practices for today’s House debate.
Government’s decision to pull back on the CBA Bill was confirmed after yesterday’s Cabinet meeting where the bill was expected to have been “finalised” and given “final approval” (sic) according to announcements on Tuesday by Attorney General Anand
Ramlogan. However, yesterday’s weekly Cabinet session chaired by Prime Minister Kamla Persad Bissessar—who returned from overseas Wednesday—withdrew the bill Ramlogan had promoted as the “flesh and bones” of the Government’s Clico plan. Government’s about-face yesterday arose after continuing criticism, and threat of legal action regarding its plans on the Clico issue. The Clico policyholders’ group has called for a meeting with Prime Minister Kamla Persad-Bissessar on the situation. Asked about the withdrawal of the CBA Bill, Moonilal said the plans announced in the 2010-2011 budget to deal with the Clico dilemma would be effected via other measures. He said the proposed legislation was just one suggested measure regarding the Clico problem.
“But we have other options to pursue including listening to the concerns of parties,” Moonilal added. Asked about the options, Moonilal repeated: “As I said, the Prime Minister will respond more comprehensively.” Moonilal denied that recent arguments by former attorney general Ramesh Lawrence Maharaj had influenced Government’s decision on—or to pull back from—the CBA Bill. Moonilal declined comment on how the bill might limit the rights of Clico policyholders to take legal action. PNM MP Colm Imbert, who was scheduled to have delivered the Opposition’s reply to the Government on the bill today, said yesterday: “Clearly, they had to pull this bill since it would have been oppressive, draconian and the beginning of a creeping dictatorship.” “Government needed a special majority to pass the bill because it takes away the rights of policyholders to take action against Clico and the Central Bank on the current matter,” he said.
“It provided no alternative remedy and would have left policyholders in pain and in limbo. “It’s very inhumane legislation. It deprives people of their rights to justice. Government does not need this bill to provide funds to pay Clico investors. Its only purpose is to prevent a lawsuit. “They haven’t dealt with the substantive issue—only tried to block complaint—when what they should be doing is holding discussions with policyholders and improving their offer.”
Ramlogan had alluded to strengthening financial regulations in his budget contribution last week. However, first concrete word of the proposed CBA legislation arose this week. The day after Maharaj’s contentions on Clico aired—while the Prime Minister was overseas—a special Cabinet meeting on the Clico issue was convened on Monday under acting Prime Minister Errol McLeod. On Tuesday, McLeod and Finance Minister Winston Dookeran defended the Government’s Clico plan at a media conference, alongside Ramlogan who attacked Maharaj’s arguments. Ramlogan is quoted as saying that the planned bill would have effected and facilitated the Finance Minister’s budget policy announcement.
Ramlogan said the proposed bill would be “the flesh and bones of the formula we have come up with” and would effect and implement assistance for Clico depositors. Short on the legislation’s details, Ramlogan had announced that yesterday’s Cabinet session would have finalised and given final approval to the bill. He said the Clico plan would have been a private arrangement between the Government and depositors who chose to avail themselves of the plan and would not have involved the regulatory aspects of Central Bank’s powers.
Ramlogan said the bill would have been tabled in Parliament today to “give legal authority and proper framework” to effect this solution.
However, the bill is now off the table.
PNM’s Imbert added: “Even if the House passed the bill, I wonder if Independent senators would have supported it, since it was so draconian and oppressive.” Independent senators did not receive a copy of the bill in the usual weekly package of documents sent to them yesterday, they confirmed. Independent bench leader Basharat Ali said he had not seen the bill. “So I can’t formulate a position...All I know is, it is supposed to be going to the House on Friday and House leader Moonilal informed me that we in Senate will be doing it next Tuesday, provided it’s passed in the House,” Ali said.
policyholders welcome decision
Clico Policyholders Group has welcomed the Government’s withdrawal of the Central Bank Amendment Bill, the group’s Peter Permell said yesterday. “While we feel the Prime Minister’s remarks—to take-it or leave-it where the Government’s plan was concerned—were unfortunate, we feel she only said so since she was not in T&T recently and was not fully briefed on the issue,” he said. “But we feel Government should be commended for withdrawing the CBA Bill as it opens the door for dialogue...We stand ready to engage in this with the PM or her technical people.”
