RIYADH, 19 September 2007 — The General Organization for Social Insurance (GOSI) was heavily criticized by the Shoura Council yesterday. The organization was accused of lacking social responsibility and not doing enough for the welfare of those working in the private sector. Millions of Saudis and non-Saudis are registered with GOSI in accordance with the Kingdom’s laws.
During yesterday’s discussion of GOSI’s annual report for 2005, Shoura Council members recommended that GOSI increase the minimum annual pension from SR1,700 to SR3,000, saying the first amount was too little to support any family today given the country’s price increases.
“If only SR1 billion of GOSI’s net profits were given to increase the minimum annual pension, that would make a big difference in the lives of many citizens,” said Shoura member Khalil Al-Khalil. “It is unfortunate that GOSI seems to lack social responsibility. It seems that its only aim is to increase its investments with no return to the community,” he continued. “Employees who are registered with GOSI are now begging at the doors of mosques. What is GOSI doing about the welfare of these people?”
Another Shoura member, Yousef Al-Maimani, urged the immediate elimination of the 2 percent required by GOSI from private sector employees as emergency health insurance. This amount is already covered by the mandatory health insurance approved by the Council of Ministers.
According to the organization’s 2005 annual report, GOSI invested SR211 billion that year — 64 percent was in local investments and 36 percent in international investments. The total market value of the company was SR156 billion. The entity’s net profit for 2005 was SR15 billion.
Several Shoura Council members questioned the financial performance of the government body in the light of its local and international investments over the past two years. Abdul Aziz Al-Ouraier said: “The report before us says that GOSI invested SR116 billion in bonds in 2005 with a profit return of only SR 4 billion. This is less than 3 percent. GOSI also invested SR45 billion that year in the Saudi stock market with a profit return of only SR3 billion. And this was before the stock market crashed. We would like to have it explained to us how the government body decides on its investments.”
Shoura member and businessman Abdul Rahman Al-Zamil said GOSI had no excuse for waiting to adopt a national housing strategy under which Saudi citizens would be entitled to receive houses similar to the housing project of the Public Pension Agency. “The return for GOSI from such housing projects would be substantial. It should seriously consider establishing a housing project in which thousands of Saudi families would receive homes,” he said.
Al-Zamil said GOSI had a responsibility toward the working class in Saudi Arabia and that financial guarantees from the private sector would surpass those in the government sector. “No excuse from GOSI is acceptable.”
In other developments, The Human Resource and Petition Committee in the Council said it would reconsider the introductions of members before submitting its final draft for approval.
The Shoura Council also recommended that speedy measures be taken to replace foreign employees in Saudi embassies with trained Saudis. Preference should be given to Saudi graduates in foreign languages.
In discussing the Foreign Ministry’s annual reports for 2005 and 2006, the Council recommended that Saudi diplomats receive training courses, extensive language courses, and cultural courses before being sent abroad. “The aim of such courses would be to better prepare them for their mission and inform them of the country they will be living in. In addition, it would make them better able to mix in the local community,” said the Foreign Affairs Committee president.
Another recommendation by the Council was that future annual reports submitted by the Foreign Ministry which have been approved by Custodian of the Two Holy Mosques King Abdullah be more detailed. One member suggested that the Foreign Ministry prepare a detailed report of media campaigns being waged against the Kingdom since 9/11 with mention being made of individuals and groups which support the campaigns.
Shoura President Sheikh Saleh Bin-Humeid said that discussions on the Foreign Ministry’s annual report as well as the recommendations made would be discussed in a later session.
