The 2010 Social Security Board Budget

A quick review as we enter Q2
The Belize Times has had a chance to look at the Audited Financials of the SSB , that august institution who holds sway over the contributions of Belizean workers and embattled Belizean businesses that employ them.
When it comes to Social Security Board’’s management of the people’s funds, the objective must always be maximizing returns on the investments in a socially and morally responsible investment portfolio.
There are a couple of questions that you may want to ask in reference to some Investments…for e.g. is the SSB still booking Cayo Frances as part of the San Pedro land valued at $10M in the Investment Portfolio? No mention is made about compensation to the SSB from GOB because it is public knowledge that Agriculture minister  Montero got that one and has probably sold it  for a pretty penny. Was the SSB compensated by GOB by cash or land – if so, it is not recorded in the audited report.

There is no annotation on the  Investment in Sunshine (loan note) no income has been realized even after the nationalization of BTL. The Board made a claim for payment to the Financial Secretary; so far nothing has been paid to the SSB Fund. Speaking of the Investment Fund , it seems to be stagnant showing no growth. Actuarial forecast is pointing out that the sustainability of the fund in the medium to long term is at risk.

Term Deposits are the interest bearing vehicles of choice of this Board, moving around from Bank to Bank and in some cases deposits were moved from one bank to the other for a lower interest rate. What is the new criteria for selecting the banks that the people’s monies are deposited in. Should it not be done via a competitive bidding process by the Commercial Banks?

It is also important to note that now the GOB borrows directly from the SSB. In 2009 the SSB was holding over $10m in Treasury Notes. This was never the practice before. It also risky since the T-bills and T-notes now constitute the equivalent of the “Barrow Bond” .

So analysis shows that returns on the investments are slow even as the Revenues and Expenditures for 2010 SSB budget show no slowing down in its Administration expenses . These continue to be high, averaging over 20% of income.  This year’s budget allocates over 9 million dollars for  Personnel Emoluments  Interestingly,even after competent people were fired under the  guise of reducing the wage bill, it continues to go up as” Party preferidos “ keep getting hired at inflated salaries and continue to make bloated travel and subsistence claims.
And it must be an indication that this year the SSB Chairman will hold Social Security Board meetings at her New York Office as the Permanent Ambassador to the UN because there is a huge increase in the Overseas Conference budget  from 90,000.00 in 2009 to $140,000.00 in 2010. Imagine what injured workers could do with this much money were it to translated into workers’ benefits.

We just thought the workers and businesses that pay social security need to know what’s (not) happening with their  financial future /security. It’s YOUR MONEY.

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