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Time to hold former NIS Chairs Accountable

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Submitted as a comment by NorthernObserver

Under its economic reform programme and arrangement with the International Monetary Fund, Government has committed to submitting NIS financial statements for the period 2010 to 2021 for audit by the Auditor General by March next year – Nation

Nation Newspaper
Johnny Cheltenham
Sir Richard Cheltenham, Q.C.: 2005 to 2008
Jepter Innce - former Senator
Mr. Jepter Ince: 2008 to 2009
Sandra Forde - former General Manager Transport Board
Ms. Sandra Forde: 2009 to 2010
Tony Marshall - Former President of Barbados Cricket Association
Mr. Keith “Tony” Marshall: 2010 to 2011
Justin Robinson, UWI
Dr. Justin Robinson: 2011 to 2018
Minister of Tourism
Mr. Ian Gooding-Edghill, M.P.: 2018 to 2020
Leslie Hayne - lawyer
Mr. Leslie Haynes, Q.C.: 2020 to Present

This is the date by which a new entity must be up and operational, to avoid sending anything to the AudGen.

If the BTMI is any example, anything issued will be “unqualified”, meaning auditors have deemed the information incomplete, and hence cannot ‘qualify’ (have any minimum level of confidence in) their report.

BUT, the editor who penned for the Nation needs to also know, what the Act governing the NIS says.

33.(1) The Board shall
(a) in each year prepare a report on its activities in its last preceding year and shall furnish such report to the Minister no later than the thirtieth day of June

(b) submit to the Minister every account, certified by the Auditor-General pursuant to Section 30, together with the report of the Auditor-General thereon, within one month of certification; and

(c) submit annually to the Minister an account of the securities in which moneys forming part of the Fund are for the time being invested

(2) The Minister shall cause a copy of every report of account submitted to him pursuant to the Section to be laid on the table before both Houses.

Hence, there has never been any reason why audited (or otherwise) financials have delayed (a) and (c), albeit, without detailed specificity, the investments of the NIS funds have appeared on their website(s) from time to time (as reported by the NIS)

The Editor needs to contact those various Board Chairs from 2006 on, and seek explanation on 33(a). Did they submit such to the Minister? If they did not, why not? And if they did, we now have a legal issue (failure to comply with the Act) as to why such reports were not ‘laid on the table before both Houses’ by the Minister receiving them.

Sir Richard Cheltenham, Q.C.: 2005 to 2008
Mr. Jepter Ince: 2008 to 2009
Ms. Sandra Forde: 2009 to 2010
Mr. Keith “Tony” Marshall: 2010 to 2011
Dr. Justin Robinson: 2011 to 2018
Mr. Ian Gooding-Edghill, M.P.: 2018 to 2020
Mr. Leslie Haynes, Q.C.: 2020 to Present

NIS-Pension-Reform-2022-NISDownload

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190 responses to “Time to hold former NIS Chairs Accountable”

  1. Bush Tea Avatar
    Bush Tea

    Accepting one of those high profile appointments adds to status. It is more than money.
    ~~~~~~~~~~~~~~~~~~~~~~
    Well we all know the consequence of climbing high on the ‘status’ ladder when it comes to “donkey exposure”…

  2. William Skinner Avatar
    William Skinner

    @ Bushie
    True. My point exactly. My Brother we are back to where we started. Reaping what we sow.

  3. NorthernObserver Avatar
    NorthernObserver

    They are not being ask to give account 15 years later: the question is did they account via the required report at the time? Yes or No.

  4. David Avatar
    David

    @NO

    Maybe it will come up in the Senate debate, surely independent Senators should feel no pressure to maintain the status quo, after all it speaks to them being independent?

  5. NorthernObserver Avatar
    NorthernObserver

    David
    I wouldn’t bet on it. The Cabal is closing ranks. Note the deafening silence from most opposition groups.

  6. Yolande Grant - African Online Publishing Copyright )c) 2023. All Rights Reserved. Avatar
    Yolande Grant – African Online Publishing Copyright )c) 2023. All Rights Reserved.

    “What we can’t seem to get, are persons with high enough INTEGRITY to demand such accountability.”

    The supporters have none and will never demand any, their fellow mps etc have none…and too compromised to demand any….evabody got sumting on evabody else.

    Even worse what weee witnessed over many years…those who tried to expose these crimes were ridiculed, laughed at., called liars and an attempt made to reduce the. by hypocrites and supporters..

