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Broke gov’t? After a $330M Budget NDP still needs $25M credit!

- National Democratic Party Government seeking more money from CIBC FirstCaribbean International Bank to keep things going
While the ruling National Democratic Party (NDP) Government, led by Premier and Minister of Finance Dr The Honourable D. Orlando Smith, continues to deny that his administration raided the public treasury to win the 2015 general elections, leaving the country broke, more evidence has emerged to satisfy his critics. Even before the passage of a 2016 $330M Budget Estimate a few weeks ago, negotiations started with CIBC FirstCaribben International Bank to secure a loan, or a line of credit, of some $25M to keep government afloat. Photo: VINO
A few months ago the Financial Secretary Neil M. Smith (right) did not use the words ‘broke’, however, he confirmed that the Virgin Islands Government 'has a cash flow problem' and warned if Ministers of Government do not follow the rules the country would end up broke. Hon Andrew A. Fahie (R1), a former Minister for Education and Culture, has led the charge that the Dr Smith administration has continued to violate the Financial Management Protocol signed with the United Kingdom Government. He has also accused the NDP government of being 'the most corrupt government in the history of the territory.' Photo: VINO/File
A few months ago the Financial Secretary Neil M. Smith (right) did not use the words ‘broke’, however, he confirmed that the Virgin Islands Government 'has a cash flow problem' and warned if Ministers of Government do not follow the rules the country would end up broke. Hon Andrew A. Fahie (R1), a former Minister for Education and Culture, has led the charge that the Dr Smith administration has continued to violate the Financial Management Protocol signed with the United Kingdom Government. He has also accused the NDP government of being 'the most corrupt government in the history of the territory.' Photo: VINO/File
ROAD TOWN, Tortola, VI- While the ruling National Democratic Party (NDP) Government, led by Premier and Minister of Finance Dr The Honourable D. Orlando Smith, continues to deny that his administration raided the public treasury to win the 2015 general elections, leaving the country broke, more evidence has emerged to satisfy his critics.

New loan requested

Even before the passage of a 2016 $330M Budget Estimate a few weeks ago, negotiations started with CIBC FirstCaribben International Bank to secure a loan, or a line of credit, of some $25M to keep government afloat.

The Motion for the new loan or line of credit which is before the House of Assembly at its Monday April 18, 2016 Sitting is to seek approval from the law making body in keeping with the Public Finance Management Act.

The Opposition Virgin Islands Party (VIP), civil society, ordinary residents and the media continue to claim that the NDP left the country broke following the 2015 general elections.

A few months ago the Financial Secretary Neil M. Smith did not use the words ‘broke’, however, he confirmed that the Virgin Islands Government “has a cash flow problem” and warned if Ministers of Government do not follow the rules the country would end up broke.

What is a line of credit?

A line of credit is the same as a loan, in which you are requesting funds that you do not now have and must pay back under certain conditions. The terms and conditions of the Operation Line of credit or loan involve tax payers repaying for the Facility Fee of 0.35% of the total Facility Amount payable on Financial Close.

In addition, there is an Administration Fee of US $2,500.00 per annum payable in advance on each anniversary of the Facility and a Standby Fee of 0.75% per annum of the undrawn amount under the Facility, payable quarterly in arrears.

Many have continued to claim that the NDP has been engaged in financial mismanagement, and wastage of public funds.

Hon Andrew A. Fahie (R1), a former Minister for Education and Culture, has led the charge that the Dr Smith administration has continued to violate the Financial Management Protocol signed with the United Kingdom Government. He has also accused the NDP government  of being “the most corrupt government in the history of the territory.”

The House of Assembly (HoA) will be carried live on April 18, 2016 from 10:00 AM on CBN Channel 51 from the HoA Chambers in Road Town, the capital city.

25 Responses to “Broke gov’t? After a $330M Budget NDP still needs $25M credit!”

  • Observer (15/04/2016, 14:17) Like (16) Dislike (1) Reply
    well sah welcome back VINO
    • west (15/04/2016, 22:26) Like (3) Dislike (0) Reply
      yet another 25 million dollar overdraft facility
      • Yanni (17/04/2016, 19:49) Like (1) Dislike (0) Reply
        I say go get the missing $40 million from those that stole it from pier park. They know who they are. This is ridiculous to allow this amount of money to be stolen and then have the nerve to ask for 25 million credit. This place is going to fall flat on their face. DONE!
  • Really? (15/04/2016, 14:18) Like (1) Dislike (5) Reply
    Well, to be fair, a line of credit can be a useful tool to accommodate vagaries of cash flow if used correctly. Access or use of a credit line does not necessarily imply bankruptcy. In other words, you use to pay bills that are due, and then the revenue comes in you pay it off. When you can't pay it off in full, you get to pay interest (sometimes quite high) and there is the rub...
  • wow (15/04/2016, 14:46) Like (9) Dislike (4) Reply
    You all see was happen in the dark come to light. ALL they doing this from the time they take office is getting money and not balance they book we are seeing l they start to raise taxes and other thing this is the worst I see it and this is bad a government have not budget they book how can you run any with out checks and balance.
  • Seeing (15/04/2016, 15:12) Like (2) Dislike (0) Reply
    They ducking the blood of the suffer babalon system is a vampire.
  • vex (15/04/2016, 16:17) Like (15) Dislike (0) Reply
    Lord jesus another loan?
  • Hmmm (15/04/2016, 16:20) Like (10) Dislike (0) Reply
    All this because of Mark...MARK MUST GO!
    • apple pie (15/04/2016, 22:31) Like (4) Dislike (0) Reply
      Clearly, the Government is having a cash flow problem or is stright out broke. Normally, working capital or seed money is needed when a business, programme, unit…..etc is starting up/out!!! Did not the government appropriate money a few weeks agao or just pass the budget???? The Government received a lump in December from the FSC and is due one relatively soon in May yet it is out of cash.

