You did ever mekking bakes and run outta flour?
You did ever mekking swank and run outta sugar?
And if you don’t want Pearlie to know you bizness, wuh you gine duh?
You a’int gine keep you mout shut and scrape the bottom of the barrel?
And the next day when she ask you how the famblee and if everything good?
You ain’t gine skin you teet and tell she everything good and everybody awrite?

Government needs to keep its hands off the NIS Fund. It is obvious that the Minister of Finance does not understand what he is talking about when he speaks of NIS surpluses.

If the NIS is in surplus then that is a clear indication that the contribution rates are too high and should be lowered: it does not mean that Government now has a slush fund to balance the budget. If they see the need to raise taxes then they should do so rather than place a disproportionate burden on lower income earners.

People who earn less than $4090 per month, I think it is, pay 10.10% of their total earnings to NIS. The higher your income goes after that point the rate of contribution as a percentage of total earnings go down. This reverse Robin Hood nonsense by successive Governments must stop..

Sinckler clearly came over tonight as a man out of his depth. He does not have a clue of what he was talking. I said to a friend today, I would bet you that they have spent this money already. Low and behold you know it was confirmed by John Boyce tonight. They done spent the NIS money and now come to Parliament to validate it.

This is the government that promised transparency and a new way of doing business. But what has the government done with the money from the sale of the Light and Power shares and from the sale of the BNB share? Were they not supposed to buy back the shares that were sold? The dead king said so but then again we cannot believe a word out of his mouth, he was such a bold faced liar. Were these shares sold to help out CLICO again seeing that CLICO in Trinidad owns Republic Bank? Where is the transparency?

We just had Estimates and a Budget. Were funds not allocated in the Estimates for the Transport Board? If so, has the allocated funds been spent already? It is only four months into the Financial Year. How much more of NIS monies will they have to go back for? By trying all their political tricks, meaning the free bus fares, they worsened the Transport Board situation and being so incompetent, they do not have a clue how to fix the mess. John Boyce, a terminal failure at every thing he ever did, threw up his hands in despair tonight!

May God help this country!

“What would poor Bajans do without the ability to move around at a low cost? ”
For some time now, i have been at a loss to determine what can be conceptualised as ‘A POOR BAJAN’ and whether these poor bajans are in the majority; and the reason for my consternation is that from time to time, i have come across persons so categorised by the HammieLas and Patrick Todds for their own ends but these socalled poor bajans are loathe to dress in inexpensive clothes and do not miss out on the most expensive shows . I know of some who hire cars to attend these shows to create the right/wrong impression. Yes, we do have honest and hardworking people in Barbados who still struggle to make ends meet but there are those on low paying salaries but through thrift and focussed living eke out a comfortable existence for their families and do not rely on state support and there are those who just simply do not want to work and there are those who live above their means to their own detriment.. yes, there is poverty in Barbados but it is not endemic. What is ‘A POOR BAJAN’.

The NIS Fund primary purpose is to provide Social Benefits and Pensions to Barbadians.Over the years the fund has grown to the extent there is monies available to be reinvested. An investment and management committee team, comprising of the most prudent financial managers following conservative Accounting Principles,with the objective of maintaining modest returns, normally is up to overseer the Fund. Lending eligibility is accomplished by considering only those investment that meet a preset (IRR) internal rate of return, set for the investments portfolio.There must be constant financial management and actuarial supervision aided abetted by timely financial reporting to monitor the Fund.There is even a special area of accounting ( Pension Fund Accounting) and specialists to handle this highly diverse and intricate area..

The question being asked is the NIS Fund meeting this criteria?

@ David

Will the NIS funds be used to finance
a) Deacons Community Centre
b) The Villages at Coverley
c) NHC High Rise Residential Buildings
d) Pierhead Marina Design
e) SSA New Headquarters
f) West Coast Sewerage Project

Pray the PM calls elections before the MOF gets his greasy hands on the NIS funds.

