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How $1.3B Disappeared from the NIS in 2018

Colin Jordan, Minister of Labour

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Last weekend the following notification popped into the blogmaster’s newsfeed alerting that iWitness News (IWN) out of St. Vincent posted the following article – NIS records $16.5m profit following loss of EC$5.5m in 2024. For obvious reasons it piqued the blogmaster’s curiosity to have a read. It was interesting to read that the article reported on the financial state of the NIS in St. Vincent for the first half of 2025. It was not an audited report, BUT, in lieu of same the St. Vincent leadership responsible should be congratulated for being forthcoming with financial reporting about the social security fund.

From cursory research it appears the most recent audited financials for the St. Vincent and Grenadines National Insurance Services is for 2023 – Annual Report 2023. And it was issued without a disclaimer. Further, the report makes mention of the 12th Actuarial Review as of December 31, 2022.

In stark contrast for Barbados the 2021 Auditor Report p.81 declared that …”an audit report was issued for the financial year 2011 while the audits for financial years 2012, 2013 and 2014 are in progress. The financial statements for the year ended 31st December 2015 to 2020 are outstanding“. Further, the 17th Actuarial Report for the Barbados NISSS is as at December 31, 2020.

St. Vincent appears to be significantly more current with its financial reporting than our NISSS. Although to be fair, with the transition from the National Insurance Scheme (NIS) to the National Insurance and Social Security Service (NISSS), we have a more impress name.

Besides the obvious effort by the St. Vincent government to commit to a greater level of transparency and management of the social security fund, there is an observation to be made. The two funds are being hampered by a global trend i.e.benefit expenditures are rising faster than contribution income. This is something we have discussed exhaustively in this space and supports the concern that it is all the more reason the NISSS must be managed expertly to mitigate the challenges.

We continue to manage the NISSS blindly with outdated audited financials and an overdue 18th Actuarial Review. How can we conclude that the best decisions are being made to ensure a life line will exist for our ageing population when they become eligible? The blogmaster recognises a document posted on the NISSS website with the impressive title – THE NATIONAL INSURANCE BOARD’S PRINCIPAL RECOMMENDATIONS FOR THE REVITALISATION OF THE NATIONAL INSURANCE SCHEME.

Yes the experts have argued that the 2018 debt restructuring – which slashed $1.3 billion from the social security fund – was a necessary sacrifice in the national interest to reduce Barbados’ stratospheric debt-to-GDP ratio. But can we really call that impact “insignificant” although Prime Minister Mottley assured that it represented only 3 years benefit payments?

So how did we get here?. The 2018 debt restructuring has bought us time but it exposed a vulnerability in our social safety net. Father, hear our prayer.

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15 responses to “How $1.3B Disappeared from the NIS in 2018”

  1. John A Avatar
    John A

    @ David

    The day $1.3 billion becomes an insignificant amount God help.all of us! The NISSS when it was formed should of called for a demand audit so as to confirm exactly what this new entity was starting with. When this was not done it signalled to me that this new entity was no different to the old one, with the exception of having another S to its name!

  2. Bush Tea Avatar
    Bush Tea

    Having up to date financials in 2025 is nothing short of ROUTINE, …given the digital nature of all BASIC modern financial accounting systems.

    Therefore, the ONLY POSSIBLE REASON for overdue financial reports is DELIBERATE ATTEMPTS to hide information from the public.

    The ONLY DIFFERENCE therefore between St Vincent’s NIS and Brassbados’ NISSS is with the relative levels of HONESTY of the respective administrators AND overseers.

    Killing NIS and launching NISSS, WITHOUT CLEAR FINANCIAL AND ADMINISTRATIVE REPORTING was nothing short of CRIMINAL. If THIS is standard operating procedure for our government, then we should not expect to EVER become debt-free again.

    Where wickedness is rife
    Misery becomes standard.

  3. David Avatar
    David

    @John A

    Is it that the 1.3 billion is insignificant in a relative sense or that it only accounts for 3 years of benefits income and therefore is not ‘material’ in the overall context of the national debt restructure.

  4. Pachamama Avatar
    Pachamama

    Bushie
    It was a deliberate and criminal administrative maneuvre to create a crack within the bureaucratic system for millions to fall into. This is what weee call creative management.

    As weee warned decades ago, the people in Washington want all these social safety nets gone. Funds transfered to local elites.

  5. NorthernObserver Avatar
    NorthernObserver

    @JohnA
    Begin with the “significant transformation” of the NIS, merged with the BSSB, to create the NISSS and explain precisely what changed?
    Note: a fully fledged state run body doesn’t mean shiite.
    I signalled to all, the “transformation” would occur without any financials, past or current.
    It seems the GoB needs to place an accounting firm on Retainer like White Hoax, otherwise they seem unable to find accountants. Meanwhile, THREE Debt swaps, barely a single report from any public entity.
    They GIVIN’ to yah, and yah tekking it, and beggin’ fah more.

