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Gov’t attempts to divert insurance claim $$ for other spending

Monies allocated under a Budget Head are for that purpose but information now coming from the Premier and Minister of Finance, Dr the Honourable D. Orlando Smith (AL), is that the NDP Administration, attempted to do otherwise, when a decision was taken to use the $11.3M, received in insurance claims for the Central Administration Complex, to be used for other projects. Photo: VINO/File
The information came to light when the House of Assembly met recently on July 24, 2018, and Premier and Minister of Finance, Dr the Honourable D. Orlando Smith (AL) was made to respond to queries laid in the House by First District Representative and Opposition Leader, Honourable Andrew A. Fahie (R1). Photo: VINO/File
The information came to light when the House of Assembly met recently on July 24, 2018, and Premier and Minister of Finance, Dr the Honourable D. Orlando Smith (AL) was made to respond to queries laid in the House by First District Representative and Opposition Leader, Honourable Andrew A. Fahie (R1). Photo: VINO/File
ROAD TOWN, Tortola, VI - Monies allocated under a Budget Head are for that purpose but information now coming from the Premier and Minister of Finance, Dr the Honourable D. Orlando Smith (AL), is that the National Democratic Party (NDP) Administration, attempted to do otherwise, when a decision was taken to use the $11.3M, received in insurance claims for the Central Administration Complex (CAC), to be used for other projects.

The information came to light when the House of Assembly (HoA) met recently on July 24, 2018, and Premier Smith was made to respond to queries laid in the House by First District Representative and Opposition Leader, Honourable Andrew A. Fahie (R1).

Impact Readiness Report

The Opposition Leader in his question—laid in the HoA—to the Premier, asked how much money had been received in insurance claims for the CAC and was told, while a claim was made for $19M, a settlement had been reached which saw government receiving a net claim of $11.3.

He told members of the HoA, “…insurance coverage on the Central Administration Complex is the responsibility of the Government of the Virgin Islands (VI)… Monies received from the insurance settlement will be managed by Central Government for the restoration of the physical structure.”

Asked by Opposition Leader, Hon Fahie, “…if any of the payment received was repurposed and if so give full details inclusive of, but not limited to, each purpose and the reason,” Premier Smith told the HoA, it was agreed that in the short term, monies would be made available from the CAC’s insurance proceeds to support” works identified in a VI Hazard Impact Preliminary Readiness Report.

Hurricane Season

He explained saying, based on the results of the VI Hazard Impact Preliminary Readiness Report, a decision was taken on April 25, 2018, to urgently address specific priority areas identified in that report, ahead of the peak of the 2018 hurricane season. 

The short term priority areas identified—according to Dr Smith—include:  “Key repairs to emergency shelters; Finalizing the restoration of emergency communications and equipment; Protection of critical government assets and document protection plan; Reestablishment of contingency stocks and establishment of satellite warehouses in various communities; Reinstallation of a moorings system at the Paraquita Bay shelter; Debris management and Clearing of ghuts and watersheds.”

Rescind Decision

He said, in order to fund the identified priorities it was agreed that in the short term monies would be made available from the CAC’s insurance proceeds to support work in these areas “with the understanding that any funds advanced from the insurance proceeds should be replaced at a later date.” 

According to Premier Smith however, “I have been advised and am satisfied that the amount approved to be taken from the insurance proceeds can be adequately provided for under savings in the 2018 Budget…I will, therefore, be asking Cabinet to rescind its earlier decision.”

A total of $3.9M had already been allocated for the priority works however, and according to Dr Smith, “…no decision was taken as to where funding would come from to replace the insurance proceeds.”

10 Responses to “Gov’t attempts to divert insurance claim $$ for other spending”

  • Lord have mercy (06/08/2018, 10:50) Like (4) Dislike (6) Reply
    They had to come to a settlement because government had lapse on the insurance payments for the CAC. Thanks the SM that he was still able to pay them 11 mil in claims after some outstanding monies were paid up. He did not have to do that but he still help out the government
    • TICK (06/08/2018, 11:33) Like (10) Dislike (5) Reply
      This here a dam lie lie lie ain’t a ting go so. SM is the most wicked man in the place.. set a Insurance thiefs them.
      • Hmmmmm (06/08/2018, 15:40) Like (10) Dislike (4) Reply
        Tick you really think it’s lie, do some ground work and you will find out the the insurance was indeed lapsed
  • Political Observer (PO) (06/08/2018, 11:07) Like (15) Dislike (0) Reply
    Basically, government cannot spend money it does not have and it must spend money for its intended purpose. The insurance proceeds from Nagico for damages to CAB should be used to repair the CAB. True, due to insufficient funds, recovery projects should be protitized. However, was not the reserve fund established to address issues/projects such those listed by the Premier? Couldn’t proceeds from the $65M borrowed CDB be used to address the priority issues noted. When will the $8M borrowed from East End and Long Look sewage project for the Tortola Pier Park project be reimburse?
  • Jaigon (06/08/2018, 11:07) Like (4) Dislike (5) Reply
    So if the government did not receive that insurance claim they would not have had any money to address those priorities. WOW. I thought My Run says that there is $65 mil in the reserve. Well he may be correct but because the were tricked in signing the protocol for effective management, the cannot touch that reserve and it’s not like they put money in the reserve just so, the protocol they sign they are mandated to put $15 mil in the reserve each year, so when My run boasting about taking reserve from $7 mil to $65 they only done so because of the protocol they sign
  • Correction (06/08/2018, 11:55) Like (5) Dislike (0) Reply
    You mean the 8 mil they stole from Marlon because he was not apart of the decision making process to use the money. Remember the opposition leader is who told him the money was gone. If they steal from they own what or who next!!!
  • Windy (06/08/2018, 12:39) Like (12) Dislike (0) Reply
    "to be used for other PROJECTS" He meant to say "other POCKETS"
  • Stupes (06/08/2018, 13:25) Like (4) Dislike (0) Reply
    These MS dont done....smh
  • Myo (07/08/2018, 14:32) Like (1) Dislike (1) Reply
    It amazes me how much and soo little you all know about government. Bunch of know it all...
  • tola (07/08/2018, 20:37) Like (1) Dislike (0) Reply
    @ political observer It is been paid back in installments that's partly why poet staff workers hours was cut and one of the reasons they cant get increments


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