Theft of workers NIS, PAYE, and VAT is criminal

IT is with great satisfaction one reads in the various print media: “Gov’t to name and shame non-compliant security firms — Minister Hamilton”. This sense of gratification and triumph, in particular, is owing to the fact that I, the undersigned, have religiously advocated for similar actions to be taken against security firms and others known to abuse and manipulate NIS, PAYE, and VAT. I have penned several missives, and spoken out virtually to the relevant authorities to have them take a stand on this despicable and deplorable act.
It is with this in mind that I take the opportunity to commend the Honourable Minister of Labour, Mr. Joseph Hamilton for his far-sightedness, and for taking the much-needed stance on this issue. However, while I applaud the Honourable Minister for saying that these security firms would be named and shamed, I believe that we need stricter means to nip this disgusting practice in the bud. I say this because some people are bereft of shame. We have seen one company, after robbing billions of dollars in NIS, PAYE, and who, after having never paid corporate taxes, declared bankruptcy after decades of being in business, and then restarted with a new name, while continuing the same despicable practices. Because of incidents like this, it is my view that if the law does not allow imprisonment, then these people need to be charged for fraud, privately, until the law is changed. It is the only way to bring a semblance of respect and decency to some security firms which are bent on thievery to make big money, destroy the lives of our workers, and put pressure on our social security system. I reiterate, if you cannot jail them, then private criminal charges must be imposed. I have already proposed this in an article: “Blacklist/Jail companies known for their deceit,” which was graciously published in the November 22, 2020 edition of the Guyana Times, Kaieteur News, and Guyana Chronicle respectively.

These measures are needed now more than ever, as we are seeing more and more security services tendering below cost and subsequently stealing VAT, workers NIS, and not paying annual taxes. These security firms have ways and means of getting certain contracts, or to get away with their corrupt dealings. With more than 200 security firms in Guyana, it would seem that obtaining a security licence is as simple as opening a street-side cake shop. Opening a security firm should be like getting a bank licence for banking operations: Hard and rare! Not just to every Tom, Dick, and Harry who uses security to arm themselves. Drug traffickers and money laundering professionals, in particular, take advantage of the loopholes in the Security Company Policy to procure weapons, while legitimate security firms are left in limbo or wiped out. I recall when the former Minister of Labour, Mr. Keith Scott called in security firms to speak with them, and while doing so, no respect was shown to the Honourable Minister by some of these firms.

Further to the Minister of Labour taking a stance on this issue, I was extremely proud of His Excellency the President, Dr. Irfaan Ali for making a stern statement on this matter, and raising the concern of security wages and NIS for workers in Regions Six and Two. Mr. President, I must say that, sadly, this is a matter that is prevalent throughout the nation. These firms are bidding below cost so that they can steal workers NIS, and subsequently put pressure on the government’s social security system. Sadly, this habit has also ruined the lives of many. Given these unethical practices, I propose that the lowest tenders/offers should never be the criterion for awarding government contracts, particularly in the case of labour.
Additionally, as a gentle advisory, I wish to highlight that under the Private Security Act 2009, Section 3 and Section 4 of the laws of the Cooperative Republic of Guyana, it is the Commissioner of Police who has more authority than the NIS and GRA to suspend or close down a security firm. Almost instantaneously, he can take the relevant action to curb the abuse of the requisite standards a security firm is expected to adhere to. With this in mind, GRA and the NIS must therefore involve the Commissioner of Police as the “Controlling Authority” for such matters. I also urge the GRA and the Government to have a mechanism in place through which the government can automatically know how much VAT it pays to the security firm and other labour-intensive contractors, and others, as we have excellent information that most of these firms that tender for Government contracts are actually stealing VAT, as they steal the PAYE, NIS and do not comply with corporate laws.

In addition to the above, and as I have done many times in the past, I am appealing to the Minister of Labour, the Private Sector and all the concerned members of the Cabinet that if you desire to increase the minimum wage, which I think is necessary for our workers, then you need to cater to those who have tendered for labour, and were paid the old rate. In other words, you need to ensure that whatever the rate you raise by, the contractor supplying security services, cleaning services, etc. must have an automatic increase from the Government as well. Some years ago, when the minimum wage was dramatically increased in the middle of the year, some security firms managed to manipulate the NIS, GRA, and VAT in a criminal manner, and even attempted to underpay their guards. For those of us who obeyed the laws, particularly the undersigned, we worked for three months, and after realising that the Government did not listen to our appeal, we gave notice and respectfully withdrew our services. In the process, we lost millions of dollars which we are still paying for. My humble appeal is that the Government must be conscious of this fact. This is only fair to those of us who fully comply with NIS and GRA.

So, with all of this in mind, respected Editor, I reiterate that by just naming and shaming without imprisonment, blacklisting, and/or seizure of properties, the reality is that it would all just be ‘talk,’ ‘harum-scarum’, so to speak, or of no serious consequence.

Sincerely,
Hajji Dr. Roshan Khan Snr.