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NIS needs to make prudent investments – Finance Minister
Minister of Finance, Winston Jordan, on Friday, visited the National Insurance Scheme (NIS) Headquarters on Brickdam. He was able to interact with close to 3000 staff members.
Minister of Finance, Winston Jordan
General Manager of the NIS, Doreen Nelson, and other senior staff accompanied the Finance Minister on his visit which also saw him interacting with members of the general public conducting business at the institution.
Describing the NIS as an important part of Guyana’s Social Protection System, Minister Jordan said that the agency is experiencing financial difficulties.
“Its capital is under challenge in terms of paying benefits,” Jordan said adding that the NIS needs to adopt a more prudent approach to its investments.
“It is unfortunate about what has happened over the last couple of years to its (NIS) investments, especially in the CLICO and the Berbice Bridge. None of these investments which are substantial, is giving NIS any income, which it should have been earning by now.
“As a result, the NIS has had to pare back benefits, in terms of quantum and I believe even in terms of quantity that you have been trying to give to people,” Jordan explained.
The Finance Minister added that persons expect that once they would have paid their money into a social security system, then they would get their benefits upon their retirement or when sick. “Delaying tactics must not be used to deny persons their benefits,” Jordan said.
He further noted that there is a perception among some, that some payments are delayed due to the lack of monies to actually pay those who subscribed.
The Minister explained that his visit made it clear that the NIS was “somewhat behind when it came to having its systems computerised. I see a lot of paper around the place. This is very bad for management. I see a lot of old stuff which by now should have been got rid of, to free up space.
“And at the Human Resource side, I have asked the General Manager to relook at the dress down Friday style because when you’re serving the public, you need to convey a certain impression,” the Finance Minister said.
Recounting his own experiences with the NIS, Minister Jordan said that he has over three years of bills and receipts.
“I refused to even come to NIS because of the long issues to get back your money so I just gave up a long time ago. I will reopen the issue soon but, I could understand some of the frustration that people get because I was frustrated enough to just give up, trying to make claims,” Jordan explained.
With regard to the implementation of some the recommendations contained within the last actuarial report, the Minister said that these will be looked at as none were really implemented in any serious way.
He further explained that the agency which is observing its 46th year of operation, has to have its organisation and method of operations updated, “We have re-examine whether NIS should remain as a single entity doing these different aspects that they do or whether it can best be done as individuals,” Jordan said.
“Maybe one entity that looks at retirement issues, maybe one that looks at the medical issues. Of course you know that NIS doesn’t give unemployment compensation, which of course as you know in these times is something that we could be looking at also.”
The need for the NIS to be more pro-active was also emphasised by the Finance Minister who cited the Guyana Revenue Authority’s actions in this regard, as an example that should be copied.
In the Minister’s opinion, the NIS should not be seen as a Post Office which just receives contributions but it should be pro-active. In this way, the Scheme can pre-empt situations such as when businesses are likely to go bankrupt. “It is clear that if you collect NIS this month and next month you don’t see or hear from them, I’m not waiting to find out why. I’m going there. We have to have lots more people out in the field and we can reduce the gap between them collecting the people’s money and not remitting it to the NIS.” Jordan explained.
The substandard working conditions at the building, which are below the acceptable Occupational Health and Safety Standards were acknowledged and the Minister expressed the hope that the NIS’s Board of Directors will be moving to address these soon.
The visit follows similar ones made to the Guyana Revenue Authority and the Statistical Bureau by the Minister. He has indicated that he will also be visiting the NIS’s Camp Street Branch Office, in the near future. (GINA)
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