Not So Fast Justin Robinson!

BU has not had the opportunity to thoroughly review the delayed release by government of the 15th Actuarial Review of the National Insurance Scheme. It is a very important fund- a safety net and lifeline- hence the reason BU has been uncompromising in our calls for transparency in the management of the fund.

The inability of the fund to publish audited financial statements in recent years highlights a level of incompetence that is informed by a separate blog. To be fair to the NIS management the unacceptable situation has straddled both political administrations and mirrors the wider state of public sector poor financial management. See a decade of Auditor General Reports.

In response to the findings recorded in the actuarial review the Chairman of the National Insurance Board Justin Robinson felt duty bound to release a statement to the traditional media. Unfortunately our resident actuary Walter Blackman appears to have been silenced after receiving a ‘pick’ with the government owned and controlled Caribbean Broadcasting Corporation (CBC). It seems BU will have to forego his analysis of the actuarial review in this forum. We hope not!

BU’s comment on the Chairman’s response is anchored in commonsense. Chairman Justin Robinson admits what we know, the government is unable to earn adequate foreign dollars to effectively and efficiently manage the issue of portfolio diversification i.e. accept the recommendation to reduce local holdings from 75% to 50%.  What his explanation confirms is that the NIS Fund is under threat from the risk of heavy local concentration in the domestic market, especially government paper, an anemic economic performance and concomitant low yield on investment.

The public relations tactic of the Chairman will satisfy the political partisans, however, independent minded Bajans AND vested actors remain unappeased.

 

Statement from Chairman of the NIS Justin Robinson

99 comments

  • Independent minded bajans and vested actors remain unappeased. Especially when in a nano second the Minister of Labor, the member of a cabinet that has consistently lied to the country attempted to pour cold water on the predictions of the economist lady from Trinidad.

    Like

  • Time and again we were treated to Minister Kellman’s convoluted logic as to why it made sense to dip their hands in the people’s “rainy day funds”. Hard cash repaid in practically useless government paper. Should this fund go belly up, I propose the take over of moon town.

    Like

  • We have been trying to tell people on this blog for years that there is a deliberate international determination to transfer public assets into private hands. But nobody will listen.

    Those efforts take many forms. Whether it is perceived investments in mutual funds, like the Sagicor family, or alleged and currently useless government paper to fund concurrent fiscal deficits, or private sector projects like Four Seasons. The results are the same.

    Under any and all guises these public assets are to end up in private hands. How else can the neo-feudal state take form unless a few people have all the resources and the state or public assets are liabilities to be rid of?

    Like

  • @ Pacha
    We have been trying to tell people on this blog for years that there is a deliberate international determination to transfer public assets into private hands. But nobody will listen.
    ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
    What do you expect?

    The very genesis of albino-centric philosophy is for those that ‘have’, to do all in their (increasing) power to take away from those that have only little.
    It is how we DEFINE ‘success’.
    This is really another pyramid scheme where, in the initial stages – where there are hoards of gullible brass bowls available to be fleeced, it appears to work extremely well – and we call it Capitalism.
    Like all pyramid scheme however, time runs out – and it reaches the stage where the ‘haves’ can only continue the game by taking away the very livelihoods ..and even the lives, of the increasingly downtrodden.

    It is where we have reached.

    “No one listen” because even the poor, hopeless, downtrodden brass bowls have been sold on the warped, albino-centric, pyramid philosophy, ….and instead of CHANGING THE NATURE of their ways, they concentrate on schemes to rob and exploit OTHERS… who are EVEN MORE depressed than they are… much like crabs in a barrel.

    The ‘deliberate international determination’ of which you speak is a global, Satanic, spiritual, dark, anti-BBE attempt to distract BBBBBs (especially the black ones who retain some small community-centric inclinations) from their TRUE and righteous heritage.
    The REAL issues of this world are NOT flesh and blood – they are spiritual in nature and the dark forces have been allowed the upper hand of late….

    Who do you expect to listen…?

    Like

  • “Chairman Justin Robinson admits what we know, the government is unable to earn adequate foreign dollars to effectively and efficiently manage the issue of portfolio diversification.” This is the central sentence in the text. Those telling foreign currency does not matter or a low level is OK are completely wrong. Foreign shares create interest in foreign currency. With 2 billion USD foreign shares, Barbados could create every year 100 million USD foreign currency in interest. Without any doubt, the NIS is one of the worst managed funds in financial history. This is the main reason why the offshore financial sector is collapsing. Foreign investors simply distrust the Barbadian ability to manage financial affairs at all.

