Director’s Letter fails to address remedy for late payments by Social Security
Director of Social Security David Matthias, in a letter dated June 15 2022, confirmed the UPP’s worst fears about the parlous state of the entity and highlights the reasons why the body is cash strapped.
Repayment Terms Established
In the year 2010, a bond was issued as a mechanism of repayment of the debt owed by government to social security.
At the time, the debt to Social Security was $550 million, the vast majority of which had been accumulated during the VC Bird and Lester Bird ALP administrations, over a 28-year period.
Repayment terms set out both cash and asset swaps. Incidentally, when the Government’s indebtedness to Social Security was properly structured in 2010, $330 million of the debt was placed on a Bond, while the balance of $220 million was to be settled by way of the Government transferring land/buildings and/or shares in entities such as WIOC and State Insurance to Social Security. The Bond was only to be reduced by CASH payments which are critical to providing Social Security with the liquidity required to meet its monthly obligations on time.
According to the director, the total value of the assets that Social Security controls is $136,152,744, without saying which of the assets fulfill the $220 million asset swap to liquidate the debt.
It would have been helpful, if as was requested, he had indicated what is the value of each of these and how much cash is generated from each individually.
Matthias, in his missive, stated that the total cash payments made to Social Security in 9 years by this administration is $214,921,496 and the total dollar value in cash payment that represents regular contribution is $211,421,496 – a difference of $3.5 million.
This means that only $3.5 million dollars has been paid on a bond of $330 million in the 9 years this administration has been in office. This is contrary to Gaston Browne’s oft-repeated claim that his administration has paid well above what is due to the bond. In contrast, the UPP administration paid $30 million on the bond in just 4 years.
Social Security Is Cash Strapped
For the avoidance of doubt, $3.5 million is insufficient to cover even half of a single month’s pension payments.
Further, it was confirmed that the former US Air Station valued at $83.5 million, was applied to reduce the principal on the bond. This was not the intent of the agreement.
Also of significance is the number of properties that are owned by Social Security, few of which are cash bearing. It would have been helpful to provide information on which assets generate cash and how much.
It is noteworthy that $83.5 million dollars is the value attached to the former US Air Station, to reduce the principal on the bond. This action robs Social Security of the expected monthly cash payments required to service its beneficiaries.
Political Leader Harold Lovell has been at pains to explain that Social Security is in need of liquid cash, as only this could address late payments.
The questions to be answered are:
1. how does Social Security intend to translate fixed assets into cash?
2. how does it propose to negotiate with the administration to accelerate the interest payments on the bond?
In the current circumstances, we can only expect the chronic problems of Social Security to continue. It is doubtful that the late payments will end in “one fell swoop.”
Advertise with the mоѕt vіѕіtеd nеwѕ ѕіtе іn Antigua!
We offer fully customizable and flexible digital marketing packages.
Contact us at [email protected]
Matthias, your letter is one big joke. I really feel sorry for you!
I hope Antiguans will wake up to all the Gaston and ABLP lies. They have lied about their Social Security contributions as with many other things. People it is time to get rid of Gaston, Maria and all the others creatively enrichment themselves at our expense.
My employer was deducting my monies fortnightly and was paying them on time to Social Security.
Now that I’m retired and is receiving pension I’m looking forward to be paid on time.
Trevor Walker & Harold Lovell sound like two cry cry babies….. They get what they ask for yet still they are not satisfied? The time has come for the two gentlemen to say good bye to Antigua’s politics. They have nothing positive offer..Their political career need to be buried in the dust bins of Antigua’s & Barbuda’s politics
OK- keep on wishing, so ABLP and Gaston can destroy this country and leave us like hermits.
BLUDDY BLOKE AKA GASTON BROWN, TIME TO GO, YOUR TIME IS UP
Under a UPP administration Mathias WILL REMAIN as head.
Social Security is in effect a PONZI scheme. Payments can not be paid unless deposits are made. Sorry to say but it appears that ABLP was more detrimental to SS. Mismanagement is the order of the day in ANU.
You are right.
The government gave amnesty to a lot of people recently. Why aren’t they paying into the system so pensioners can get paid?
