INSIDE BUSINESS

CCNTV6

Colonial life insurance Co-Trinidad ltd, has reported a remarkable profit for 2023, but their financial statement comes with serious concerns raised by its auditor.  Joel Julien tells us more in our Inside Business segment.

Transcript

00:00According to financial statements posted on Clico's website, this significant profit increase

00:16is mainly due to a $1.99 billion gain from the disposal of their subsidiary, Methanol

00:23Holdings International Limited.

00:26On December 22, 2023, Clico sold 56.53% of MHIL to Consolidated Energy Limited.

00:34The proceeds from that sale, net of cash disposal and direct costs amounted to over $1.5 billion

00:41and the transaction resulted in a gain of nearly $2 billion for Clico.

00:46However, Independent Auditor's KPMG Chartered Accountants has issued a disclaimer of opinion

00:51on Clico's financial statements.

00:54In its audit report dated June 28, 2024, KPMG stated, quote, We do not express an opinion

01:01on the accompanying consolidated financial statements of the group.

01:05Because of the significance of the matters described in the Basis for Disclaimer Opinion

01:09section of our report, we have not been able to obtain sufficient appropriate audit evidence

01:15to provide a basis for an opinion on these consolidated financial statements, unquote.

01:20KPMG cited two major issues, the sale of MHIL and Clico's investment in CL World Brands

01:27Limited, for which they were denied access to crucial paperwork.

01:31The group's investment in CL World Brands Limited is carried at $501 million on the

01:36financial statement as of December 31, 2023.

01:40KPMG stated that they were unable to obtain sufficient appropriate audit evidence on this

01:45investment because they were denied access to management and auditors of CL World Brands.

01:52In response, the Clico Policy Holders Group has expressed disappointment and deep concern

01:57over KPMG's Disclaimer of Opinion.

02:27Permil said, on a more positive note, the audited accounts also revealed the repayment

02:39of the government in the sum of $500 million and a subsequent or post-balance sheet event

02:45disclosure that Clico reduced its debt to government by an additional $605 million.

02:51Unfortunately, it is not clear whether this means that the government has now been repaid

02:56in full the $1.07 billion balance hold as at November 30, 2022, referenced by the Central

03:02Bank in its final report to Parliament.

03:04Accordingly, the TPG, or the Clico Policy Holders Group, is calling on the Board of

03:09Directors of Clico to state unequivocally whether Clico has now repaid government and

03:15by extension the taxpayers of Trinidad and Tobago the outstanding balance hold to them

03:18in full and has the government acknowledged in secrecy since there has been no official

03:23statement either from Clico or the government on this important matter to date.

03:28Permil said, in the interim, TPG remains committed to working with Clico to bring about an amicable

03:34and satisfactory resolution to this long-standing issue.

03:39Clico shareholders are CL Financial with 51% and the government of Trinidad and Tobago

03:45with 49%.

03:47Joel Julien for Inside Business.

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