The United Progressive Party (UPP) has written to the Director of Social Security seeking clarity on the government’s payments into the scheme.
The request comes as the statutory body continues to have difficulty in its bid to meet payments to beneficiaries.
Yesterday, UPP Senator Damani Tabor shared some details communicated in the letter.
“So, the letter requests these financial details. One, the total payments made and, to be clear, these are details in respect of the claimed $300 million that Mr Matthias [Director of Social Security] said that this administration has put in.
“So, we are asking for the following breakdown, the total payments made, cash and assets swap, the value of the assets swapped and the brief description of the location and type of assets transferred to Social Security. The total of the cash payments made and how much was regulated to regular contribution income. In other words, we want to know how much contribution the government made in terms of their regular contributions in cash and how much they paid on the bond in cash,” Tabor detailed.
The UPP has been calling on the government to pump more money into Social Security for some time now so that it could meet its obligations.
The party’s Leader Harold Lovell said during its tenure, the UPP administration set up a $550 million bond, spread over 20 years, with an asset swap and a cash component in order to satisfy monies owed to the statutory body by successive administrations.
He believes accelerated payment on this bond could stabilise Social Security.
On Thursday evening, Lovell while speaking on another local radio station said he wanted to know how much of the Labour Party administrations’ contribution to the scheme has been in cash and how much has been in assets.
“The reason why I am keen to ask that is because if that facility — the former air station facility belonging to the US Air Force — if that was an asset that should have been cashed, then that isn’t going to help Social Security. What Social Security needs is cash and it is important to know whether or not the prime asset that was transferred to Social Security. Was is to bring down the bond or was it a part of the asset swap?” Lovell asked.
“I just need to know that and I am seeking clarification. I am not jumping to any conclusions. I am just asking a question,” he added.
Director of Social Security David Matthias said he is presently in talks with the government in the hopes of restructuring the bond to improve the flow of funds to the scheme.