    No foreign currency, no social welfare. After next election, the public debts in BBD will be restructured at the detriment of NIS. No more pride and industry for Barbadian pensioners, but cry and misery. Broad Street will be their choice to beg the few remaining tourists for food and clothes.

    Liked by 1 person

  • “Unfortunately our resident actuary …”

    This is one of the reasons why I find it hard to believe that things can or will be any different.

    We know the problems; we have the brains to solve these problems but demonstrably able and capable men/women go MIA or refuse to sign-up. We will end up with our usual choice the lesser of the two evils,

    Like

  • @ TheGazer
    Enuff is to blame… 🙂

    He has convinced Walter that the way to contribute …is to join an existing political party – even though they are both agents of the Devil – and then to work his way to the top….
    As we speak, Walter is being brainwashed by Kellman, Stinkliar and Froon….

    Walter foolishly took Enuff’s advice – ALTHOUGH Bushie always take pains to point that Enuff is ALWAYS wrong. …He was wrong about CSME;…He is wrong about Bushie; …and he is wrong about the BLP.

    Enuff is not a bad fella …. but the road to Hell is paved with ‘good’ intentions.

    #dontmindenuff
    LOL
    ha ha ha

    Like

  • Look at the kind of persons this curse DLP cabinet get to help them destroy Barbados . Who is Justin Robinson ? what can our so called resident actuary Walter Blackman say after wasting 20 plus years, now back, trying to PICK bones

    Like

  • @ Tron September 7, 2017 at 9:32 AM #
    “Those telling foreign currency does not matter or a low level is OK are completely wrong. Foreign shares create interest in foreign currency. With 2 billion USD foreign shares, Barbados could create every year 100 million USD foreign currency in interest. Without any doubt, the NIS is one of the worst managed funds in financial history. This is the main reason why the offshore financial sector is collapsing. Foreign investors simply distrust the Barbadian ability to manage financial affairs at all.”

    Couldn’t agree with you more!

    What the bullshitting chairman has to explain is why was the investment in the local privately managed BL&P liquidated and what was done with the proceeds.

    How can a fund such as the NIS squander the right to hold a crucial investment in a long-term economically viable national strategic asset such as the country’s main electricity generation and distribution utility?

    Dr. JR is nothing than a quack and a disgrace to the academic discipline to which he likes to associate.

    Like

  • Are we happy with the governance framework at the NIS? How was the decision arrived at to guarantee the Paradise Beach loan that was called by the finance company? How was the decision to dump shares in BL&P arrived at? What were the circumstances that led to the departure of Tony Marshall who landed a cushy High Commission job in NY.

    Like

  • @ Miller & David

    Steupsss … why wunna don’t leave the man alone nuh?
    He did not mek himself….

    Justin had a well established reputation LONG before being used by the DLP to F*** up the NIS, Central Bank, and wherever else that they have used him to create chaos…..

    IT IS WHAT HE DOES BEST…

    A simple check with ANYONE at his base on ‘the hill’ would have confirmed this fact.
    CLEARLY then, he was CHOSEN by the DLP, NOT with any expectation of successful management of these entities….. but merely to talk shiite (with an accent) and to bullshit BBBBBs as he has been doing for YEARS now….

    JR is just Dennis Kellman with an accent….

    Like

  • And he has a seat on the Board of the Central Bank, a dirctor if you please. You are right Bushie…….brass bowls they all are.

    Liked by 1 person

  • The smoke screen continues…..simply a new verse to the same old song. All the while avoiding the KEY issue, a CURRENT annual report. All an actuarial review or the auditor general can do, is highlight the delinquency of management and the Board in managing and reporting. As long as this delinquency continues, the truth remains hidden.

    We like it so……

    Like

  • millertheanunnaki

    @ NorthernObserver September 7, 2017 at 1:16 PM

    Why should the Board take its fiduciary responsibilities seriously when the ministerial supernumerary, i.e. the MoL, can heap blame on workers pretending to be sick without the obvious collusion of the medical profession or can cast aspersions on those recalcitrant ‘small-fish’ employers while exculpating the biggest employer the government on the grounds of cash-flow challenges?

