Georgetown: The Former Presidents Benefits and other Facilities Bill 2015, Number 2 of 2015 was passed unanimously and without amendments in the National Assembly Thursday afternoon. The Bill, first published on June 18, 2015 and read on June 25, 2015, repeals the Former Presidents (Benefits and other Facilities) Act 2009.
Presented by Minister of Finance Winston Jordan for another reading friday, the amended bill has placed caps on the amount of cash payable on several of the benefits granted to former Guyanese Heads of State.
The comparison was made with the region where Guyana has the second lowest Gross Domestic Product in Caricom at some US$6,895 versus Trinidad’s GDP of $32,139 the highest earner. It was also noted by the Finance Minister that the United States ranked 10th in the world in terms of its GDP of $54,597 and with the other countries are all in a much better position to offer their former presidents, “attractive packages, consistent with their better ability to pay”. It was further explained to the National Assembly that a former US president is paid a taxable pension, linked to annual basic pay for the head of an executive department or Cabinet Secretary, thus a local comparison could be made, linking the former presidents’ pension rate to that of a minister who earns $579,000 per month or US$2,895. This amount, the finance minister said would result in a former president being given a pension of the same level per month.
In contrast, the minister said that locally, a former president is “enjoying a tax free pension equal to seven-eighths of the salary of the current president. This amount comes to $1,427,067 monthly and could result eventually in a former president earning from the state, a pension higher that the salary he initially earned whilst Head of State. Though this sum is unchanged, the uncapped benefits which are given, in addition to the pension were viewed as “exorbitant and excessive” by the minister. Referencing an article published by the Kaieteur News on July 11, 2015, Minister Jordan cited the figure of in excess of $45 million being spent on former president Bharrat Jagdeo’s electricity bill, security, and transportation between December 2011 and February 2014. “His average electricity bill was almost $370,000, 8.7 times the minimum wage and his unlimited security bill cost on average $753,000…during that period, $15.2 million was spent on transportation.”
Note was made of recent expenditure by a former president who claimed $7,466,700 for two first class airline tickets for himself and spouse despite the fact that he has no spouse. The aforementioned sum of money expended by the state, Minister Jordan said, “drives home the point that not only do these benefits need to be capped but there must be greater clarity, definition and specificity, for which this Bill lays claim”.
Comparisons were again made to the United States of America where proposals are being seriously considered to further limit benefits paid to former presidents engaged in “gainful economic activities”. The minister said that a bill is being considered by Congress to “unfund” any former president earning more than US$400,000 annually. In addition to this, if he or she earned less than that amount say, US$300,000, then they would be paid the difference to bring their earnings to the $400,000 level.
Closer to Guyana, the finance minister said that in Brazil, the current President Dilma Rousseff recently decreed a new rule limiting presidential benefits in a bid to guarantee the country’s social security, and the former Uruguay President Jose Mujica and current Nepalese Prime Minister Sushil Koirala who led frugal life styles since taking office. Minister Jordan said, “These leaders were not interested in elected office to feast on the hog, but to epitomise the essence of servant leadership…his dignity, his satisfaction comes, his rewards come not from pillaging the treasury, but from the honour bestowed on him by the people- through his elevation to high office and leadership, to serve them”.
It was an opportune time Minister Jordan said that as Guyana faced a large debt and pressures on its deficit, to act to cut waste and unnecessary expenditure. Recalling the words uttered by the late President Dr. Cheddi Jagan, “that we cannot live a Cadillac lifestyle in a donkey cart economy”, the minister noted that he would be appalled and disgusted at the entitlements granted to former presidents that are embodied in Act 12 of 2009. The late president, the finance minister noted would have applauded the contents of the new Bill which he said “seeks to cure the ills of Act 12 of 2009, return a level of decency and civility to our domestic affairs and ease the financial burden placed on the treasury.” Supporting the new bill was Vice President and Minister of Public Security Khemraj Ramjattan who described the original bill which was passed by the previous government as appalling. Among some of the changes made since the bill was initially put forward by the APNU+AFC government which was formerly in opposition, is the stipulation that only presidents who served substantive or for five years, to be able to benefit from the pension package. This measure was altered so as to include the immediate former President Donald Ramotar, the minister explained. “There is justice in this bill,” Minister Ramjattan added, “given that the economy was not doing that well and in the context of our country as a whole”. He also made it clear that there will be no “double dipping”, in terms of previous presidents earning their approved pension of $1.4 million and more if they returned to the National Assembly as legislators. He cited chapter 2703, section 32 of the amended bill and explained that the former president Bharrat Jagdeo who appears set to return to the National Assembly as Opposition Leader will only be paid his parliamentary salary and the difference which will bring his earnings up to the $1.4 million former president’s pension. The amended bill will see the expenses for water, electricity and telephone services capped to $25,000 monthly, the services of personal staff, including a gardener, provided that the total number of such staff not exceed three persons, services of three clerical and technical staff, “who must be qualified”, free medical care or reimbursement of medical services set at $200,000 per annum for him or herself or spouse, once the treatment needed is not available at local government institutions, two full time personal security, two vehicles owned and maintained by the state, toll free transportation and an annual vacation allowance of two first class airfare tickets. All benefits will cease if the former president engages in business, trade or paid employment, or is convicted of a criminal offence for which a term of imprisonment in imposed.
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