By Observer
We presented two pieces where we provided some details regarding the spending activities between the current government and the NIS. We did so considering the public discussion that began several weeks ago since the Minister of Finance announced several measures aimed at reforming the system.
In this piece, we attempt to summarise all of that, by asking if the NIS funds were used for the political advancement of the ULP? To help us, we will quote from the 2005, 2010, 2015, and 2020 manifestos of the ULP; specifically, anything related to the activities that we outlined in our previous two pieces.
2005 Manifesto (Better… by Far!)
Previous 5 years achievements:
- “Built two Golden Years Day Activity Centres for the Elderly at Black Point and Cane Grove.” Remember we listed these are being done with $750,000 donated by the NIS.
- “Almost completed the construction of a modern multimillion dollar headquarters for the National Insurance Services.” Recall we were told that this was ultimately done at a cost of $20 million.
- “Renovated and modernized the Arrowroot Factory at Owia”. We included this considering that the NIS bought the assets of the arrowroot industry for $11.4 million.
- “Built two additional courts at the Villa Tennis Centre at a cost of $532,000 …Rebuilt, renovated or refurbished dozens of sporting facilities relating to the major sports of cricket, football, netball, basketball and tennis”. We thought it was fair to include these because as we know, the National Lotteries borrowed from and has outstanding loans to the NIS. We were also told that part of the NL mandate includes sporting facilities.
2010 Manifesto (We Naaah Tun Back!):
Achievements:
- “Renovated Victoria Park and put in flood lights to play football. The floodlights alone cost in excess of $300,000.” Again, we thought it was fair to list this here since the National Lotteries has taken loans from the NIS.
- “Constructed a modern multi-million-dollar headquarters for the National Insurance Services.”
- “Support to the housing construction industry through a number of other measures including the 100-percent mortgages for public servants through the State-owned National Commercial Bank (NCB)”. We told you that this was done via an initial $5 million deposit from the NIS.
In the next term/5 years:
- “Building up the National Student Loans Company especially to facilitate economically-disadvantaged students.” Recall that we were told that as of 2020, the NIS total active student loan portfolio now spans 550 students and $28.3 million.
- “Strengthening the National Insurance Services (NIS) and the Social Safety Net systems”. Recall the non-contributory recipients.
- “Build two more Golden Years Centres: One in the Kingstown area, the other in Marriaqua;”
- “Increase payments to recipients under the Non-Contributory NIS provisions by at least $30 monthly in 2011, and under the Public Assistance Programme by one quarter (25 percent);”
2015 Manifesto (Labour Love)
Over the next 5 years:
- “Increase payments to recipients under the Non-Contributory NIS programmes and Public Assistance by at least $50 monthly over the next five years, starting with an increase of $25 in January 2016;”
2020 Manifesto (Lifting SVG Higher):
“A snapshot of the progress of the NIS under the ULP government included the following:
Tackling Poverty and Inequality
(i) In addition to the contributory pension and other benefits, the NIS provides two noncontributory pensions: (a) the Non-Contributory Age Pension, initiated in 1997, has paid out $37 million thus far; it has currently 413 beneficiaries;
(b) the Elderly Assistance Benefit, instituted in 2009, has paid out $4.9 million, thus far; it has 184 beneficiaries currently.
(ii) Temporary Unemployment Benefit, part of the COVID-19 “Salvation Package”, has at 31st August, 2020, 1,590 beneficiaries with a payment of $1.5 million.
iii) Administering the Displacement Supplementary Income Support Programme, another initiative of the government during COVID-19: $2.2 million paid, as at 31st August, 2020, to 3,006 hotel/hospitality sector workers; and $300,000 to 886 sailors/seafarers.
Building Human Capital
(i) Loaned $20 million to the National Student Loan Company to on-lend to Vincentians pursuing university education.
(ii) Spent annually approximately $400,000 to students who are successful in CSEC and CAPE Exams: This started in 2005; up to end of 2019, $4.6 million spent.
Improving Housing Conditions
(i) NIS granted a particular purpose loan of $10 million to BOSVG to assist in the provision of 100 percent mortgage financing to civil servants.
(ii) NIS and the Government Employees Cooperative Credit Union (GECCU) have jointly embarked on a significant Land development initiative at Peter’s Hope on 57.2 acres of freehold land (36.6 acres are saleable) for low-and-middle income earners. The development is expected to cost $15.1 million.
Strengthening Health Services
(i) NIS partnered with the Bank of St. Vincent and the Grenadines to donate a CT Scan Machine to the Ministry of Health.
(ii) Loan of $7.0 million granted towards the construction of the Modern Medical and Diagnostic Centre (MMDC) at Georgetown; also donated top-of-the-line ambulance cost of $540,000 to the MMDC.
(iii) Donated $1.0 million to Ministry of Health to fight the Zika virus.
(iv) Contributed $750,000 in 2020 to assist in financing the National Isolation Facility as part of the preparation to fight COVID-19.
Promoting the Well-being of the Elderly
(i) NIS built two Golden Years’ Activity Centres in Cane Grove (2004) and Black Point (2005)
(ii) Provides $60,000 annually to assist with the operations of these two centres.”