By the way dindn’t the PM remove the NIS from under the responsibility of MOF when he had the last Caninet reshuffle?

The final pieces of the plan where put in place last weekend at the DLP conference when Sinckler was made a Vice President along with John Boyce and George Pilgrim as Secetery General.

Getting close now, the rope is around his neck and the gang of five have already declared that PM neck must pop before elections.

By the way Crusoe did you read the CALC Report which speaks to rising poverty which the BLP has used to good effect in arguments against the government? We can’t have it both ways.

@ David:
“What sums it up for many is the fact that in 2012 up to date financials of the Fund remains outstanding. A problem which has straddled both administrations.”

What is the political point that is being made here? For what year were the financials last published? Was it 2007?
This current administration has had more than ample time to clean up any mess left by the previous administration even if suspicions or evidence of fraud is used as an alibi for the excessive delay. The NIS has seen in the last 4 ½ yrs too many chairmen come and go with the present one touted as the “Moses” to clean up and deliver the financials given his much vaunted credentials and previous PR incursions on BU while hiding behind a veil of pseudo professionalism and academia.

What has become of this once verbally prolific and much touted maverick called Dr. J R? Has he now been silenced after being given the opportunity to sit in the chair and eat at the table where the fatted calf is being carved up? Isn’t the NIS required to obtain collateral or written guarantees before disbursing loans? I write under correction but isn’t the $30 million now being guaranteed in Parliament for the TB’s operations for the period ended March 31, 2011? What has happened for the year ended March 31 2012 and subsequent months? This sleight of hand off balance sheet financing will not only further push up the level of government debt but also will not impress the rating agencies and will certainly be reflected in the IMF future country assessment reports.

Dr. JR why are you breaching your professional ethics and selling your integrity to the political devil by allowing this administration to ride rough shod over the regulations of the NIS loan disbursement policies? This can be expected of the likes of Jepter the physical deficit man and even the phoney marshall whose credibility has sunk to the lowest level.

Do some good and distance yourself from the shenanigans of this current administration which is using the NIS like a Ponzi scheme. Making decisions without validated reliable financial data and without proper and legal authorization to make loan disbursements to entities not assessed as investment vehicles is a sure way to financial hell. This financial strategy of taking from the NIS to prop up terminally ill statutory agencies on life support is similar to the one disastrously employed by CLICO.

Where is this advice coming from? A legacy of the phoney marshall a former CLICO director who oversaw the skullduggery in that ponzi organization as identified in the forensic report? Moving money from the life insurance cash cow to finance the high living and fraudulent activities of the other non-performing associates in the CLICO Empire was employed by Leroy P and Terrence T at the behest of Lawrence D with stunning financial wizardry.

The Transport Board needs to be divested from government’s woefully inefficient politically corrupt hands. It ought to be owned and managed by a consortium of private sector entities (including the credit unions) with an annual subvention from the Treasury to cover the social and welfare component of its operations; i.e. subsidized travel for school children and the senior citizens on NIS pensions only; with some regulated welfare recipients e.g. .the disabled. A transport levy collected via the NIS PAYE system could be re-introduced or increased but paid over to the Treasury and ring fenced for the new transport system which would not include the ZRs as presently configured. Dennis Kellman could talk what he likes as he usually does but the reality of the transport situation is that the government cannot continue with this financial millstone and managerial nightmare.

@Miller

Why do you think it is a political point? It is a point, period.

If you have doubts about the rigour with which financials of statutory and quasi have been processed by successive governments read the damn Auditor General’s Report whom we have dubbed the toothless tiger.

@ David
“Sitting Bull was a Hunkpapa Lakota Sioux holy man who led his people as a tribal chief during years of resistance to United States government policies.”
******************
See ur email

This practice of spending NIS money and then coming to Parliament to approve after does not bode well for transparency. Actually it stinks.

David, you are right on efficiency, but this would have to stretch across the entire public service. the TB is a big leaker of money but there are numerous small leaks around that are a collective gush.