    Remember what happened to Don Blackman and others who tried to take an ethical stand….they paid the ultimate price.

    The best thing that happened to them and the population…they all got corralled into one space…ya cant tell a US court ya too big and untouchable for accountability, ya only get away with that in go nowhere Barbados….ask Donville, 50lbs lighter…all of them dragging around a big gut could do with the weight loss…

    I take it the trips to US will be cut in half by yearend too…nuff WELCOMED changes in the future.

  7. Yolande Grant - African Online Publishing Copyright (c) 2023. All Rights Reserved. Avatar
    Yolande Grant – African Online Publishing Copyright (c) 2023. All Rights Reserved.

    Just saw a clip…Caswell and Lynette vow to expose the crookery at the NIS tonight..7pm..

    John… the lawyer for the 4 seasons scam has the starring role ..ya should not miss it.

    Details on 789 Whatsapp group.

  8. John Avatar
    John

    Yolande Grant – African Online Publishing Copyright )c) 2023. All Rights Reserved. on August 9, 2023 at 9:17 AM said:
    Rate This

    I take it the trips to US will be cut in half by yearend too…nuff WELCOMED changes in the future.

    ++++++++++++++++++++++++++++++++++

    How would “Marsdon” Gibson avoid the jurisdiction of a US Court?

    Wasn’t he an officer of an actual US Court, probably sworn to uphold the Constitution … and a US Citizen?

    He may have the goods on many of these defendants and may sing in exchange for a break.

    He resigned, supposedly forced out, so his stint as Chief Justice can’t have left a good taste in his mouth given the swirling rumours surrounding his resignation including one that he was being undermined by various members of the judiciary and legal profession.

    Many of the defendants if they have property in the US, may also be US citizens and be in a similar position of having no choice but to submit to the jurisdiction of the US court.

    Michael Simmons although not a plaintiff, comes to mind.

    Is there any significance in suing all of the Chief Justices?

    Would a Chief Justice have some responsibility for any egregious conduct of an officer of the Court of which he was Chief Justice?

    Definitely intriguing possibilities open to the plaintiffs, I wish them well and will keep an ear out.

    *************************************
    https://www.schlissellawfirm.com/marston-gibson-a-man-for-all-seasons/

    Marston Gibson, A Man for all Seasons
    December 6, 2011 by Schlissel Law Clerk

    Marston Gibson, Esq. is now the Chief Justice of the highest court in Barbados. I know Marston Gibson. Marston served with distinction as a Judicial Hearing Officer (JHO) in the courts of Nassau County. He conducted non jury trials in matrimonial and other civil cases. Marston did a terrific job. He was always dedicated and hard working. I wish him the best of luck in his new position of Chief Justice of the Court of Appeals in Barbados.

    Marston Gibson is a Rhodes Scholar. He obtained law degrees from the University of the West Indies and Oxford University in England. Marston became a nationalized American citizen in the year 1996. Marston had been a lecturer at the University of the West Indies. He taught various courses. One of his students was the former past prime minister of the West Indies, David Thompson.

    Anthony Marano, the Administrative Judge in Nassau County, recently said Marston Gibson was “the ideal employee [with] extraordinary knowledge of the law and a perfect disposition!!” Although Marston Gibson will be the Chief Judge of the independent country of Barbados, his decisions will be subject to review by the Carribean Court of Justice. I wish Marston Gibson the very best in his new position. Nassau County will miss him!

    .

  9. Artax Avatar
    Artax

    But, you know, Gibson did not initially satisfy the statutory requirements to be appointed Chief Justice. Hence, an ammendment was made to the Constitution to facilitate his appointment. So, he was essentially ‘FORCED IN,’ when he was hired.

  10. John2 Avatar
    John2

    IF we didn’t not restructure the debt we probably would have still defaulted befor 2020 because of the lack of fx to pay our debt and bill for imports and services

    IF. We didn’t restructure we couldn’t borrow a penny when Covid hit in 2020 we would have been forced to the IMF on more unfavourable terms. They would have been massive layoffs in both public and private sectors there NIS would have taken a greater hit and would be a lot worse off than it is today. The whole whole country would have be still have not recover as it at this present time
    There would have be a greater risk of devaluation

    IF sinklar had gone to the IMF early and IF thing did work out then the NIS would be better off today an raking in 60mils per year from the government bonds

  11. John2 Avatar
    John2

    Name one foolish person that is am opposition today and then go to the front of the class

  12. John Avatar
    John

    Artax
    on August 9, 2023 at 10:27 AM said:
    Rate This

    But, you know, Gibson did not initially satisfy the statutory requirements to be appointed Chief Justice. Hence, an ammendment was made to the Constitution to facilitate his appointment. So, he was essentially ‘FORCED IN,’ when he was hired.

