The Trinidadian government has reached a landmark settlement to terminate a high-stakes Privy Council appeal concerning the controversial 2009 sale of CL Financial assets, a case described as posing a “serious threat to the country’s economic well-being.”
The Office of the Attorney General announced on January 19 that the state, as majority shareholder and largest creditor of collapsed conglomerate CL Financial Ltd (CLF), has opted to discontinue the appeal process involving Proman Holdings Barbados Ltd. The decision follows extensive consultation with King’s Counsel in London regarding litigation risks and prospects before the nation’s highest appellate court.
The dispute originated from a February 2009 purchase agreement where CLF, under then-chairman Lawrence Duprey, attempted to transfer a 51% stake in Clico Energy Company Ltd (now Process Energy Trinidad Ltd) to Proman for US$46.5 million. The transaction was subsequently invalidated by High Court Justice Devindra Rampersad in September 2021, who ruled the company had been “grossly undervalued.” This decision was later upheld by the Court of Appeal, which further characterized the transaction as fraudulent.
Under the settlement, CLF—with court approval and agreement from its liquidator—will formally transfer the disputed shares to Proman Holdings Barbados Ltd. This compromise allows the government to recover significant funds while avoiding substantial financial and legal risks associated with continuing the litigation. The disputed judgment was valued at over TT$2 billion, encompassing both the original purchase price and dividends collected since 2009.
Attorney General John Jeremie stated the settlement “balanced the national interest, the prospects of success and the need to protect public finances,” bringing finality to one of the most significant disputes arising from CLF’s collapse. The government has spent an estimated TT$28 billion rescuing CLF and its subsidiaries, with an additional TT$3-4 billion incurred in related legal and administrative expenses.
In related developments, the Central Bank has sought an adjournment in its long-running lawsuit against former CLF directors, including Duprey (who died in August 2024), to review the newly published Coleman Commission report. Simultaneously, activist Kendal Dolly has filed Freedom of Information requests seeking transparency regarding the substantial legal fees incurred by the state throughout the protracted CLF litigation matters.