Mr Christie’s announcement came in response to a question raised during “The Prime Minister Speaks”, a 90-minute programme aired live via television and radio, which allowed journalists to question Mr. Christie on various topics, relating to: the economy, foreign investment, globalisation and domestic and foreign policy. The programme was held at the British Colonial Hilton.
Earlier this month, as controversy arose over the company’s proposed acquisition of several other insurance companies, Colina was cautioned by the Ministry of Financial Services and Investment against taking “premature action.”
In a press release the ministry said proposed “mergers and/or takeovers” of insurance companies were being closely scrutinised out of concern for possible risk to the investments of Bahamian policy holders and shareholders, as well as concerns about the maintenance of capital adequacy.
Responding that the company was endeavouring to meet with the appropriate government representatives at the earliest opportunity to resolve any real or perceived misunderstandings concerning the ventures, company principals said they had always enjoyed a good relationship and a high level of understanding with regulatory authorities.
“It always has been and will continue to be Colina’s position to conduct itself appropriately and comply fully with the regulators in the discharge of its obligations, relating to the proposed transactions involving Canada Life, Life of Barbados, Capital Life and Imperial Life,” said a Colina spokesperson at the time.
Competition laws
Mr Christie said that he met with representatives and actuaries from Canada on Monday to analyse and discuss the matter. “Very clearly, the country needs competition laws to ensure that proper growth, regulation and fairness is being institutionalised in the country,” he said.
“And yes,” he noted, “the Attorney General and myself have been discussing this, and we have to move on a very proactive basis to deal with all of the laws relating to acquisition, mergers and competition; and the country can hope to see arising out of this very instructive development that has taken place and our response to it in the not too distant future.
“I am sure Colina would support the view that the stronger they get, the more they are able to compete, similar to other insurance companies,” he said.
Apology demanded
Controversy intensified after a Jan. 7 Bahama Journal article, under the heading, “Insurance Company Raided”, said to be based on documents supplied by sources in the insurance industry, reported that over the last two years Colina had “raided at least two entities that it controlled,” with the funds being used to facilitate additional acquisitions.
The information was attributed to an unidentified actuary.
During a press conference called at the head office of Colina Insurance last week, Colina’s President, Jimmy Campbell, called for a public apology from the Bahama Journal within seven days for the article.
According to Mr. Campbell, the article was damaging to the reputation of Colina and its principal shareholders, resulting in them becoming the target of public contempt and ridicule. It was also clearly intended to interfere with the current regulatory approval process for Colina’s three acquisitions, it was claimed.
Colina is presently awaiting regulatory approval for its acquisitions of Canada Life, Sagicor and Imperial Life all done in 2003.
Mr. Campbell also demanded that the Journal publish the apology in a prominent position of the paper, as well as in any other newspaper of Colina’s choosing.
Mr Campbell said that in the event no apology was made within the allotted time frame, Colina’s lawyers had been instructed to initiate legal proceedings against the newspaper.
Apology refused
Instead of apologising however, Bahama Journal principals countered that if Colina could show where they were wrong for printing the article, an apology would be made “without reservation.”
Additionally, the chief executive officer of Jones Communications, Wendall Jones, announced that “The Journal has no difficulty in apologising when it is wrong. So far, based on the information in the Journal’s possession, this paper sincerely believes that its report was entirely right.”
Mr. Jones added that his editorial policy was strongly against “yellow journalism and sleaze,” and in the paper’s 16-year history it had never impugned anyone’s integrity.
The seven-day period for the Journal’s apology expired on Tuesday.
By Tamara McKenzie, The Nassau Guardian