    +++++++++++++++++++++++++++++++++++++++

    David Thompson died in 2010 which means Froon would have been PM in 2011 when his appointment was made. He then took up office as CJ on 1 September 2011.

    I have googled to find exactly what change was made to the constitution to accommodate the appointment but I can’t find it.

    I remember for sure the commotion about the change but here is an article from March of 2011 in which no mention is made of it.

    Did it really actually happen?

    https://www.nationnews.com/2011/03/27/the-big-interview-chief-justices-task-at-hand/

  13. Hook Line and Sinckler Avatar
    Hook Line and Sinckler

    Devaluation, like demographic factors, is another distraction.
    We couldn’t borrow…end of explanation.

  14. Hopi Avatar
    Hopi

    Does Mr. Adams possess a stellar record of sound investing? Is the Bajan public allowed to know where that US$40M will be invested? Is he going to put that US$40M in Crypto which he once touted, in Vanguard, Blackrock, Futures, Africa, Locally? Are the People allowed to know ?

  15. David Avatar
    David

    There is suppose to be an Investment Committee. The main point here is that all agree investing 80% of NIF is high risk anyway.

  16. John2 Avatar
    John2

    @ hook line

    I had wriien that we could borrow a penny then I erased it. We probably could could have find a loan for a few millions but with very high interest rate

  17. David Avatar
    David

    @John2

    Do you understand that issues being highlighted with the fund started long before 2018?

  18. David Avatar
    David

    Isn’t there something to recommend a body corporate to assist with ring fencing the NIF given the expertise/skill sets required to manage?

  19. Hopi Avatar
    Hopi

    How much GOLD does Barbados possess? I think GOLD would be a good moat for the Barbados economy. Use a fraction of that $US40. Go to the Motherland and I’m sure they would give their offspring a discount and just repeat. Leave that hedge for the children. GOLD like RE is a precious commodity..

  20. Hopi Avatar
    Hopi

    The peutsh leaders of Niger, upon taking control of their nation demanded that the Finance Minister produce the books and that the sccales had better be balanced with the threat of Execution. Still awaiting the outcome. These leaders realised that France, a nation without a pot to piss in neither a window to throw it out, takes the #4 spot in terms of Gold Reserves.

    Are there Gold mines in France? Europe is about to see a real ‘dark’ continent.

    In Barbados, before individuals are appointed to such overlord positions, they will be given a psychological evaluation with a ‘trust-worthy’ inclination. Either pass of fail.

    Such persons would have to declare all assets with the knowledge that such a position of trust, demands that their finances will be microscoped. Furthermore, any irregularities with such govenment entities whilst under their stewardship will result in a forfeiture of all their assets and prison term. They will be required to agree to such stipulations in writing before such appointments.

    Problems solved.

    Only the worthy will fill such appointments.

  21. Hants Avatar
    Hants

    Listening to Brasstacks

    WOMAN ROBBED AT A BUS TOP 1 o’clock in the afternoon.

  22. Yolande Grant - African Online Publish8ng Copyright (c) 2023. All Rights Reserved. Avatar
    Yolande Grant – African Online Publish8ng Copyright (c) 2023. All Rights Reserved.

    You know they never think of Afrikan children and their future, all the crooks in the minority class line up, start making demands like if everything belong to them, and the political crooks from the ,”where is my cut class” start picking up the Afrikan children’s future like if it belongs to them and giving it away or writing off…while their crooked supporters whom it also impacts applaud ….they never ever think about the future of Afrikan children and this must end….ya int see one off the old, old parasitesjust came out telling the fool AG about needing 750K for a roof for St. Joseph hospital, a scam they have used for decades to get free money…while Afrikan children on the island need 750K just to survive..

    Such a system is counterproductive to Afrikan development and has been for 100 years…i reject that level of corruption and INJUSTICE and have no use for it or them…disgraceful and wicked….and will never accept the trash who claim they lead that shite…nor will i ever be under them…a step down…only the ignorant slaveminded admire and enable it….and the criminals who perpetrate it.

