Peter Boos warns about NIS “investing” in Four Seasons

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?

7 Comments

Filed under Barbados, Consumer Issues, Economy

7 responses to “Peter Boos warns about NIS “investing” in Four Seasons

  1. ComeHere

    Long after Sinkler and his band of merry incompetents have sunk the people of Barbados with their reactionary economic blunders, the Barbados people will suffer for decades servicing debt on an under producing asset. IT WILL NEVER MEET INCOME PROJECTIONS. It is a HUGE investment beast that must be fed and kept up to world standards, fed with a never ending diet of US dollars whether or not Avalanche Persaud’s constantly changing numbers ever begin to make sense to a first former.

    The 4 Seasons project as a viable investment is an even worse idea than GEMS: at least the GEMS stupidity was created in an era where the world economy was strong. Once bitten, twice shy? Not bout hey! Betting the country’s rainy day fund on the BLACK Rock roulette wheel is tantamount to insanity.

    No one has apparently noticed, but the trend is that visitors are opting for PRIVATE accommodations, not hotels. Condos, private villas. But the clueless tourism yoyos cannot understand why arrival numbers are up, but average spend is down—you idiots! Because the money stays offshore!

    Keep shooting the messengers like Boos and Worrell and the private sector leaders; keep believing the hocus pocus growth numbers about cruise passengers, sham unemployment figures, and a promise of economic growth; keep up the long talk while Barbados is raped of its assets and its future by the out of control greed-mongers who have fleeced the insurance companies, who have constructed unoccupied concrete blights on the tropical landscape, who have become enriched at the expense of the blind and ignorant who are true believers that God is a Bajan.

    Once it all starts to crumble—and the cracks are already showing—the tourists will go elsewhere, and there will be nothing left for a generation but debt.

  2. millertheanunnaki

    Two points that can be raised:

    The demise of CLICO was not brought about solely through injudicious investment decisions by the management and compounded by the negative fall out from the international recession.

    Lining their pockets with exorbitant and outrageous remuneration packages not at all tied to performance and profitability also significantly contributed to the business failure.
    A properly and independently conducted forensic audit could have the capacity to unearth certain transactions that brought no value whatsoever to policyholders other than by way of glorifying the campaigning efforts of the political parties of their preference.

    Your constructive criticism of the lack of transparency and accountability in the NIB’s investment policy, processes and actions is indeed in order. How can a board of directors, entrusted with the fiduciary responsibility for so much of the working people’s money, make effective decisions in the absence of up-to-date and reliable financial information?
    One can only conclude, from your analysis, that the competence of the players involved should be up for questioning- big time! Under other circumstances, the CEO, the Chairman and other directors will be hauled before the courts for breaking legislation that stipulates company reporting obligations; and with the obvious outcome of being sacked by the shareholders.

    But insulation and protection by the political bagasse ensure that this incompetence continues to the detriment of the workers; especially those whose only future source of income is being put at risk similar to the CLICO basket case.

  3. FearPlay

    This whole shebang is getting me pretty nervous and I am not the nervous type. Wherever a politician can find easy money with which to play and invest (fritter away) in the name of the people – they will. The frightening thing is that to the best of my knowledge, an ex Director of the failed insurance company is now a highly placed Board Member on the NIS. If that person failed to expose what was going on in the other place, how can they now be relied upon to go against their political masters bidding. It’s all about making the Party look good until after the next election because remember, “we never had it so good”. What a pity we don’t prosecute public figures who mismanaging public funds.
    The sad truth is that when the NIS funds are dispensed without adequate controls and the reserves are depleted, we the people will be called upon to make up the shortfall through increased contributions and extended retirements by this government or the next, same thing. You can bet your bottom dollar that if this group does it, the next one will also and then say “It was done before” as if that justifies anything.

  4. millertheanunnaki

    FearPlay:
    “The frightening thing is that to the best of my knowledge, an ex Director of the failed insurance company is now a highly placed Board Member……………”

    So you have started to connect the dots in this whole web of obfuscating and suspect dealings.

    A former director of a failed business turned a blind eye to the events leading up to that failure migrates, through political patronage, to the chair of an entity where millions of swill is ripe for the taking with no adequate financial reporting systems in place to expose very risky behaviour.

    Later down the road, what will the poor pensioners be told? Go suck salt and pick wilts to survive! No lessons will be learnt from the CLICO gouge

  5. GEMS---return on investment

    Does anyone have an idea on what was invested by the NIS in the GEMS project and what return the NIS has received on that investment?

    Of course, not! ( except the accountants )

    The real question is whether there is a return of investment and whether it should all be written off.

  6. millertheanunnaki

    @ Gem—-return on investment.
    You don’t need an accountant to tell you the obvious! Even a blind man on a trotting horse can see that any business venture that racks so many losses annually and has to rely heavily of taxpayers money to prop up its monthly cash flows can never in this capitalist world ever make a cent in return on investment to shareholders.

  7. A Barbados government sacked the sugar fund, and we know what happened afterwards there. The sugar industry fell in, and government took over much of it, which caused the sugar industry to take a further nose dive, for obvious reasons.
    So next, a Barbados government is looking at the NIS for bailing out Clico and Four Seasons, and building a gas line from Trinidad, and another yacht basin in Bridgetown, etc, and the world is crumbling into recession, and NIS is soon to become under full stain as the population ages, and people go out of work.
    All those who will have caused the destruction, will be off elsewhere, far away, where they can’t even hear what happened, and just don’t want to know. Rats, always leave sinking ships, or they have to live in high-walled
    guarded communities, where the sound of anger, and anguish, does not reach. But the high walls can only save them for so long.

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