House caps benefits for former presidents

Jul 10, 2015 News

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By Abena Rockcliffe
The burden that the lifestyle of former President Bharrat Jagdeo placed on the Treasury, was the focal point of Finance Minister Winston Jordan’s speech as he presented legislation to the National Assembly which seeks to curb the “vulgarity.”
Jordan yesterday addressed the highly anticipated Former Presidents (Benefits and Other Facilities) Bill to the House, which operated yet again void of an opposition.
This was the first time Jordan had spoken to a Bill in the National Assembly, but from the reaction of some of his seasoned colleagues, he did it justice.
Very early on in his speech, the Minister made reference to the explanatory memorandum of the Bill.  He referenced that the Bill will repeal the Former Presidents (Benefits and Other Facilities) Act of 2009, and replace it to provide greater specificity; especially if account is taken of the fact that the former President is eligible for a pension which is seven-eighths that of the President in office. The Minister was keen to note and repeat that the Act of 2009 will be repealed.
Jordan also said that the Bill seeks to render the conditions acceptable and to place a limit on the benefits, including tax free concessions, to which former Presidents are now entitled. The Bill also specifies some conditions under which the benefits may be enjoyed.

The Minister then noted that in the face of pervasive immorality, where the larger picture of the state and the size of the economy and the ability to sustain such open-ended and uncapped benefits were ignored, former President Donald Ramotar had refused to assent to a similar Bill. He said that that showed narrow self-serving interest.
Jordan said that the pension of former presidents lays the basis why the new government saw it necessary to cap the benefits offered.
He informed the House that Guyana’s per capita Gross Domestic Product is the second lowest among Caricom countries, and also noted that the United States has a GDP per capita that eight times supersedes Guyana. Therefore, the United States is in a much better position to offer former presidents attractive packages consistent with the country’s financial standing.
Jordan noted that former presidents of the United States are paid a taxable pension that is linked to the annual rate of basic pay for the head of the executive department or the Cabinet secretary’s salary.
If taken in the context of Guyana, and the comparison is made to the salary of a minister which currently stands at $579,000 (equivalent to US$2895) and Guyana had complied with the standards of our “financially better off friend”, a former president of Guyana would be given a gross of US$2895 in keeping with current circumstance and ability to pay.
“Instead we have a situation where a former president is enjoying a tax-free pension equivalent to 7/8 of the salary of a sitting president,” said Jordan.
He added that the salary of a sitting president currently stands just below$1.7M. Therefore, the current pension of former president is just over $1.4M. Jordan said this is an absurd situation when consideration is given to the pension of a public servant.
He posited in this regard that “Former presidents can live comfortably on pension alone.”
The Minister told his colleagues that taxpayers should not have to stand the expense of uncapped, “scandalous” packages on top of such a massive pension package.
He described the benefits being uncapped as “vulgar” saying that it lacks important moral values and reflects a level of arrogance, self-righteousness and self-entitlement that degrades leadership.
Further, the Minister said that the Bill of 2009 “turns its nose at the hard-working taxpayer who labours mightily to form the tax-free salary of the sitting president, and who is also asked to acquiesce to his or her tax dollars being used to pay tax-free pension. It disregards the plight of lower and middle class family whose taxes are forming these exorbitant benefits.”
Jordan made reference to the fact that over the period December 2011 to February 2014, Jagdeo racked up in excess of $45M on transportation, security and electricity bills within 27 months.
The figure represented the money the State spent for Jagdeo’s transportation, security and electricity from the time he demitted office in December 2011 up to February 2014.
Jagdeo’s total electricity bill for the duration amounted to over $9.8M. His average monthly bill was $365,766 at the time. For transportation, he utilized over $15.2M. The State spent over $20.3M for his security over that 27-month period, an average of $752,649 monthly.
Jordan pointed out that Jagdeo’s light bill is 8.7 times the minimum wage and his security bill is 17.6 times the same and 1.7 times the salary of a sitting Minister of Government
He said, too, that taxpayers should not foot a bill when the former president is gainfully employed. He cited an instance of Presidents and Prime Ministers around the world and said that what was dominant in those examples is that those leaders were not interested in elected office for a feast. He said that they seemed to have  wanted to epitomize the essence of servant leadership—one whose focus is on the growth and well being of the people and communities such person cares not about the perks in and out of office .
The Minister also said that with Guyana being largely indebted, it is an opportune time to cut out waste and unnecessary expenditure. This earned the Finance Minister loud applause from his colleagues.
Jordan quoted Cheddi Jagan saying that one “cannot live a Cadillac lifestyle in a donkey cart economy”. He said that were Dr. Jagan alive, he would have been appalled and disgusted at the entitlement granted to former presidents embodied in Act 12 of 2009.
He said that the former president would have applauded the new Bill which seeks to cure the ills of that Act of 2009, returning a level of decency and reducing the burden on the Treasury.
Vice President and Minister of Public Security, Khemraj Ramjattan also made a contribution to the Bill. He said that while in opposition, he and Foreign Affairs Minister, Carl Greenidge warned of the expenditure that can be incurred, and said that their words came to pass, as he referred to the expense incurred by Jagdeo. Ramjattan said that this alone is enough reason why these must be capped.
He recalled that when he and Greenidge debated the Bill, $5000 each was allocated for water electricity and telephone “but we wanted to be generous so we increased it because we think that it is more reasonable.” The increase is now $25,000 for each utility.
Ramjattan also mentioned another distinction from the previous Bill that Greenidge took which is that the definition was a president who held office for minimum of five years, but now it has been changed to a president that holds office substantively.
He said that if it had remained in its previous form, “it would have excluded (former President) Donald Ramotar.”
“We did not want to do that to Donald Ramotar,” he said in a sarcastic tone.
At this point his colleagues heckled “Ow, look how we sorry fuh Donald.”
Ramjattan told the House “I believe that there is justice in this Bill in the context of our economy not being that well.”
As he summed up, Finance Minister Jordan said “In no society no matter how rich can you live in a scenario we find ourselves in paying uncapped benefits.”
The Bill was passed.
Former Presidents will now be given $25,000 per month for electricity, a further $25,000 for water and another $25,000 for telephone. The new Bill states that former presidents will be given services of personal and household staff, including a gardener but, the total number of such staffers cannot exceed three persons.
There will be a limit of $200,000 per annum for reimbursement of medical expenses incurred by a former President for himself and his children below the age of eighteen years and his spouse, provided that the money was not spent on medical attention and treatment obtained abroad or at private health facilities in Guyana, and were available in Guyana at government institutions.
Former presidents will be given full-time personal security, not exceeding two persons including those at the place of residence. They will also be entitled to the provision of not more than two motor vehicles owned and maintained by the State; toll free transportation; and an annual vacation allowance equivalent to the cost of two first class return airfares provided on the same conditions applicable to judges of the Supreme Court of Judicature.
However, even with the benefits being capped, the new Bill states that “A former President shall cease to be entitled to the benefits and other facilities provided under section 3, if the former President engages in business, trade or paid employment or is convicted of a criminal offence for which a term of imprisonment is imposed.”

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