  6. David Avatar
    David

    One of the great ironies of recent is for the government to have ‘given away’ ~60 million to all and sundry re: solidarity allowance only to read about police and prison warders not paid for work done months ago.

  7. NorthernObserver Avatar
    NorthernObserver

    @David
    The most recent Aud Gen report is wusser, it says the Audit office has reports to 2015, but the Minister in charge has failed to lay any before either House.
    #TEKDAT

  8. David Avatar
    David

    @NO

    Agreed, you can pick any report in the last decade, the comment is the same. This is ridiculous so ridiculous that by repeating ourselves about this matter some among us will label BU an echo chamber, rehasher of issues or complainers. Piss in the blogmaster’s pocket do.

    Have a look at bajan social media space, these so-called influencers are not dissimilar to what is happening elsewhere, chasing likes!

  9. John A Avatar
    John A

    @ David

    For anyone to say the 1.3 billion is insignificant means they have no grasp of the financial reality of the fund.

    From memory the ALLEGED assets of the NISSS was rumoured to be in the area of $3.9B. To write off $1.3B means you have in fact written off 33% of the funds claimed asset base. To then try and wriggle out by saying ” em is only 3 years of benefit income,” means that you still have a shortfall of $1.3B on your books however you try to swing it. Also what entity you know can write off 33% of its asset base and not feel it? What they don’t want to talk about is what is the lost in annual return to the fund on this $1.3B? Why has no decision been taken by our leaders to at least top the fund up, by say $90 million a year for the next 10 years to try and repay the shareholders ( me and wunna)? We don’t even know how brek the fund is so to say that $1.3B isn’t anything major to the bottom line, is comical to say the least.

    I blame the new NISSS board and its chairman for not telling the minister in charge point blank that ” we can not accept this post on your board without a demand audit being done as a matter of urgency.” I mean could Christ you going take on a job and not know what em is you taking on? Then again funnier things does happen bout here!

  10. John A Avatar
    John A

    @ Northern

    What became of the promise of transparency and accountability we voted for if what you say is true?

    Holding back information to your shareholders is in fact a crime in the private sector. Why then can this be alleged to be happening in the public sector, with no recourse available to us?

    You want more people to join the fund, you don’t think they would feel better if they knew the current financial situation of the fund? Then again it might be so bad that they fear if they publish the data, they may in fact end up with a run on the fund as opposed to gaining new investors! Either way the public have a right to know where “Its Life Line” as the ads used to say, stands in 2025.

  11. John A Avatar
    John A

    To be honest I would really like to see the audited reports on the fund from 2019 to 2024. These would cover the Covid period in full. Any reference of fund performance prior to 2019, in my view is pointless for a reference of fund performance between 2019 and 2025. Two completely different economic climates not fit for comparative review!

  12. David Avatar
    David

    @John A

    Isn’t that a question for the actuary?

  13. John A Avatar
    John A

    @ David

    That is a question to the board from a shareholder. LOL

  14. NorthernObserver Avatar
    NorthernObserver

    JohnA
    You need to attend the AGM?
    All of these discussions are known facts. Too much Debt, so squash some Bonds to create borrowing room. Minimal cash, so grab the TBills, repayable in a few weeks, and extend the repayment period by turning them into Bonds. Pay huge success fees by skinning the same people who just voted you in, nuff opportunities for consulting fees.
    But now you can borrow, to ostensibly benefit those you just skinned.
    But “we” know very little else. Ane we like it so.
    The people are to blame for allowing the Ds to get away with shite. They deserved to get skinned. And now 6 years into the second lost decade, the people are to blame again, for letting the current group to get away with similar lack of accountability.

  15. John A Avatar
    John A

    @ Northern

    Yep the political yo yo has been in play for years and both parties are guilty of frigging with peoples retirement funds. Neither party can deny that even if they try to justify it.

    The slide of hand and kicking the payment can down the road by whatever means possible, has been the approach of choice. Thing is though at sometime under some party, the birds will come home to roost. The borrowing at lower rates to pay off old loans can only work for so long. Also when one factors in the interest cost even if lower, over a protracted period of 10 or 15 additional years, it will prove to be more expensive than clearing the loan when it was due. Thing is though when you “lick out” and right off the money, it just ain’t there to clear the loan at the original maturity date, so you kick payday down the road instead regardless of the cost.

    You realise you always hear from the leaders ” oh we did so well and instead of paying off the debt in 2 years at 5% we, were able to borrow the loan value due for 15 more year at 3%.” So wait skipper you ever stop to calculate the gross interest charge to the people on this brainchild?

    That is why I always say Figures don’t lie, but a politician can use SOME of the numbers to paint his picture without lying. Misleading us maybe, but not lying. That is where the opposition and 4th Estate has failed us miserably.

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