  23. John A Avatar
    John A

    @ Northern
    @ David
    @ Bush Tea

    Fellows we could probably safely bet that no papers were filed by the board at anytime objecting to anything and that is under both parties. This mismanagement has spread over both D and B and will continue, so long as laws remains as is. No party wants to ring fence the fund either, because when they need to “borrow” a little $100 million here where else they going run?

    Politicians need to understand that useless paper can not pay pensions. Only hard negotiable cash can. So when the fowls brag about the fund being worth so many billions, understand a LARGE portion of that is useless paper and overpriced real estate, much of which is not even getting a decent rental return. Trust has also been lost in the fund, as young well educated Bajans have watched both parties cripple the fund. So can we blame them for being skittish about putting there money there? Of course we cant.

    So if we dont ring fence the fund and we dont inject $80 million a year into it via the consolidated fund what then? You really feel a little 6 month delay here and a few more installments there going make a difference?

  24. David Avatar
    David

    @John A

    How can we get politicians to become more vested in making better decisions about the NIF. According to the recommendations in the pipeline a corporate entity is the way to go.

  25. Hants Avatar
    Hants

    The Central Bank of Barbados has given the National Insurance Scheme (NIS) permission to invest US$40 million (BDS$80 million) overseas, boosting its portfolio diversification through access to international markets.

  26. David Avatar
    David

    Follow debate in the Senate.

    https://www.barbadosparliament.com/parliament_tv

  27. Hants Avatar
    Hants

  28. John A Avatar
    John A

    @ David

    The best thing in my opinion for the fund is to hand the running of it over to a respected INDEPENDANT pension fund management company be it local or international.

    If that is not done the same foolishness will go on for decades to come.

  29. Artax Avatar
    Artax

    The recommendation of Gibson as CJ, was first announced by Thompson. Apparently, legislation was introduced to ammend the Supreme Court of Judicature Act (not the Constitution), to facilitate his appointment.

  30. John2 Avatar
    John2

    @ David

    Yes I am well aware and I also saw that u mention that to A .

    Some can argue that the debt restructure cause the 1B and there will be correct but everyone that owned any government debt at that time were effected if u look at the bigger pic the restructure was more about the country finances as a whole and not just NIS in a vacuum

    IMO the country finances and NIS are in a better place today that where WE were heading or could had ended up with the onset of Covid

    I support the diversification into foreign investment. Not only for NIS but for individuals/groups .

    All investment will not pan out but the best bet against too much pain is to diversify

  31. David Avatar
    David

    @Artax

    It was well covered on BU, had to do with not meeting ‘commonwealth’ requirement.

  32. David Avatar
    David

    @John2

    Agree there is a symbiotic relationship between the NIF and country finances but the blogmaster remains steadfast there was and still is a systematic matter to be addressed with the Scheme.

  33. David Avatar
    David

    @John A

    Do you agree the proposed commercial entity to manage the fund should be preceded by the decision to take a qualification from the Auditors and move forward? It is not a desirable position to be in but to allow this matter to continue to be a protracted is worse?

  34. NorthernObserver Avatar
    NorthernObserver

    JohnA
    The Act doesn’t care whether the reports are praiseworthy or negative.
    It simply requires the Board to ACCOUNT for their actions and decisions of the prior year.

    Today it’s the NIS.
    Tomorrow Clearwater Bay, because that is the same shite. Never filed a single report but spent $124M taxpayer dollars.
    Next the QEH and on and on.

    This can only continue as long as the citizenry allow it. As long as they don’t demand what is required by law.

    We worked hard as shite on your behalf, but we are not going to tell you what we did. Fuh trute?

  35. NorthernObserver Avatar
    NorthernObserver

    Now that is an about turn. How Bajan of you 😀😀

  36. Hopi Avatar
    Hopi

    Listened to that informative interview. Ms. Hoyte’s questions were very pertinent. Mr.Adams did give much insight to my queries.

    I agree with him that pooling monies is better than going it alone in terms of return.

    Also agree with him on supplementing investments esp. the youth now contributing where possible.

    Depletion projection extended by 16yrs to 2052 is more than enough time to hedge this fund and mandate other protective measures.

    Does ‘no growth’ equate to loss or just stagnation? Exactly where was the loss incurred?

    81% of assets in Barbados, such a small economy with a horrible debt/GDP ratio is like having all your eggs in one puny basket. Not much growth/profit.

    Just clean up the system and continue the cycle. Select the correct oversight board that will report to the public quarterly on exactly the status of the investment. Keep the people informed.

