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President compares the ISSFA´s management with capital pyramiding
Posted On 04 May 2016
President Rafael Correa compared the management of the Institute of Social Security of the Armed Forces with a a fraudulent investment operation called “Ponzi Pyramid.”
This generated the rejection of a former Navy commander, who argues that the only thing that threatens the ISSFA is the non-payment of government obligations.
The Government analyzes the reforming of the Social Security Act. The president pointed this out in his last weekly address and especially criticized the system used by the social security of the Armed Forces.
“There are senior officers who dont´t retire, senior officers, a general for example who gets a severance payment of $ 200,000, but this is actually not his money. His money may be $ 50,000, while the state´s money is 50,000-100,000. And you know where the rest comes from? From the common fund. That is what is called the ‘Ponzi scheme,’ that is speculation, the piyramids that have not a base. That impeded more people to enter the base and the whole system collapses,” he said.
