Vmcott owes over $2.3m in statutory deductions

Vehicle Management Corporation (Vmcott) CEO Natasha Prince said the company owes over $2.3 million in statutory deductions.

Prince was speaking at a meeting of Paliament's Public Accounts (Enterprises) Committee on Tuesday, where the company’s audited financial statement was addressed.

Chairman of the committee Wade Mark asked how much the company owed in statutory deductions from the salaries of employees, including NIS, national health surcharge, Pay As You Earn (PAYE), Green Fund levy and business levy.

Prince, who is yet to submit the full amount to the committee, said it owed over $1.9 million. The company owed NIS $1.246 million, and owes $1.1 million in PAYE and $45,350 in health surcharge.

Prince said the company had been experiencing a cashflow problem preventing it from making these monthly payments. Instead the money was used to keep up operations and pay off suppliers threatening litigations against Vmcott for unpaid debts.

She said the situation was brought to the attention of its line ministry, the Ministry of Works and Transport, and Vmcott is working with the ministry to pay off its debts.

Prince said the company also owes money to a lot of suppliers.

“We are avoiding litigation…We don’t want to put it out in the public domain (that we are) a failing organisation.”

She said the company is also working with the ministries of Works and Transport and Finance to establish payment plans from its debtors, including the police and the Public Transport Service Commission (PTSC).

PTSC chairman Edwin Gooding, in a brief interview with Newsday on Wednesday, said both PTSC and Vmcott report to the Ministry of Works and the matter is being handled at a ministry level.

“This is not a contentions matter,” he said. “It is being sorted out…On one hand, we owe them, and on the other they owe us.”

Acting Deputy Permanent Secretary at the Ministry of Works Dhanmattee Ramdath said line minister Rohan Sinanan is concerned about not making statutory payments.

“We have had discussions (and) mediate on a continuous basis with companies owing (Vmcott).

“We recognise the obligations of the company to make statutory payments, and I can assure you that we will work closely with them to ensure the company meets their obligations.”

Ramdath said although the company has been working at either break-even or a loss since its inception, she believes it is still viable.

“It needs to be rebranded…We have been working with the Finance Ministry and Vmcott to explore ventures which the company can enter into to continue being viable.”

She said in fiscal 2020, the company accumulated losses of $91 million, but Vmcott’s 2020-2025 business plan includes restructuring to reduce operating costs.

“When you look at the financial statements, it may be daunting. However, we hope the company will be viable by 2025.”

She said the company is exploring public/private partnerships.

She also said, “I can share with you that the PTSC, which is one of the debtors, have met with Vmcott and (Sinanan) to alleviate at least some of the debt.”

The ministry is working with the PTSC to get it to pay off its $6.4 million debt.

She said Commissioner of Police Gary Griffith has convened a committee to review records, invoices, and claims related to Vmcott payments. The company is slowly but surely receiving payments from the police and has received $194,000 thus far.

“This is an emergency,” said Mark, who said the company has not made payments toward statutory deductions since 2018. “This is unacceptable, inexcusable, and indefensible.”

He said the company must submit a report in two weeks outlining the steps which have been taken to fix the issues.

“Attempts need to be made to address those payments in the next two weeks and ensure that scandal is not repeated.”

Prince must also submit details of remuneration packages for executive employees, including herself, the internal auditor, finance manager, chief operations officer and the operations manager, within 48 hours.