(CNS): The Complaints Commissioner submitted her first own motion report to the Legislative Assembly on Friday highlighting the systematic failure of the National Pensions Office (NPO) to enforce the pensions law and bring justice to hundreds of people whose employers have literally stolen their contributions. Nicola Williams found that the NPO had failed to use its powers under the law effectively, as well as a lack of political will to address the problem, a break down of inter-agency communication and a host of other problems that has led to a complete loss of trust by the public in the NPO. Despite the worrying findings in the report presented to members by MLA Cline Glidden, he made no comment about them and there was no debate in the House.
The Legislative Assembly has never once debated a report produce by the Office of the Complaints Commissioner since the establishment of the office in 2005. Although this is Williams’ first Own Motion, her predecessor John Epp also published a widelist of reports highlighting various failures in government systems that were also ignored by the members of the LA.
However, the report is now a public document which can be obtained from the OCC at the Piccadilly Centre. It reveals how administrative failures have allowed employers to take contributions from employees but not pay that or their matched obligation into a pension over and over again and escape prosecution.
Williams says that the system has given delinquent employers too many chances pay back arrears which has never happened and simply seen the debt grow, and when a decision to prosecute had finally been made it has taken too long.
“Too many chances are given to non-compliant businesses to pay the pension arrears, which are routinely ignored,” the OCC wrote in her report. “In the meanwhile, the outstanding level of arrears increases. Once a decision has been made to prosecute a delinquent employer prosecutions through the court system are too slow and are not an effective enough deterrent to prevent non-compliance.” She pointed out it could take as much as five years for a case to be heard.
While the OCC said the legislation and the regulations regarding the pension law needed substantial revision, she also pointed to other remedies earlier in the process which have not been utilised.
“There is still clear evidence of the inability of related government departments (immigration and health) to share communication,” the report stated. It notes that there has been a lack of will to withhold work permits from delinquent employers or to force them to pay their pensions or cease trading.
The OCC further warned that many employees fear being victimized if they take action against an employer and there is little or no protection for whistleblowers.
Williams explained that the report was initiated as a result of numerous complaints received by the office, which she described as theft. In one case a complainant had reached retirement and found his pension empty because of the failure of his employer to pay the contributions he had collected from him as an employee as well as the employer’s share.
“This is far from an unusual story,” Williams stated. “This is a ticking time bomb for the people of Cayman.”
Despite complaints and evidence that numerous employers are not complying, many of them are still issued trade and business licenses as well as work permits, and some have even received government contracts. She also points out that the problem has spanned a ten-year period and both political parties have failed to tackle the problem.
Recommending a complete overhaul of the system and the law and noting that simply throwing money at the problem wouldn’t work, Williams said that employers were taking advantage of the weakness of the system. She acknowledged that resources had been a problem and that there had never been enough inspectors at the NPO from the start, but the commissioner said the problems with the system went far beyond a shortage of staff.
Williams also said that at the start of the investigation the NPO estimated 670 businesses were non-compliant but as the OCC investigation progressed, Williams said, it became apparent the figure was wide of the mark.
“At present the NPO does not know exactly how many complaints against delinquent employers they are charged with investigating,” the report revealed.
The OCC’s annual report for year ending June 2008 was also submitted to the Legislative Assembly and is now a public document. During the year 2007-08 the office dealt with almost 500 complaints and undertook three own motion investigations.
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