…in violation of Pension Act

THE auditing firm Nizam Ali and Company has said efforts should be made to ensure that the policies of the Ministry of Social Protection (MSP) are aligned with the Old Age Pension Act.The recommendation was made in response to key findings which have indicated that the MSP’s policies are inconsistent with the Old Age Pension Act.

“The Act requires that a person be resident in Guyana for 20 years immediately preceding application, whilst the (MSP’s) policy prescribes that the person be domiciled in Guyana for two years preceding application,” the auditors pointed out in a report submitted to the Minister within the Ministry of Finance, Jaipaul Sharma.

The report, submitted on April 15, 2016, is based on a review of the Old Age Pension Scheme for the period January 1, 2015 to May 31, 2015.

While the Act disqualifies persons who are residents of any public or charitable institution which provides board and lodge without charge, the MSP’s Policy states that such persons should not be excluded as ineligible.

“Ten (10) instances were noted (when) payments were made to persons who are inmates at public charitable institutions,” the auditors reported.

Additionally, the Act mandates that a means test be applied in assessing the eligibility of an applicant, but this is not required by the MSP, according to its policy.

“During the period January 2015 to May 2015, we observed that the (MSP) did not apply a means test in evaluating the eligibility of new applicants. Further, the (MSP’s) policy set out in Section A (Application and Approval Process) suggests that no means test is done,” the auditors further revealed.

Based on the findings, the Ministry of Social Protection, formerly the Ministry of Labour, Human Services and Social Security, has breached Sections 4 (C), 4 (D) and 9 (A) of the Old Age Pension Act.

According to the auditors, “The Ministry could not provide any documentation to support the authority on which their policies are founded.”

Nizam Ali and Company has therefore advised that the MSP complies with the Act. “The Old Age Pension Act does not provide for the vesting of authority for the variation of any provisions contemplated in the Act. Therefore, if the intention is that the Ministry’s policies are to suffice, then the Old Age Pension Act should be amended accordingly,” the company has advised.