    The burning question is why aren’t the members of the NIS Board not being disciplined or subject to the penalties for breaching its fiduciary responsibilities as enshrined in the legislation governing the same NIS?

    Shouldn’t those blatant and consistent breaches of the law caused entirely to an incomparable genre of incompetence and negligence afflicting the members- with the chair the chief artist- be put in the same category of those employers who deduct contributions from the wages and salaries of employees but who refuse, in the most illegal and morally despicable way, to pay it over to the NIS?

    Like

  • There is a certain level of stupidity that is hard to understand.

    Communists, socialists and other blockheads keep insisting that we TAX people so that (corrupt) governments can use the money build up portfolios of PUBLIC ASSETS. These same socialists will fight tooth and nail to prevent any return of these public assets to private hands.

    But what does that mean for the average taxpayer? It means tremendous financial losses. Take the concept of pension funds. The government DEDUCTS money from my paycheque to build up the balances of a pension fund. After paying out a substantial part of the fund in building rents and salaries for paper pushers and financial advisors, they invest most of what is left in LOW-RETURN BONDS that earn interest revenues of 2 or 3%. They will use some of these revenues to pay me a MINISCULE government government pension.

    HAD THEY NEVER DEDUCTED ANY MONEY FROM MY PAYCHEQUE, I could have invested the money myself in an exchange traded fund that tracks the WHOLE STOCK MARKET. The average annual return on that fund would be 15% to 20%.

    Why the f— do I need the government to make me a poor old man?

    Like

  • The MoF is on record as saying that he is comfortable making decisions based on the management reports so no need to worry. This is the mentality we have to tolerate swirling in high places.

    Like

  • JR also f.. up his children mother ( not the wife he showed off on face-book ) a woman from lodge hill that have 2 girls for him , before he become Dr.

    Like

  • @chad99999

    Does every adult possess the finacial and other acumen to do as you suggest?

    Like

  • millertheanunnaki

    @ David September 7, 2017 at 2:46 PM
    “The MoF is on record as saying that he is comfortable making decisions based on the management reports so no need to worry. This is the mentality we have to tolerate swirling in high places.”

    Those management reports are just works of fiction just like the many projects that have been announced in the MoF’s budgetary harangues over the last 6 years.

    Can you remember the many projects which were supposed to – the economy and with these airy-fairy big-ticket projects like the Cruise Ship Terminal, the Pierhead marina, Andrews sugar cane project and the game-changing Hyatt erection earmarked to earn the foreign exchange necessary to ensure the comatose economy is firing on all cylinders.

    Those NIS management reports so reliably informing the decisions of the IMF would only be of value if the projections are compared with actual outturns or performances.

    So if there are actual results on hand and are being relied upon to make so-called informed decisions concerning the future investment of the funds why is it taking so long for the auditors to sign off to affirm that those management representations as being ‘true and fair’ views on the financial health of the various funds?

    Like

  • Bernard Codrington.

    @ David

    In a previous blog I think I had posited the view that the BOD of the NIB are doing the best they can,given the circumstances within which they operate.

    GoB bonds offer a higher rate of return than the traditional foreign investments. It seems rational to invest in G o B bonds in order to fulfill the required rate of return set by the Actuarial Report.

    Secondly ,foreign investments can only be made in foreign currency . Contributions to the NIF are not made in foreign currency. Contrary to a submission above, the GOB does not earn foreign exchange .The Private Sector does.

    There is also a downside risk to foreign investment due to falling rates of return in the foreign capital markets and depreciation in the exchange rates in which investments are made.

    GoB bonds are not worthless. They will be, only if the GOB defaults on payment when due . Has that happened?

    Ratings by international rating agencies is just another opinion. Very often their predictions are wrong.

    Like

  • @miller

    you know this will never happen. It rarely happens anywhere. These board jobs are mostly political in nature. You select friendly “yes” men and women who will follow the lead.

    The MoL is a politician, so one expects political spin and deflection, with potentially minimal understanding of the issues. The Board and management are held to a higher standard.

    Like

  • @BC
    “In a previous blog I think I had posited the view that the BOD of the NIB are doing the best they can,given the circumstances within which they operate.”

