LM&TC accumulates $63M in outstanding NIS payments for workers – Town Clerk

The Linden Mayor and Town Council (LM&TC) has come under increased public and administrative scrutiny following revelations that it has failed to remit National Insurance Scheme (NIS) deductions for its employees over an extended period.
The accumulation of unpaid NIS contributions was brought to light by Town Clerk Lennox Gasper during a recent episode of the A Closer Look at Municipal Matters programme. This long-standing issue has reportedly resulted in an estimated $63 million in outstanding contributions, affecting both current staff and former employees who have since retired or left the organisation.
During the discussion, Gasper disclosed that numerous concerns had been raised, particularly by former employees, regarding irregularities and discrepancies in the payment of their NIS contributions.

“And I know that there are staff out there that have been calling; as a matter of fact, ever since my appointment on the job, persons would have reached out to me to say, hey, I’ve worked 14 years, and NIS only has three years for me or four years for me; for some, two,” he disclosed.
On this point, Gasper revealed that the significant build-up of unpaid NIS contributions cannot be attributed to the current council’s administration. Instead, he stressed that the issue is the result of longstanding mismanagement and oversight by previous councils.
According to Gasper, while the present leadership is actively working to address the problem, the financial backlog reflects systemic challenges that have accumulated over many years, complicating efforts to bring the council’s social security payments up to date.
Nevertheless, the matter was brought before the court, which has since issued a ruling ordering the LM&TC to pay approximately $63 million in cash to settle the outstanding NIS contributions.
“It’s something that would have happened over the years. So there is a build-up nonetheless; the matter would have went to court, and there is an amount at that court ruling, which is, like, roughly $63 million that we need to clear.”
Gasper explained that once the debt is fully settled, individuals who previously filed claims related to their NIS contributions will have those claims honoured.
He assured that the repayment will pave the way for affected employees—particularly former staff to receive the benefits and entitlements that were delayed due to the outstanding contributions.
“What was explained to us was once you clear off the debt, it is only then we can honour the claims that persons would have come in. So we were having some issues where some persons would have gone in to make claims, but they did not get the claims honoured… Also, as it relates to information with the payment, while it is on the record, the payment wasn’t handed over. And so that would reflect in some persons maybe having to work 14 years, and there is a reflection of only two years or three years or what have you. We are working closely with NIS to sort that out.”
The Town Clerk added, “What I can assure them is that as long as I am seated as town clerk, I will ensure that I work with the administration and that we ensure we put the importance towards making things better for those persons who would have laid the foundation for us.”
NIS contributions are essential for ensuring that workers in Guyana have access to a range of vital social security benefits. These include old age pensions, which provide financial support after retirement; sickness and maternity benefits, which offer income during periods of illness or maternity leave; injury benefits for those hurt on the job; invalidity benefits for individuals who become permanently disabled; and survivors’ benefits, which offer financial assistance to the dependents of deceased contributors.
Without regular and accurate contributions to the NIS, employees risk losing access to these crucial forms of support, which are designed to protect them throughout their working lives and beyond.