Caption: John Jeremie
By Alicia Chamely
THE government will move forward with the highly disputed sale of a 51% stake in Clico Energy to Proman Holdings Barbados Limited, putting to bed a lengthy legal battle that the Office of Attorney General says threatened the economic wellbeing of the country.
In a release on Tuesday, the Office of the Attorney General announced after lengthy legal proceeding, spanning back to September 2021, the government had made the decision to complete the transaction.
The announcement comes after Attorney General John Jeremie, SC, laid the Sir Anthony Colman Commission of Enquiry report into CL Financial in Parliament on Friday.
The Report recommended the Director of Public Prosecution (DPP) take steps to determine whether criminal proceedings should be taken against CL Financial chairman Lawrence Duprey and former corporate secretary Gita Sakal the theft of the shares in Clico Energy.
In Tuesday’s release, the Office of the AG stated upon entering office, the government was faced with a series of legal matters, which they believed “threatened the economic wellbeing of the country.”
One of these matters, they stated, was the disputed sale of majority shares in Clico Energy to Proman Holdings Barbados Limited.
Detailing the legal proceedings of the fail transaction, the AG’s Office stated, “These proceedings concerned the validity and effect of a Purchase and Sale Agreement dated 3 February 2009 through which CLF, purportedly acting through Mr Duprey, who was then a Director and Chairman of both CLF and CLICO, sought to transfer a 51% shareholding in CLICO Energy Co. Ltd (now PETL) to Proman for the sum of US$46,500,001.”
“The transaction was challenged in the High Court with Justice Devindra Rampersad, in September 2021, ordering Proman to return the 51% of Clico Energy to CLF, and to provide an account of dividends and/or distributions owed, which were ultimately valued at US$185,916,295.05 plus interest at the time.”
“This decision was challenged and upheld in the Court of Appeal, where the proceedings were described as “high stakes, full blown, adversarial litigation involving well renowned Titans of Trade and Industry.”Proman went on to pursue an appeal before the Privy Council,” the release stated.
The AG’s Office stated they sought advice from King’s Counsel in London and made the decision to proceed with negotiations versus continue with legal proceedings.
“After giving careful thought to all the interests involved, the prospects of success and the very real possibility of certain of the findings of the Court of Appeal being overturned, CL Financial, with the express agreement of the Liquidator and the sanction of the Court, agreed to the sale of the disputed shares to Proman Holdings Barbados Limited to compromise the proceedings before the Privy Council,” they stated.
The AG’s Office stated, “The completion of this transaction allowed the Government to recover significant funds while avoiding the litigation risk which would have resulted from the further pursuit of this matter before the Apex Court.”