    Given the plethora of professionals available in Barbados, how can one posit the absence of an annual financial report since 2009 could be described as “doing the best they can”? Is it a lack of money, a lack of people, or a lack of will?

    Like

  • millertheanunnaki

    @ Bernard Codrington. September 7, 2017 at 3:12 PM #
    “In a previous blog I think I had posited the view that the BOD of the NIB are doing the best they can,given the circumstances within which they operate.”

    B C, you can waffle and spin as much as you like.

    How can you be so cocksure about the outstanding performance of BoD of the NIS?

    The perennial absence of objective evidence in the form of reliabl,e unbiased and attested financial reports can only create an air of suspicion and indeed concern about the financial integrity of the scheme.

    What you need to address is why did the same BoD go along with the liquidation of the investment in the BL&P.

    Wasn’t this a decision infused with abject madness indicating a clear sign of desperation underscored by the continuing spectre of serious cash flow challenges?

    Like

  • @Bernard

    Expected better from you.

    Our foreign reserves was not always bare. It is not only about yield, there is also pure risk to effectively manage to protect against loss because of poor domestic economic performance. Jusst as we are currently experiencing.

    Like

  • millertheanunnaki

    @ Bernard Codrington. September 7, 2017 at 3:12 PM
    “Secondly ,foreign investments can only be made in foreign currency . Contributions to the NIF are not made in foreign currency. Contrary to a submission above, the GOB does not earn foreign exchange .The Private Sector does..”

    We can’ let you get away with that bogus assertion made by you!

    If the GoB does not earn forex to be lodged with the CBB why is it so keen to sell assets to foreign entities to earn badly needed forex?

    Why not put the shares for the BNTCL and the Hilton on the market for locals to participate and bring greater economic enfranchisement to the Bajan savers and investors whether corporate or private individual?

    Why were the shares in the BL&P (and prior to that the BNB) sold (back) to foreign owned entities?

    Like

  • Bushie

    Hahahaha I now get to this blog. I advised Walter to join and change it from within, not get consumed with power or a pick. My version of CSME too high for you,, give it up.

    Like

  • Shortly after the 2013 election, it was revealed that the foreign reserves had dropped by 300 million US.

    To this day, Chris Sinckler has never explained to the people of Barbados where this money went or who transferred it out of this country.

    So to say that foreign money could not be found to invest our NIS monies overseas is unbelievable.

    The former governor of the Central Bank should explain why the government insisted on repatriating the money from the sale of the B L & P shares against the wishes of the NIS.

    Tony Marshall’s hands are not exactly clean in this either.

    Like

  • Bernard Codrington.

    I knew my attempt to shift the debate from persons to the real issues would be achieved by my intervention. Mission accomplished.

    The fiduciary responsibility of the BOD of NIS is to the beneficiaries of the Pension and other Social Welfare schemes, not political.

    As far as I know Financial reports are made each month to the BOD, It is on these that investment decisions are made and the periodic Actuarial Reports are based, The absence of audited Financial reports does not imply the absence of proper financial management of the pension fund. It is not my place to defend nor explain the absence of audited reports.
    Dare I say it? Evidence again of administrative bottlenecks.

    Like

  • Bernard Codrington.

    @ Miller at4:16 PM

    The idea of selling Public assets to shore up the foreign reserves is unsustainable and lacking in sound economic reasoning.

    Like

  • Bernard Codrington.

    @ David at 4: 16 pm.
    Should you reread my submission you would understand that the foreign investments were/are under performing the domestic investment vehicles.

    Like

  • David

    We should pay some attention to these climate change induced hurricanes, in our area, around the world. They are all connected.

    Barbuda has been flattened by Irma.

    If we think that hurricane FJS and company are bad we should, at least for planning purposes, superimpose a cat 5, 6 or 7 on top this government’s tenure.

    Just in case!

    Or is god still a Bajan?

    Like

  • As I told before, NIS investments in foreign shares, funds or whatsoever actually CREATE foreign currency. You get dividends and interests in USD, EUR or GBP. All you need is a small initial investment in foreign currency.

    The MoF already talks about “restructuring” government´s NIS debts. How can THIS be a prudent investment for the Barbadian taxpayer? Why do Barbadians need to support the Apes Hill Plantation and the man who insulted Barbadians as “lazy laggards”? Is the NIS the ATM for the ruling planter class or for the benefit of the masses?

