NIS expenditure $500M more than contributions

Mar 09, 2009 News

…as future of $6B invested in CLICO still uncertain

According to the 2007 Annual Report for the National Insurance Scheme, the viability of the scheme is dependent on its investment returns given that its expenditure is greater than its income from contributions.

The audited report states that for 2007 its total contributions were some $8.06 billion whilst the total expenditure was some $8.57 billion, a difference of $516.4 million.

The figures indicate that without the returns on investment of some $1.5 billion the company would be operating at a huge deficit. This was the same trend in the previous year where the total expenditure, $7. 6 billion, had to be cushioned by returns on investment of $1.3 billion, given that the total income from contributions was $7.5 billion. Slated under other income for the company was $33,436,000 for 2007 and $15,331,000.

The situation was not as dire in 2005 when the difference between expenditure and income from contributions was in the vicinity of some $200M. A worrying situation still remains in that the fate of the $6B of NIS money is invested in Colonial Life Insurance Company (CLICO) is still unclear.

This is so given that Guyana is now exhausting every avenue to recover the $6.9B CLICO Guyana has invested in its Bahamian counterpart for which the Bahamian Prime Minister recently told his Parliament that no such record could be found in the Bahamas.

Guyana has since located its records of an investment trail in CLICO Bahamas and this has since been sent o that country to assist in their location of their records.

A point to note also is the fact that this investment is completely separate investment in the Berbice River Bridge which is slated to be returned over a period of 21 years minus a profit. Head of State, Bharrat Jagdeo, had told media operatives that that the company, CLICO Guyana, can guarantee all claims whether these are medically related or vehicular.

Jagdeo had said that if someone were to seek medical now, had a fire or had a vehicle accident, and his premiums up to date, then the claim would be processed as normal.

“So persons are to continue paying premiums regardless of what they are seeing. Even the cheques that are in limbo and many people who have received these cheques and are waiting just give us a few days more to go through that issue. But know that the money will not be lost…

“What I want to urge people to do is to allow us. We’ve just gone into the company. It may take a week or two to determine the class of assets, what our short term plans are and what our long term liabilities are, but we looked at the total situation, the total exposure and we have extended that government guarantee.” He pointed out that there is no need for the public ‘fuss’ that is being made about the NIS funds.

Latest News

NIS expenditure $500M more than contributions

Related

Similar Articles

The Glenn Lall Show|| April, 7th, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Berbice ease past Demerara in low-scoring match

Upper Demerara suffer 8 wicket loss as Lakeram...

Joshi is the new National 2025 Women’s Chess...

Kares Engineering renews title sponsorship of One...

Harpy Eagles looking to put old rivals to bed,...

Windsor Estates reigns supreme at AmCham Golf...

Features/Columnists

The geography of pettiness

The U.S. “Joining” the Commonwealth: an unreasonable expectation

Police violence – life is cheap in Linden

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]

NIS expenditure $500M more than contributions

Share this:

Related

Similar Articles

The Glenn Lall Show|| April, 7th, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Features/Columnists

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]