分类： business

Seventeen years after the Manning administration initiated a massive bailout of the collapsing CL Financial empire, Trinidad and Tobago’s government has officially abandoned its pursuit of accountability through civil litigation. Attorney General John Jeremie, SC, presented the long-withheld Sir Anthony Colman Commission of Enquiry report to Parliament on January 16, revealing the state’s decision to cease funding further legal actions against the financial giant.

The controversial bailout has cost taxpayers approximately $28 billion, with an additional $3-4 billion expended on legal fees throughout prolonged court battles. AG Jeremie emphasized the government’s commitment to a “cost-effective” approach, withdrawing from pending civil cases including a Central Bank lawsuit against CL Financial that was scheduled for hearing on January 19.

The Attorney General simultaneously expressed skepticism regarding potential criminal prosecutions, noting this falls under the jurisdiction of the Director of Public Prosecutions. He bluntly characterized the investigation as “a joke,” citing inadequate policing resources and forensic accounting capabilities necessary to prosecute complex financial cases of this magnitude.

The Rowley administration had previously withheld the Colman report due to concerns about defaming key individuals and compromising potential criminal proceedings. This challenge is not unique to Trinidad and Tobago—internationally, most similar cases are resolved through civil settlements due to the extreme difficulty of proving criminal intent in complex financial operations.

While high-profile exceptions like the Enron (2001) and Bernie Madoff (2008) cases in the United States resulted in criminal convictions, most financial scandals typically end with SEC fines and civil penalties. The Colman report has exposed systemic failures within Trinidad and Tobago’s financial regulatory framework, with lessons extending beyond CL Financial/Clico to include the collapse of the Hindu Credit Union.

Moving forward, experts recommend enhanced forensic training not only for police but also for accountants, lawyers, and various government agencies to better protect citizens’ life savings entrusted to financial institutions.

A significant policy contradiction has emerged in the Caribbean’s economic landscape as authorities selectively exempt international lenders from Exchange Control Act restrictions while maintaining stringent constraints on domestic businesses and citizens.

This discriminatory approach reveals the government’s implicit acknowledgment that rigid exchange controls are fundamentally incompatible with modern financial systems. While foreign capital requires operational flexibility, rapid transaction processing, and financial certainty to function effectively—demands that have prompted regulatory accommodation—local entrepreneurs and investors continue to face bureaucratic barriers for routine international operations.

The policy establishes a troubling double standard where foreign entities enjoy financial freedom while national businesses remain subject to extensive approval processes for foreign investments, currency risk management, and cross-border transactions. This disparity not only undermines domestic competitiveness but also reinforces economic dependency on external financing sources.

Economists note the fundamental incoherence of maintaining controls that have been deemed unnecessary for international operators. The selective application suggests either the controls serve no legitimate stability purpose or represent outdated mechanisms that should be comprehensively dismantled rather than partially lifted.

This half-measure approach distorts market dynamics and signals a lack of confidence in national economic actors. True reform, analysts argue, requires consistent, equitable policy application that empowers domestic enterprises alongside international partners rather than privileging foreign creditors over local wealth creation initiatives.

In a significant development for Trinidad and Tobago’s energy sector, the National Gas Company (NGC) has finalized a major natural gas supply arrangement with upstream producer EOG Resources Trinidad Ltd. The agreement, announced on January 16, represents a strategic move to ensure sustained and reliable gas delivery to the domestic energy market.

NGC Chairman Gerald Ramdeen characterized the agreement as a milestone achievement that demonstrates the company’s determined efforts to collaborate with upstream partners in securing commercially viable natural gas supplies. This development follows closely on NGC’s recent acquisition of the Trinidad Region Onshore Compressor (TROC) asset, collectively forming part of a comprehensive strategy to stabilize gas availability and restore profitability to the company’s core operations.

The successfully negotiated arrangement concludes what both parties describe as mutually beneficial terms. However, the announcement contained pointed criticism of previous energy policies, noting that the current administration has adopted a fundamentally different approach to gas allocation compared to the former government.

Specifically, the release cited the bpTT Cypre project as an example of previous failed policy—a project delivering 250 million standard cubic feet of gas daily at peak capacity without guaranteeing any portion for domestic market needs. The new policy ethos embraced by both NGC and the Ministry of Energy and Energy Industries mandates that future natural gas exploration must include proportional allocations for domestic consumption.

The additional gas supply will enable NGC to meet its contractual commitments to Atlantic LNG while simultaneously increasing availability for downstream customers. Negotiations were spearheaded by acting NGC president Edmund Subryan, supported by specialized legal and commercial teams, who continue to advance additional gas supply stabilization initiatives with board-level and ministerial support.

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.