NDP paid $500,000 of taxpayers $$ to defunct BVI Airways; another $2M on its way!
Gov’t bailing out Airline that owes them money
It was this news site that first and accurately broke the news on January 11, 2016 that the formerly defunct BVI Airways, which was operating at Beef Island Airport around 2010 and had closed its doors in 2014 because it was reported to have run out of money, was back, this time under new owners and with a bailout or subsidy package from the Government of $7 Million.
While this is not the first time there have been direct flights between Miami and the Virgin Islands, Premier Smith claims that the driving force behind the Government's investment of $7 Million was to help with airlift.
While the taxpayers are burdened with this whopping $7 Million subsidy for BVI Airways, before closing its doors in 2010 BVI Airways owed the same Government via the BVI Airports Authority some $112,000 in fees, to which the BVI Airports Authority (BVIAA) has taken legal action to recover.
On February 4, 2016 during the House of Assembly’s sitting, in response to a question from Hon Fahie, Premier and Finance Minister Hon Smith said that in the interest of expediency of having the airline operational for the next tourist season $500,000.00 has already been advanced to BVI Airways. This was done via an Advance Warrant since January 2016.
In addition, another $2 Million plus will be paid by May 30, 2016. In fact the amount will be $2, 400,000.00 of taxpayers’ money.
In a follow up comment on the money owed to the taxpayers by BVI Airways and the legal issues to recover the same money by the Government, Hon Fahie told the Parliament, "so let me get this straight, we have entered into a business relationship with a company and give them money and we still have a legal matter that is unsettled?"
Who is looking out for taxpayers?
In following up again to protect taxpayers, Hon Fahie asked why weren’t the monies owed part of the discussions of government investing $7M, and why didn't government deduct the $100,000 owed from the $500,000 they paid out.
To this, Premier Smith responded, "No. That was not discussed during those meetings.”
Many of the ferry companies have long called on Government to subsidise their operations between the VI and the USVI and have said it is unfair for taxpayers to underwrite a foreign airline and not do the same for local ferry operations.
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55 Responses to “NDP paid $500,000 of taxpayers $$ to defunct BVI Airways; another $2M on its way!”
This was not an emergency (no emergency was declared ) so this expenditure should have gone to HOA. The Opposition could not stop it but that is not the point. Transparency, accountability and good governance is the point. Government will not have resources to meet all customers needs. Thus, it must prioritized. It must make the best use of resources. Can anyone say this was the best use of resources. True, you got to spend money to grow the economy but this is not a sound investment. Any bets as to how long it will stay in the air, given that the airline business is capital intensive with razor thin profits. 12 months if we lucky.
The government has $6M in the Treasury yet it found it wise to fling $7M at a start up airline. Walwyn say we must not be negative. But they are doing little for us to comment positively about. The governmrnt is like a derailed and runaway train. He should be hot about the reckless expenfiture of his pals. They have a false Messianic complex, ie, they so good that they could not at anything they did. False. They violated The Principle of Parsimony: it is pointless to do with more what is done with less. This is applicable to the port project.
The bvi is almost bankrupt and this @$$ government is taking our hard earn money and do what time for us to stand up and kick them out now before we are sold too
Come on! Makes no sense to pay out $7mil and
go to court for $112,000. And they will say, don't be negative, be dumb and pretend it never happened.
Lighter on us as Government and lighter on the company we just invested in.
Why is this all so hard.
Let's throw in an extra $10,000 to whoever thinks they now missed out on a bribe or a backhander just to get this sorted. $100,000 whatever.
Duh!!!
Captain, this ship is sinking
Captain, these seas are rough [oh yes]
We gas tank almost empty
No electricity, we oil pressure reading low
Shall we abandon ship?
Or shall we stay on it, and perish slow?
We don't know, we don't know
Captain you tell we what to do." [Woh woh]
What a contract!!
Who signed that.
Everybody should go read it.
No taxes no fees no rules no regulations no workpermits.
Everything they ask for to be provided and paid for by us.
Is there anything that was not given away along with the $7Million.