…Dr Luncheon says NIS too tolerant
THE Georgetown Mayor and City Council (M&CC) has not handed over workers’ contributions to the National Insurance Scheme (NIS) since last August. And authorities are accusing the Scheme of being too lax in their dealings with errant employers.
The financial situation at the municipality, which has led to NIS money being used for other purposes, has prompted City Treasurer Andrew Meredith to complain of sleepless nights.
At a recent statutory meeting, Meredith conceded that the practice of not handing over the money goes contrary to the laws and that he was tired of being one of the persons responsible for breaking them.
At the weekly post-Cabinet press briefing at the Office of the President last Wednesday, Cabinet Secretary, Dr Roger Luncheon, said: “I blame the Scheme to a certain extent. The behaviour of the NIS with regard to quite a few of errant employers has been a bit too tolerant.”
Luncheon pointed out that this is not the only municipality that has fallen “afoul” of the NIS legislation in terms of collecting contributions on behalf of the Scheme and handing them over. “Probably others would be identified by the zealous members of the media,” Luncheon remarked.
“The Scheme has been unduly tolerant…and I anticipate more revelations on this matter,” he further remarked.
The City Treasurer had complained: “I have been part of the system of allowing us to break the rules. Since last August we have not paid NIS. How much longer am I required to continue to break the law?”
But Georgetown Mayor Hamilton Green had chided Meredith for revealing details that were uncalled for, and had requested that he address the question that was raised by Councillor Junior Garrett on the current financial position of the council.
However, Meredith charged that the council’s finances are being dealt with too much in isolation. “We have to understand how we got here. In fact, we are still here because nothing has changed in terms of the salaries’ bill!”
According to Meredith, the council’s liabilities at the end of April amounted to more than $980M. In excess of $600M is owed to the Guyana Power and Light (GPL) and over $200M to miscellaneous creditors.
Garbage contractors have not been paid since March, and the amount owing to them stands between $68 and 70M. At the end of June, Meredith continued, the council owed GPL close to $780M. Small contractors are also owed since last February, in the vicinity of $12M, and there is $130M outstanding for NIS and Pay as you Earn (PAYE).