NIB LETTER CLEARS UP CONCERNS
In a release sent to RTC news that states: A number of statements have, in recent times, been made by certain person or persons with respect to various aspects of the operations of the NIB which have hitherto gone unaddressed. In light of the growing concerns as expressed to various members of the Board by stakeholders as a result of such statements, the Board of Directors of the NIB have decided to take the unusual step of issuing the following release in responses to some of those statements and allay some of the concerns expressed by the certain stakeholders to members of the Board.
ON THE ISSUE OF TRANSPARENCY
As stakeholders are aware, the National Insurance Board is a creature of statute. Its operations and dealings with stakeholders and the public are therefore governed by and is subject to the provisions of the National Insurance Ordinance. Within that context, the Board is committed to ensuring that adequate information regarding its operations are at all times available to stakeholders and the public in general and the NIB has consistently endeavored to ensure that all relevant and pertinent information is made available through its annual report that is normally available on the NIB’s website http://www.tcinib.tc, including the NIB’s Mission Statement, Annual Audited Accounts, Tri-Annual Actuarial Reviews and information on benefits as well as information on the most recent Pension Adjustments, etc. The NIB’s 2010/11 Audited Financial Statements have, as required by law, been sent to the Governor in his capacity as Minister of the NIB. Once the Governor has arranged for such audited accounts to be tabled before the Legislative Council, presumably now the Consultative Forum, as required under the relevant provisions of the National Insurance Ordinance, they will likewise be posted on the NIB’s website. The NIB’s 2010/11 Annual Report will likely be released in December, 2011 and will again likewise be posted on the NIB website. These documents give interested persons a broad range of information on the functioning of the organization and its operations.
INVESTMENTS
In response to independent professional advice advice and Consultation with the Governor’s Office the NIB has adopted a new Investment Policy Statement to govern its investment activities. The Investment Policy Statement was approved earlier this year by the Governor in his capacity as Minister, a copy of which is likewise available on the NIB website. As a result of the new Investment Policy Statement, the Board is, in consultation with its Investment Committee, in the process of rebalancing its investment portfolio, including its investment of funds held at domestic banking institutions. At this point, it should be noted that the National Insurance Board does not currently have any investments, or deposits with British Caribbean Bank, formerly Belize Bank, or in any of its other related firms. Moreover, the NIB has never held deposits with that bank totaling $30 and $60 million as alleged. The NIB does have funds at risk at the TCI Bank, but we are endeavoring to recover as much of that debt as possible. The NIB is confident it will recover its $5.5 million debenture and a portion of the monies originally provided as fixed deposits. Of course, the NIB’s $2 million in equity investments in the TCI Bank has been permanently lost, along with the equity provided by hundreds of other TC Islanders to the Bank.
NHIP FUNDING CLAIMS
Under the National Insurance Ordinance, the National Insurance Board is obligated to provide employment injury benefits to eligible recipients and it has done this for almost 20 years. In addition the NIB is obliged to reimburse the TCI Government for “actual medical expenses incurred for eligible costs to qualified recipients.” The onus is and has always been on the TCI Government to submit to the NIB, claims and receipts that substantiated the medical care expenditures arising out of employment injuries. Between 1992 and 2009 the NIB consistently made a $50,000/annum within its annual budget for this purpose, but no claims were ever received from Government.
In 2009, the Government submitted claims totaling $837,000 and discussions were undertaken between the NIB and the Ministry of Finance regarding these claims. In the end, the parties agreed that the NIB would transfer $836,734 to the Government in exchange for all parties confirming that this was the full and final amount owed to the Government for the period 1992-2009.
In 2009/10, the National Health Insurance Ordinance modified Section 49 of the National Insurance Ordinance, mandating that actuarially accessed compensatory transfers be made to the NHIB for medical services to employment injury beneficiaries. In February, 2011 the NIB paid the NHIB $612,000, being the amount assessed by the Actuary for that year, to cover the eligible injury claims for fiscal year 2010/2011. Currently the Board is awaiting the latest actuarial analysis to agree with the NHIB on the funds to be transferred to the health care system in 2011/12.
