Development Bank Resumes Payments to Social Security; Financial Stability Being Restored

BASSETERRE, St. Kitts – November 15, 2024 (PMO) – The Development Bank of St.
Kitts and Nevis has resumed monthly payments to the Social Security Board, a critical step
in stabilizing the financial ecosystem of the Federation. Prime Minister Hon. Dr. Terrance
Drew announced that the payments, which had been suspended under the previous
administration, now exceed $600,000 monthly, ensuring the continuity of Social Security
benefits for citizens.

Speaking on Freedom FM’s Issues program on November 14, Prime Minister Drew
highlighted the gravity of the situation inherited by his administration, noting that the
Development Bank, under the previous administration, had failed to meet its financial
obligations to Social Security, with the last payment recorded in January 2022 amounting
to just $200,000—significantly below the required monthly contribution of $600,000.

This lapse jeopardized the financial health of Social Security, threatening the stability of
pensions and benefits relied upon by thousands of citizens.
“The financial mismanagement under the previous administration placed Social Security
on precarious footing. Our government took swift and decisive action to stabilize the
system and ensure that the people’s safety net remains intact. Today, the Development
Bank is back on track, meeting its obligations in full,” stated Prime Minister Drew.
As part of the recovery effort, the Development Bank has also made a lump-sum payment
of $13-14 million toward its arrears with Social Security. This substantial payment has
eased the financial strain on the institution and improved its cash flow, enabling it to better
serve contributors and beneficiaries.

The Prime Minister noted that these corrective measures were not optional but necessary
to preserve the integrity of the Federation’s financial institutions. “Social Security
represents the lifeline for so many of our citizens, especially our elderly and most
vulnerable. Allowing it to falter was never an option,” he stated.
The resumption of payments is a direct result of this government’s strategy to address
mismanagement at the Development Bank. A new management team has been installed,
tasked with implementing stricter financial controls and enhancing governance. …And
legal measures are being pursued to recover funds and hold those responsible for the
discrepancies accountable.

Prime Minister Drew reaffirmed his administration’s commitment to financial transparency
and public accountability. “Our priority is to ensure that public institutions operate with
integrity and that the resources of the people are protected. The resumption of these
payments is a significant milestone in rebuilding trust and restoring stability,” he said.
The government remains focused on safeguarding the financial security of its citizens
while fostering a culture of accountability within public institutions. The measures taken at
the Development Bank and Social Security are part of a larger effort to strengthen the
Federation’s economic foundation and ensure sustainable growth for future generations.