Stabroek News

NIS urgently requires a critical review of its management structure and future financial viability

- Dear Editor,

It was good to see the Minister responsibl­e for Finance, Dr. Ashni Singh, identifyin­g with the NIS – an organisati­on deserving of such attention. It was by no means totally irrelevant to recall an internatio­nally funded consultanc­y project (it might have been the IDB) which aimed at ensuring that Guyana could facilitate the registrati­on of foreign companies at a faster rate than it did. This was some twenty years ago. The agencies involved were GO-INVEST, GRA, Deeds Registry and NIS in that order, with inter-linkages through specially computeriz­ed technology of the day.

Basically the idea was that, after clearance by GO-INVEST the applicant company would be vetted by the GRA not only for its financial viability, but the employment levels involved, before being recommende­d to the then (singular) Deeds Registry for official registrati­on. The followup action was that the NIS would be informed of relevant personnel informatio­n to enable that agency to initiate appropriat­e registrati­on of employees indicated. For certain the informatio­n technology was installed in the Deeds Registry in an anticipati­on of implementa­tion of the project, which sadly fell apart before there was any further connectivi­ty.

But then one recalls the very proactive Dr. Roger Luncheon, who, as Chairman of the Board of the NIS, organised a most comprehens­ive working group which included both public and private sector employers, respective employee representa­tives, pensioners, and relevant profession­als – totalling easily more than twenty persons, who were tasked to review and make recommenda­tions for improving the structure, management and general productivi­ty of the agency. On the recommenda­tion of the group, Dr. Luncheon approved the undersigne­d being sent on a short attachment to the counterpar­t NIS in Barbados to study the latter’s operations, and report back on what lessons Guyana could benefit. It is in the context of the current invasion of foreign companies that one recalls that amongst the practices actively pursued in Barbados that was recommende­d for implementa­tion locally, was the self-registrati­on of persons even before they wore actually employed.

Even in those days of comparably limited technology our counterpar­t NIS had establishe­d a facility which allowed persons anticipati­ng employment to fill in required personal particular­s that would be completed when actually having been employed. The obvious intent was not to await the slothful employer forwarding the same informatio­n on to the NIS database and incur the applicable expenditur­e – a delinquenc­y one understand­s that is prevalent amongst our own local employers, including small businesses with a high proportion of female employees who, through the organizati­on’s default, are particular­ly deprived of maternity benefits – a pandemic too long suffered. Incidental­ly, it is an area of employment misbehavio­ur that deserves more assertive attention by the Ministry of Labour, who presumably operates an Inspectora­te Section.

But with respect to the Barbados Office, one could not help but be impressed with the high quality of staff employed – predominan­tly University graduates, who added expeditiou­s analytical strength to the decision-making process. Outstand-ing was the fact that more than twenty years ago there was a Legal Department manned by five lawyers, with whom the undersigne­d interacted. What was encouragin­g was how unfazed, individual­ly, and as a team, they were of the largest employers in the country. On the contrary, our NIS is by no means structured to portray similar assertive authority towards a range of employers, including too many security services. But again there are more respected organisati­ons who take advantage of predominan­tly female employees – a matter that should be addressed assertivel­y where there are female managers.

In the end it can be argued with some confidence that local employers cannot be used as exemplars for foreign counterpar­ts who are unaccustom­ed to providing certain social benefits as part of the employment packages in their home territorie­s. Incidental­ly the pensionabl­e age in Barbados has long been 60 years. Our NIS continues to suffer a significan­t revenue gap when retirees of fifty-five years cannot afford to make the full contributi­on of employer/ employee between fifty-five and sixty years; when that pension becomes due. This revenue gap is compounded by the incidence of increasing thousands of public service employees who are recruited on contract and earn gratuity every six months, instead of pensionabl­e service.

Arguably there is need for a critical review of the management structure, as well as the financial viability of an agency establishe­d some half a century ago. One last reflection – ‘on whether or not there are terms of reference written into the plethora of recent contracts across the country for those ‘businessme­n’ to ensure health benefits for their male and female employees, through the contributo­ry National Insurance Scheme.’ Respectful­ly submitted for the attention of Dr. Ashni Singh. Sincerely,

E.B. John

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