The NIB strongly disagree with the NHIB’s Actuary’s position that funds placed into the Employment Injury Fund in excess of the actual injury claims must be transferred to the NHIP. The National Insurance Fund is a single fund into which the monies are deposited into four categories to ensure that persons will receive the benefits to which the ordinance entitles them to receive. Today there is more money in all four categories than is immediately required, but as the fund matures over the years, these monies will be needed to ensure we provide the full range of benefits to all the eligible beneficiaries. The four categories in the National Insurance Fund are there to show that we are treating each area with high priority and were never designed as discrete funds whose monies cannot be shifted between uses. The National Insurance Boar is determined to protect the National Insurance Fund from unwarranted efforts to transfer funds to the health care system.
In one of the statements made by persons unknown concern was expressed over the statement contained in the Actuary’s report that the NIB has the potential for a $119 million shortfall in the fund by 2030 if it does not undertake a program to raise contributions, increase our investment return and reduce our operating costs. If no action is taken, such as situation could occur, but the NIB is in the process of addressing all three of these factors to ensure the fund is secure far into the future. Any effort by third parties to compromise those goals will obviously make it more difficult to meet that target and provide benefits to the people of TCI.
The potential losses from the TCI Bank is a big challenge and the current demands for NIB to reduce the Fund by a further $22 million to pay for matters unconnected with the core functions of the NIB will be detrimental to our beneficiaries. In 30 years these withdrawals would translate into a $40 million shortfall in our investment income or about 1/3 of the Actuary’s potential shortfall. The NIB Board and Management believes that the Government should solve its debt and health care issues through a different approach than simply taking the people’s pension funds and using them as a stop gap measure to fund the financial crisis.
By order of the Board of Directors
TURKS AND CAICOS NATIONAL INSURANCE BOARD
SUSTAINABLE HEALTH CARE PLANS REVEALED BY TCI GOVERNOR
Significant steps to ensure the future of the TCI health care system were taken in key decisions at the Advisory Council (AC) meeting in Grand Turk yesterday, Thursday 3 November 2011.
These recognised the challenge of how to make the health care system sustainable and affordable.
There are currently 11,000 dependants of the the National Health Insurance Plan (NHIP) supported by 18,000 paying contributors.
The decisions reached were informed by public feedback to the Health Care Funding Challenge consultation announced last month.
The Advisory Council accepted proposals to:
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Increase NHIP contribution by 1% to 6% of earnings – split 50:50 between employers and employees. This figure was directly influenced by public feedback which was concerned about proposed rise to a 9% contribution. This will raise an additional $3.5m a year.
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Establish a minimum payment of $50 per month for each contributor. Introduce a fee of $10 per dependent for up to three children. Together these proposals will raise a further $1.5m a year.
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Abolish the co-pay charges for the primary care level while continuing to review this service.
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Begin to shift resources to primary health care in the community by opening the Blue Hills Clinic in Providenciales
Measures to control costs and make the system fairer include:
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Working with InterHealth Canada to reduce the number of overseas referrals, and making better use of Caribbean based providers. This could see all tertiary treatments outside of the region stopped, unless an exceptional circumstance.
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Reducing inter-island travel for some basic diagnostic procedures, by improved scheduling and better use of technology and equipment.
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Work permit holders and temporary residents will only be entitled to on-island primary and emergency care. They will be directly responsible for care or treatments beyond that provided locally.
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Reviewing the contract with Interhealth Canada to jointly find ways to make the contract more flexible and to improve patient care.
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Work more closely with the Pan American Health Organisation to procure drugs more cheaply.
Judith Campbell, Permanent Secretary, Ministry of Health and Human Services, said, “I believe that these decision will improve how we conduct health care business here in TCI, by improving delivery and making its future more sustainable.
“I would like to personally thank everyone who responded to our consultation about how we meet the challenges faced by our health care system and how we can make it better meet the needs of our population”.
GOVERNOR PROVIDES IMPORTANT ADVISORY COUNCIL UPDATE
Significant steps towards the Interim Administration’s milestones were taken at the Advisory Council (AC) meeting in Grand Turk yesterday Thursday, 3 November 2011.
Speaking at a news conference in Providenciales TCI Governor Ric Rodd outlined how several key motions agreed by the AC will contribute to making the TCI a better governed, more accountable and financially stable territory.
