💰🧑🏾‍⚖️The government receives massive criticism due to increased salaries

Suriname’s government received massive criticism as salaries were rumoured to get massive increases.

During a heated parliamentary session, Stephen Tsang (NDP) and other members strongly criticized laws that would significantly raise salaries for the president, vice president, ministers, and Assembly members by at least 400%. Tsang questioned what the government achieved in the past four years to justify such raises, calling the move greed-driven, especially given the country's economic and social struggles. He criticized the government's failure in areas such as security, education, and the economy.

The initiators, Asis Gajadien (VHP) and Genevievre Jordan (ABOP) argued that the laws aimed to synchronize government branches' salaries and would only apply to the next term. However, Tsang demanded the bills be withdrawn, accusing the initiators of dishonesty. Gajadien responded that the reforms were necessary to bring order and comply with constitutional requirements.

Following this massive criticism, the proposed salary will be reduced.

Following heavy criticism from the National Assembly and the public, the proposed salary increases for the three branches of government were reduced. The president’s salary was lowered from SRD 170,000 to four times that of a department director, now around SRD 130,000. The law will apply to officials elected after the May 2025 elections, not the current government.

Several amendments were made during the session, to synchronize the branches and reduce state expenses, such as eliminating Assembly members' multiple roles and raising the retirement age.

Opposition members, however, remained dissatisfied, questioning the lack of detailed cost calculations and claiming the raises were still excessive. They called for more transparency on the financial impact of the proposed changes. The session was adjourned for further review.

The Head of the Parliament Marinus Bee has critiqued the extensive privileges that politicians in Suriname give themselves.

Assembly Speaker Marinus Bee emphasized the need to stop providing lifelong benefits to politicians in Suriname. The proposed laws aim to end the practice of giving former ministers, Assembly members, and their families extensive privileges, which currently cost the state millions yearly. Bee criticized the current system where politicians and their families receive lifelong benefits, even for things like expensive eyeglasses.

The new laws, introduced by Asis Gajadien (VHP) and Genevievre Jordan (ABOP), will prevent future politicians from receiving these lifelong perks starting from the next government term. Existing benefits will remain for those already entitled to them, but future ministers and Assembly members will have limited post-term benefits, such as six months of salary and insurance.

The laws will also raise the retirement age for Assembly members from 55 to 60 to align with the rest of the population. Bee clarified that while the debate has focused on salaries, the proposed changes are about reforming the system and reducing unnecessary state expenses.

Suriname continues restructuring its debt to continue to stabilise its economy.

On October 8, 2024, the Paris Club signed a second-phase debt restructuring agreement with Suriname. The deal restructures the bilateral and commercial debts of the country. Suriname will now repay bilateral debts over 17 years with a 4-year grace period, and state-guaranteed debts over 12 years with a 5-year grace period. Interest rates are capped at 3.59%.

This agreement builds on a 2022 debt consolidation framework, requiring separate agreements with creditor countries like France, Italy, Israel, and the Netherlands. The restructuring aims to ease Suriname's debt burden, and future terms will account for potential oil revenue. Suriname is also committed to seeking favorable terms from other creditors.

In working disputes, the unions of gold workers have criticised proposed wage hikes from Zijin which they say are unacceptable for increased inflation.

A dispute has emerged between the Rosebel Workers Organization (RGWO) and employer Zijin, with the union accusing the company of stalling wage negotiations. The company is only offering a 3.5 percent wage increase, which the union finds unacceptable. Despite workers consistently achieving production targets, the proposed raise is too low, with some employees only seeing an increase of SRD 150 per month. The union plans to escalate the issue to the Mediation Council to resolve the matter.

In looking to our neighbour to the right, Suriname has seen Guyana’s president attempt to share the wealth from oil with regular households.

Guyana's President Irfaan Ali announced that every household in the country will receive nearly US$1,000, with payments starting immediately. This initiative aims to inject US$288 million into the economy and provide financial support to families. Guyana has earned significant oil revenues from the offshore Stabroek Block, managed by ExxonMobil and partners, which contains around 11 billion barrels of oil. Current production exceeds 600,000 barrels per day, and more projects are in development, including the new Hammerhead project. Oil revenues are expected to increase as investments are recouped and additional projects come online.