The "secret" liquidation of Segna
It is not clear how much money there is in the fund, where it is deposited and under which legal authority the Insurance Superintendence borrowed RD$52 million of this money.
The story of the closure and liquidation of Segna, whose original name was the National Insurance Company, is worthy of telling.
Segna formed part of the National Finance Group founded Dr. Maximo A. Pellerano in the 1960's decade and soon became the main insurance company in the country. When it was closed, as a consequence of the problems which affected the National Credit Bank (Bancredito), during the banking crisis of 2003, the company had the biggest insurance portfolio in the country.
For several consecutive years, Segna was in first place for net premiums sold, due to the dynamic marketing processes and the correct coverage for all of its risks. Segna clients included the most important businesses in the country as well as thousands of life assurance clients across all of the country's social classes.
The closure of Segna proved to be a serious mistake considering that the company was viable whichever way you looked at it. It had massive liquidity problems, which could have been solved without a lot of difficulty, but it had a solid client list and great business prestige.
The all consuming eagerness of politicians and competitors were more important than the interest in saving a company which employed thousands of Dominicans.
Today, after the liquidation process was carried out by the Insurance Superintendence, particularly during the period in office of Dr. Euclides Gutierrez Felix, there are one thousand two hundred million pesos (RD$1,200,000,000) deposited in the country's banks, product of the net liquidation of its activities minus its liabilities. Everything shows that the business was salvageable and that it was a big mistake for the authorities to close it.
The liquidation of Segna
According to the Law No. 146-02 about Insurance and Bail in the Dominican Republic, when a forced liquidation of an insurance or reinsurance company takes place, the Insurance Superintendence takes on the job of liquidator according to legal regulations.
By virtue of this, the liquidator assumes control of the activities of the company until all of the legal processes have been completed. The Law authorizes the liquidator to arrange the sale of those assets which might deteriorate and to formalize the payment of all of the debts which the company has. In the same way, it should be able to settle any existing debts and/or reclamations up until the process is concluded.
The forced liquidation of Segna was ordered on the 19 November 2003 and on the 5 September 2006 it went on to become part of the Liquidation Commission whose members were Cristian Reyna T., Luz Maria Duquela and Rafael Melgen Seman, the last two were lawyers.
The process of collecting and sales of assets happened quite quickly. The main offices of Segna, in the Capital as well as Santiago were sold to State institutions. The old head office of Segna was sold to the Dominican State and is now where the Ministry of Higher Education, Science and Technology is based, and the Northern Electricity Company, Edenorte acquired an important property in Santiago.
At the same time, they received millions in debts owed to the company.
In a report delivered to the Insurance Superintendence, Dr. Euclides Gutierrez Felix, on 19 January 2010, Cristian Reyna Tejada, coordinator of the Liquidation Commission and Rafael Melgen Seman, External Lawyer, informed the Superintendence that at that time the Segna accounts had RD$758 million pesos available in certificates of deposit in local banks.
One year later, in the program El Informe with Alicia Ortega, Mrs Suzy Lora de Nouel, who had been the administrator of the Segna liquidation until March 2010, said that "there had been approximately RD$800 million pesos when I left, in both the BHD as well as the Reserve Bank, in financial certificates".
This amount, despite the payments made, is meant to be more than the one thousand two hundred million pesos in reality.
In the aforementioned report, the liquidators complained that they had not been consulted about a loan which the Superintendence gave to itself from the Segna funds, for RD$52 million pesos "for the building of its new office:" The liquidation commission understood that the loan did not happen because "the condition of Segna as a company in liquidation prohibits that its funds are destined towards any other activity apart from repaying its debts".
Since these questions, on July 1 2010, the Insurance Superintence cancelled its contract with the lawyer Melgen Seman, who, in turn, started a process to gather information, according to the Law of Access to Information, which was taken to the Superior Administrative Court faced with the refusal of the Insurance Superintendence to provide the required information.
On 5 December 2012, the Third Courtroom of the Supreme Court of Justice which deals with labor matters, land, administrative disputes and tax disputes, ruled definitively against the Insurance Superintendence and told them to hand over the information which had been requested. It is not known whether they did so. Diario Libre tried to contact the lawyer to confirm the information but were unable to find him.
In the last few years the Pellerano family has been in touch with the Insurance Superintendence in order to finalize the liquidation process and to ensure that the money is handed over to the Central Bank of the Republic by means of the signed Transactional Agreement in order to comply with the obligations in the Bancredito case, but up to now is has not been possible to reach an agreement with the Insurance Superintendence.
Someone who knows about the matter said that it cannot be explained what the issues are given such large a matter that has been sorted and that it prejudices the Dominican State, they should hand over the money for at least RD$1,000 which is in liquid assets in national banks.