Byer-Suckoo is a figure. I’d leave off the head.

NIS is too critical to be randomly tossed about (4 Seasons, BTA, TB) without at least a debate or discussion on it, the ventures it finances or the benefit to the public in years to come. the GoCB says the downgrade isn’t affecting us but one now has to wonder if this is totally true….

Just observing.

millertheanunnaki | August 22, 2012 at 7:07 AM |

Miller,

Your spleen is showing !

You are trying to attack Dr. J R because he has brought a different approach to the use of NIS funds.

The funds have to be invested .

@Observing

Agree with you we need to keep the spotlight on the fund. What is a fact is that the NIS is known to be the largest investor in the financial system in Barbados. If the market is reported to be liquid and there paying low rates the NIS Fund managers must become creative in maximising return on investments. What we must not do is to convert the debate to be so partisan that all constructive feedback is lost and as important the public loses confidence in the one institution which represents long term security.

When the government borrows from the fund is it not in actuality borrowing from itself? How can should we interpret debt to gdp in this context. It seems that the credit rating agencies are penalising the government for borrowing from itself.

@ Unrepentant BLPite | August 22, 2012 at 8:06 AM |
“The funds have to be invested”

Invested in what? Useless paper lower than junk bond status? Who will pay it back? The Transport Board or the UWI? Are these money making entities? How can a business with an annual deficit of over $60 million ever repay a loan? How can a government with an annual rising deficit- hardly able to meet its day-to-day operations without borrowings- ever repay a loan without generating much more income through additional taxes and increases in user charges and fees? The fiscal and monetary management of the government is like a man who has lost his job and with no or very little savings continuing to live the big life using his credit card with a maximum spending limit based on his previous large salary.

Get real man, the party is over. The government is using the NIS like a credit card being maxed out. There will come a day very soon when the credit card will be eaten by the IMF ATM.

@ David
There is a popular prejudice against leverage rooted in the views that governments who borrow a lot of money often end up badly. But the issue here is these admins. are not leveraging anything, they’re borrowing money for consumption.
In finance, the general practice is to borrow money to buy an asset with a higher return than the interest on the debt.That at least might work out. People who consistently spend more than they make have a problem, but it’s overspending (or underearning), NOT LEVERAGE. The same point is more controversial for governments. The problem is not being solved, but we are living on grand dad’s thrift…..time we face reality.

@ David | August 22, 2012 at 8:19 AM |
“When the government borrows from the fund is it not in actuality borrowing from itself? How can should we interpret debt to gdp in this context. It seems that the credit rating agencies are penalising the government for borrowing from itself.”

And the credit rating agencies are correct to see it as financial madness.

It’s like taking money from the right pocket and putting in the left pocket to pay your own household bills. The government either needs to earn more income or cut back on living expenditures and the high standard of living, subsidies and transfers.

No business can borrow from itself unless it is involved in a ponzi type scheme which will eventually come crashing down like CLICO.

Point taken David and Sitting

Using your own money to drive your development and provide returns to yourself is a no brainer…

but…that development and its benefits need to be seen, the decision needs to be transparent to those who the money belongs to and your point about the debt to GDP is important.

IF government passes its debt to the NIS under the policy of investment, development and returns…then it should be honest enough to report this debt not just as a NIS-overall debt ratio, but in terms of actual % decrease in the GDP-debt ratio as a result so we can fully understand where we actually are, and what it may mean 10-15 years from now….considering that this is THE major plank of the MTFS.

If ever there was a time for open debate and discussion it’s now.

btw. Sinckler usually seems out of his depth when the financial/economic discussion gets critical and clinical.

@miller
measures that may help are antithetical to DLP philosophy and the path they have taken. Biting the bullet is not something people relish doing.

@ David | August 22, 2012 at 8:35 AM |
His reference to a stolen report was made to give context to calls for him to comment as PM. We need to be clear in our analysis.

