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Former Minister Questions Timing, Transparency of $10B NIS Payout and CSEC Subsidy

Admin by Admin
April 17, 2025
in News
L-R President Irfaan Ali and former Minister Annette Fergusoon

L-R President Irfaan Ali and former Minister Annette Fergusoon

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Former Minister, in the A Partnership for National and Alliance for Change (APNU+AFC) Annette Ferguson, has blasted the Irfaan Ali administration over what she calls a blatant attempt to “buy votes” with a wave of last-minute spending initiatives as the country edges closer to General and Regional Elections.

In a sharply-worded letter to the press, Ferguson accused the People’s progressive Party/ Civic (PPP/C) government of rolling out a “basket of goodies” in an ad hoc and politically expedient manner, questioning both the timing and the lack of transparency surrounding the initiatives.

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Central to Ferguson’s concerns is the $10 billion payout announced by the government through the National Insurance Scheme (NIS) to individuals who previously received a grant. According to Chapter 36:01 of the NIS Act, benefit payments are governed by specific qualifying conditions. Former Finance Minister Winston Jordan has echoed similar concerns, warning that the move may be legally unsound and fiscally reckless.

Jordan emphasised that the NIS Act already allows for a computed grant to contributors who fall short of the required minimum for a pension. Any payments made outside of this framework, he argued, would require legislative approval. He pointed to past instances, such as payments made to Hamilton Green, Sister Noel Menezes, and George Walcott, where enabling legislation was passed to authorise such disbursements.

Analysts have also raised red flags, suggesting the government’s action may constitute an unlawful attempt to curry electoral favor. They caution that this sets a dangerous precedent, potentially eroding democratic guardrails and enabling future actions outside the legal framework—undermining law and order.

Critics note that while citizens are not opposed to financial relief, what is being rejected is the disregard for legal process, transparency, and accountability in managing public funds. Such actions, they warn, risk fostering corruption and damaging Guyana’s international reputation.

Ferguson also weighed in on a new subsidy to cover the full cost of CSEC and CAPE examinations, up to eight subjects, for both public and private school students. “Why now?” Ferguson asked pointedly. “The PPP/C has been in office for four years, and suddenly, with elections looming, these handouts appear. Cowboy actions, indeed.”

Ferguson made clear that she supports government assistance when delivered strategically. However, she said the current rollout raises more questions than answers, especially in light of the administration’s track record of avoiding regular parliamentary scrutiny.

“The government tells us 25,000 persons will benefit from the $10 billion NIS transfer,” Ferguson wrote. “But how accurate is that figure? Who are these individuals? What data supports this announcement? None was presented.”

She expressed further skepticism about the exam subsidies, noting that while the government says it will pay for eight subjects per student, no clarity was given on how the estimated $600 million cost was derived. Ferguson also questioned the practicality of the move, pointing out that exam fees for 2025 had to be paid by November 2024—months before the 2025 Budget was approved in February.

“Am I to conclude that the government will seek supplementary funding?” she asked. “If so, when, especially as the nation heads into elections later this year?”

Ferguson also challenged Vice President Bharrat Jagdeo’s assertion that the exam subsidy was a campaign promise, saying a review of the PPP/C’s 2020 manifesto revealed no such commitment. She invoked the legacy of former President Linden Forbes Burnham, who pioneered free education in Guyana, from nursery to university, without the benefit of today’s oil revenues.

The former minister made known that she is an advocate for greater benefits for Guyanese but is calling on the government to be accountable and responsible, using the parliamentary system where consensus, accountability, and transparency should prevail.

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