The Board of Directors of the National Insurance Scheme (NIS) has rejected a proposal by the defaulting security company, United Associates Security & Domestic Services (UAS&DS) for the liquidation of a debt of more than $40m due for payment of arrears of employee NIS contributions. At the same time the NIS has disclosed that it is preparing to institute criminal proceedings against the company for failing to make a full declaration of all of its employees for the purpose of making NIS payments.
Stabroek Business has learnt that the Board of Directors of the NIS met last week to consider a letter dated 5th February 2007 from Attorney-at-law George Jackman who is acting on behalf of the UAS&DS in which the company is offering to pay $300,000 monthly towards the liquidation of its $40m debt and to pay current contributions on behalf of members of staff beginning with payments for January 2007. The UAS&DS is also seeking a waiver of interest on the arrears owed to the NIS and “an acknowledgement that it would be eligible for the issuance of compliance certificates for the purpose of tendering by the company for government contracts.”
An official of the Scheme told Stabroek Business earlier this week that the Board of Directors of the NIS had little difficulty in rejecting the “proposal” for payment made on behalf of the UAS&DS and that the company’s Attorney would probably receive a response to the 5th February letter “in a matter of days.” The source said that what had concerned the scheme was the fact that apart from the huge amount owed by the UAS&DS, the company had made and broken previous settlement promises in the past. The official said that since the 5th February letter the NIS had received only one payment from the UAS&DS representing current contributions for 156 of the company’s estimated 350 employees.
The source described the recent payment as “mere window dressing.”
Meanwhile the NIS has disclosed that it is in receipt of information indicating that the UAS&DS has not been making NIS payments on behalf of all members of staff of the company. Stabroek Business has learnt that some of the company’s administrative staff as well as security guards employed by the company in riverain and hinterland areas may have been excluded altogether from NIS payments made by the company in the past.
Asked to comment on the company’s request that it remain eligible for certificates of compliance for the purpose of tendering by the company for government contracts the source told Stabroek Business that the position of the Board of Directors was that no further certificates would be issued to the company until it had liquidated the full amount of its existing debt to the scheme.
The NIS has instituted legal proceedings against the UAS&DS and a further hearing in the matter is due to take place on March 22. According to the NIS source the courts are empowered to allow the company a maximum of 6 months to settle the outstanding debt and the NIS would be relying on the court’s ruling in the matter.
Meanwhile Stabroek Business has learnt that court proceedings against the Transport & Harbours Department have been dropped following the liquidation of the $114m in contributions that it had owed to the Scheme. Another Security Company, COPS is contesting a claim being made against it in the courts by the NIS for $90m in employee contributions.