    We were living in a globalised, uni-polar world where a few creamed the top but today we are entering a multi-polar de-globalised world, where those at the bottom will be given opportunity to rise.

    Our investment prospects will improve.

  37. Yolande Grant - Afrikan Online Publishing Copyright (c) 2023. All Rights Reserved. Avatar
    Yolande Grant – Afrikan Online Publishing Copyright (c) 2023. All Rights Reserved.

    “We were living in a globalised, uni-polar world where a few creamed the top but today we are entering a multi-polar de-globalised world, where those at the bottom will be given opportunity to rise.”

    Only if they want to, too many are waiting to preen in pride for corrupt politicians to RoB the people and others so they can brag and boast..and promote their fake idols…with fake titles…

    ..dont know if they are paying attention but that is swiftly moving toward a thing of the past….and people are working overtime just as very few of us have (can count us on one hand) for the better part of a decade to make it a reality.

  38. John A Avatar
    John A

    @ David

    My concern with an entity being formed is that the said entity will be made up of yes people once again. If you going to go to an external management system then go fully to one. We dont want another CBC or QEH scenario.

    Contract the fund out to an EXPERIENCED, QUALIFIED AND INDEPENDANT pension fund management company and cut the navel string once and for all from government interference.

    This of course will require a full audit and market valuation of the true assets of the fund, both in terms of paper held and real estate holdings. No doubt this will mean a serious slash of what the NIS claim are their asset value. At lease this would then allow us to go forward with a clean and factual slate with the fund as its handed over to the pension company.

    Of course another option is to put the fund up for sale and lets see who bites. They are companies that would buy and run it providing a realistic value can be met.

  39. Artax Avatar
    Artax

    “Accepting one of those high profile appointments adds to status. It is more than money.”

    @ David

    Are you seriously referring to appointments to Boards of statutory corporations as being ‘high profile?’
    I believe chairmen are paid $1,000 per month, while payment to members was reduced from $110 per meeting, to $110 per month.

    However, I have to agree with Bushie that Board members should also be held accountable.

    Recall the 2019 Auditor General’s Audit Report of Transport Board revealed that former Chairman, Anthony Wiltshire, USED his PERSONAL CREDIT CARD to travel overseas to PURCHASE bus parts ON BEHALF of the Board, under circumstances where such responsibility is that of the Quality Assurance Department.
    The Audit Report was used as the basis for the Public Accounts Committee Session, September 7, 2020, during which Wiltshire was asked to explain his actions.

    The PAC sought to hold him and other TB management personnel accountable, but, as is with such political occurrences in Barbados, ‘all uh dat died a natural death.’

  40. David Avatar
    David

    @Artax

    NO, that is not the point being made. These appointments pad resumes for some high profile persons.

  41. Artax Avatar
    Artax

    I was also under the impression that the Directors/CEOs of statutory corporations are responsible for formulating and implementing policies, after being approved by the Board.

    Too often SOE chairmen/women are those persons who articulate policies and functions of the organisation, in the public domain, while the Director has to ‘more or less,’ take a ‘backseat’ in the interest of political expediency.

    But, then again, many heads of departments are politically appointed as well, which, more often than not, favours the incumbent political administration, while detrimental to those persons who actually require services.

    The head of departments and chairpersons ensure services are extended, first and foremost, to the people residing in the Minister’s constituency, then divided between the other party supporters.
    Hence, people living in constituencies of Opposition parliamentarians are disadvantaged.

  42. Artax Avatar
    Artax

    @ David

    Okay. Point taken.

    I understand what you mean.

  43. NorthernObserver Avatar
    NorthernObserver

    I deeply fear we keep missing what accountability is?
    You cannot decide one day the government will pocket NIS contributions from its employees and send the NIS an IOU without the commensurate legislation changes.
    It is illegal.
    Turn a blind eye, and this can be repeated at a later date with precedent.
    I say this, and the Ontario Auditor General report this afternoon was a governance disaster.
    Politicians it seems are empowered to do as they please. Comfortable with the idea, that whatever the crime, those who follow will see the benefit of doing nothing.
    And then it is wondered how or why assassinations occur? Clearly we are too comfortable committing crimes.

