Senate investigation of SSB makes progress
It was derided by the Opposition as a pliable tool of government, but the Senate Special Select Committee appointed to investigate the operation of the Social Security Board appears to be going about its work with both speed and diligence. A release today summarizing the committee’s third private meeting, held on Wednesday, reports as follows:
“The Committee received and reviewed files from the Social Security Board which cover a breakdown of employers and employees contributions to date; the ageing schedule of interest receivable on loans; a list of members of the Investment Committee; original dates of each loan with a copy of each loan agreement with the security provided and the Original Investment Guide.
After reviewing loan files covering a total in excess of twenty-nine million dollars worth of loans, the Committee noted that it appears that only a total of six million of loans have satisfactory security in accordance with sound financial practice and the objectives stated in the Policy and Guidelines of the Social Security Board’s investment programme.”
While that conclusion is not surprising to those journalists and others who attended meetings with the SSB general manager and other government officials, it is noteworthy coming from a body that some observers claimed would conduct a “white wash” investigation. The release went on to point out that the committee has been given a budget adequate to employ the necessary technical expertise, including a special purpose auditor to help in the investigation. The committee will continue to meet privately to examine various Social Security submissions but will hold public hearings on a yet to be determined date. The issue became a public controversy when the Opposition revealed that the Social Security Board had guaranteed millions of dollars in debt under a DFC securitization programme. Based on that guarantee the SSB had to pay out nearly six million dollars when companies controlled by former PUP minister Glenn Godfrey defaulted on various loans.