June 12th 2022 make the Gaston Browne Administration made 8 years- Harold Lovell I know you can’t count but don’t let anybody give you basket to carry water
We long knew they can’t count. Helps to explain why under their leadership they engaged in projects that were an example of value destruction (Wadadli Power plant, Fencing program, Folleys housing project, Voluntary sev program, Hiring C Tabor).
Gaston Brother is a convicted rapist. Weston say housing scheme burning money,, Winston WILLIAMS supports the ABLP, 76 MILLION spent on ebooks, no water, old fire-truck
June 12th 2022 make the Gaston Browne Administration 8 years old- Harold Lovell I know you can’t count but don’t let anybody give you basket to carry water
2014 June to 2022 June I’d 9 years
Is*
“Political Leader Harold Lovell has been AT PAINS TO EXPLAIN that Social Security is in need of liquid cash, as only this could address late payments.
The questions to be answered are:
1. how does Social Security intend to translate fixed assets into cash?
2. how does it propose to negotiate with the administration to accelerate the interest payments on the bond?”
Yes, UPP. Now that you have bisected and trisected the SS problem. Now that you have given the nation the full account of where the ALP is at fault (and you are right. They are at fault). Now that you have done so and asked the relevant questions and given the figures which most people will not read. Now that the leader has cleared up the bonds-no cash matter with Darren, the question is now to be asked?
WHEN ARE YOU GOING TO PUT ALL THIS INTO A POLITICAL RESPONSE? WHEN ARE YOU GOING TO FIRE UP THE PEOPLE TO GET VEX WITH ALP ON THIS MATTER? WHEN?
Are you waiting and hoping for Thunder and Lightening and Knight to do the work for you?
UPP, when will you stop sounding like a textbook and experts on a interview program and
START SOUNDING LIKE POLITICIANS WHO WANT TO TAKE THIS GOVERNMENT FROM GASTON BROWN WHO IS AS NASTY AND EVIL AND CALCULATING AS EVER?
Lawd, me gat one BLUE headache. Even me yeye dem a hut me.
Nowhere in this writeup has the UPP stated how much in regular contributions it made to SS during the time it was in office. During a labor day celebration, the union rep (now deceased), Sir keithlyn smith (author of To Shoot hard labor), pointed out that for years the UPP had made no contribution to SS. He stated there was an initial small payment made buy Cort but after that years passed with no contributions. The writeup stated the ABLP paid $214,921,496 for 9 years (as someone else reminded ABLP has been in office no more than 8 years). This then means the extra payments amount to about 30 million (23 million a year), Coincidently the UPP claims in its 10 years it also paid 30 million towards the bond.
Lol Harold Lovell really think some of us forget his piss poor performance as finance minister? Harold Lovell thinks some of us forget when he could not pay pensioner and government works on time. He forget when he would pay the 8th 10th 15th and 20th of the following month? #menarforget #donthaveanmesia
How late do pensioners get pay now? No body bother sleep under Social Security even tho 4 and 6 weeks late I get my pay. Dangerous liard set ah people. Carnival Committee owe my son since 2019 and he can’t get a cent. Gaston come in with these promises and just full ah gas!!
I am a pensioner, what you telling me I should be satisfy with this treatment. Gaston Browne wicked, wicked, wicked. Gaston and Mr Matthias lie!. Gaston A want ma pension
I am a pensioner, what you telling me I should be satisfy with this treatment. Gaston Browne wicked, wicked, wicked. Gaston and Mr Matthias lie!. Gaston A want ma pension
Truth, slow-talker,Amnesia same person
@ Patricia : Yes that’s your wish but sorry to disappoint you but you are wrong. Here’s an other reality check for you: Though the former chairman of SS, E Christian argued that government (then UPP) needed to come to SS rescue, HL wore no heroes cape. All he provided them was chat. Next thing you know, during his watch, 20 million was taken from Medical Benefit scheme and given to Development bank, so they can invest in a river boat and cotton Those funds could have helped SS
Covid-19 has caused many to be out of work. No jobs means no contribution to SS. The pandemic is now coming to an end and many countries are now opening up. I think SS will see an increase in revenue very shortly.
Comments are closed.