  44. Bush Tea Avatar
    Bush Tea

    @John A
    “…Contract the fund out to an EXPERIENCED, QUALIFIED AND INDEPENDENT pension fund management company…”

    “Of course another option is to put the fund up for sale…”
    ~~~~~~~~~~~~~~~~~~~~~~
    We can see that you fit snugly into the ‘loser philosophy’ that has guided leadership in Barbados since Tom Adams died.
    You MUST be a UWI grad.. 🙂

    Listen Boss…
    If, as a people, we cannot find a way to manage our BASIC living requirements, then we are MUCH BETTER OFF DEAD.
    Even the damn sparrows manage their basic needs day to day.

    This slave mentality of ‘finding more competent superiors to look after our assets’ has NO PLACE among adult human beings… only in brass bowls

    Get Canadian and Trinis to run our banks
    Get Trini to run our supermarkets
    Get Canadians to run our electricity
    Get Irishmen to run our telecommunications
    Bring Chinese to build our roads
    Bring Arabs to run our airport
    Sell the Mutual savings fund to Canadians and name a building after Judas
    Sell SOL to parkland … cause no shiite UWI Bajan can run it successfully

    Why the Hell do we not just save time, and hire 30 intelligent Chinese parliamentarians to manage the shiite place, and voluntarily place ourselves back under the damn Slave Code …which is probably the ONLY unique thing that we EVER created…

    O Wait!! We have perfected the ‘festival’ of ugly, fat, unhealthy-looking women parading themselves naked in the streets while being photographed for posterity, to ensure that any children they may have, will suffer eternal embarrassment… and become vagabonds and rogues..

    What a place!!!
    What a curse to be under!!

    BUT…
    The solution is SIMPLE for normal humans…
    Apply the damn rules, hold brass bowls RESPONSIBLE for their actions,
    Enforce total transparency, ..and let the chips fall where they may…

    …see how fast the shiite will sink into the bottom of the PIT,
    and the talented will begin to shine…

  45. John A Avatar
    John A

    @ Bush Tea

    Let me ask you honestly a few questions based on all that we have seen in the past from both B and D.

    Do you see any government restructuring the NIF in a way that will legally stop them from dipping into the fund when money tight?

    Do you see either party putting in place a CEO that will be appointed by persons or entities other than government for example? Will that CEO answer to the auditor general and not the PM or minister of finance? Will the auditor general finally be given teeth to bring legal action against offenders not only in the NIF but all state entities?

    My point is Bush i am not an optimist but a realist. The experts in psycology say the best expectation for future behaviour is past behaviour. Sadly based on everything that has happened I dont share your optimism that a saviour of the fund walks among us. Even if one did, i dont see him or her, being given a free unobstructed hand to run the fund without political interference.

    Sorry my friend but i lack your faith.

  46. Bush Tea Avatar
    Bush Tea

    @ John A
    Do you see any government restructuring the NIF in a way that will legally stop them from dipping into the fund when money tight?
    ~~~~~~~~~~~~~~~~~~~~~
    Of course they would …if people like us demanded that the LAW be followed as explained by Northern. Those albino-centrics DON’T like jail…

    ..But this is a red herring brother John A.
    Cause if things become tight, then Bushie has no problem with falling back on such reserves as a NIS fund or some other national asset.
    The requirement is that this be done transparently, and that full review of what went wrong is done – proactive measures are taken to prevent recurrence – and of course any shiite or incompetence is SEVERELY punished.

    The problem is this… If intelligent and caring Bajans such as yourself have no faith that things can be BETTER, then what is left for the masses of brass bowls – whose major achievement in life was to sneak a wuk-up on a half drunk reveler’s bumper during Kadooment?

    “faith” is the assurance of things hoped for, the conviction of things not seen.
    In short it is a desire for right outcomes, and a conviction that what has NEVER occurred before, can be achieved.

    If YOU do not have such faith, a pessimist may conclude that you secretly wish for the status quo to be maintained, …but that you are too ashamed to admit this to N.O. who may suspect you to be a beneficiary of the largesse…

  47. David Avatar
    David

    The minister didn’t say how much is government collecting from what is a nuisance tax? He also discounts a segment of the population that has been significantly impacted by the 2018 debt restructure!

    The reality is that the IMF would frown on removing the tax.

