Port-of-Spain: Gita Sakal, the Corporate Secretary of CL Financial started giving her evidence in the Commission of Enquiry into the failure of insurance company Clico and CL Financial today and like the other managers and board members of CL Financial companies that have testified before, Sakal gave her reasons for the failure of the group.
Sakal, who has made headlines for her remuneration package that included a US$2 million annual bonus and monthly salary of US$35,000, raised the topic of her remuneration saying everyone knew about it now as she was being led in giving her evidence by her attorney Justin Phelps.
Sakal said CL Financial was completely dependent on Clico for its survival and so much so there was CLF has a debenture with Clico, debenture referring to an unsecured debt backed only by the integrity of the borrower, not by collateral.
Sakal said the autonomy of the various CEO's of subsidiaries in the group is what created problems.
Sakal who was appointed a director at Clico Energy in 2008 said Clico Energy shares had been transferred to pay CLF debts.
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