The Dominica Social Security has defended its investment plans, refuting allegations from critics who suggest that the DSS has “squandered” funds from contributions made to the scheme by the country’s working population.
DSS has been investing in CLICO and British American Insurance Company, with the recent difficulties encountered by these companies leading to members of the public arguing that the Social Security scheme should have stayed away from investing in the two, as well as other local commercial enterprises like Domlec and Marpin.
“The term squandering would be a strong term to use, and people have differences of opinion on what should happen when and how, but the Social Security operations are governed by law,” Deputy Director Augustus Etienne told Dominica News Online while explaining that investments are critical to the proper functioning of the DSS.
“You must invest for you to be able to afford the level of benefits that have been promised to people,” Etienne said.
With specific reference to the failed CLICO insurance company, the DSS Deputy Director would not confirm that DSS has lost money on its investments in the company.
“We have been making investments with CLICO over a period of time, and until the 2009 difficulty came in we’ve been getting our returns on time, and when some of those investments matured we got the proceeds of those investments back,” he told DNO.
Etienne conceded however that returns due to DSS from CLICO have not been forthcoming since the company’s 2009 demise.
While not mentioning the sums involved, Etienne said the DSS is optimistic that it will “eventually recoup our monies”.
He said the Dominica Social Security was closely monitoring the judicial review that CLICO is being subjected to at the moment.
CLICO’s financial problems became apparent after the financial breakdown of its parent company, Trinidad and Tobago-based CL Financial.
The parent company in 2009 experienced a liquidity crisis, prompting intervention by the government in Port of Spain.
Dominican investors in CLICO and British American are among those in the region trying to recoup the investment funds they ploughed into these two insurance companies.
I want to vote out this Government…this Government is not good…but the majority of Dominicans only care for a bottle of rum and a harm or turkey for Christmas…Dominica is being held up by a thread, and when that thread breaks there is going to be an avalanche of misery and suffering and crime..thats the next level that this government was talking about..when all is said and done all of them have there way of escape.. dual citizenship,fat accounts and overseas investments…Dominicans only god can help us…
A major problem in the DSS investment debacle is that they refused to listen to professional investment advice, including one from a native investment professional who advised them years ago to devote a portion of their investment assets to the international markets to diversify away from the region and the local investemnt climate.
Driven by a mistaken notion of not wanting to “export” their money, they took the view that it was better to keep their investments in the region even if they lacked the critical element of international diversification which is a hallmark of a sound investment strategy.
Add to this the fact that there were often conflicts of interests involving those who made the investment decisions often with a view to ways in which they could benefit personally.
We have a long ways to go before they concept of fiduciary responsiblilty is taken seriously in Dominica.
Sadly, the results speak loudly and time is not on the side of the beneficiaries of the fund.
It’s time the financial brains of this country and rest of the world come up with some kind of financial investment plan similar to a retirement account that is obligatory and not government/privately owned or managed and is an individual ‘enterprise’. So far they’ve only cheated us with insurance loaded with ifs and buts and conditions as the alternative. Something gotta be done to deal with the new challenges.
But best I put my 150.00 in a member retirement at NCCU because if Im 17 and every year the age for pension payment goes up or whatever the case is, Id have to ask God to make me live to 120 years just so i can get the money i paid into DSS for the past 100 odd years, a century that is.
that good for DSS officials – who by the way sounded nervous etc – they need to invest the people’s money wisely…
i myself have already accepted that the age for my pension will go up up up long before i reach 65…
all i want now is to stop paying so i can invest my money in my nccu retirement account
Then why are you asking for more contributions? “invest”.
This country is so d– crooked,that these people are robbing the blind, the poor, the malaway, the indigent,everyone. I don’t think that Dominicans must stand for this crap by Social Security, since most people including myself man not enjoy their pension at all… 65 years? That is robbery and corruption to the highest degree. I would have managed my money better than that man, and start enjoying it before 65 years..WE MUST PUT A STOP TO THIS people dirty plan and tricks.
Can you all tell us the quantum that was invested in CLICO?
Could someone advise on a safe investment besides putting your money under your bed
Folks dont forget is not only the retirement age that is moving away but your monthly comitment also increases by a percentage. Whicih is ridiculous since they normaly get an increase over time based on inflation and increases in pay workers get over the years. in otherswords they take more from you to give you less.
still they love the AM….he do right!!!!! take allu own money and keyoneh allu with sewo!! sot zor sot, turn the next cheek….. next election MORE SEWO!!!
These two people are incapable of solving DSS problems, we need people who can find creative solutions without burdening the people with more hardship. They should resign and give some fresh people a chance.
This is nonsense, everything rising rising rising, when will things start to DROP! Enough is Enough!
Why a we so secretive when it comes to public affairs. The man getting on like it his father estate and you need not know what goes on with the finances entrust to him. Those guys should really be feeling the pinch of the people,I mean be made accountable for our money in what ever way possible. They should be sleeping with one eyes open and one eyes close.And a whole set of dunce directors political affiliated don’t know a shit about finances but in position to form the fool with our hard earn money.Dominican what is really wrong with us , some body please tell me.
So wat are the people going to do do now-just sit on it?we know they are lying becuz they refuse to bring the loss on investments public, they hike retirement age, they cannot ask govt to increase their interest payments, they make it mandatory to deduct from your earnigs, they enjoy corporate position and they BS the public by hiding the truth of the matter, weh, weh weh- dominique. By they way, i will be standing by the financial center with some placards of protest- anyone who beleive that the fight is justified can join me.
voice from the north
When it comes to investment you win some and lose some. The idea is to have a mixed bag, so you can shoulder the losses of others….
soon retirement age will be up to 70
and soon I wont be paying social security….they not going to do me like an american with their too big to fail nuh, lassay yo kouley!!!!!!!!!! the way i working and stressing to have anything in dominica, i know i wont make it to 60 much less 65 so best i save in the CCU and leave a will for my child. I never stretch my hand for government for any kind of ASSistance, why should they inherit my hard earned cash??? lassay yo tombey, say machastey yo machastey.
