Fernando Rodney Jersey “the actuaries reported several matters of concern

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Finance Minister Dr Ashni Singh, on Friday during the budget presentation failed to make mention of the National Insurance Scheme (NIS) and the $6B impaired in the Colonial Life Insurance Company (CLICO) Guyana.Dr Singh reported to the House that in 2011, the task of resolving the domestic chapter of the Caribbean-wide CLICO saga continued.“I am pleased to report that following the granting of a liquidation order by the Court, some 7,744 policyholders were paid a total of $4.1B.He said that the repayment process will continue, and the liquidator intends to garner additional funds through sale of company assets and legal actions with respect to the parent company and other regional subsidiaries.This leaves the cash-strapped NIS,Fernando Rodney Jersey, still banking on the State guarantee for the safe and timely return of its investment,Wholesale Authentic Jerseys, even as its expenditure this year threatens to exceed its revenue.The most recent (2010) NIS report was recently laid in the House by Dr Singh.Its findings revealed that the Scheme’s expenditure is dangerously close to exceeding its annual revenue.The report also underscored the institution’s heavy dependence on short term investments.One such investment is the one impaired in CLICO (Guyana).According to the NIS report,Marlon Humphrey Jersey, in 2010, the total expenditure as it relates to pension was some $9.1B, while the income was only pegged at $7.8B. Old-age benefit was responsible for some $6.7B of the payout. On the income from short term benefits, it was reported that the Scheme raked in some $2B while expending just over $1B.While the total income for the scheme rose to $11.2B in 2010 up from 10.2B in 2009, the report revealed that total expenditure accounted for some $10.8B as against $9.6B the previous year.The report also revealed that the administrative costs associated with running the scheme is some $1.4B.According to the independent auditor’s report for NIS, prepared by TSD Lal & Co. Chartered Accountants,Deion Sanders Falcons Jersey, “the actuaries reported several matters of concern,Deion Jones Falcons Jersey, among which were that annual expenditure is projected to exceed the year’s contribution income beginning in 2014 and reserves are expected to be exhausted in 2022…The actuaries made certain recommendations to ensure the future viability of the Scheme, but so far these have not been fully implemented.”The independent auditors also said that investments of $28.8 billion in the statement of financial position include an amount of $5.748 billion for CLICO Life and General Insurance Company Ltd.CLICO Life and General Insurance Company Ltd., was put under judicial management in 2009.“Due to uncertainties regarding the future of CLICO Life and General Insurance Company Ltd and its ability to honour its debts when due, a unanimous Parliamentary Resolution was passed guaranteeing State support for the recovery of this investment.”An independent expert had said that the nation’s coffers will soon be affected adversely by the investment of NIS in CLICO (Guyana).According to the source, based on the projections of the figures as they relate to expenditure and revenue the latter will soon be less than the required expenditure and the $6B investment in CLICO is impaired and will not be available for use at any time in the near future.The national coffers will be affected, given that at anytime NIS is unable to make its payments, the company by law has to move to the National Assembly seeking monies to be approved from the Consolidated Fund.It was pointed out that in recent years, expenditure and revenue was almost at break even and expenditure was projected to increase.Over the years the revenue collected by NIS has remained stagnant while the expenditure grew,Brad Richards Red Wings Jersey, so should the monies not be recovered from CLICO (Guyana) soon, then it would be unavoidable for NIS to not petition for money from the coffers.The Bank of Guyana has been appointed liquidator and is seeking to increase the liability of the failed insurance company by raising more money from activities such as the sale of the company’s assets as well as from taking legal action against BOSAI, CLICO (Bahamas) and Caribbean Resources Limited.The sale of assets at book value should have realized some $2.7B but the budget was also silent on the level of cash acquired from the sale of assets thus far.