BASSETERRE, St. Kitts – WITH the Government and the Opposition locked in a blame game over the failure of British America Insurance Company (BAICO), the Governor of the Eastern Caribbean Bank (ECCB), Timothy Antoine, is unhappy with the number of persons yet to be paid.
Expressing his displeasure over the financial situation, Antoine stated that the sum of EC$3.4 million remains outstanding in payment to some 113 policyholders from St. Kitts and Nevis.
SKNVibes learned that over EC$27 million in cheques for policyholders across the ECCU was prepared by the Central Bank but same was not disbursed due to the absence of funds.
Addressing the media on Thursday (Apr. 28) at ECCB’s Headquarters in Bird Rock, an obvious emotional Antoine explained that based on assurances given by the Government of Trinidad and Tobago, his institution had prepared the cheques for policyholders of the failed insurance giant, but had found out that monies were unavailable.
“So based on those assurances, the Monetary Council had asked us to go ahead and prepare the cheques, which we did, only to find out that monies ran out. Some of the cheques obviously were dated and could not be issued because there was no money in the bank. It is something that we were not happy about.”
Antoine disclosed that the central financial institution of the Eastern Caribbean would continue to lobby the Government of Trinidad and Tobago to release funding for payments. He however reminded that Trinidad and Tobago is currently in a recession and payments may take some time to be made.
“The economy is in recession because of the fall in the oil prices and we continue to engage them and follow up.”
BAICO has been under Judicial Management since 2009 and some payments have been made in St. Kitts and Nevis. However, necessary legislations had to be drafted to ensure full payment of funds to policyholders.
Governor Antoine pointed to several steps that the ECCB has urged the sub-region’s leaders to consider to ensure claimants and policyholders receive payments.
One such is the enactment of the Plan of Arrangement (BAICO/CLICO) Bill which was passed in the House at the last sitting of the National Assembly on Wednesday (Apr. 27).
“I am pleased to report or note that only yesterday (Wednesday) the Government of St. Kitts and Nevis passed in Parliament the Plan of Arrangement Bill. That is a very important Act of which we are very grateful.”
To this end, the passage of such legislation would allow for British American to make another payout to policyholders. Currently, St. Kitts and Nevis is one of four countries in the sub-region that passed the legislation - Antigua and Barbuda, Grenada and St. Vincent and the Grenadines are the other countries with the key Bill.
Meanwhile, Montserrat is expected to soon table the legislation bringing the total to five of nine countries that have to pass such.
Giving an update on numbers, Antoine said that property portfolios were sold off in 2010, while 7,500 claims were paid under the health fund in 2011.
According to the Governor, $108.5 million was paid out to 7,834 policyholders and 80 percent of BAICO policyholders have receive their principal.
Statistics provided by the Bank shows that under Phase One of the reimbursement of funds to policyholders, some 555 persons received EC$3.1 million, Phase Two 659 policyholders amounted to EC$6.8 million, while EC$6.6 million was paid out to 220 policyholders in Phase Three.
The Governor assured that the Bank would continue to lobby the Trinidadian Government for the remaining funds.
