“The clear picture is not only that total liabilities of CLICO (Guyana) far exceed its assets but that the company is on a rapid decline… It does appear that this state of financial affairs was triggered by the illegal transmission of US$34M externally in favour of (Clico) Bahamas Limited, its sister company.”
It should be noted, according to Chang, that the Insurance Act does not allow any insurer carrying on long term insurance businesses to invest more than 15 per cent of its statutory fund outside of Guyana.
The US$34 million illegally remitted abroad represents about 53 per cent of the company’s total assets.