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– structure built with US$40M, valued at US$30MA forensic audit report into the National Insurance Scheme (NIS) has urged the entity to consider playing aNIS Chairman, Dr. Surendra Persaudbigger role in the running of the Berbice Bridge if it wants to ensure returns on over $2.5B it invested.The bridge, commissioned in December 2008, is in deep financial trouble now, with claims that it has racked up $1.5B in accumulated losses based on the 2014 audited financial statements.The investment in the bridge has been riling taxpayers and the former Opposition, which now forms the coalition Government, as it was believed deliberately structured to allow close friends of the former administration to take control of the structure which links Demerara to East Berbice.NIS has the largest single block of money invested but via an equity arrangement New GPC and Ramroop Group, two companies linked to former President Bharrat Jagdeo, were able to take 40 percent control of the bridge company. Two directors representing Ramroop and his companies have since resigned.NIS had little say with the bridge’s operation despite its massive investments.The forensic auditor, HLB R. Seebarran & Co ., in its report wants all that changed now with the current ‘Concession Agreement’ restructured to allow NIS to have a more dominant role in view of its shareholdings.The forensic report would partially lift the veil of secrecy that would surround the bridge’s operations and the people behind the scenes.The report disclosed that the previous Board of Directors (BODs) had approved Maurice Solomon, a director, as its representative on the Berbice Bridge Company Inc. (BBCI) Board.“In addition, another director, Mr. Paul Cheong sat on the BBCI’s board, yet there was no report of the position they took in representing the scheme’s interest as evident from the minutes of the BODs overNIS General Manager,Wholesale Soccer Jerseys, Doreen Nelsonthe last four years.”FINANCIAL WOESNIS is facing financial problems, too, as it is depending on the dividends from its investments to keep the scheme viable. However, since late 2014,China Jerseys Online, BBCI had given notice to NIS that it will not be able to pay its dividends as enough traffic has not been crossing the Berbice River and there was barely money to pay overheads and its loan commitments.NIS has invested in a number of ways in BBCI- Corporate bonds – $1.060B; Subordinated Loan – $500M; which is a debt that ranks after other debts if a company falls into liquidation or bankruptcy); Preference Shares – $950M; Common Shares – $80M.The report warned that the ability of BBCI to pay interest and dividends and its capital repayment will depend on its ability to generate profits.With its losses of $1.5B, the investment in BBCI’s Common Shares may now be impaired as the current net worth of an ordinary share is ($2.77), based on its 2014 audited financial statements, the audit report said.It was found that BBCI signed a ‘Concession Agreement’ with the Government of Guyana for the design, construction, development, operations and maintenance the Berbice Bridge pursuant to the terms and conditions established within the agreement. The agreement is for a period of 21 years,Wholesale China Jerseys, unless terminated or extended by mutual agreement or in accordance with any other provisions within the agreement.“When the 2012 audit was finalized in May 2015, it became known to management that the company does not own a bridge but instead a licence to operate it.”NIS will have to seriously consider having a bigger say in the Berbice Bridge if it wants to protect the $2.6B it invested.The forensic auditor did not see a copy of the Concession Agreement for review.At December 31, 2014, BBCI owed shareholders $1.1B.The report said that the scheme’s investment in the BBCI’s is almost certain to be negatively affected by the current financial woes.“Already, the ordinary shares have been impaired to a negative value, the subordinate loans preference shares may also have been impaired. The company’s CEO has already written the scheme indicating its inability to pay the dividend on preference shares.”The report went further with regards to the risks of its investments in the Berbice Bridge.ANOTHER 21 YEARS“In the event that BBCI becomes insolvent because of its current loss making position, its issues with the Government regarding the lowering of the bridge toll, its inability to generate adequate cash flows to meet its obligations and the fact that the company does not own a bridge, then the investors’ investments will be at severe risk of not being recovered.”BBCI had even written NIS asking that the scheme consider reducing the interest rates of the investments – Bonds Tranche 1 from 9% per annum to 7.5% per annum (free of all taxes), Bonds Tranche 2 from 10% per annum to 7.5% per annum (free of all taxes), Subordinated Loan Stock from 11% to 7.5% per annum (tax free), and Preference Shares from 11% to 7.5% (tax free).However, the forensic audit report warned that if NIS management accepts this proposal, it stands to lose $611M over a 12-year period.Regarding the concession agreement, the audit firm said it understands that it will end in June 2027, at which time the company will be required to hand over the bridge to the Minister responsible.“Over the remaining years, the company must make ‘substantial’ profits, as emphasized by its auditors, during the remaining years to pay off all debt obligations and compensate its ordinary investors. Realizing this,Cheap NFL Jerseys, the company is now seeking approval from the Government to extend the ‘Concession Agreement’ by another 21 years.”With the current situation at the Berbice Bridge,Cheap Nike NFL Jerseys, the new NIS Board will need to assess the risks and returns of investments, the report of the forensic auditor urged.“In addition, it needs to have proper representation on the BBCI’s board since it is the largest investor in the company. In our opinion,China Jerseys, the scheme should have a minimum of two representatives on the board one of which should be the Chairman/Chairperson.”It was also recommended that the NIS board carry out their own investigation to determine the value of the bridge which was reported at $6.28B net or US$29.9M at December 31, 2014 in the audited financial statements.