PNC is now destroying the rice industry. 

Berbice Bridge, CLICO investments were “criminal” – Finance Minister

– NIS lost US$9M as a result; Consolidated Fund may have to rescue scheme from drowning in losses

By Kiana Wilburg

The business of the National Assembly was wrapped up yesterday afternoon, with Finance Minister Winston Jordan reading the Income Tax (Amendment) Bill for the second time and it was passed.

But since he was on the issue of tax, Jordan felt it necessary to speak about the state of the National Insurance Scheme (NIS), with particular reference to the investments made by the company into CLICO and the Berbice River Bridge during the rule of the People’s Progressive Party Civic.

The Finance Minister said that the billion-dollar investments into those two entities have “hurt us all”. He described them as being rather “reckless” investments, but said that it is even beyond this. His colleagues on the eastern side of the House suggested to him, a more fitting term. They told him, “It’s not reckless, it’s criminal.”

To this Jordan retorted, “Yes I like that word, criminal. It was indeed criminal.”

The Finance Minister said that when Guyanese make their contributions to NIS, it is expected that during times of difficulty and old age, that money would be there to assist. He said that it is expected that NIS would be prudent with its investments, especially with taxpayers’ resources which are faithfully contributed every month.

“So Mr. Speaker, all of us were hurt at the reckless investment by NIS into CLICO resulting in the impairment of over $5.6B. Between 2009 to now, NIS has lost $1.8B and if this was not criminal enough, NIS again made another suspect investment into the Berbice Bridge of nearly $1B to which they are still to collect income on,” Jordan said.

He added, “So essentially, NIS is now in the position where it is eating into its capital to make even the minimal benefits to its contributors. This cannot continue…We will have to move swiftly and come up with a strategy, and it won’t be easy. That approach includes entrenching in NIS, mechanisms to ensure it can never again do anything as reckless as this. ”

Members on the Government’s side slammed their desks in approval.

The Finance Minister continued, “We don’t want the scenario that when we are ready for our benefits we can’t get it, and actually that is the situation now because it continues to lose. It can’t give full benefits and I believe that the Consolidated Fund at the end of the day may be asked to make good on this loss”.

But Jordan’s statements apparently incensed Opposition Leader, Bharrat Jagdeo. Jagdeo could not resist the temptation of taking the floor to defend the investments made into the two companies under the PPP.

He accused the Finance Minister of using the time allotted to read a Bill to score political points. The Opposition Leader then attacked the contents of the 2015 budget which was passed on Friday last, and even sought to bring the integrity of the Finance Minister into question with various accusations.

Jagdeo then called for a debate on the matter after what seemed to be his budget debate presentation—Part two. But Jordan refused to respond to Jagdeo and his allegations.

“I said what I had to, but I did enjoy the honourable opposition leader,” the Finance Minister uttered while ending his statement with a hearty laugh.

Jordan told Kaieteur News that he has no time to enter into any debate with the Opposition Leader. He emphasized that Jagdeo cannot escape the fact that the investments were criminal and that NIS suffered as a result of it.

“I have no desire to give Jagdeo any more prominence than he gets in this honourable House,” Jordan concluded.

As for the Income Tax Bill which seeks to remove the tax levied directly on personal income, the Minister said that this is part of the quest by the coalition government to give a good life to the Guyanese people by “putting back money in their pockets so to speak.”

In explaining how this measure will work, Jordan said, “Let us assume that a person is working for $60,000 at the moment. They will be given a take home of $50,000 a month which leaves chargeable income of $10,000 a month. Now they are asked to pay 30 percent of that chargeable income which is $3000 plus, they will also be asked to pay $3360 a month in NIS contributions. So in essence their take-home pay will be $53,640. When this Bill is passed and the measure goes into effect, the chargeable income of $10,000 will have the NIS contribution deducted and that will leave $6640 and 30 percent of that is $1192, giving this person a take home pay of $54,648.