The two most significant decisions reached were (more detailed single topic releases are included):
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A wide ranging set of cost reductions and increased charges in order to close the current funding gap in the islands TCI health care system, as well as looking at new innovative ways of delivery services to Islanders.
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The launch of a voluntary severance scheme which will contribute to making the TCI Civil Service sustainable, efficient and the right size for its population. It will also contribute to the 25% reduction in the cost of the public service.
In addition Governor Todd outlined other papers that were discussed and which will be subject to later announcements:
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Responding to public feedback Governor Todd has agreed that only Turks and Caicos Islanders can initially apply for the 5 new Permanent Secretaries’ posts. Advertisements for these vital posts are due to appear shortly.
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Further work to prepare for a full public consultation on making the pathway to achieving Islander status more transparent is currently under way.
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Increases in work permit charges will soon be announced.
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A significant inward investment deal is soon to be signed.
“The work of the Interim Administration, the institutions and the people of the Turks and Caicos is doing to achieve milestone is accelerating. Everyone has the same end in sight – achieving the milestones allows free and fair elections to take place, but more secure in the knowledge that the Islands are better managed, more efficient and sustainable as a result of all of our efforts,” said Governor Ric Todd.
“There was a number of items at this Advisory Council that are of tremendous interest to everyone who lives here and I believe that we have struck a responsible balance between making the necessary difficult decisions and understanding the needs of the Islands as it works to emerge from difficult times.”
Police investigates shooting incident
The Royal Turks and Caicos Islands Police, Criminal Investigation Department in Providenciales are investigating a shooting incident which occurred in Five Cays Providenciales on Wednesday night 2nd November 2011 at approximately 9:40 pm. A young man sustained a gunshot wound to his right leg. He was taken to the Cheshire Hall Medical Centre for medical attention and is still hospitalized. His injuries are considered non-life threatening
The Police are seeking the public’s assistance in obtaining any information as it relates to this incident. Contact can be made via the Police at 911, Crime Stoppers at 1-800-TIPS (8477), or through a web tip on www.crimestoppers.tc or as a friend of crime stoppers Turks and Caicos on Facebook.
Greeks agree coalition government without Papandreou
Greek leaders at crisis talks in Athens have agreed to form a new national unity government, the president's office says.
Beleaguered Prime Minister George Papandreou has agreed to stand down and his successor will be chosen during talks on Monday, a statement said.
The coalition is to lead the country until elections, which could be held on 19 February, the finance ministry said.
The announcement followed a week of turmoil over Greece's debt crisis.
Once the new leader is named, Mr Papoulias will invite parties to join the new government, according to the statement from the president's office.
The plan envisages elections once the government approves an EU bailout package.
Talks between Mr Papandreou and main opposition leader Antonis Samaras were hosted by President Karolos Papoulias on Sunday evening.
Mr Papandreou had been trying to build a national unity government to replace his Pasok party administration, but Mr Samaras, of the New Democracy party, had been refusing to negotiate unless his rival resigned first.
The two men also disagreed sharply on the timing of new elections, with Mr Papandreou seeking a delay of several months while Mr Samaras wanted them immediately.
There has been speculation that the new coalition could be led by current Finance Minister Evangelos Venizelos or by Lukas Papademos, a former deputy president of the European Central Bank.
A Greek government spokesman a new administration would be sworn in and a confidence vote held within a week if all went well.
"Today was a historic day for Greece," Ilias Mossialos said.
A spokesman for the New Democracy party said it was "absolutely satisfied" with the outcome of the talks.
"Our two targets, for Mr Papandreou to resign and for elections to be held, have been met," the New Democracy spokesman told AP news agency, speaking on condition of anonymity.
At a late-night meeting on Sunday, Mr Venizelos met opposition members and agreed that 19 February would be the most suitable date for elections, according to a finance ministry statements.
However few other details have emerged, such as how quickly the bailout deal might be approved.
Referendum plan
Mr Papandreou narrowly won a confidence vote on Friday, but had been under continuing pressure to resign amid chaos over the debt crisis.
The fresh bailout deal was agreed by the European Union last month, but Mr Papandreou faced the wrath of fellow EU leaders when he announced that he would put the deal to the people of Greece in a referendum.
