NIS: Dishonest employers and scams

Sep 12, 2015 Letters

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Dear Editor,
The National Insurance Scheme is a great one indeed, created by the World Health Organization and commenced by our former Prime Minister, Linden Forbes Sampson Burnham. This is one of his great legacies. The intention was to cause people to enjoy benefits when they fall ill or in event of an accident, or if they pass away; or in case of old age, a good pension. National Insurance is an important ingredient to a decent, sane and prosperous nation and economy. I believe in National Insurance with much emotion and human passions.
I have witnessed how people suffered when employers stole their benefits, or NIS could not pay due to improper computation, destruction of records (old stamp card system), due to leaking roof as some decades ago. I know a lot about NIS, as I have been around for a long time, and have been in my own business, RK’s Guyana Security Services, for over 37 years now.
The National Insurance Scheme is in financial crisis, due to lack of vision in a realistic perspective by Governments, all of them, current, and the past! The inadequate application of laws, inadequate laws, lack of prosecution criminally, and mostly by dishonest employers, who make the contributions by their work forces as a source of profitability for their businesses. The fact that the Chairman of the last Government for NIS, and leaders of the country would not listen to sound advice publicly posted, did not help. I had several publications and outbursts even on television, on particularly unscrupulous business people, and am even ashamed to say some in the Security Industry, and by some who use the name security services to cheat the NIS, the GRA of VAT, income tax and Pay As You Earn, while they are far from that. We saw recently in the media how a welder suffered damage to his leg and the employer never paid his contributions. We saw people working in trawlers and boats, and so many places and cannot get their NIS benefits, due to dishonest employers.
Such employers, large and small are numerous in all Guyana. They usurp the contribution of their employees, to fatten their bodies and augment their lifestyles. This can be compared to the proverbial blood sucking monsters. Where is their humanity? Where is their human conscience? They will look out for their own old age and retirement with savings and plans, even sophisticated ones. So why do they deny their employees? Most of whom are obviously the most vulnerable, the poorest. Such employers have to be mean and sick in their minds. I have heard a lot of talk of this being criminal or that being criminal, by the new Government, but this is what is most criminal minded, denying the workers their due in life’s difficulties, and the country of its income taxes, the country where people live, and in which the money is made.
When people spend a life time or years serving with a business or office, they expect to be protected and cared when they are ill, so their families and they will not suffer. When, people get old, they wish to collect their pensions, as I am now enjoyably, and the employees of my company are enjoying when they apply for benefits. Then indeed are some quality security companies and other industries, which take pride in contributing to this life enhancing scheme, and even taking on private insurance for loss of life or limb in event of accidents on or off the job. Such of my colleagues would include GEB Security, PGS Security, Massey, our force RK’s Guyana Security. There may be one or two more, but the reality is many security services, or so called ones, are actually criminal in the theft of NIS. Such thefts that not only affect lives, put people on the streets, and of course create a financial crisis for the National Insurance itself. But more so, this criminal dishonesty, creates a social dilemma, in which, the people would turn or demand for the Government to look out for them. Such demands would cease or be very minimal if the workers were protected by the NIS with pensions and sick benefits.
What to do?
1. The Government and the NIS management always go a begging for employers to comply. Appealing to their conscience, they would say, or making petty threat of prosecution. I say this has to stop. Court actions are usually civil and take years to collect, and then the culprits, and highway robbers transfer their assets or sell out, or declare bankruptcy, and then change name of the business. These actions are also very expensive. NIS legal teams do not get injunctions preventing transfer or sales of assets of the companies, businesses or of persons. They should! Fines are few and too little, theft of NIS is a profitable criminal enterprise perpetuated by some business people.
2. Criminalize the theft and non-payment of NIS to the Scheme. Minimum penalty for first offence, two years jail, $500,000. 00 fine, after that five years imprisonment and one million dollars, and like that it goes up. Theft of NIS is like manslaughter or attempted murder to this writer.
3. If court action for the time being is needed, it must be private criminal lawsuits for fraud, as the monies were collected to be remitted to the scheme or the GRA, failing which it is fraud, so try the police, but at the same time, if necessary make it a private criminal action.
Then, just watch the money, the remittances roll in. Fines could also go the relevant authorities and not necessarily to the treasury.
Private Security Act:The Hon Cabinet and President must know that the former Minister of Home Affairs established a Private Security Act. It has more power than both the Ministry of Labor and the National Insurance. With this act alone, security services can be suspended or lose their license to operate if they are found not remitting NIS and GRA to the authorities, or involved in theft. Another dilemma is that we have many illegal entities operating as security services without licenses, and competing with legitimate companies.
Just imagine, one employer, a big one actually used violence on a set of NIS Inspectors who wanted to inspect books. How can such people eat, live, sleep, watch their face in the mirror in the morning, knowing they steal worker’s National Insurance, denying them a future and comfort in old age or in accidents or illness, how can they? These have to be bad people, lost in wealth, and lost their human consciousness.
Roshan Khan
RK’s Guyana Security Services.

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