NIS was used as PPP ‘cash cow’

Oct 05, 2013 News

…these are things that should get people angry – APNU

With the continued financial debacle of the National Insurance Scheme (NIS) on full display, and as the entity celebrates its 44th anniversary, Joseph Harmon, of A Partnership for National Unity (APNU) believes that the entity was used as a ‘cash-cow’ for the ruling administration.
In recent years the expenditure has been more than the NIS revenue and its contribution base has declined by as much as 25 per cent.
Harmon believes that it is because of the way the Scheme was managed by the ruling People’s Progressive Party Civic (PPP/C) Administration that it has found itself in the current financial woes.
He told media operatives, yesterday, that several years ago some managers at NIS had indicated that they did not agree with the kinds of investment Government was making of the NIS funds
According to Harmon, “NIS is a social safety net and what has been happening is that the PPP Government had no regard for the social safety net of the people of this country.”
He said that the PPP/C is a party that deals with a certain set of people which is demonstrated in its issuance of contracts, “so the sufferings of the ordinary people of this country seem to be of little concern to the PPP/C administration.”
Harmon said that the NIS is a social safety net created under the People’s National Congress (PNC) regime.
“When the PPP/C came into office, that party saw it as a cash cow; the PPP did not see it as an institution that was to basically deal with the social issues of ordinary people; it was a cash cow so the PPP started making loans.”
Harmon said that loans were made to companies “which I understand they haven’t repaid as yet.”
He said that NIS under the stewardship of Dr Roger Luncheon also made several poorly advised investments in projects, “which I understand there have been no repayments as yet…huge loans to corporations which are still to be repaid.”
Harmon reiterated, “NIS became a cash cow for the government. Anytime it wanted money from somewhere it just put its hands in the pot and take (money) out …What has happened now is that it’s now coming home to roost so that you have expenses that far outweigh revenues.”
He stated that the practice of repeatedly dipping into the funds of NIS to make loans or ill advised investments has now led to a state of affairs where people are at risk.
According to Harmon, “These are things that should get people angry. It is your money, which under the chairmanship of Dr Luncheon that this PPP/C government over the last 21 years took and spent in a manner which was inimical to the interest of Guyanese people.”
NIS had lost some $6B that it had invested in the failed insurance company CLICO (Guyana) when that company was ordered liquidated 2009.

Latest News

NIS was used as PPP ‘cash cow’

Related

Similar Articles

The Glenn Lall Show|| March, 17th, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

GPF arrests Presidential Guards by 48 runs as cricket action gets...

Superbet supports One Guyana 3×3 Quest

FIDE Master Drayton outclasses strong competition...

Wiltshire, Chris dominoes tourney set for March

Houston Sec’, New Central, Saints sent packing

Charles’ all-round performance helps EBDCA U23...

Features/Columnists

No immigrant should feel safe in America today

If Guyana’s President Ali is the “Zelensky of the Caribbean”, who is the Putin?

From Bharrat, the Blusterer to Howard, the Coward

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]

NIS was used as PPP ‘cash cow’

Share this:

Related

Similar Articles

The Glenn Lall Show|| March, 17th, 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 […]