He said that this means that this person will have a saving or will have extra money in his pocket of $1008 a month or $12,096 a year. This earned him loud applause from members of the House.

He emphasised that this measure takes place this year.

The House then examined the Bill clause by clause and it was subsequently passed.

Prime Minister Moses Nagamootoo thanked House Speaker, Dr. Barton Scotland for his calm demeanour during the “stormy” budget debate and deliberations.

Quoting Shakespeare, the First Vice President said, “You ‘sat like patience on a monument, smiling at grief.”

Nagamootoo also extended thanks to the staff of the Parliament and the media and finally moved the motion for the Parliament to enter a period of recess for one month.

The House is expected to meet on October 11.

http://www.kaieteurnewsonline....al-finance-minister/

The PPP destroyed the rice industry when they took money from the farmers pot to spend on a canal not fit for purpose. The coalition government arrived in time to prevent a national disaster.

Look, if we did not have the canal last rainy season, we living on the East a Coast would have had serious problems with flooding. Which rice money was taken to spend on the hope canal? I thought that the money came from the Petrocaribe  money. The government realized this and opened it up. What national disaster did they prevent by projects they initiated?

Is the money in the budget to be allocated or is it not in the budget as Jagdeo claims? That is the issue.

Jagdeo claims are not worth the time. He has been telling lies from the day he entered office. His words have lost all credibilities.

Regardless of how you or I feel about Hagdeo, the issue is still whether the money is in the budget. The rice industry is important to many families and to the economy of Guyana so the answer is important.

Rice is INDIANS, this government don't care a rat's ass about them, it's all mirror and smoke. The black man now fooling the Indians left and right.For all you coper lover ,wake up and smell the facts. Ethnic Cleansing in progress.

For the benefit of members and visitors, please explain what the term "coper lover" means.

I agree with you. It's fair to ask why the $23 billion amount is not in the estimate of expenditures.

First of all, the APNU has no business being in the rice industry. It is private enterprise and market forces should take care of that. They own sugar so they are responsible for that. The idea of allocating money to buy farmers rice is just plain backward. This is the PPP legacy of barter deals with the Venezuelans but the Venezuelans are shutting down those channels because they are in total melt down and may not be able to produce the oil needed to barter.

This government should use the money to rlease or buy a couple of processed petrol transport ships and buy the oil in the US and ship them out of texas or New Orleans. It would be cheaper than trading with the Venezuelans. Actually, they will be forced to do just that and guyanese will get oil at cheaper rates than in the barter deal.

We need to find markets for our rice. Also, we cannot be selling only rice but products created from rice. Rice can spin off a hundred industries if we think of ways to do it. Lots of the noodles that we buy from the Chinese are rice products, the wine for cooking, the tempura batter, cereals etc. But this idea of buying the rice from the farmers at pre set price with the hope of selling it to yet unknown markets is making an economic nightmare.

Bai Gilly, you ever heard the word "Caprinya" or Caphar"?

You are as usual mixing up your etymology. The word does not exist in Hindi and most likely is Arabic. Most Africans traded into slavery are non Muslims ie Kafir ( traded by mainly muslims). Arabic speaking and creolized africans, Swahilis were the leaders of the trade, their word for the non believers or the lesser then were the Kafir and we adopted the word ( as the South African dutch whites) no less than we adopted other English or African words and give them our own phonetic slant.

Because the rice farmers are SCREWED.

What Moses and Ramjattan are doing about this?. Are they so darn stupid that they cannot see what is happening to the industry?.  They cannot see that the PNC is so dishonest and criminalistic.  Are they being threatened by the President or PNC activists? Maybe! The fact that they weregiven high positions and large salaries will account for their mouths being muzzled..

What is it the coalition did, besides stealing $23 billion dollars.  Where did the money do?   whose bank account? Mr.T,yore the devil incarnate. You are a can of worms and a You know what?

It's only mid day and you're tanked up already?