Dear Source:
Bravo to the three GERS board members that voted against funding an inquiry into the purchase of Innovative Communications Corporation by our retirement system. The vote, however, does not preclude the possibility that this issue may be resurrected in the future. It seems as if this negative vote was based on the current legal problems of ICC. We have been told that "now" is not the right time for this acquisition. But is there ever a right time for a failing pension system to purchase a failing company?
It is astonishing that GERS would ever, in the past, now, or in the future, give slightest consideration to purchasing the old telephone system. With the financial stability of GERS in question, our pension system is certainly in no position to play venture capitalist. GERS can neither afford to purchase a financially failed company, nor could it afford the vast investment of capital needed to upgrade an old and failing landline infrastructure.
Moreover, landline technology is on the wane. Just think of the number of people that use wireless technology. Also consider the multitude of companies that offer the wireless alternative. With an eroding customer base and a huge debt, there would be no opportunity for growth and resultant financial stability. Whatever the pros may be for the GERS acquisition of VITELCO, the pros cannot possibly outweigh the overwhelming cons.
The government employees and retirees must continue to make it clear to all the GERS board members that we do not wish to further jeopardize our retirement system and hasten its decline with such fiscally irresponsible measures. The GERS investment portfolio must be growth oriented and income producing.
Carolyn Tyson
St. Thomas
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