NASSAU, BAHAMAS — National Insurance Board prosecuted 340 companies and self-employed people in the last year for failing to pay NIB contributions, with one top manager urging residents to visit NIB to ensure employers are making contributions on their behalf as the law requires.
“Some people wait until they leave employment to come and check to see if contributions were being paid,” said Uford Curtis, a senior assistant manager and prosecutor at NIB. “Sometimes they wait until a company closes down. But I encourage people to check on it now while you’re working.”
Critics have been underwhelmed by the level of enforcement of the contribution mandate, but Curtis said the prosecution of those who run afoul of the law “has never stopped” though it slowed down at the height of the COVID-19 pandemic.
“These are criminal charges that you get,” he said.
“Some people think these are civil matters but these are criminal matters. You can be convicted and you could have a criminal record for non-payment of NIB contributions. Folks don’t realise that and the Act’s orders can be given where your property can be confiscated in order to pay contributions if you fail to pay it. So the offense carries serious penalties. The law says failure to pay carries $500 for each failure. So say for instance if a person has five employees, if they fail to pay for all, that’s a $500 fine times five.”
Curtis said most people taken to court in the last year were convicted and ordered to pay. He said people are given adjourned dates and their matter stays in court until it is completed. He added more than 80 warrants were issued last year.
“Some have to pay hundreds and some thousands,” Curtis said.
“Anywhere from $1,000 up is not uncommon. Some have gone to court for $500. Self-employed individuals, if they have a low amount of income, according to them, you could have their contributions for a whole year be $500 or $600. A big employer with several employees could have fines ranging from $2000, $5000, $100k, or more. Some matters are before the court now for over $100k.”
Curtis said the statute of limitation for contribution matters is 12 months but the NIB board has the power to consent to the prosecution of matters that fall outside this window.
Myles Laroda, minister of state in the Office of the Prime Minister with responsibility for NIB, told reporters last week that delinquent employers and self-employed people owe “tens of millions” in unpaid contributions.
He said non-payment contributions often came to light when employees complained money was being deducted from their salaries but not paid to NIB.
Concern about NIB comes after an actuarial report confirmed the $1.6b reserve fund will be exhausted by 2028.
