Prime Minister Said Musa today made a statement giving his official response to the report of the Senate Special Select Committee which investigated Social Security. He says he agrees with all the recommendation, including the one on Narda Garcia and Yasin Shoman.
Rt. Hon. Said Musa, Prime Minister
"There are eleven recommendations that the committee has made, all of them acceptable to government. 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 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 DPP will receive all the pertinent files from the committee and will also receive the full corporation of the government and the Social Security as that office probes for criminal behavior in any of the transactions.
Over and above these recommendations, the government will undertake additional measures to protect the Social Security Fund. 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."
And while the Prime Minister agrees with the Senate that Garcia and Shoman must be removed for incompetent management of the fund, the mechanics of that must still be worked out. As for the other idea that government will seek legal action against Glenn Godfrey to recover its debts, we note that the Prime Minister said pretty the same thing in April of 2005 when government had just lost $5 million in reserves because Godfrey defaulted on a debt at a Caribbean bank.