    During the dark age of slavery, the master had to PROVIDE clothes and food for his slaves. Today, the taxpayer, the new slave in the age of the social welfare state, has to PAY his master. What a revaluation of all values, as Nietzsche would say!

    Like

  • On another, cynical note, Barbados just lost some competitors in the tourism market …

    Like

  • @BC

    To suggest that internal reports are being produced on a timely and accurate manner, but they cannot find somebody to consolidate, and audit, those reports into an annual report is a reach?

    And the focus seems to have been switched here solely to investments of the various NIS funds. The NIS has several other significant operating divisions?

    Like

  • Bernard Codrington.

    Prodigal son at 6:56 PM

    Would not a simple flow of funds analysis indicate the source of the decline in the foreign reserves ? Did the external auditors comment on the reduction in the foreign reserves? What about the management analysis in the annual Report for 2013?

    Like

  • @Bernard

    You missed the central point, it is not just about yield,it is about risk mitigation as well.

    Like

  • @Pacha

    Yes, it is scary. Then there is the economics of it to consider, cost of reinsurance etc.

    Like

  • And Bernard you are aware there is a reason why we have audited financials versus management reports?

    Like

  • Bernard Codrington.

    Northern Observer at 7 :46 PM

    I am suggesting no such thing. The accounts are produced by management and presented to external auditors for testing as a reasonable and fair report of the financial operations of the NIB. Neither you nor I know where the failure to complete the audit and publish the report is.

    Like

  • Bernard Codrington.

    @ David at 8 :34 PM

    Without appearing to boast, I do have more than a nodding acquaintance with the process of producing Corporate Annual Reports.

    Like

  • @Bernard

    Good, then you are aware the importance of audited financials for the external actors who have to make investment decisions; inform due diligence by external agencies etc.

    Like

  • David

    A country like Cuba with infinitely less resources, per capita, has ways to save every human, animal from hurricanes.

    Like

  • There is no evidence that Irma is a climate change induced hurricane.

    We were told years ago that hurricanes would be more frequent because of “global warming”. That hasn’t happened. Just as there has been no “population bomb”, no global food crisis

    Like

  • Bernard Codrington.

    @ David at 8: 23 PM

    Is it not possible that the portfolio manager thought that he was mitigating the risk of a reduction in the value of the investment portfolio by repatriating the funds?

    Like

  • @Bernard

    Anything is possible. We would want how our most important fund is being managed validated by the external player as is required by statue.

    Like

  • Bernard Codrington.

    @ David

    Who are these external actors of the NIB who are concerning themselves with due diligence?

    Why do you think I should be defending the absence of NIB audited accounts?

    Like

  • Bernard Codrington.

    I an sure that the officers at NIS will answer all these queries. The external auditors express an opinion on the fairness of the accounts NOT the validity of them.

    Like

  • @chad99999 September 7, 2017 at 2:32 PM “paper pushers and financial advisors.”

    Paper pushers and financial advisors…such as yourself

    Managed to f up an economy as large as that of the U.S.A.

    So why do we expect that wunna will do better here?

    Like

  • After the whole discussion it became clear for me that the NIS won´t be a good source of income for retired Barbadians in the future.

    So what about the big fat pensions of cabinet ministers, judges and civil servants? Why not reducing them by 50% if the rest of the country is in misery? Why do these people not pay for the clubhouse on Apes Hill Plantation? Why must the masses pay for the white tourists and the local aristocrats lean back?

    Like

  • millertheanunnaki

    @ Bernard Codrington. September 7, 2017 at 9:03 PM #
    “I an sure that the officers at NIS will answer all these queries. The external auditors express an opinion on the fairness of the accounts NOT the validity of them.”

    OMG! Just can’t believe you have taken pride in authoring that ‘quoted’ statement.

    Fair: “In accordance with the rules or standards; legitimate”.
    Validity: “the quality of being logically or factually sound; soundness or cogency; the state of being legally or officially binding or acceptable”.

    How can the accounts be assessed as ‘Fair’ and not being ‘Valid’?
    Externally-audited accounts are used to inform stakeholders about the performance of an organization to assist potential investors or lenders in their decision-making processes.

