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BALFORD HENRY, Observer writer balfordh@jamaicaobserver.com
Wednesday, February 06, 2008
THE Public Accounts Committee (PAC) of the House of Representatives learnt yesterday that the Government owes the National Housing Trust (NHT) nearly $19 billion in outstanding employer's contributions.
The trust informed acting auditor general, Pamella Munroe-Ellis, of the situation in response to a query arising from the Auditor General's 2005/2006 Report. The information was discussed at the meeting, the first for the PAC since the September 2007 general elections.
The auditor general reported that the records disclosed that the Government owed employer's contributions of $18.3 billion to the NHT for the period January 1994 to August 2006. This included $9.9 billion in interest. As at December 31, 2007 the amount had increased to $18.8 billion.
New chairman of the PAC, Dr Omar Davies, the former minister of finance and planning, said that the issue was "the billion-dollar question" facing the committee.
Deputy financial secretary, Robert Martin, said that the Ministry of Finance had made arrangements to transfer properties, in some instances, to the value of the outstanding amounts. He said that the public expenditure division of the ministry will provide, in the 2008/2009 budget, these payments similar to what is done in terms of income tax and other deductions.
Fellow deputy financial secretary, Rolda Gray, who has direct responsibility for the payments, said about 50 per cent of the outstanding amount was penalty for late payment.
She said that her office has made an assessment for 2008/2009 and was committed to providing that amount to the ministries and agencies for payment to the trust. But that, as far as the previous amount is concerned, the ministry has to verify how much land was transferred to the NHT and seek to do a write-off.
Davies said that the basic problem was that although government is the biggest employer, it is the only employer who cannot set off these payments against expenses.
"The issue has been aired in various ways and there was consideration for adjustment to the law governing contributions, but I am glad that you are on your way to resolving it," the former minister said.
"I am looking forward to receiving the first instalment," Earl Samuels, NHT managing director, reacted.
But, minister of state for industry, investment and commerce, Michael Stern, criticised the "laxity" on the part of agents of the Government in terms of following the rules. He said that they should set examples in this regard.
Wednesday, February 06, 2008
THE Public Accounts Committee (PAC) of the House of Representatives learnt yesterday that the Government owes the National Housing Trust (NHT) nearly $19 billion in outstanding employer's contributions.
The trust informed acting auditor general, Pamella Munroe-Ellis, of the situation in response to a query arising from the Auditor General's 2005/2006 Report. The information was discussed at the meeting, the first for the PAC since the September 2007 general elections.
The auditor general reported that the records disclosed that the Government owed employer's contributions of $18.3 billion to the NHT for the period January 1994 to August 2006. This included $9.9 billion in interest. As at December 31, 2007 the amount had increased to $18.8 billion.
New chairman of the PAC, Dr Omar Davies, the former minister of finance and planning, said that the issue was "the billion-dollar question" facing the committee.
Deputy financial secretary, Robert Martin, said that the Ministry of Finance had made arrangements to transfer properties, in some instances, to the value of the outstanding amounts. He said that the public expenditure division of the ministry will provide, in the 2008/2009 budget, these payments similar to what is done in terms of income tax and other deductions.
Fellow deputy financial secretary, Rolda Gray, who has direct responsibility for the payments, said about 50 per cent of the outstanding amount was penalty for late payment.
She said that her office has made an assessment for 2008/2009 and was committed to providing that amount to the ministries and agencies for payment to the trust. But that, as far as the previous amount is concerned, the ministry has to verify how much land was transferred to the NHT and seek to do a write-off.
Davies said that the basic problem was that although government is the biggest employer, it is the only employer who cannot set off these payments against expenses.
"The issue has been aired in various ways and there was consideration for adjustment to the law governing contributions, but I am glad that you are on your way to resolving it," the former minister said.
"I am looking forward to receiving the first instalment," Earl Samuels, NHT managing director, reacted.
But, minister of state for industry, investment and commerce, Michael Stern, criticised the "laxity" on the part of agents of the Government in terms of following the rules. He said that they should set examples in this regard.
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