The idea was dropped days later, but not without sparking a deeper financial crisis and triggering the political crisis which led to the confidence vote.
The EU says no more funds will be released to Greece until the new bailout deal has been approved.
It gives the government 130bn euros (£111bn; $178bn) and imposes a 50% write-off on private holders of Greek debts, in return for deeply unpopular austerity measures.
The country has come under huge international pressure to resolve its political crisis, in order to calm the markets.
The possibility of Greece leaving the euro has also been raised by EU leaders, if it fails to resolve its political and financial problems.
A meeting of EU finance ministers is taking place on Monday, which added to the pressure on Greece to find an early solution to the political deadlock.
News of the crisis talks involving President Papoulias emerged after an emergency cabinet meeting led by Mr Papandreou.
Both Mr Papandreou and Mr Samaras had held separate talks with the president earlier in the weekend.
Further Homs deaths as Arab League adds pressure
Security forces in Syria have killed at least 19 protesters during demonstrations against the government, rights groups say.
The latest deaths, which come at the start of the Muslim festival of Eid al-Adha, come a day after 27 people were killed in violence in Homs.
The Arab League is to meet again next weekend to discuss the crisis.
Earlier, it said a failure by the Syrian government to bring an end to the bloodshed would be catastrophic.
On Sunday, 16 civilians were killed by security forces while protesting in the city of Homs, 140 km (90 miles) north of the capital, Damascus, said the London-based Syrian Observatory for Human Rights.
Majd Amer, a local Homs activist quoted by the Associated Press news agency, said people performed morning prayers to the sound of explosions that sometimes shook the mosques.
"It's been like this for days now," he said of the military assault on the city.
Most of the deaths occurred in the Baba Amr neighbourhood of Homs, where clashes have raged for days, the Observatory for Human Rights said.
The city has become a focus of anti-Assad unrest in recent months - more than 100 people have been killed there in the past week.
Security forces also shot dead two civilians in the city of Hama, which lies further to the north, and another in Idlib province, near the border with Turkey, the observatory said.
The group also said troops had opened fire on a protest in Talbi, near Homs, and that dozens had been injured in the Idlib town of Kafruma.
The authorities say security forces are fighting militant gangs who have been killing civilians in Homs.
On Wednesday the Arab League announced a plan for Syria calling for an end to violence, the withdrawal of the army from urban areas, and talks between the regime and opposition.
The government of President Bashar al-Assad has said it will pull its forces off the streets and begin dialogue with the opposition, but despite this, the violence has continued.
Emergency meeting
On Saturday Arab League Secretary General Nabil al-Arabi called on the government to implement the plan, saying a failure to do so would have "catastrophic consequences for the situation in Syria and the region".
Following Sunday's killings, the League announced it would hold an emergency meeting on 12 November to discuss "the continuation of violence and because the Syrian government did not implement its commitments in the Arab plan".
French Foreign Minister Alain Juppe said the latest deaths had made it clear there was "nothing more to expect from this regime and that despite its occasional announcements it will not commit to a programme of reforms".
He said there had been a "failure" at the UN Security Council to take action against Syria, after a motion to introduce measures against Syria, including possible sanctions, was vetoed last month.
The United Nations estimates that at least 3,000 people have been killed since the uprising began in March.
The government says Islamist militants and foreign-backed armed gangs have killed 1,100 members of the security forces.
Suicide Bomber Kills 7 in Northern Afghanistan
Two suicide bombers targeted worshippers as they were leaving a mosque in northern Afghanistan Sunday, with one blowing himself up and killing seven people, including a police officer. At least 18 people were wounded in the blast.
Authorities said the second would-be bomber was captured before he could set off his explosives.
The attack took place on the outskirts of Baghlan city, the capital of Baghlan province, following prayers marking the start of the Eid al-Adha Muslim holiday.
There was no immediate claim of responsibility, but the Taliban routinely targets Afghan officials and security forces, as well as international troops. On Friday, the Taliban issued a statement urging its fighters to avoid killing civilians.
Commander of NATO-led coalition forces, General John Allen, joined Afghan President Hamid Karzai in condemning the bombing. Allen said “it is obvious by these acts that the insurgents do not respect the holy religion of Islam or the people of Afghanistan.” He called the attack “despicable.”