    So why would owners of business enterprises, those with ‘vested’ interests or potential investors in a business enterprise involving the undertaking of legal contractual relations not be insisting that the audited accounts of that entity ought to be relied upon as being “fair and valid” in order that the information contained therein is the ‘best’ that their money can pay for?

    Like

  • Simpleton

    The stock market tanked for ONE YEAR. After that, recovery. Capitalism is still plagued by economic downturns, but downturns are followed by upturns.

    Like

  • When a financial auditor reports that financial statements are “fairly stated”, he means that in his opinion there is REASONABLE (but not ABSOLUTE) ASSURANCE that the account balances reported are VALID (i.e., they are not fictitious or overstated) and COMPLETE (there are no material omissions).

    Like

  • @ Chad
    ….he means that in his opinion there is REASONABLE (but not ABSOLUTE) ASSURANCE that the account balances reported are VALID…
    ++++++++++++++++++++++++++++++++
    Perhaps it SHOULD mean that….but…

    What it really means is that “this is what the directors told him” and he is clearing himself and his firm with the following LONG list of legal exemptions…..

    Most auditors have VERY CLEAR indications of fraud and misuse of funds by directors and administrators, but make the decision to ‘keep the auditing pick’ and leave it to shareholders to fend for themselves.

    ANYONE who tells us that the CLICO auditors were unaware of the lotta shiite being done by LP and his cohorts will be found to be either an idiot or a politician …. or both.

    Liked by 1 person

  • fortyacresandamule

    Does the NIS still has a positive net flow? And if yes, how long before it turns negative?

    The lack of a credible public financial accountability law with strict enforcement and heavy punishment is the reason why public bodies operate with the impunity they do. The auditor general’s report is seen as a nuisance to these government boards.

    Like

  • @fortyacresandamule

    There is enough local knowledge tacit and otherwise that the ebb and flow of cash is contributing to delays in the payment of benefits.

    Like

  • Let’s try another short of reports….BNOCL

    bnocl.com…..account suspended? Or is it my connection?

    Like

  • A case where for whatever reason the domain name has not been paid. Could be accidental or not…

    Like

  • What does BC call it….administrative bottleneck.

    Like

  • If auditors are professionally negligent they can be sued for damages.

    Like

  • @ Chad
    Who will sue them…?

    Have you seen the latest audit letters…?
    shiite man… there are so many legal loopholes that anyone who can afford to sue an auditor is rich enough not to need to bother…

    …or was THAT the plan all along?

    Like

  • fortyacresandamule

    @David. Are you saying delay in payments are a result of a negative cash flow of NIS operation? The last actuarial report I saw predicted that payment benefits would outstrip contribution in the late 2020s.

    Like

  • Chad,
    Never thought I will say this, but I agree. If an auditor is found professionally negligent the regulator can fine them, ban them permanently fore for a set period. Just look at the number of listed companies forced to re-state their accounts.

    Like

  • fortyacresandamule

    @Chad. That might be in theory. Rarely does the accounting profession been held to account for their failure in the many finacial collapse and scandals. They always seemed to pass the buck.

    Like

  • What about Arthur Anderson, accountants for Enron?

    Like

  • Just watching CNN. We do not need Irma. We have Chris, like a hurricane category 5. When he comes he is hot und wet and when he leaves he takes your house and car with you.

    Like

  • @Fortyacresandamule

    If the government continues to pay its day to financial obligations in paper and not cash what do you think will result?

    Like

  • @ David,

    Thinking of our Bajans in Florida. Hope Dr. Georgie Porgie and his family will be ok.

    Like

  • @Hants

    Yes, we have a few located there who frequent the corridors of BU.

    Like

  • fortyacresandamule

    @Hal. The BIG FOUR accounting firms have gotten away with murder during the last finacial crisis. While most people raged and heaped scorn on bankers and the credit rating agencies, the accounting profession was overlooked at best or given a pass at worst.

    They collected millions/ billions in fees over the years, signing off on worthless balance sheet assets and divided payouts. KPMG was Madoff’s auditor for years. This example alone tells me that KPMG was in collusion with the Madoff’s ponzi scheme or they were grossly incompetent.

    Like

  • In the Madoff case KPMG was apparently fooled by fake records prepared by Madoff’s accountants.

