分类： business

In the wake of the Commission of Enquiry (CoE) report presentation to Parliament, former Hindu Credit Union (HCU) president Harry Harnarine has publicly maintained his innocence regarding the financial institution’s 2009 collapse. The declaration came on January 17, directly responding to Attorney General John Jeremie’s parliamentary presentation of the investigative findings the previous day.

During a brief telephone interview, Harnarine asserted, “I haven’t done anything wrong,” emphasizing his full cooperation with the enquiry process by attending all hearings when summoned as a witness. Other prominent figures including former finance minister Karen Nunez-Tesheira and ex-Finance Ministry permanent secretary Vishnu Dhanpaul also testified during the proceedings.

The CoE report outlined potential civil remedies for affected depositors, particularly those who received grant relief up to $75,000 from the Trinidad and Tobago government. These individuals are required to assign their entitlements to the state under the Grant Relief Payment Scheme.

Notably, the commission identified legislative provisions enabling the Commissioner for Cooperative Development (CCD) to investigate possible misfeasance or breach of trust by HCU officers. Should such investigations proceed, the CCD could mandate compensation payments to HCU’s assets with interest.

The report highlighted critical evidentiary limitations, noting “insufficient oral and documentary evidence” despite ample opportunity for participation from all involved parties. This deficiency prompted the CoE to recommend that the Director of Public Prosecutions examine potential criminal proceedings against unnamed individuals.

Harnarine reiterated his longstanding position that HCU was not insolvent at the time of its winding up, claiming he had petitioned three separate labor ministers between 2020 and 2024 to appeal the dissolution decision. While former minister Errol McLeod couldn’t recall such appeals, Jennifer Baptiste-Primus indicated the matter fell under the CCD’s jurisdiction rather than hers.

Separately, the CoE attributed the parallel collapse of Colonial Life Insurance Company (Clico) to a fundamentally “defective business model” within the CL Financial Group, compounded by management’s failure to implement necessary changes despite external auditor recommendations. The commission exonerated the Central Bank’s conduct while criticizing late Clico and CLF chairman Lawrence Duprey, suggesting potential criminal proceedings against him had he not passed away in August 2024.

The dual collapse of these major financial institutions in 2009 triggered widespread economic disruption, ultimately traced to aggressive investments in high-risk foreign real estate assets financed through unsustainable high-interest strategies.

A prominent criminologist has issued a forceful appeal for comprehensive reform of Trinidad and Tobago’s financial regulatory systems following the official release of the Sir Anthony Colman Commission of Enquiry report. The extensive investigation into the catastrophic collapse of insurance giant Clico and its parent company CL Financial was formally presented to Parliament by Attorney General John Jeremie on January 16.

The report’s publication marks a significant milestone seventeen years after former Central Bank governor Ewart Williams first disclosed that the Patrick Manning administration would intervene to rescue the financially troubled CL Financial Group. Attorney General Jeremie confirmed that while civil litigation efforts have been discontinued, criminal investigations remain actively underway under the jurisdiction of the Director of Public Prosecutions.

Criminologist Daurius Figuera characterized the protracted investigation into the conglomerate’s failure as profoundly inadequate, noting the expenditure of billions in taxpayer funds over the past decade. Jeremie himself described the collapse as the most substantial case of financial fraud and economic disaster in Trinidad and Tobago’s history, with repercussions extending throughout the Caribbean region.

Figuera raised critical questions regarding the initial pursuit of civil litigation, stating, ‘The fundamental lesson from this entire affair is that Trinidad and Tobago’s supervisory structure for Colonial Life failed catastrophically.’ He asserted that proper regulatory oversight would have identified financial irregularities long before the collapse, potentially holding executive chairman Lawrence Duprey accountable before the empire’s disintegration.

The criminologist emphasized that the Duprey business empire was fundamentally built upon Colonial Life’s operations, suggesting that rigorous regulatory enforcement could have prevented both the financial debacle and the substantial taxpayer-funded bailout that followed. Figuera pointedly noted that regulatory inaction effectively facilitated an outcome that severely damaged national economic interests, including the loss of significant industrial assets at Point Lisas.

Figuera challenged the prevailing narrative by shifting focus from individual culpability to systemic failure: ‘While fingers point at Duprey, who addresses the catastrophic failure of the oversight structure itself?’ He questioned whether political interference compromised regulatory bodies and whether existing legislation governing financial institutions would be comprehensively revised to prevent future collapses.

The expert also highlighted concerning patterns in white-collar crime enforcement, observing that elite financial offenders consistently evade meaningful accountability compared to other segments of society. He concluded that strengthened regulatory enforcement mechanisms and rigorous implementation of existing oversight laws represent urgent necessities for Trinidad and Tobago’s financial system.

A prominent criminologist has issued a forceful appeal for a comprehensive overhaul of Trinidad and Tobago’s financial regulatory systems in the wake of the long-awaited Colman Commission report on the CL Financial collapse. Dr. Daurius Figuera’s comments come just days after Attorney General John Jeremie presented the voluminous findings to Parliament, marking a significant development in a financial saga that has spanned nearly two decades.

The investigation, initiated following former Central Bank governor Ewart Williams’ 2007 revelation of liquidity crises within the CL Financial Group, represents what Jeremie characterized as “the largest case of fraud and financial tragedy” in the nation’s history and across the Caribbean region. Despite the gravity of the findings, the government has announced it will not pursue civil litigation, though criminal investigations remain active under the Director of Public Prosecutions.

Figuera expressed profound skepticism about the investigative process, labeling it a “joke” that consumed billions in taxpayer funds over more than a decade. He raised critical questions about the initial decision to pursue civil proceedings, noting the Commission’s clear identification of potential criminal charges. “The fundamental lesson from this entire affair,” Figuera asserted, “is that Trinidad and Tobago’s supervisory structure for Colonial Life failed catastrophically.”

The criminologist argued that proper regulatory diligence could have prevented the entire collapse by holding executive chairman Lawrence Duprey accountable long before the financial implosion. He emphasized that the Duprey empire was fundamentally built upon Colonial Life, and that regulatory bodies consistently documented questionable activities without intervening to prevent systemic failure.

Figuera highlighted the broader implications of regulatory negligence, suggesting that effective oversight would have preserved not only Colonial Life and British American Insurance but also numerous industrial plants at Point Lisas that were part of the conglomerate. He challenged the prevailing narrative that focuses exclusively on Duprey’s actions, instead calling attention to institutional failures that “aided and abetted” the disastrous outcome.

The expert also raised concerns about potential political interference in regulatory functions and questioned whether existing legislation governing financial entities would be strengthened to prevent future collapses. He pointed to a troubling pattern of impunity for white-collar criminals compared to aggressive enforcement against other forms of criminality, asking pointedly: “Is it law for one and no law for another? We certainly haven’t seen any prominent figures in remand custody.”

Figuera concluded with a stark warning about the consequences of failing to learn from history, emphasizing that without substantial reforms to oversight mechanisms and enforcement protocols, similar financial disasters remain inevitable.