Government Transparency Criticized by Times Caribbean Online

The citizens of St. Kitts and Nevis are demanding transparency and accountability from their government regarding the conspicuous absence of the 14th Actuarial Report for the Social Security Fund. This crucial document, legally mandated and due in June 2024, provides a comprehensive analysis of the fund’s financial health and sustainability. The government’s recent release of the 2022 and 2023 audited financial statements, while a step in the right direction, is insufficient and does not address the core concern: the missing actuarial review, which covers the period from January 2021 to December 2023. This delay raises serious questions about the government’s commitment to open governance and fuels public speculation about potential financial irregularities that the administration may be trying to conceal.

The unexplained absence of the report is particularly concerning given the previous administration’s consistent adherence to timely reporting. Under the former Team Unity Government, audited financial statements, monthly accounts, and actuarial reviews were consistently published on schedule, fostering public trust and demonstrating a commitment to transparency. This established precedent amplifies the current administration’s failure to deliver the 14th Actuarial Review, further deepening public suspicion. Is the delay simply due to administrative inefficiency, with the 2023 audited accounts only recently finalized, or is the government deliberately withholding the report to obscure unfavorable findings about the fund’s performance?

Adding to the public’s apprehension is the volatile financial performance revealed in the recently published 2022 and 2023 audited statements. These statements depict a dramatic swing from a significant loss in 2022 to a nearly equivalent surplus in 2023. This abrupt shift necessitates a detailed explanation, which the government has yet to provide. Several possibilities exist, including the impact of global inflationary pressures on overseas investments, or potentially more concerning internal issues within the fund’s management. Without a clear and comprehensive analysis from the government, speculation will continue to erode public confidence.

Furthermore, the current situation starkly contrasts with the period from 2015 to 2021 under the Team Unity Government. During this time, the Social Security Fund experienced consistent growth, with total net assets increasing by over $300 million. This period of stability, marked by annual surpluses, underscores the effectiveness of the financial framework in place at the time. The recent volatility, therefore, raises questions about changes in management practices or investment strategies that might have contributed to the reported loss in 2022. The missing actuarial review would likely shed light on these issues, further highlighting the urgency of its publication.

The 14th Actuarial Review is not merely a bureaucratic formality; it serves as a critical tool for evaluating the long-term viability of the Social Security Fund. The review provides expert analysis and recommendations for ensuring the fund’s sustainability, allowing for proactive adjustments to address potential challenges. By withholding this vital document, the government is not only neglecting its legal obligations but also jeopardizing the future security of the fund and the benefits it provides to the people of St. Kitts and Nevis. This lack of transparency undermines public trust and raises concerns about the government’s commitment to responsible financial management.

The government of St. Kitts and Nevis must act decisively to restore public confidence. The immediate publication of the 14th Actuarial Review is paramount. Furthermore, the government must provide a full and transparent explanation for the significant financial fluctuations revealed in the 2022 and 2023 audited statements. Anything less represents a failure of accountability and good governance. The citizens of St. Kitts and Nevis deserve answers and reassurance that their social security funds are being managed responsibly and transparently. The continued withholding of the actuarial review only serves to amplify suspicion and erode public trust. The government must prioritize transparency and accountability to address the legitimate concerns of its citizens and ensure the long-term viability of the Social Security Fund.