    In most audits, the auditee pays the auditor’s fee. Conflict of interest. Paves the way to corruption. But not all auditors are corrupt and the penalties for getting caught can be severe.

    Like

  • Incidentally, Madoff’s auditor was Friehling & Horowitz . Not KPMG. KPMG audited organizations that did business with Madoff.

    Like

  • @ Chad
    But not all auditors are corrupt and the penalties for getting caught can be severe.
    ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
    Steupsss…
    …and not all BU regulars are naive either.

    The same can be said for politicians, lawyers, …even drug dealers and murderers.
    Not all are corrupt, …and the penalties for getting caught are severe…

    BUT WE ALL KNOW that the NON-corrupt level among these scamps is less than 10%.
    It is even less for auditors….. because they do it, not by commission, but mostly by omission.

    It looks like you have clothes hung out to dry and looking for rain…

    Like

  • 40acres,
    Agree.

    Like

  • Below is a statement from Deloitte’s Fairness Opinion on the $2.86 offer for Cable & Wireless Barbados shares. Some of those shares are owned by the NIS. Did the NIS accept the offer?

    “Deloitte has relied upon the completeness, accuracy and fair presentation of all the financial and other information, data, advice, opinions or representations obtained by it from management of CWB and through materials obtained in the public domain (collectively, the “Information”). The Fairness Opinion is conditional upon the completeness, accuracy, and fair presentation of such information. Deloitte has not attempted to verify independently the completeness, accuracy or fair presentation of the information;”

    Like

  • @Alien

    Besides the issue of probing the low offer by CW and the negative impact on pension and other funds in Barbados if the transaction is consumated are you also questioning the fact Deloitte’s

    relied upon the completeness, accuracy and fair presentation of all the financial and other information, data, advice, opinions or representations obtained by it from management of CWB and through materials obtained in the public domain (collectively, the “Information”).

    Like

  • I am questioning the value of an opinion where “… Deloitte has not attempted to verify independently the completeness, accuracy or fair presentation of the information;”. For the basic annual audit, independent testing is conducted – why not for such a significant transaction?

    Like

  • It is good to know all these details about the history of NIS, indeed. These details are very important for future investigations about criminal and civil liability.

    However, two figures are politically responsible for the whole mess:

    Sinckler as MoF and Blackett as Minister of Social Care.

    Like

  • @Alien
    “Deloitte has relied upon the completeness, accuracy and fair presentation of all the financial and other information, data, advice, opinions or representations obtained by it from management of CWB and through materials obtained in the public domain (collectively, the “Information”). The Fairness Opinion is conditional upon the completeness, accuracy, and fair presentation of such information. Deloitte has not attempted to verify independently the completeness, accuracy or fair presentation of the information;

    You have forced me to expose my ignorance in these matters… So what did this company do “just add up and subtract numbers provided to them”. Just a rubber stamp?

    Like

  • @ Bush Tea September 9, 2017 at 6:44 AM
    “It is even less for auditors….. because they do it, not by commission, but mostly by omission.”

    Maybe that explains why the Bajan NIS is unable to publish audited accounts and annual reports for so long a period.

    There maybe more in the ‘payouts’ mortar than the ‘contributions’ pestle of possible fraud and financial infelicities to which the auditors might not wish to cover up as in the case of CLICO and lessons learnt by their international parents.

    After what has been highlighted by the Auditor General’s reports over the years you should not put past you the high probability of the pervasiveness of such financial improprieties existing where large sums of money are flowing in and out of a government organization saddled with incompetent and weak managers and supervised by a board of cowards loyal only to their political masters and the monthly stipends as their spending money to feed their conspicuous consumption style of living.

    It boggles the mind how a country so ‘superfluously’ endowed with technocrats in the field of finance and accounting could allow such a state of pure incompetence to exist for so long with a national financial institution on which so many honest and hardworking people depend for support in time of sickness, unemployment and old age.

    Like

  • When estimates are made, the end result is usually a set of possible outcomes with varying likelihoods. An expected value, along with higher and lower possible outcomes, is determined. I assume that Deloitte used the data provided to calculate the possible outcomes, which are only as good and the data used. If the range is from say $2.85 to $10.00, as $2.86 is within the range, it is considered fair.

