Social Security has been one of the most scandalized organizations: criticized, probed, and exposed for taking reckless private risks with public money. But, through it all: the condemnation, the confessions and the contrition, Social Security has maintained appearances: the fund has more money than ever; it is paying out more benefits than ever, and it's stewards are as determined as ever to make sure that the period from 1998 to present is seen as a time of modernization and not an era of mismanagement. That steely determination was put on display today as Social Security had a ceremony to launch its 25th year of activities, and as we found out, keeping up appearances is job one, even as the Senate investigates money disappearances.
Jules Vasquez Reporting,
This morning, board members like Chairman Yasin Shoman, Mel Auil, Dylan Reneau, Elena Smith, Anselm Gillett and guests like the Prime Minister gathered to mark the milestone: 25 years of Social Security. And the fund has come a long way. It started in June 1981with 26 employees and a government loan of $50,000 and 25 years later, Social Security has 260 employees and collected just under $50 million in contributions last year. Even more impressive than that, its assets are now $350 million with over 70,000 insured persons. It's not only the largest social institution in Belize, it may be one of the largest organizations.
Yasin Shoman, SSB Chairman
"The sheer numbers speak volumes about the phenomenal growth of the Belize Social Security during the past 25 years. Today we can honestly say we have been ensuring the present and securing the future."
But have they really? Social Security's portfolios are hefty, but its largesse comes from the pockets of working Belizeans and the director who represents those workers say the board must be kept honest.
Jules Vasquez,
Do you feel that at 25 SSB is properly upholding and serving the ideals on which it was founded?
Dylan Reneau, SSB Board Member
"Well Jules the statistic that the Chairman gave us today with the $300+ million in reserve and sort of thing surely points to that but we do know, and it has been aired last year, some of the misuse that the Social Security Board has made, and certainly we, as social partners on the board, have to play a more vibrant role in ensuring that decisions taken at the board are in the best interest of the fund and at the same time in the best interest of the country."
Jules Vasquez,
In your opinion is there a great deal of political manipulation of the board? You sit on the board however we saw that the Prime Minister himself, for example, when Michael Ashcroft needed the money to effect the Sunshine transaction, the Prime Minister himself spoke to the board on which the government controls the majority of the seats.
Dylan Reneau,
"Well Jules that itself tells you that there has to be some sort of political influence on the board because they are considered the government's board members and there are five compared to four non government numbers."
Jules Vasquez,
So many people spoke about the vision of George Price for this social insurance fund. Do you feel that you betrayed or undermined that vision through mismanagement of the social security fund?
Narda Garcia, SSB C.E.O.
"I don't think so Jules. I think if you look at the financials of the fund, you will see that that is not so. I believe we have seen that the fund has grown, the fund is solid, and the fund is there to cover future benefits for the insured persons."
Jules Vasquez,
Looking at investments there have been squanderous investments in which the soundest prevention were not observed as in the St. James or you can look at Soren Sorenson.
Narda Garcia,
"Well as with all financial institutions, all investments bear a risk and if you compare the default ratio to any development institution, its an acceptable rate."
Jules Vasquez,
I would say that your default ratio is above ten percent and no commercial bank has over 5% even.
Narda Garcia,
"Jules I don't know where you getting your financials from but if you look at our 2004 financials, you will see that our default ratio is not ten percent."
Indeed, according to Social Security's auditors, it is 5.9%, still a couple points more than commercial banks, which do not manage public funds. But Social Security is satisfied with its performance, so much so that it says it must now modernize its governing regulation.
Narda Garcia,
"A comprehensive review is in order indeed. For some time now we at the Social Security Board have recognized the need to change our legislation to reflect more accurately the changes in our society and to address the modern issues affecting employment and the work in Belize."
Jules Vasquez,
Explain why social security needs this legislative reform.
Narda Garcia,
"Well Jules as I mentioned, every day administratively we see that sometimes we want to pay benefits but the legislation does not permit us to do so. Everyday our frontline people will come back with recommendations and suggestions."
Apart from updated legislation, Social Security is also looking to pay an unemployment disaster benefit that would be effected when persons go jobless or lose time on the job due to natural disasters.
