NIS shares in BBCI … Ram chooses not to take legal action
…. says concerns being addressed
July 15, 2015 | By KNews | Filed Under News, Source
Attorney-at-Law, Christopher Ram has chosen not to move to the courts over the $950M worth of preferential shares in the Berbice Bridge Company Inc (BBCI) that was dumped by the National Industrial and Commercial Investments Limited (NICIL) over to the National Insurance Scheme (NIS).
He made his decision not to go that route during a recent telephone interview with this publication.
In May, just before elections, Ram said that he was moving to the court after former Chairman of the NIS Board and NICIL Director, Dr. Roger Luncheon refused to provide him with much needed information about the shares.
Initially, Ram had chosen to tread along a different route and had written to Dr. Luncheon seeking information on the transfer of shares for which NIS is receiving no dividends.
He did so as he expressed fear of “irreparable financial damage,” to NIS.
When Ram wrote Dr. Luncheon, he had requested a response within seven days which would have ended on April 29. However, since Dr. Luncheon refused to respond, the lawyer decided that he would move straight to the courts.
During the recent interview, Ram noted that Dr. Luncheon is no longer the Chairman of NIS and NIS is currently operating without a board. He said that he will not take the new administration to court over this issue noting that “the situation has changed and so I changed my mind about going to court.” The lawyer disclosed that he was informed that the NIS is currently looking at “some issues of which my concerns are a part.”
When Ram wrote Dr. Luncheon, he said he was seeking the information in the interest of his clients who are all pensioners. Ram and his clients were concerned about the decision to make investments, since Dr. Luncheon would have been aware that NICIL, the previous owner of the shares, had to forego the dividends. His clients were also concerned that no independent valuation was done before a decision was taken on acquisition of the shares.
Ram also inquired about Dr. Luncheon’s conflict of interest since he was Director of NICIL, the seller of the shares and Chairman of NIS, the buyer.
Ram wanted a copy of the valuation report based upon which the decision was made to buy shares and evidence that the Directors, in making the decision, took account of the potential or actual loss of approximately $5.5B which the scheme incurred, but is still on its books in relation to the investment in CLICO.
NIS remains in deep trouble following its investment in two companies that proved to be financially disastrous. The scheme invested an accumulated $6.5B in the Colonial Life Insurance Company (CLICO) and the BBCI ($5.5B in CLICO and the remainder in BBCI).
With CLICO Bahamas in winding-up proceedings, it is still unclear whether Guyana will ever retrieve that money.
