“NIS fund should be most jealously guarded.”
“…The fact that we are in a deep long term economic recession should not lead to a relaxation of the legal and socio economic principles governing the manner in which the NIS fund is allocated and invested. On the contrary…
I am of the firm view that it is precisely in times such as these that the integrity of a fund in the nature of the NIS fund should be most jealously guarded.
The fund is not a commercial or development fund. It is a social security and pension fund, which should, for obvious reasons, be invested on a conservative basis to meet long-term liabilities.
Some may recall that CLICO failed essentially because it strayed from sound investment management practices as mandated in the law under insurance regulations, and took on several speculative investments, which eventually it could not support financially. Looked at objectively CLICO and the NIS have something very important in common: CLICO derived and the NIS derives large volumes of cash from insurance premiums, pension contributions, investment income etc.
As a corollary to that, the people whose money was held by CLICO and is held by the NIS were/are depending on receiving the benefit of those funds. In many cases those funds are the only savings and retirement planning provision made by such people.
Against this background some important questions arise on the appropriate use of NIS Funds by Government…”
Read the entire article at Caribbean360.com – Is an investment in Four Seasons development appropriate?