But this gentleman ia amazing!! He still considers it a secret to tell US the share holders the quantum that has not been recovered from 2009, as if we don’t have a right to know. Yet they talk of transparency and accountability (sic)!!
Sir is it true that for political expediency, $EC48,000.00 was “gifted” to a local dermatologist to pursue specialization studies in Cuba in the 1990’s?
My own take on this DSS business is that the govt is continuing to engage in HIGHWAY ROBERY.The law for contributions was made MANDATORY, that is to say no chioce was permitted as to whether one could become a contributor or not, yet the same government can’t guarantee that the institution functions professionally.
I am convinced that the only solution to this fracas is for the individual contributors to STOP CONTRIBUTING to the scheme, file an injunction in the High Court to stop DSS receiving those funds and if this fails then all current contributors go on strike until deductions have ceased as if no one contributes DSS will cease to exist in its current modus operandi.
I would have made BETTER use of my monies stolen over this 30 year period by investing it wisely compaired to what currently obtains in DSS. Imagine that if you have contributed all your life and all your children are 18 and over, not at an educational institution, ALL your monies goes to the GOVERNMENT!! I could have made a will and left MY HARD OWNED MONIES to whomsover I choose. This has to STOP. No one, and especially the government, has any right whatsover, to steal workers property.
HOTEP.
Nkrumah, this is tyranny. Social security is the eigth plank of the communists manifesto, it is a social welfare scheme that takes place of strict liability and individual responsibility.
We demand & end to social security let people invest there money on their own. It was created by Dr. Francis E Townsend, for every $1 you put in you get back $0.50, it is highway robbery.
There is no valid reason for mr. Etienne’s reluctance for disclosure as the performance (or non-performance) of the DSS investment in either BAIC, BAIC Anguilla and CLICO is in the public domain. The certified financial report of the DSS for the fiancial year ending 31 Dec. 2010 clearly shows that against an investment of E.C.$.15.5 million, provisions were made ( write off)for E.C.$.4.772 million in respect of non-performance on maturity and interest receivable.
lol, gotta get a good laugh at this one… for some reason DSS investment choices always make me uncomfortable- clico, marpin, hotel project in barbados…
uuuhhhhhh….
With the way things are i think a 1 million investment in a 7% member retirement account at NCCU is the best bet
just wondering….
quite a few millions I must say. Mr. Ettienne and Mrs. Jeanjacques should resign after management of dss, and let another who is more capable of raising more capital for dss to come in. Poor people cannot make money come out of stone twice. If it were on another island or even in the USA, they would have made to step down
Based on my calculation by the time i am 65 i would have paid DSS $67,500.00.
and i am almost certain many persons may never enjoy their benefits because the way this company is going they dont want u to retire, they dont want you to resign and if you dont die they will give you enough financial stress to “kill” you
I just did a calculation: by the time i am 65 i would have paid DSS $67,500.00 in contribution and i know i may never benefit from that.
The way this country is going; they dont want u to retire, they dont want u to resign and if u dont die they will give u enough economic stress to “kill” you
Boy that’s a lot of money in 40 to 45 years of steady contribution. But let’s assume that you are paid $500 monthly on the low end after retirement; then that totals $6000 yearly. By 11 years, 3 months you will recoup all your contributions. In addition, your family will have burial assistance and your spouse will have a survival benefit, if that’s the case.
On a moderate scale of $1000 per month you will exhaust you contribution by 5 years, 6 months. Some will die early but others will live for a long time. Others will take up your slack if you live to be a very ‘mature’ man. So you win some, you lose some. Can you imagine how much a 90 year old man has collected? That could be you.
But I agree that DSS needs to be transparent and must make sound investments. DOMLEC, MARPIN and DOWASCO have thousands of customers and millions in assets. CLICO and other insurance companies, on the other hand, are paper tigers. Their net worth can be manipulated and prone to fraudulent activities and scam artists who pay themselves insane salaries in their ‘get rich quick’ scams; I mean, schemes; sorry.
so what about the investment returns of the $67,000? You did not take that into consideration?
Every check (cheque) collected after 5 years and 3 months is a return on your investment. If you survive up to 75, 80, 85 years, you will collect double, tripple and quadruple your contribution plus survivors (spouse) benefits. The younger wives will enjoy the rest.
Assume you retire at at 65 and you begin to receive 60% of your current salary from DSS. Do the maths and see how long that amount will last.
we need more Dominicans on west indies cricket team. my god they can spin bowl any batter for 0. I sickens me to the pit of my stomach that the public’s perception is ALWAYS wrong….I can’t think of one other group of people who are ALWAYS wrong, ALWAYS mislead, and NEVER on point with the TRUTH of ANY matter. I agree si i bon dit i bon… mais si i mal di i mal aussi. the fact of the matter is, WHY GAMBLE PEOPLE HARD EARNED MONEY TO TRY AND LEVERAGE PROFIT FOR YOUR OWN PERSONAL GAIN… DON’T TRY TO FOOL US THAT IF THESE INVESTMENTS DID MAKE A PROFIT THAT THE PENSIONERS WOULD BE THE ONES ENJOYING THE FRUITS… WE ALL KNOW ITS THE EXECUTIVE MEMBERS WHO WOULD BATHE IN IT… PRIVATE JET AND SUV, ALL EXPENSES PAID VACATION..CHAAAAAAAAAA GIDIUP DONKEY….
and how much has been lost?