In a visit to the National Insurance Scheme (NIS) headquarters, Brickdam yesterday, Finance Minister Winston Jordan floated the possibility of dividing it up and raised whether it should at some stage be providing unemployment benefits.
GINA said that he was able to interact with close to 3000 staff members. 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 public doing business at the institution.
Describing the NIS as an important component of Guyana’s social protection system, Jordan said that, the agency is experiencing financial problems. “Its capital is under challenge in terms of paying benefits,” Jordan said, adding that the NIS needs to adopt a more prudent approach to investing. “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 stated, according to GINA.
The minister said 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 gotten rid of, to free up space”.
Recounting his own experiences with the NIS, 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 stated.
With regards to the implementation of recommendations in the last actuarial report, the Minister said that these will be looked at as none were really implemented in any serious way.
He further said that the agency; which is observing its 46th year, 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, adding, “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 reiterated by the Finance Minister who cited the Guyana Revenue Authority’s actions as an example that should be copied, GINA reported.
In the Minister’s opinion, the NIS should not be seen as an entity which just receives contributions but, it should be pro-active. In this way, the Scheme can pre-empt occurrences 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 asserted.
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 address this soon.
