DPM: Govt. settling smaller policies first

$12.4 million allocated for payouts in 2019/2020 budget

NASSAU, BAHAMAS — The more than $12 million allocated for CLICO payouts in the budget will predominantly be used to settle smaller outstanding policies, according to Deputy Prime Minister and Minister of Finance Peter Turnquest.

According to the 2019/2020 budget, $12.4 million was allocated for CLICO payouts.

Speaking to Eyewitness News, Turnquest said the funds will be processed for policyholders with smaller outstanding balances, before the larger ones are settled.

“We have set a policy where we’re taking care of the smaller policies first; to try and liquidate those as quickly as possible,” he said.

“Then, we are moving on to the bigger ones.

“We have made significant inroads in liquidating those small policies.

“We are starting to bite into the bigger policies now.

“Hopefully, within a reasonable period of time, we’ll be able to liquidate all of these liabilities and put this thing behind us.

“We recognize and we thank the Bahamian public — those who have liabilities outstanding — we thank them for their patience in us getting to resolution on this matter.

“Unfortunately, we don’t have the funds to pay it all out in one shot, but we are trying our best to make as many people whole as we possibly can.”

Asked about the timeline for payments, Turnquest said he could not recall the exact payout schedule, but noted that “this is a program that has been going on for several years now”.

CLICO (Bahamas) underwent a court-ordered liquidation in 2009.

The government was expected to make a final payout of around $38 million in January 2017.

Under the Christie administration, plans were announced to make payouts in April, July and November 2017.

Another $12.4 million is expected to be allocated for CLICO payouts in next fiscal year.

This article was written by Marechan Burrows – Eyewitness News Intern.