It is the PM who needs to be clear in his communication and forthright in his actions.
What does he mean by a report being stolen? Stolen by whom? Then call in the police or take the same steps he is taking to find the FBI report that Arthur had, it is alleged, in his possession.
These are all red herrings drawn by a fisherman who can’t swim.
He must let the aggrieved policyholders (to whom promises and indeed guarantees were made) know what is happening if he wants to be an effective leader. Kicking the can down the street would not get rid of the dent of distrust in this administration. And to have the gumption to engage Parris as a consultant takes this administration’s arrogance and dismissal of the public to a new level of disgust.

are you picking up now?you have to watch the whole movie to see that we have the technology so that ever person in this world can be comfortable.without any oil.barbados banks use this practice.
we are in slaved to the banks and the government .for ever.
most of you idiots ignore it that is why it is how it is.

don’t forget to pay your tax and interest ya hereeeeeee.
now with these comments still coming fast and the movie being 2 hours long i see you have put your government blinders on.proceed discussing what is
all a lie.your decision.!!!!!!!zeitgeist addendum. .

NIS cannot put all it’s eggs in one basket, not even if it is the Government’s basket. Do you recall that Government had a considerable sum in BL&P which was earning far more than 2.5% and it chose to liquidate the shares by selling to Emera and banking the money at 2.5%. Government is really not making any sense.

Someone said that Chris Sinckler is out of his depth on financial matters. That statement is only partly true: have you found an area where Chris is able to keep his feet on the ground. He is out of his depth in all areas.

For those more eagerly interested…..kennied even.
Financial leverage refers to the use of debt to acquire additional assets. Financial leverage may decrease or increase (ROE) return on equity in different conditions. Financial over-leveraging means incurring a huge debt by borrowing funds at a lower rate of interest and using the excess funds in high risk investments in order to maximize returns.
Using OBF can obscure or “present a better than really is ” picture to a less than prudent scrutineer (not S&P)…. in the end we are only fooling ourselves, it is what it is.
“Buried debt must be retrieved one day.”
Pro. Sadus Odemudea

Corporate finance

Degree of Operating Leverage (DOL)= (EBIT + Fixed costs) / EBIT

Degree of Financial Leverage (DFL)= EBIT / ( EBIT – Total Interest expense )

Degree of Combined Leverage (DCL)= DOL * DFL

Accounting leverage has the same definition as in investments.Tell Gen. Custer time to stop giving natives fire water and whispering sweet nuttings in their ears…..Leverage what…you loading peace pipe with gunpowder..

@Caswell, Hal et al

If the government leaves the money in the local banks is there risk?

If the government invest in global investments in the prevailing climate what is the return?

If the government sends home people are we prepared to accept the consequences? Afterall it is one of the ways to significantly reduce public expenditure.

Do we accept Sinckler’s view that the fund is no more exposed than under the BLP i.e 70%

let us not get carried away by political biases and political retoric

first
NIS money is not the governments money, it is the Workers money controled alledgly by the government , the unions and the private sector. it is truely a 3rd world event when one group of directors speak on behalf of all three.

second
if the fund is overflowing with money then the contributions should not havwe been raised notr the retirement age increased. the age is now 67 and the original plan was and will be in the future to raise it to 70. Taking into account that the average life expectancy in barbados is 72 then there is not much pension to get at all.

third
politicians like most persons that see alot of money sitting in one place find ways to spend it in ways they think is better spent than what it was put there for

fourth
would you or they treat their personal retirement savings in such a way? investing in project that have more of a social/ Political benifit than financial.

FOOD FOR THOUGHT

@ David | August 22, 2012 at 10:26 AM |
“Do we accept Sinckler’s view that the fund is no more exposed than under the BLP i.e 70%”

How can we in the absence of reliable financials to confirm his political verbal emissions? Let us see the financials to support any objective analysis.
It is almost 8 months into 2012 and we still can’t get the 2010 financials out of this incompetent NIS Board which is totally in breach of the Act.