29 June, 2010
Secure lending? I have been asked the question. Has the Anguilla Social Security Board ensured that any advances they are making to government from the Social Security Fund have been properly collateralised? Is there a security of some kind that has been given by government for the loan? Is there an instrument that can be acted on if government defaults? If the Board bought government bonds, that would be an investment. But, if they are making an unsecured loan to a penniless government is that an investment?
Then, what about the borrowing guidelines given to us by the British Government? Were the borrowing guidelines breached? In the event that the lending has knowingly been made in contravention of the borrowing guidelines, what effect, if any, would this breach have on the ability of the Board to enforce any obligation of government to pay back the lending?
We have all read about international companies misusing their employees' pension funds to pay off company debts. They do so without an ounce of conscience. We read that the companies then go bust and are not able to pay back their employees. We all feel justifiable outrage.What are we supposed to feel if it is our own government and Social Security Board that are rummaging about in our social security funds?