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Forensic Audit Report …Social Services Ministry disregarded Old Age Pension Laws
…formulated special policy to determine who is a pensioner
It appears that auditors have found the formerly named Ministry of Labour, Human Services and Social Security in undeniable instances where it showed total disregard for the laws governing the Old Age Pension scheme.
Former Social Services Minister, Jennifer Webster
Instead of following the law to the letter, it was noted that the Ministry made certain waivers and created a policy of its own so as to determine who qualifies to be a pensioner.
The auditors of Nizam Ali and Company were alarmed by the instances which showed non-compliance by the Ministry as it related to the Old Age Pensions Act 17 of 1944.
The forensic auditors said that Section 4(c) of the Old Age Pensions Act 17 of 1944 requires that a person be a resident in Guyana during the 20 years immediately preceding the claim for pension.
However, the auditors noted that the Ministry did not comply with the requirement of this section of the Act. Based on the Ministry’s specially crafted policy, a person must be domiciled in Guyana for two years preceding application for pension. The auditors said that it is clear that the Ministry’s policy is not consistent with the Act.
Citing another area of non-compliance with the laws, the auditors said that Section 9 (a) of the Old Age Pensions Act 17 requires that a person shall be disqualified for receiving or continuing to receive a pension while he is an inmate of any public or charitable institution which provided him with board and lodging without charge.
The auditors said that the Ministry failed to adhere to this provision. In fact, the auditors noted 10 instances where payments were made to persons who are inmates at public charitable institutions.
In another instance, the forensic auditors said that Section 4(d) of the Old Age Pensions Act requires that a person must satisfy the appropriate authority that his monthly income as calculated under the said Act does not exceed such amount as may, by order, be prescribed by the Minister. The auditors said that this seems to suggest that the granting of pension is premised on a means test.
However, during the period January 2015 to May 2015, the auditors observed that the Ministry never applied a means test in evaluating the eligibility of new applicants. In fact, the Ministry’s policy which it developed and used as a guide suggests that no means test is done.
Taking the aforementioned into account, the auditors said that efforts should be made to ensure that the policies of the Ministry are aligned with what is contemplated in the Act. They said that the Old Age Pension Act does not provide for the vesting of authority for the variation of any provisions contemplated in the Act. The auditors said that if it is the intention of the authorities to use the Ministry’s policy to pay pension and determine who becomes a pensioner, then it is only fair that the laws be amended to reflect same.
The auditors made it clear that the application and approval process for this system involve a few clear cut steps. The forensic auditors said that the laws stipulate that applicants must attain the age of 65 years.
It was also noted that a completed application form is supposed to be signed by the pensioner in the presence of Chief Welfare Officer with a copy of his identification card/passport attached.
The auditors said that applicants are then interviewed by the social worker and the application is then forwarded for approval by the Chief Probation Officer which is done within six weeks.
For applicants beyond the age of 67, the auditors said that the respective Ministry assesses whether the applicant has fulfilled the requirement of being domiciled in Guyana two years preceding the application.
They said that this is done through an examination of the applicant’s travel documents to determine any period of absence; local knowledge of residence and information from Immigration Office.
Subsequent to the approval of the application, the auditors said that the pensioner would commence receiving pension the following month. The auditors made it clear that steps should be taken to strengthen protocols in this regard.
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