    Like

  • This was also the case for Light & Power, where the indicated value was from about $25.00 to about $33.00 and the fairness opinion concluded that the offer of about $25.00 was fair. Fair to whom?

    Like

  • An alternative approach to measurement that seeks to capture changes in asset and liability values over time. The International Accounting Standards Board (IASB) defines fair value as "… an amount at which an asset could be exchanged between knowledgeable and willing parties in an arms length transaction".

    Fair Value Accounting Definition from Financial Times Lexicon

    Like

  • C&WWI is offering $2.86, which it represents as fair, for the remaining shares of C&WB. Would C&WWI accept $3.00 for its C&WB shares from another equally knowledgeable party, such as Digicel? By C&WWI own analysis, $3.00 would be above the fair value and represent a more valuable asset than the C&WB shares.

    Like

  • Maybe Mr. Robinson should approach other potential major investors to join the NIS and make a bid for all C&WB shares?

    Like

  • It is time for the NIS to act like a $5 billion lion in the market and stop taking leftovers like a scavenger.

    Like

  • @fortyacresandamule September 8, 2017 at 11:23 AM #
    Does the NIS still has a positive net flow? And if yes, how long before it turns negative?

    I am catching up on my reading. According to the IMF report, expenditures exceeded contributions in 2013. The prior Actuarial report has estimated 2024.

    Like

  • What is the news on the “debt re-profiling” mentioned by the MOF in the budget? This means lowering the interest rate paid by the GoB, and since 75% of the NIS Investments are in GoB instruments, this would lower the revenue to the NIS (which takes some of the air out of BC’s argument of higher returns).

    The MoF also referenced something to the effect, this interest reduction would reduce the “outstanding arrears” amount owed to the NIS. Another prime reason we need an Annual Report, for he admits the GoB has been tardy in paying the NIS (something suspected all along).

    Like

  • @ Alien
    Maybe Mr. Robinson should approach other potential major investors to join the NIS and make a bid for all C&WB shares?
    ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
    Which Mr Robinson Boss….?

    Name ANY single attribute that he has EVER demonstrated …that would suggest that he is capable of initiating such a common sense move….

    Like

  • The challenge for Justin Robinson is that in his role at the UWI, Cave Hill he has to approach some of the same entities to try an secure sponsorship and donations. -aconflict of interest perhaps?

    Like

  • “Unfortunately our resident actuary Walter Blackman appears to have been silenced after receiving a ‘pick’ with the government owned and controlled Caribbean Broadcasting Corporation (CBC). It seems BU will have to forego his analysis of the actuarial review in this forum. We hope not!”

    David,
    I am not in Barbados at the moment. Do you have access to a copy of the 15th actuarial review of the NIS? I searched the NIS website – in vain.

    Like

  • @Walter

    No, we asked but a few copies we understand were shared with a select few in the traditional media.

    Like

  • David,
    Thanks. I will reserve comment until I have seen and read the report.

    Like

  • @Walter

    The plan by government to do a debt swap by reissuing government paper at a lower interest rate merits your input until we get our hands on the actuarial report? Come on Walter we need your expertise here. Wouldn’t reducing interest rate as proposed adversely impact fund yield AND cash flow? Let us hope the recent actuarial report factored the latest Sinckler plan. If you should want to write on it send an email for next rotation.

    Like

  • “Wouldn’t Reducing interest rate as proposed adversely impact fund yield AND cash flow?”

    Sorry, what is this? Are we talking about the NIS?

    Like

  • @Blogmaster
    the MoF didn’t say ‘debt swap’, he said “debt re-profiling”, which without specifics has been taken to mean a haircut to existing debt holders, which would include the NIS. The MoF also made some mention of (my words from memory) ‘this re-profiling decreasing the current owing to the NIS’; thereby hinting there was some tardiness/arrears in payments to NIS.

    Like

  • @NO

    Thanks for the correction, the mind automatically attached debt to swap based on the MoH’s mouthing as quoted below taken from his budget delivery:

    “possible swap programme where they and government can reissue some existing securities in their portfolios at lower interest rates agreed by the parties,” this would save the government a whole lot of interest.”

    Like

  • Pingback: Who is Dr, Justin Robinson Trying to Convince? | Barbados Underground

Join in the discussion, you never know how expressing your view may make a difference.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s