President Bharrat Jagdeo has once again vowed that the National Insurance Scheme (NIS) will not lose its almost $6 billion investment in CLICO.
At a press conference on Friday, President Jagdeo was asked about the impact that the possible loss of the investment could have on the NIS. In response, Jagdeo said the “NIS has not lost a cent because …they will be paid back.”
When asked where this money will come from, the Head of State said “from the US$15 million [the Petroleum Fund], from the sale of the assets which we’re trying to do now, from hopefully the receivable from BOSAI, if we get those three, we can clear most of the liabilities without resorting to the treasury.”
Jagdeo emphasised that money would only be taken from the treasury as a final resort. “In the worst case, if we can’t clear all the liabilities it’s a resort to the treasury,” he said.
The NIS investment in CLICO (Guyana) has come under intense scrutiny ever since the financial woes of the insurance company were publicized. On February 25, Commissioner of Insurance Maria van Beek had moved to the high court to have CLICO Guyana placed under judicial management. This was done following an order issued by the Supreme Court in Nassau to send CLICO (Bahamas) into liquidation on February, 24. Investigations regarding Guyana’s $6.9 billion (US$34 million) investment revealed that although this sum was liquid on paper, it had been tied up in real estate investments that CLICO (Bahamas) had in Florida via subsidiaries.
In a press conference on March 23, Chairman of the NIS Board Dr Roger Luncheon said that the scheme had pursued investments in the insurance company because they were lucrative.
The chairman at that press conference also refuted suggestions that the collapse of that scheme was imminent. He said that the most up-to-date information with regard to the financial operations of the scheme clearly suggested otherwise.
Of course NIS will not lose a cent, because what government will do is borrow money from the public treasury to make up for the money the NIS lost to CLICO (GY) and then have the Guyanese repay (via increased taxation?) the money taken from the treasury over ten years. The people of Guyana are losing twice: having paid their NIS contributions and now having to repay the loan government is taking out to fill the void left by the NIS loss!
No matter how this Preident tries to spin his way around the issues, he cannot escape blame for his government’s willful mishandling of the CLICO (GY) debacle when it failed to have its Insurance Commissioner stop or penalize CLICO (GY) from investing in excess of 15% funds overseas! That’s the botoom line!
Very good, Jaggyboy.
NIS will not lose 1 cent.
We will utilize sale of state property to account for that deficit. And of course if it doesn’t happen, we will go to the treasury. Hence, we will save the Guyanese people any expense.
You know how it is with us PPP-ites. We dig holes to fill holes.
Vote us in again next election, everyone. We promise to do same.
anything Jagdeo says should be taken with a pinch of salt.
NIS already lost the $6B, that has already been established. the money that will be used to pay back NIS could have been used for much needed development.
secondly, from all indications so far it appears as though the Clico money was pilfered or squandered. the financial crisis is being used as a cover.
the shareholders needs to start looking after their own interest. contact FBI and Interpol for help in tracing where the funds went.
Pinch? how about a bucket of salt?
Here we go again, this guy mouthing off empty promises. “hopefully we’ll get this and hopefully we’ll get that” well hopefully we’ll get a new president
For an Economic or Financial professional he does not sound too impressive, especially if this was a pitch to investors.
The investment failed but as usual with government (and the reason Y ppl look at govt for secured investment) is that they can tax u more to pay debts. Or take more from one pot and put into another.
Lets just admit it was a bad investment. Ask any Wall Street guy and they will admit some investments are bad and some good. But they look at the average gain of the medium to long term for a portfolio, especially for an organisation like NIS.
Remember, lots of us who voted for your party have to watch out portfolio monthly and quarterly ( some daily) to ensure that retirement income is there and growing. So we R a bit more educated / knowledgably these days.
Grandstanding don’t work so well in the post Bush era.
Yeah riiiiight…..
The president is a smart leader, he really knows how to dig one hole to fill another, with leader like him guyana will be prosperous in the next year.
Or you mean porous and pervious, Amen-ra?
Hmm. Not lose a cent.Let me be the judge of that.
Jagdeo hollering NIS won’t lose a cent is like when you are telling the kids hey santa is real bai, watch e gonna climb down from the water tank.