HARRY
HARNARINE

LAWRENCE
DUPREY

Speaking on condition of anonymity for fear of getting into Duprey’s bad books and facing the same fate as Dacon, the source close to the negotiations between CLICO and HCU, explained that everything was going smoothly until Duprey appointed Tony Maharaj to lead the negotiations for the acquisition of HCU properties.

Mirror was told that while exploring several options to stabilise a run on deposits earlier this year, HCU was made an offer by a senior CLICO official in which CLICO would invest $150 million to purchase 20 per cent shares in each of HCU Financial’s subsidiary companies.

After agreement was made and the deal approved, it was alleged that CLICO shifted its position away from entering into a divestment arrangement and decided to instead purchase HCU properties, whereby HCU would draw down on the $150 million allocated to ensure availability of funds to fill the breach created by depositors’ withdrawals.

CLICO went on to acquire the HCU Convention Centre in Freeport, the old Sajeevan Building in Endeavour, three properties along Mulchan Sieuchan Link Road, Chaguanas and a prime piece of property in Tobago.

All told those properties were transferred for a reported $120 million.

As both parties were nearing agreement on the transfer of other properties, the source said CLICO appointed Maharaj in charge of the negotiations, replacing Dacon.

HCU issued a paid advertisement on the issue stating that details surrounding the negotiations will be made in the near future.

The ad also stated: “The HCU wishes at this time to categorically state that during the course of negotiations, the CEO of CLICO, Cladius Dacon, acted honourably and with professional integrity.

“The HCU further notes that during its discussions with CLICO, led by team leader Dacon, he discharged his duties in a fair and equitable manner, sensitive, at all times, to the members of his organisation and the membership of HCU.

“The HCU wishes Dacon the best in his future professional endeavours.”

But Mirror understands that there is also another twist to the unfolding drama whereby HCU is in the process of initiating legal action against CLICO in the US for alleged financial fraud.

The contentious issue surrounds a bitter dispute between CLICO and HCU Money Express in Miami.

Information reaching Mirror, suggests that CLICO had agreed to purchase 33.3 per cent of HCU Money Express shares so that it can enter into the money remittance business.

An interim agreement was signed between both parties for the transfer of 33.3 per cent of the shares to CLICO.

However, the State Department for Finance in Tallahassee, Florida informed HCU that the entire company was transferred to CLICO.

When the documents were examined, it was discovered where Ian Garcia gave instructions to HCU consultant Wilbur Bascombe to make out an application to transfer the Money Express to CLICO.

HCU president Harry Harnarine challenged the transfer with the State Department and the Money Express was transferred back to HCU, but the issue does not seem to have died there.