Jail the thieves of NIS, PAYE, and VAT

Dear Editor,

AS I, the undersigned, have been doing for decades, I wish to pen yet another missive on the contemptible actions of those employers who blatantly steal the ‘blood and life’ of the citizens of our country. In particular, these atrocious crimes are more prevalent in many security services, which I am ashamed to say are some of the worst culprits of the theft of NIS, PAYE, and VAT.
Mr. Editor, General Managers of the NIS and GRA, I assert that this is a hideous crime against humanity committed by those who seem to have mastered this art of stealing. The worst of it is that these offences are usually committed against the poorest class of citizens, simply because they are unable to speak up and or stand up for themselves.

Unfortunately, not many people realise (or maybe they do and obviously just do not care) about the repercussions this will create if this despicable act continues to prevail. For in the end, as people are unable to get their pensions and medical benefits, it would be expected that they will pressure the government for sustenance and medical care. If this continues, I foresee that the Ministry of Human Services and Social Security will bear the brunt of the demands to meet the needs of those who have been cheated of their rights to a pension afforded in Article (213)(1) of the Constitution of the Co-operative Republic of Guyana. The consequence being that the country would be faced with a huge burden in the foreseeable future.

To the best of my knowledge, those who steal NIS contributions end up saving two-thirds of what they have to pay. This deprives the NIS of the funds they need to provide services and benefits to, and the citizens who thought they were contributing to their benefits. I have found that these unscrupulous merchants of horror, whom I equate to the blood-sucking vampire, ‘‘Dracula’’, tend to steal PAYE and VAT as well.

Over the decades, I have advocated by writing several letters offering much guidance to the various governments of the day. One of which was published in January 2009 in the Stabroek News, entitled: “The Minister of Home Affairs should form a committee to look at the draft bill on private security organizations”. These letters of advisories go as far back as the latter days of Former President Linden Forbes Burnham’s administration, Former President Desmond Hoyte’s administration, Former President Dr. Cheddi Jagan’s administration, and all governments to this day without any thought or attention, except for now.

I see that His Excellency, President Dr. Irfaan Ali intends to blacklist companies that do not remit their NIS. With this, I have to say, “All praise be to God!” while complimenting and saluting him. However, I would also advise him to be very careful with these people, as it is said that “the stricter the government, the smarter the scamps”. In other words, as they do now, some of these employers who tender below cost to steal NIS, PAYE, and VAT will do more of this in the future, declaring a limited number of contributions to procure or acquire compliances for tenders. The same goes for the PAYE taxes they pay for a tiny group to pull the wool over the eyes of these authorities.
Corruption is alive, rife and ripe; the operatives and tempters are seductive with sweet smiles to entrap NIS officials and those of the GRA. Many even have corrupt relationships with persons in these agencies. In my view, with all the substantial amounts that is owed to the NIS and GRA, if they were to collect just a third of that amount, Guyana’s financial woes would come to an immediate halt, and the NIS would give bountifully to its contributors.

With this in mind, my suggestions to the government to curb this unethical habit are as follows: 

1. Criminalise the non-remittance of NIS as a serious felony, with severe imprisonment. If fines and all amounts owing are not paid then all property belonging to the individual or persons, even if it is a corporation, should be imprisoned and confiscated. I am a layman in law but I know that one cannot establish a corporation to commit fraud and theft of NIS and any other deductions. This is tantamount to fraud! The money, dear government, would flow like a river, if this recommendation is enforced.
2.  File private criminal actions for fraud, with severe punishment for the scamps and bandits of this act. This is another solution, dear government, that I believe will trigger the flow of money.
3. Bankruptcy should never be an excuse to avoid the remittances of NIS, VAT, and PAYE, or the gravity of the situation becomes more exacerbated. In general, private arrangements should not work, as we saw with one security firm which declared bankruptcy, and then began the very minute with the same uniform, at the same location, and under a different name. Consequently, this company fooled NIS and GRA by paying for a few people, yet somehow was still able to win large-scale contracts within the country. I believe that the Honourable Minister and Attorney-General, Mohabir Anil Nandalall will have a ball establishing these laws, and instituting these charges against those who amass wealth at the expense of the lives of the poorest classes of people.
4. Avoid offering payment plans to these dishonest people. NIS and GRA came up with the idea that they will try to negotiate a payment plan with the people. However, they need to realise that not everyone is like Roshan Khan, or any other honest individuals of this country where they will stick to being honourable. We saw one security service, operated by a former senior military officer and an attorney-at-law whose books were seized by the GRA for failure to pay any corporate taxes, and who, subsequently, vowed to pay it but never did. They were cleverly using a tricky private compensation system for workers, while at the same time hogging the wealth of NIS, PAYE, and VAT. I repeat, for emphasis, Mr. Editor, hogging to fatten themselves. I recall the late Commissioner of GRA, Mr. Khurshid Sattaur, being at pains to say that this business needs to be brought down. Crimes should never be permitted or tolerated; laws should be complied with.

I would also like to state that some of the largest rice millers in Guyana, particularly on the Essequibo Coast, having known that bankruptcy was evident, declared bankruptcy while subsequently cheating the nation by exporting their money. Sadly, this created fear and horror in the lives of their workers. I sometimes wonder how these people look at themselves in the mirror, knowing that so many lives have been ruined, while they take cover under the nasty blanket of bankruptcy. Bankruptcy, in my opinion, should not be permitted in any conditions where fraud involving deductible workers’ emoluments has taken place.

At this juncture, I am respectfully advising the Government of Guyana to at least start by taking private criminal actions while working to criminalise the theft of NIS, PAYE taxes, and/or VAT. One method that would work to a certain degree is blacklisting. However, be wary of those who have a penchant for such deceit, and will try every trick in the book to deceive you. Incidentally, I believe the Commissioner of Police, through the Security Act, has more power than the GRA and the NIS to haul in security services, and can instantaneously suspend and/or terminate a security company that is involved in these kinds of theft. I think it is time for this option to be utilised.

Sincerely,
Hajji Dr. Roshan Khan Snr.