Cabinet hears from SSB manager
We have only just received the official press release on today’s first business session of the new sixteen member compromise cabinet, but reports from Belmopan are that most of the morning session was taken up by a presentation from the general manager of the Social Security Board, Narda Garcia. Unless there are some secret transactions that were held back from her meeting with the media last Monday, there would have been little new revealed in today’s talk. Essentially, Garcia and her board’s primary sins were that they guaranteed millions of dollars in high risk loans made to former PUP Minister Glenn Godfrey, shovelled millions of dollars of SSB loan funds into the leaky toilet known as the Development Finance Corporation, and along the way managed to give direct loans to a few private sector operators who had no business getting them. All told it’s a tale of major mismanagement that would normally earn a manager the boot. But in this case it seems highly unlikely that any of SSB’s “mistakes” was made without the direct knowledge–or direct orders–of at least one or more members of cabinet. Meanwhile, just for the record, I’ll read that “just in” press briefing on today’s cabinet meeting.
PRESS BRIEFING
Cabinet Meeting of 24 August 2004
Cabinet met in regular session on Tuesday, August 24th 2004.
The first order of business was a comprehensive review of the administration of Belize’s Social Security Board?s financial operations and its securitization process.
Cabinet received a briefing presented by Mrs. Narda Garcia, General Manager, supported by Mr. Rolando Zetina, Director of Finance, which included full disclosure on Social Security Board’s loan portfolio. Following this briefing, Cabinet mandated the Social Security Board to continue making full disclosure of the Board’s operations and loan portfolio to the social partners, including the business community, the trade unions, the banking establishment, the press, and other economic interests. A special briefing will be held on Thursday, August 26th 2004, at a place and time to be announced by the Social Security Board.
Cabinet confirmed the position taken by the Prime Minster that the Social Security Board refrain from contracting any new loans until the new investment policy guidelines currently being drafted by the Social Security Board’s actuary have been presented to and approved by Cabinet.
Cabinet also reviewed the entire investment portfolio of the Belize Social Security Board and reiterated its position that in the liquidation of the assets of the Development Finance Corporation, first priority will be given to DFC’s commitments to the Social Security Board.
Cabinet welcomed the interest taken by the Governance Improvement Commission on the need for transparency and accountability through full, detailed and timely disclosure in the use of all public funds and invited the members of the Commission to participate fully in a special Social Security Board disclosure briefing also scheduled for Thursday, August 26th 2004.
Cabinet noted that the most recent actuarial reports produced by the actuary Hernando Perez Montas indicated that the Board’s performance indicators were very satisfactory in 2003, spearheaded by positive results in key operational areas.
The overall financial results exceeded the actuarial expectations, with an increase in consolidated reserves from $240 million dollars to $256 million dollars, and projected increases to $277 million dollars at the end of 2004, and $300 million dollars at the end of 2005.
Cabinet also noted that Social Security benefits paid to Belizeans have doubled from $13.8 million dollars in 1999 to $28.5 million dollars in 2003.
Cabinet further met with the Governor of the Central Bank, Mr. Sidney Campbell, who confirmed the soundness of the banking system, that Belize’s reserves are in a position to respond to our debt service needs, and that the fiscal information presented by the Ministry of Finance with respect to Central Government’s Accounts for fiscal year 2004-2005 up to July 2004 reconciled with Central Bank figures.
The Governor of the Central Bank committed to work together with the Ministry of Finance in carrying out a mid-term macroeconomic and budgetary review. This review is expected to be completed by mid-October, 2004.
The next regular meeting of Cabinet is scheduled for Tuesday, August 31st 2004.
For further information contact:
Robert Leslie
Cabinet Secretary
August 24, 2004.
It’s good to see that despite last week’s political crisis and the resulting changes in cabinet, we can always count on those wonderfully insightful press releases.
In related news, the National Trade Union Congress of Belize has called a press conference for Thursday to outline its position and plan of action to address the Social Security issue.