    Tax shift ‘not likely’
    Straughn: Private pension plans may be untouched
    by COLVILLE MOUNSEY
    colvillemounsey@nationnews.com

    RECENT CALLS FOR A REVISION of taxation policies for private pension plans considering attempts to increase the retirement age, are not likely to hold much sway with Government.
    According to Minister in the Ministry of Finance and Economic Affairs, Ryan Straughn, concerns over double taxation were a moot point. He pointed out that the recent tax reforms which lowered corporation tax and personal income tax, ensured that businesses and individuals had the financial space to invest in private pension plans if they so desired.
    The minister pointed out that when tax allowances were in place for private pensions, corporate tax rates were as high as 40 per cent while personal income tax rates were 35 per cent. These rates now stand at 5.5 per cent for corporate tax and 28.5 per cent for the top end of personal income tax.
    “We have reduced corporate income tax and personal income tax, relative to when the allowances were introduced 25 or 30 years ago. Therefore, the concept
    of double taxation today is not relevant in the same way that it was when the tax rates were at 35 and 40 per cent.
    “So the disposable income today for any person who was making contributions into their pension funds, is not the same as 25 to 30 years ago. So,because the tax rates have declined, and your disposable income has increased, and therefore what you do with that disposable income is entirely up to you,” Straughn said yesterday.
    Last week, the Barbados Private Sector Association (BPSA) called for the issue of double taxation on private pension plans to be “urgently” addressed in the wake of Government’s attempt to increase the retirement age from 67 to 68 years. Chairman of the BPSA, Trisha Tannis called for a return to the tax allowances for investment in private pension schemes. Tannis also made a case for: “A raising of the amount of the personal allowance for pensioners significantly beyond the current $45 000 to minimise the impact of the onerous double taxation impact on pensioners.”
    In an earlier interview, president of the General Insurance Association of Barbados (GIAB), Randy Graham, warned that the taxation on private pensions was deterring Barbadians from taking up the option.
    Straughn explained that pensioners are already due for an increase in allowances come next year, while stressing that it was simply not feasible to turn back the clock as it relates to private pension allowances.
    “We want to see people planning for their retirement. I do not accept that there is double taxation in the way that people are suggesting that it is. I will also remind you that for pensioners there is a different tax allowance which is supposed to increase from 40,000 to 45,000 next year,” Straughn said.
    He added: “We understand that people from the perspective of the private sector would wish for a return of the allowance, but the reality is that the situation has changed since those allowances for first introduced. As it stands now people have more disposable income that is not taxed to invest in private pension plans and corporations who are faced with less corporate income tax can increase their contributions to their employees’ pensions.”

    Source: Nation

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    David

    Digital drive

    PM Mottley outlines shift to secure space for e-commerce

    BARBADOS IS INCHING closer to the day when the use of digital payments will outstrip cash transactions.
    This was disclosed by Prime Minister Mia Amor Mottley, who said yesterday that despite being slowed down by the COVID-19 pandemic, Government is still on course to roll out its platform for digital payments. Mottley, who was delivering featured remarks of the naming ceremony of the historic Mutual Building in Bridgetown in honour of recently retired Sagicor group president and chief executive officer Dodridge Miller, explained that there was still work to be done in terms of educating the public as well as beefing up cyber security.
    However, she lamented that there is still too much red tape as it pertains to the opening of bank accounts, resulting in too many unbanked Barbadians.
    Payments
    “The Government is moving to a platform that will allow digital payments to be the norm rather than the exception. It is going to mean therefore that our efforts with respect to cyber security are going to be absolutely critical because you are operating in a different space,” Mottley said.
    She added: “We accept the responsibility of public education, and I believe that the Ministry of Finance is going to have to lead the way. Through the Government information system and large entities like the National Insurance Scheme, we will be able to bring the large majority of our people on this platform.”
    In addition to the onboarding of the payment platform, Mottley announced that in six months all of this country’s unrecorded assets will be placed in a legacy fund, which will be used to either earn income or serve as security.
    “Government will be moving towards establishing a legacy fund and for the first time put a lot of our assets that right now are left unrecorded and therefore underutilised. The Growth Council has been brought in to help with respect to our being able to monetise these assets or to at least have them available for securitisation.
    “A country with a limited asset base cannot afford to ignore what it owns, especially as we seek to transform this nation. Financial capacity requires securitisation of the assets that we have,” Mottley said.
    The Prime Minister continued: “The legacy fund will be a major focus over the course of the next six months because if we don’t do that we would be going into this war with limited resources rather than utilising all that we have. I share these thoughts with you because this country is still very much in transformation and that can’t happen simply by itself.” (CLM)

