Ramesh speaks out on CL Financial …”GOVERNMENT WANTS CONTROL”

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Government wants control of CL Financial. That’s all!

According to former Attorney General Ramesh Lawrence Maharaj, Government has engineered an elaborate and well thought out plan to maintain control of the valuable assets of the CL Financial Group to ensure only certain persons benefit from the liquidation process.

He pointed out that the petition filed by Government for a provisional liquidator to be appointed and the company wound up could have a disastrous effects on the valuation of the assets if it is granted and could lead to a fire sale of the company’s assets.

Maharaj said an extra-ordinary shareholders’ meeting scheduled for Tuesday is intended to garner the views and support of those who want the company to achieve viability once more.

He said government had failed to submit audited financial statements to the court in support of its petition for insolvency thus far.

He added, “It is my hope that the court would recognize the petition is deficient”

Maharaj said with Government injecting monies into some of CL Financial’s subsidiaries, returns would have been placed in the Statutory Fund.

The former AG added, “Their position is you must take the value of the assets of CL Financial in considering the question of solvency, but cannot take the assets of the value of the subsidiaries.”

Maharaj said the government-controlled board was not resisting the application to wind up the company and Government is effectively seeking an ex-parte order of himself to himself to wind up the affairs of the company.

He further claimed that Government had filed the petition as a creditor, not as a regulator whose interest is ensuring preservation of taxpayers’ funds .

Maharaj said no evidence had been presented to the court to suggest that the shareholders will not honour the debt owed to Government.

He added that two separate reports prepared by Price Waterhouse Coopers and Ernst and Young found that CL Financial was in a position to repay its debt and that liquidation would be disastrous for the company.
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