Financial Management protocols ties VI Gov’t hands!
For example, according to the document laid on the table of the last House of Assembly Sitting held last week, under Section 11 a. All projects, however funded must be suitably appraised before the procurement stage to ensure value for money and that a robust cost-benefit analysis has been carried out. The appraisal must be used by Cabinet to determine whether or not the project should be initiated and if so on what terms.
Advice must be sought outside the Public Sector
Furthermore, the United Kingdom has imposed, through the protocol signed by the National Democratic Party Administration, that if there is a capital project with a lifetime value above five per cent (5%) of forecast annual recurrent revenue and funded from the recurrent surplus or conventional borrowing, independent expert advice such as (but not limited to) accounting, legal, financial, economic and environmental advise will be sought from parties outside the public sector.
According to a senior civil servant who did not want his name to be used, “this kind of policy renders the public servants useless as if we have to go and pay for this service that is available within the public sector…its almost slavery and colonialism in a new form..I guess the outside the public service means from the UK,” the seasoned public officer said with a smirk.
However, the protocol gives the Minister of Finance an opportunity to argue that those private sector services may not be required. It also in Section 22 allows the UK to provide support in identifying and procuring sources of expertise at the request of Government.
While the Protocols for Effective Financial Management calls for the tendering of all projects, the matter of outside advise still applies according to the document.
Exchange of information a must
While Dr. Smith told the public that his budget does not have to go to the UK, it is unclear if under the exchange of information clause it still gives the UK the option of requiring the budget to still be sent to the UK for pre-approval. The partnership calls for the VI Government to provide the UK with information on fiscal, economic or project appraisal matters prepared for the purpose of compliance with the Public Finance Management Act including but not limited to the information specified.
What is even more interesting with the protocol signed by the Smith Administration is that the VI Government must consider fully any representation made by the Secretary of State on any project or for any information.
The document in Section 25, calls for the VI Government to not proceed with any capital project on which the Secretary of State has made representations, until fifteen (15) working days after a full written response has been received by the Secretary of State to those representations.
Second District Representative Hon. J. Alvin Christopher has called for the document to be debated in the VI House of Assembly.
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