Mr. Karzai later met with Australian Prime Minister Julia Gillard who made an unannounced stop in Afghanistan on her way back from the G20 summit meeting in the French resort town of Cannes.
Ms. Gillard's trip came after a rogue Afghan soldier shot dead three and wounded seven Australian soldiers during a parade late last month.
The attack brought Australia's death toll from the Afghan conflict to 32.
Separately, NATO said two of its service members were killed in two separate insurgent attacks. One died Saturday in the south, while the other was killed Sunday in the country's west.
Protesters Ring the White House Opposing Pipeline Plans
Protesters say they have formed a human chain around the White House to oppose plans for an oil pipeline they say would be bad for the environment.
Thousands of protesters gathered Sunday afternoon and linked hands in a big circle around the presidential residence and buildings on either side of it. They called on President Barack Obama, who was away from the White House at the time, to scrap plans for the pipeline which would carry oil from tar sands in Canada to oil fields in Texas.
The State Department is currently reviewing the pipeline proposal, but Mr. Obama has indicated he will make the final decision.
White House spokesman Clark Stevens said Sunday the president recognizes there are “a number of critical issues” to consider, including climate change, public health and natural resources. But he said the State Department would also consider U.S. energy security and economic issues.
A spokesman for the company behind the pipeline, TransCanada, argued the project would create thousands of jobs and reduce U.S. reliance on overseas oil.
4 Dead 57 Missing in China Mine Explosion
Chinese officials said Friday that four people have been confirmed dead and at least 57 are missing after a rock burst in a coal mine in central China's Henan Province.
Officials say the accident happened Thursday evening in the Qianqiu Coal Mine in the city of Sanmenxia.
A total of 75 miners were working in the shaft at the time of the accident. Fourteen miners managed to escape.
Officials say rescue efforts are underway and there is a chance that some of the missing miners could have survived.
A rock burst occurs when rock under high pressure suddenly releases its energy in a violent explosion.
Greek Opposition Leader Calls for Early Elections
A Greek opposition leader has called on Prime Minister George Papandreou to resign and repeated a call for early elections, ahead of a confidence vote expected in parliament on Friday.
Antonis Samaras made the demand Thursday during a parliamentary meeting to vote on whether to accept a European Union bailout package that contains deeply unpopular spending cuts.
Mr. Papandreou said Thursday that calling early elections would be "catastrophic." The prime minister also said Greece must implement the EU bailout plan.
Those developments came after Mr. Papandreou told his Cabinet earlier in the day that he will drop plans for a nationwide referendum on the plan.
Officials say Mr. Papandreou dropped his call for the referendum after the opposition reversed its position and said it would support the deal. The prime minister said if he had the opposition's backing on the deal, there was no need to hold a referendum.
European leaders have warned Greece that if it does not follow the terms of the bailout package, it will get no more EU funding. Mr. Papandreou has said that Greece's future in the eurozone is at stake.
Earlier Thursday, opposition leader Samaras called for the creation of a transition government to prepare for early elections, rather than allow Mr. Papandreou to hold the referendum. Lawmakers in Mr. Papandreou's own party had threatened to abandon his government over the controversial vote.
And Greek Finance Minister Evangelos Venizelos broke ranks Thursday with Mr. Papandreou over the referendum proposal, saying Greece's status in the eurozone should not be put to a popular vote.
On the street, some Greek citizens say they want the euro, but they fear future hardships.
"I believe we must stay in the euro even though the European Union is not a saint. It followed a policy that was in the interest of the large political powers and that is why Greece is having problems, but I believe it provides a support for the country," said a student.
"I prefer we stay in the euro because we will be destroyed otherwise. They are trying to destroy us but I hope they don't succeed. I think they [the government] should go home," said another person.
"There is no other solution. Is there any other solution than the euro? When we will be paying for gas in drachmas what will we do? They [the government] have no idea what they are doing unfortunately," said another.
"Greece must stay in the euro, but Papandreou must resign," said a pensioner.
"Since we entered the European Union, I see that instead of having a better life, things are getting worse and I don't know where we will end up. There are many vested interests outside and inside Greece, and I don't know how this will end. I don't know from now on what is best for us," said another person.
Some information for this report was provided by AP, AFP and Reuters.