P.M. says Narda and Yasin must go
The suspense is over. After a week of waiting to hear the reaction of Prime Minister Said Musa to the recommendations of the Senate Select Committee on Social Security, this evening the P. M. released an official address to the nation. Minutes into the televised statement, he announced that all eleven suggestions made by the committee have been accepted, leading off with the sacking of the chairman and general manager.
Prime Minister Said Musa
?Firstly, we accept the committee?s recommendation that all board members and the general manager who were involved with the securitization program should no longer hold office at the Social Security Board. Government will now actively seek legal advice on proceeding with civil action to recover all loan payments outstanding, particularly as it relates to the Glenn Godfrey Group of Companies. The D.P.P. will receive all the pertinent files from the committee and will also receive the full cooperation of the Government and Social Security as that office probes for criminal behaviour in any of the transactions.?
?The new chairperson of the board will be a private sector representative. The Social Security act will be amended to place a limit on yearly administrative expenses allowed as a percentage of annual collections. All risks to the fund will be required by law to be included in the financial statements of the board, ensuring that the public is fully aware of all liabilities and putting an end to any so-called ?off balance sheet? contingencies.?
?Those of us who save know that there is a delicate balance that must be maintained between getting a competitive return on our savings on the one hand and ensuring that our savings are not put at risk on the other. Then there are those few unscrupulous private sector parties who refuse to recognize that public sector lending should be subject to the same high standards as lending standards at the private banks. These and other factors have caused Social Security at various times to overreach and put at risk its portions of its precious proceeds. I wish to assure the contributors of the fund, employers and employees alike that our government will need the clamour for Social Security funds to be treated with greater respect, for funds to be used only for low risk investments and for a new partnership to emerge between Government and employers and employees.?
Current private sector representatives on the Social Security Board are Mark Lizarraga and Mel Auil Jr. In addition to firing General Manager Narda Garcia and Chairman Yasin Shoman–the only original members still serving–Prime Minister Musa also promised to table a comprehensive Social Security amendment bill in the House of Representatives. That bill is said to include disclosure clauses for directors, places limits on investments, informs the public of impending investments and requires majority approval from the non-government directors for board decisions. And while Belmopan would like to believe that this matter is now closed, the reality is that Garcia was appointed by the Board and will have to be dismissed in similar fashion. Added to that scenario is the fact that, in the midst of the Senate’s investigation, the Board renewed Garcia’s contract for five years. We have yet to confirm the details of Garcia’s financial settlement or whether it is tied to the volume and contents of any future discussions she may wish to have with the media.