(To be contined...)
The story of the closure and liquidation of Segna, whose original name was the National Insurance Company, is worthy of telling.
Segna formed part of the National Finance Group founded Dr. Maximo A. Pellerano in the 1960's decade and soon became the main insurance company in the country. When it was closed, as a consequence of the problems which affected the National Credit Bank (Bancredito), during the banking crisis of 2003, the company had the biggest insurance portfolio in the country.
For several consecutive years, Segna was in first place for net premiums sold, due to the dynamic marketing processes and the correct coverage for all of its risks. Segna clients included the most important businesses in the country as well as thousands of life assurance clients across all of the country's social classes.
The closure of Segna proved to be a serious mistake considering that the company was viable whichever way you looked at it. It had massive liquidity problems, which could have been solved without a lot of difficulty, but it had a solid client list and great business prestige.
The all consuming eagerness of politicians and competitors were more important than the interest in saving a company which employed thousands of Dominicans.
Today, after the liquidation process was carried out by the Insurance Superintendence, particularly during the period in office of Dr. Euclides Gutierrez Felix, there are one thousand two hundred million pesos (RD$1,200,000,000) deposited in the country's banks, product of the net liquidation of its activities minus its liabilities. Everything shows that the business was salvageable and that it was a big mistake for the authorities to close it.
The liquidation of Segna
According to the Law No. 146-02 about Insurance and Bail in the Dominican Republic, when a forced liquidation of an insurance or reinsurance company takes place, the Insurance Superintendence takes on the job of liquidator according to legal regulations.
By virtue of this, the liquidator assumes control of the activities of the company until all of the legal processes have been completed. The Law authorizes the liquidator to arrange the sale of those assets which might deteriorate and to formalize the payment of all of the debts which the company has. In the same way, it should be able to settle any existing debts and/or reclamations up until the process is concluded.
The forced liquidation of Segna was ordered on the 19 November 2003 and on the 5 September 2006 it went on to become part of the Liquidation Commission whose members were Cristian Reyna T., Luz Maria Duquela and Rafael Melgen Seman, the last two were lawyers.
The process of collecting and sales of assets happened quite quickly. The main offices of Segna, in the Capital as well as Santiago were sold to State institutions. The old head office of Segna was sold to the Dominican State and is now where the Ministry of Higher Education, Science and Technology is based, and the Northern Electricity Company, Edenorte acquired an important property in Santiago.
At the same time, they received millions in debts owed to the company.
In a report delivered to the Insurance Superintendence, Dr. Euclides Gutierrez Felix, on 19 January 2010, Cristian Reyna Tejada, coordinator of the Liquidation Commission and Rafael Melgen Seman, External Lawyer, informed the Superintendence that at that time the Segna accounts had RD$758 million pesos available in certificates of deposit in local banks.
One year later, in the program El Informe with Alicia Ortega, Mrs Suzy Lora de Nouel, who had been the administrator of the Segna liquidation until March 2010, said that "there had been approximately RD$800 million pesos when I left, in both the BHD as well as the Reserve Bank, in financial certificates".
This amount, despite the payments made, is meant to be more than the one thousand two hundred million pesos in reality.
In the aforementioned report, the liquidators complained that they had not been consulted about a loan which the Superintendence gave to itself from the Segna funds, for RD$52 million pesos "for the building of its new office:" The liquidation commission understood that the loan did not happen because "the condition of Segna as a company in liquidation prohibits that its funds are destined towards any other activity apart from repaying its debts".
Since these questions, on July 1 2010, the Insurance Superintence cancelled its contract with the lawyer Melgen Seman, who, in turn, started a process to gather information, according to the Law of Access to Information, which was taken to the Superior Administrative Court faced with the refusal of the Insurance Superintendence to provide the required information.
On 5 December 2012, the Third Courtroom of the Supreme Court of Justice which deals with labor matters, land, administrative disputes and tax disputes, ruled definitively against the Insurance Superintendence and told them to hand over the information which had been requested. It is not known whether they did so. Diario Libre tried to contact the lawyer to confirm the information but were unable to find him.
In the last few years the Pellerano family has been in touch with the Insurance Superintendence in order to finalize the liquidation process and to ensure that the money is handed over to the Central Bank of the Republic by means of the signed Transactional Agreement in order to comply with the obligations in the Bancredito case, but up to now is has not been possible to reach an agreement with the Insurance Superintendence.
Someone who knows about the matter said that it cannot be explained what the issues are given such large a matter that has been sorted and that it prejudices the Dominican State, they should hand over the money for at least RD$1,000 which is in liquid assets in national banks.
(To be contined...)
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