    Source: Nation

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    David

    Reverse ‘terrible’ tax injustice, says Mallalieu

    INDEPENDENT SENATOR Andrew Mallalieu is calling for Government to reverse the terrible injustice of the removal of tax deductions for mutual funds and registered savings plans affecting the retired.
    He made the call in the Senate yesterday during debate on the National Insurance And Social Security (Amendment) Bill 2023, that will amend the system and establish the National Insurance Service to administer the system and perform the functions once performed by the Department of National Insurance.
    Against the background of public discussion on the extension of the retirement age and Prime Minister Mia Amor Mottley pointing out that citizens should not rely only on the NIS for a pension, Mallalieu said he hoped “that very quickly the Government will reverse the terrible injustice that was done to us in 2010 when the tax deduction for mutual funds was taken away”.
    He stated that immediately dried up capital going into that market and stopped people from saving.
    “Secondly, the withdrawal of the deduction for registered savings plans in 2015, again, under a different administration. I hope that that will be undone very quickly because it is wrong for double taxation.
    “You cannot ask someone to pay tax on a dollar, invest that money and then when they get it back in their old age to pay tax on it again. It is wrong and I hope that that too will be fixed,” Mallalieu stated.
    NIS contributions
    He contended that contributions for the NIS came from both the employers and employees.
    “Had we [employers] not paid that money to the NIS for the employee it
    would be available for something else. That money belongs to the employees . . . . That is the savings of the people of Barbados and needs to be invested wisely and prudently,” the Independent Senator stated.
    The cost of the Government restructuring debt through the NIS fund was a loss of $800 million, he said.
    “I heard that coated in all kinds of sugar to tell me that, that would only change three years of the fund, the problem was still there. That may be true but it is $800 million. I heard the Leader of Government Business refer to the catastrophic effect of the COVID-19 pandemic that cost $600 million in one year so I want us to remember on the one hand when you lose $600 million in a pandemic and that is a catastrophic loss and it certainly was, $800 million is equally or more catastrophic to the people of Barbados who rely on those funds,” he stated.
    (AC)

    Source: Nation

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    David

    Brathwaite: Funds for the people

    SENATOR DR CHELSTON BRATHWAITE says Government must recognise the National Insurance funds are not its own while proposing that it create a sovereign wealth fund in reforming the country’s social security system.
    He also believes that it is a crime that should feel the full weight of the law when employers deduct money from employees’ salary and do not credit it to the National Insurance Scheme that would benefit the workers.
    Brathwaite was speaking in the Senate yesterday during debate on the National Insurance And Social Security (Amendment) Bill 2023, to reform the system and establish the National Insurance Service as the body to administer the system and perform the functions once administered by the Department of National Insurance.
    Development initiative
    “It must be clear to Government that the funds of the National Insurance Scheme and the National Insurance funds are not the funds of Government but the patrimony of the people of Barbados and, as such, these funds should not be used by Government as a development fund without the approval of the people.
    “My understanding is that these funds are the funds of the people, put aside for the future of the people and the benefit of the people.”
    Rather than touching the funds, Brathwaite said Government should consider a development initiative which could be a sovereign wealth fund to support future investment. Such funds have been developed to provide resilience and future investment opportunities as a way to improve profits for the benefit of country and citizens as it stabilises the country’s economy through investment.
    The sovereign wealth fund, Brathwaite explained, is a state-owned pool of money that is invested in various assets and it comes from a nation’s budgetary surplus funnelled into investment rather than the funds simply being kept in a central bank.
    “I hope that going forward as we do the reforms that the National Insurance fund will not be used as a development fund
    by the Government but will be preserved as patrimony for the people of the country.”
    Uncertainty
    In the reform of the system, all efforts should be made to ensure that the practice of making deductions and not crediting them to the NIS ends,” Brathwaite said.
    “It weakens the fund and creates uncertainty and creates a lack of confidence in the fund. If in fact employers can deduct money from employees and not credit it to the fund this to my mind undermines the fund and should not be allowed.”
    Brathwaite was also concerned about the absence of the legally required audited financial statements and annual reports for the last ten years.
    He said no system of governance that is based on transparency and accountability can function in the absence of up to date audited financial statements and annual reports and, if these are in fact specified in the laws and regulations of the fund, all efforts must be made to ensure they are prepared and presented in Parliament.
    Brathwaite said he was hopeful that the new state entity will result in improved service and a greater level of accountability so that the patrimony of the people is protected and preserved for them.
    (AC)

    Source: Nation

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