The governmentโs decision to inject $75 million from the Social Security Scheme into Jolly Beach Resort has drawn sharp criticism from Opposition Leader Jamal Pringle, who cited previous failed investments and questioned the administrationโs ability to manage public funds.
Pringle expressed serious concerns about the investment strategy, pointing to past failures.
โFirst and foremost, you would have seen they pumped Social Security monies into a housing scheme which has yielded no return to the Social Security,โ he said in an exclusive interview.
The Opposition Leader expressed his lack of confidence in the governmentโs track record and cited that Social Securityโs fundamental purpose is being compromised by risky investments.
โWe have no confidence in the governmentโs ability to manage these resources and to see any tangible benefit coming from it. Again, this government has been riddled with a lack of accountability when it comes to public funds. Social Security is a cash-based organization, and it needs the revenue to continue to pay its beneficiaries.โ
Pringle stated his partyโs position: ย โWe cannot support the government pumping any more Social Security funds into any investment that is going to a hit-or-miss situation rather than a full-fledged interest gain on that investment.โ
โThe government noted that Jolly Beach, which has been in operation with the assistance of a private hotelier, produced a profit in the past year of operations,โ Merchant stated, while pointing to changing demographics as justification for diversifying Social Securityโs revenue streams: โIndividuals in Antigua and Barbuda are living longer. The retirement age has been set at 65. With more individuals living longer, it puts more of a burden on the scheme.โ
Merchant positioned the investment as following global best practices.
โCreating an investment portfolio for Social Security Scheme is a novel idea. It is practiced throughout the world by schemes,โ he said, adding that Prime Minister Gaston Brown โbelieves that this is the future of the Social Security Scheme if it is to remain sustainable.โ
The government spokesperson highlighted the resortโs potential, noting that it was able to amass about $1.5 million in profit over the past year despite operating below capacity. The investment, it is expected, will transform Jolly Beach into a 500-room resort and include condominiums sold through the Citizenship by Investment program, making the Social Security Scheme the propertyโs owner.
The Cabinet has instructed the Attorney General to begin the process which will lead to amending the Social Security Act to allow the scheme to participate in commercial ventures. The government presents this as an immediate priority, with funds already allocated for the project.
