He noted that over $28 million in benefits were paid out to over 71,000 workers.

We have determined from the figures published in the report that while the total contributions from workers and their employers increased 17% between 2002 and 2003, the benefits paid out to insured workers increased only 5%.

Furthermore, investment income declined 15% during the same period. The table above, SSB Investments, shows that the SSB?s major investments had been in utilities; private sector loans for education, agriculture, tourism, etc.; and housing and mortgages.

The SSB?s latest reports to our newspaper for 2004, which reflect data as at July 2004, indicate that there has been a dramatic change in the SSB?s investment portfolio. Its most lucrative investment in telecommunications was sold off in April 2004, while it sold its shares in BECOL shortly after.

Meanwhile, its holdings in term deposits has more than quadrupled. Now the SSB, instead of concentrating its deposits in the Alliance Bank/St. James National Building Society (Glenn Godfrey?s company), has reportedly deposited some of its earnings from the sale of the Belize Telecommunications Limited shares in the other banks.

The SSB has also increased its investments in real estate, which we understand to be at roughly $17 million, with its recent purchase of 2,000 acres on Ambergris Caye for $6 million.

We note that according to the SSB?s 2003 report, it had last year bought another 1,000 acres on San Pedro, Ambergris Caye. This was one of the transactions that had a major effect on the SSB?s cash flow, eroding the gains it had gotten from the recent increase in the rate of Social Security contributions from 7% to 8%.

The other main transactions that have negatively affected the SSB?s cash flow during the period: (1.) a reinvestment of $5.4 million of earnings from holdings in the Belize Telecommunications Limited and the Belize Electricity Limited; (2.) defaults by St. James National Building Society/Glenn Godfrey totaling $1,796,778 for both the RBTT and the North American programs; and (3.) over $5 million in purchases of fixed assets, primarily buildings, furniture and fixtures, and computers and accessories.

In its annual report, the SSB featured a section on its management information system, which expounds on its new information technology network.

Overall, the report shows ?an increase of $5,857,431 in contributions collected in 2003 as compared to 2002.? It noted that the increase in contribution income was partly due to the rate increase effected last July.

At the same time, the SSB reported that it had paid out $28.6 million in benefits, including $1.2 million in non-contributory pensions to some women over the age of 65, as well as $4.6 million under the National Health Insurance Program.

Furthermore, the Social Security Board reported that the pink eye or conjunctivitis epidemic of 2003 resulted in an additional $700,656 in spending.

Apart from the contributions paid in by workers and their employers, as well as self-employed people, who are now allowed to participate in the Social Security program, the SSB said that it also earned $15 million in investment income, and just under a million in ?other income.?

Against the earnings, $13 million in operating expenses were charged, and the increase of $2 million over the previous year?s figure was largely due to salary expenses.

As the second table above (Cash/Bank Holdings) shows, the total available cash held by Social Security, which excludes holdings in term deposits, had declined considerably between January 2003 and January 2004. Later reports from the Social Security Board, which we have published in this newspaper, indicate that the cash flow improved between January 2004 and June 2004 with the sale of the SSB?s shares in BECOL, but it was forecasted to plunge again by September 2004.

Without the increase in the social security rate?and all other things being equal?the SSB would evidently have had no cash flow at the end of the financial year. The hike, we had been told, would bring in about $8 million in the first 12 months, and, therefore, $4 million in the remaining months of 2003, i.e.: July 1 to December 31. Note that SSB?s cash flow at the end of 2003 was reported at $4,846,818.

In the recent months, the SSB has come under heavy scrutiny for the manner in which it has invested the monies paid into the fund, and the return it has secured for the investments. Its guarantees under the securitization program are currently one of the areas under the investigation of a Senate Special Select Committee.

The SSB?s 2003 report indicates that it was losing just over half-a-million in investment income under the mortgage securitization program and another $900,000 in costs for operating the mortgage unit. Overall, investment income had declined by $2.6 million between 2002 and 2003.