DePeiza questions whether NIS overseas investment will have built-in protection

Former Democratic Labour Party (DLP) leader Verla DePeiza is urging the Government to ensure that any National Insurance Scheme (NIS) funds invested overseas have built-in safeguards to protect the interests of Barbadians.

Her comments follow the recent announcement that the Central Bank of Barbados had given the NIS permission to acquire US$40 million (BDS$80 million) in foreign exchange to invest in international markets on a phased basis.

A press release on the matter stated that the “foreign exchange acquisition is subject to repatriation with six months’ notice in times of national economic need”.

Speaking at the DLP’s St Michael South East branch meeting at the Parkinson Memorial School on Sunday night, DePeiza queried whether the government had any exit clauses or mitigation fallbacks in place.

She also queried whether legislative authority had been given for the plan, which she said is required.

“I have heard the sound bites but I haven’t seen the legislation yet. At the beginning [of a marriage], you always have to think about the divorce, think about the alimony. Those things come at costs. You have to have that assessment of whether or not you can afford to break it. Going in is really easy but can I afford to get myself out of this if it goes belly up?” DePeiza said.

“Those are some of the considerations you have to have upfront that most people don’t, even with partnerships and companies. People don’t think ahead of these things but when you are dealing with billions of dollars of other people’s money, you really do need to be thinking sharply from the very beginning.”

NIS’ deputy chairman Rawdon Adams said the Scheme’s overseas investment was aimed at expanding and diversifying its portfolio in an effort to strengthen the capacity of the NIS fund.

The NIS currently has 80 per cent of its investments locally.

(KC)