      Yeap they NDP left the country Broke!
  • UK (15/04/2016, 17:01) Like (2) Dislike (18) Reply
    Broke people do not get line of credit bossie
    • Now, now, now (16/04/2016, 00:21) Like (3) Dislike (0) Reply
      @ UK- Banks are not stupid. They are in business like every other business to maximize profits. They are fully aware that any Govt is a Cash Cow. All a Govt has to do to raise money is Tax the working people to recoup their money. Until that time, they are secure in collect their interest on their loans extended. Banks are known to offer Umbrellas while the Sun is still Shining and ask for them back when the Rain start Pouring.
    • Now, now, now (16/04/2016, 00:49) Like (5) Dislike (0) Reply
      @ UK- Banks are not stupid. This is an institution that has been developing and evolving over 100ths of years They are in business like every other business- to make profits. They are fully aware that any Govt is a Cash Cow. All a Govt has to do to raise money is "Tax" the working people to recoup their money. Until that time, they are secure in collecting their interest on their loans extended. "Banks are known to offer Umbrellas while the Sun is still Shining and ask for them back when the Rain start Pouring." The rest you can put together on your own- bankruptcies, foreclosures, public auctions etc., etc., etc…
  • bright side (15/04/2016, 20:34) Like (3) Dislike (0) Reply
    If this is true, at least they didn't go to Scotiabank for a loan or line of credit. That would be really really stupid.
    Toronto is an ass at best or 'bacon canadians if the s*** hits the fan. when you are evil to people, you get your oats.
  • 123 (15/04/2016, 22:25) Like (9) Dislike (0) Reply
    Smh. Soon we will be joining Greece and Puerto Rico in bankruptcy.
  • TurtleDove (15/04/2016, 22:27) Like (6) Dislike (0) Reply
    Now this is the height of fiscal irresponsibility. Who will stop this government from themselves before they run us all over a cliff.
  • watching (16/04/2016, 00:42) Like (2) Dislike (0) Reply
    It is all just a load of BS because no one has the guts to really stand up to the thieves . Everyone will complain and life will lumber along and before the next election the complainers will just collect their envelopes and go on their way . Always an excuse for everything and everybody . There is no will here to stop 5he corruption including the petrified judges. Nice example for our children ...and we continue to wonder why the crime rate goes up as deeds get swept under the rug . Do we want our country or not ? Time to make some hard decisions .
  • Dem Belly Full but Still Starving!!! (16/04/2016, 02:37) Like (6) Dislike (0) Reply
    Do you know what one mil can do if managed or budget the right way? this government does spend a million dollars like its one hundred and still don't get the work done properly clearly something is really wrong here. I guess that does happen when you put a rat to mind the cheese, the more they get the more they want.
  • DON Q (16/04/2016, 08:33) Like (1) Dislike (0) Reply
    whats next where is the AWAL governor?
  • wow (16/04/2016, 14:26) Like (4) Dislike (0) Reply
    All this foolishness & more because of MARK & his $30 mil over spend cruise pier project. The Governor is a waste of time. Mark needs to be fired forthwith!
  • People (16/04/2016, 14:28) Like (6) Dislike (0) Reply
    MARK MUST GO NOW! Fire this man Premier.
  • tears (16/04/2016, 18:08) Like (1) Dislike (0) Reply
    I cry for my country
  • liberal (17/04/2016, 06:34) Like (4) Dislike (0) Reply
    The BVI is going in a direction on a express line and it seems as if the Government of the day has a fever with spending money in large quantity. The people of our country are just talking in lil groups are are not doing nothing about whats going one and what will happen to their children and grand children in the future. Our country had election in 2011 and installed our Government who lashed the VIP that they broke the country.. Now we had early election last year in 2015 earlier than we should have and reinstated the same NDP administration for a second term and here today before it's 1 year in second term it's taking $25 Mill.. People what more can be said but the dam country is broke and cash flow is the same dam thing in my book broke, broke, broke our country is and stop being fooled for now more taxes are coming and has to be increase in order to pay the out standings. A lot of us are not going to survive this hard life coming our way who wouldn't be able to afford it.
  • VG (18/04/2016, 17:01) Like (0) Dislike (0) Reply
    Dead broke


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