Dear Editor,
I know the Government of Guyana of Excellency, Dr Irfaan Ali will find ways and means in time to solve the NIS crisis, it is painful to know that we have reached this stage. As readers might have observed letters as recent as when Hon Minister Ashni Singh was on a campaign on behalf of His Excellency and my numerous other letters and articulations I made in the print, electronic and social media in recent years.
I expected this to happen as an “old head” in the security industry spanning 42 years, in which I witnessed the gross vagaries of stupidities in managing the NIS collections, disbursements, enforcements contributions and albeit with fraud by many employers, self-employed and I am ashamed to say, many security services and agencies as well.
It is also a fact that whoever steals the NIS contributions from my experience are very slick in stealing the PAYE, taxes, and the VAT. In most cases these same kinds of companies in security, rice milling, saw milling, distribution and other such businesses, will not pay or fulfil their annual tax obligations and in my opinion, many get away with murder. Then declare bankruptcy and escape with mass murder.
NIS is a necessary component of life and existence in this country, for employees and even self-employed. It pains my heart that we are in this despotic situation in Guyana at this juncture. Being more familiar with the security industry i will make some comments on that and of course the same comments apply to any other industry, particularly the rice milling industry and the saw milling industry.
Security companies names were published over and over and they were still able to get compliance through the backdoor system at NIS. This is a fact I know and can swear to via an affidavit. Having made promises to repay the NIS, they never did and stole hundreds of millions of NIS contributions and then declared bankruptcy, changed their name, and went on with their sweet dandy life milking the system again to fool the NIS.
I know another company that claimed it had close political connections had its firearms seized several times and whose name was always published or taken to court for major labour infractions and NIS frauds. However, he would always be able to hoodwink the entire Government, the NIS and the income tax department. The income tax department even seized his books and others on several occasions. Bereft of name and honour in the industry he usually tenders below costs along with that bankrupted one who changed its name. They are able to win major security contracts and NPTAB appears to just be looking for the lowest rates, not honour, longevity, dignity and skills of the fulfilment of obligations but lowest rates and at times some influence, it is said.
So how do they do it? They will steal the NIS; sometimes employ people from the Palms and Dharm Shala and from the streets and use them temporarily, even putting firearms in their hands and in the end if employing hundreds of persons pay for fifty (50) or twenty-five (25) or a hundred (100), then apply for compliance. The scheme and people will suffer.
Many new security services have popped up tendering below costs. If NPTAB were to do their math and award contracts of hundreds of prospective employers when they have had no experience or employees, these companies would definitely have to resort to the theft of VAT, NIS, PAYE and fool the GRA and NIS as best as they can and escape with murder.
I had suggested years ago that the law of NIS, the enforcement and prosecutorial laws were very weak and needed to be enhanced. However, the NIS and GRA supervision fall under the Police now. They can easily be charged for fraud. I have seen people who have made promises on both sides (NIS and GRA) and have never fulfilled their promises. So, what to do?
I would challenge the NIS and the GRA to study areas such as Mahdia, Region 8 and Bartica along with the sites we service in Region 4 in the Government regional security system. Our understanding is, the VAT was unpaid, the PAYE taxes were not relative and the NIS was not paid. Compare the number of persons we have working in these districts along with the companies that serve these districts in the past. Therein, you will find the necessary anomalies and possible frauds. Our VAT, PAYE taxes and NIS are paid to the letter of the law and consequently we at RK’s Guyana Security Services cannot tender below costs. We must keep our head above water so that our ranks will be able to enjoy their benefits and the Government gets what they deserve in accordance with the law. We are willing to open our books, and our records to the GRA and the NIS to help them.
Recently a major contract that we managed for maybe 12-15 years was divided into lots and awarded to other companies, nothing was awarded to RK’s even though we locked down these places so excellently to the point of perfection that we never suffered any losses or theft. My point is that these same new companies who are taking over may start to manipulate the VAT, the PAYE and the NIS, this I know from experience. So be on the lookout and compare.
We saw one so-called security company coming from out of the blues being awarded Region 6 during the 2016 era, while RK’s had won it in reality and in Region 5 as well. However, that company never paid their workers properly and paid them as they pleased and not to the law. The gentleman that was managing that company is a narco escapee from the United States of America who claimed that he was receiving protection from the Ministry of the Presidency and dared anyone to do anything about it. He never even paid the workers’ NIS, he left them in limbo. So, understand why NIS is in trouble and why the GRA would pressure us, the honourable ones, to make up for the shortfall of others.
I have seen many employees of security services and other companies that ended up living in the streets, becoming vagrant beggars because of dishonest security providers. I know also the employees of these security services currently employing labour who will usurp the NIS of their workers, will cause suffering on their workers, who will be unable to enjoy the benefits of their labours.
Under the NIS scheme, they will become, in my opinion, wards of the State since they would look upon the Government to finance their lives. It happens when employers do not pay the NIS for their workers. In our case and that of some of my decent and elegant colleagues such as PGS and GEB, we have special insurance as a gift to the workers to cover them on a 24-hour basis on or off the job for accidents, accidental dismemberment and deaths.
I find it totally unfair that employers would steal the workers’ benefits and life protection, which should cover them in the event of illnesses and that of their family in the event of death and old age.
I wish that there was a different system to award contracts other than lowest tenders as there will always be these desperate “wheeler-dealers,” who care nothing about their employees and only about themselves.
I pen this letter with pain and sadness in my heart knowing that we had to surrender all the lots of this major security contract covering Georgetown, West Coast Demerara, Essequibo, West Coast Berbice and Linden. It is painful to us to have had to hold in some cases for hours to be relieved for companies who don’t even have employees who could not even be on time. They were unable to take over the contract and in one case for two weeks, in another case for two days. These are the kinds of companies who in my opinion will massacre the GRA, the VAT, and the NIS.
Sincerely,
Dr Roshan Khan Sr