On page 62 of the 2020 manifesto where some of this progress is recorded, there is a photo with caption: “NOTE: In all of these NIS advances Dr. Mineva “Minnie” Glasgow, the ULP Candidate for South Leeward has been outstanding!”
Mineva’s Linked profile has a title of “Deputy Executive Director at National Insurance Services”.
Remember that the manifesto is a production of the political party and is usually launched and presented at perhaps the biggest political rally of the election season, where scores of party supporters revel and cheer in the hopes and dreams of promises offered by the party. In the case of the incumbent, or previous government, achievements may also be listed. All of this is done with the intention of enticing voters.
Given all that we know now, can the conclusion be drawn that NIS funds were used for the political advancement of the ULP? We gave you the details from the records of the Parliament. Now, we give you some details from the party’s manifesto. Merging them together, can such a conclusion be made?
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Excellent work Observer.
Absolutely the NIS was a campaign tool used by Ralph anf the ULP. Who differ are just lie and boldface.
All funds from NIS should be investments not donations. How workers money could be used as handout when it’s there for them to retrieve once they retire.
This was definitely an abuse of pensioner’s money. This will have some effect on those who are still working and contributing to the funds.
A few years ago, I believe, they laid-off worker at 55. Now the ULP is probably looking to start paying out pension when folks are 70 years old, simple because folks are living longer.
I hope the NDP will use this as an issue to show workers how they funds were abused to fulfill a political. Folks should look at the timings of some of these donations of galvanize, cement, wood and bricks.
After reading that article I beg to ask some questions.
Nis was partially financing/fueling the economy of svg?
After reading tat rticle D fuss ting com to mi myn is con artist.
So all d while they have us to believe dey r Intelligent and that dey putting d country to work but was it nis? For them?
All alone I figure something was off. No factories, no major export, tourism mayb d worse compare to d rest of d Caribbean, argriculture it gone. How d country making it?
Who was at geccu, during those time. Wondering if dey were hand in glove? owners need to pay closer attention to every dallar and project to make sure it benefit its owners and not a political party. I’m sure alot of your members were dismissed from their jobs so don’t associated with any political party. If d laws govern c/u doesn’t say so stay clear of dem. Was it necessary to put an office in south rivers and what ever was done up there? If its solely for development and not for a political party to look good, no grooze.
Workers analyze it and see really if your retirement moni was helping them looking good?
Its d worse I every see svg
Nis tapbrass need to b made accoutable fuh every dalar spen in dat perod. I’m not unacountant but it sounds troubling.
Som body need to com clean to d ppl. D question is is nis, geccu an operative of a political party, r they their atm? just concern so asking. I’ll b glad to kno d truth.
Where was the opposition when all of this was taking place?
a pension fund must be invested to give a rate of return on investment
Note that the bona fide members of the NIS has not received an increase in their pension for over 10 years now. The act establishing the NIS makes provision for adjustments in the pensions to off set increases in the cost of living. The maximum pension paid is EC 1,800.00 a month for higher income contributors. About half of the value of this could be lost due to increases in the price of goods and services. Can you imagine what life is like for persons receiving half that amount. The funds of the NIS must be invested in income generating sources so that the institution can meet its obligation under the law. It would appear that the organization and its money is indeed being politicised in the furtherance of a partisan political agenda. There may be need for forensic auditing of the account when the ULP is voted out of office.
This is an amazing piece of research, but you can be sure there is much more hidden in the closet.
Mr. Eustace was telling us but we didn’t want to listen. Major Leacock questioned the use of NIS money but we don’t want to listen. Dr. Friday has been questioning NIS “investments” and borrowing from NIS but nobody listens to the opposition. Don’t make this about the opposition. This is about Ralph, the ULP, and their […] activities. But Vincentians love it so. Call elections tomorrow and they line up and singing Labour Now.
I have an experience with that place, the dishonesty and lies from adults, don’t know how some people sllep at nights , ar we dying days will surely tell on us and those are the worst days of our lives ,we all leave footsteps. behind , none live and none die unto themselves.
The article was well rehersed and if it was inaccurate, then the reasonable readers of this article who have a vested interest would have torn it apart as inaccurate and subject to court action. This will never happen given that the general contents of the article reflect the operation of the NIS and its affiliates vis the government.
The NIS for all intents and purposes is used to fund the general operations of the government . As such pensioners cannot be assured that there will be monies in the fund to meet their requirements whenever they retire.
The Minister of Finance is aware of the the status of the pension fund to the extent that he is actively advocated for pension reform. Minister Gonsalves inter alia advocated for an increase in the age payments from the funds itself. Increase in the premium paid by pensioners is another of the reform that the Minister suggested.
The longevity of the pension fund is threatened given that it is no longer self sustaining, either because it is has become the ATM of the government or the growth is lethargic at best. The investment vehicles cannot be said to be a diversified portfolio to ensure growth.
Has the NIS been audited in the last three years? The answer is no, surely the pension fund begs for transparency. It is the people’s money and should not be an ATM of the government.