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Premier flatly denies gov't involvement in contract splitting

- says provisions made for ‘small man’ amidst slowing world economy
Premier and Finance Minister Dr The Hon. D. Orlando Smith (left) flatly denied that the government was engaged in any form of contract splitting when questioned by First District Representative Hon. Andre A. Fahie in the House of Assembly on April 25, 2013. Photo: VINO
The Crafts Alive Village was one of the construction projects Premier Smith was asked about by Hon. Fahie. Photo: VINO
The Crafts Alive Village was one of the construction projects Premier Smith was asked about by Hon. Fahie. Photo: VINO
Hon. Fahie also questioned the Premier about the Manse Road construction project. Photo: VINO/File
Hon. Fahie also questioned the Premier about the Manse Road construction project. Photo: VINO/File
ROAD TOWN, Tortola, VI – While facing some tough questions during the eighth sitting of the second session of the second House of Assembly (HOA) yesterday, April 25, 2013 Premier and Minister of Finance Dr The Hon. D. Orlando Smith flatly denied that the government was involved in any form of contract splitting in any of its capital projects.

First District Representative and Virgin Islands Party (VIP) Opposition Member, Hon. Andrew A. Fahie asked the Premier whether the government, since retaking office in November 2011, had engaged contractors on any capital project in a manner that could be referred to as contract splitting.

The National Democratic Party (NDP) introduced and passed the Public Finance Management Regulation (FMR) Act in 2005 which prohibits the practice of contract splitting.

In his response, Premier Smith defined contract splitting as “a subdivision of a project or task into multiple phases or contracts to avoid exceeding the applicable limits of the petty contract in order that the project would not have to go through the radar and scrutiny of a tender process. It could also be defined according to United Kingdom Treasury Board contracting policy as a practice of unnecessarily dividing an aggregate [requirement] into a number of smaller contracts, thereby avoiding controls on the duration requirements or contract approval authority.”

Premier Smith continued, “Madam Speaker, I can say that since taking office, my government has not engaged contractors in any such manner or for any such reasons and we have therefore not engaged contractors or any capital projects in a manner that could be referred to as contract splitting.”

He stated that his administration had instead “engaged as many contractors as [it] could on some projects in order to provide employment for contractors who some refer to as the ‘small man’ during these [shortening] times when the construction industry has slowed down due to the world recession, the effects of which we are feeling in the BVI.”

According to the Premier, ordinarily, government would have been able to inject more money into the economy and commenced other needed projects. However, having taken office and “finding the cupboard bare”, they were instead left to wait to accumulate sufficient funds through “prudent management” in order to facilitate this.

Hon. Fahie was not pleased with the response and in addition to stating that the cupboard was never bare he noted that the Premier had offered a different definition than one which was previously “clearly defined” in the FMR.

The question by Hon. Fahe followed accusations in a recently released report by PricewaterhouseCoopers (PWC) against the former VIP government of consistently engaging in the said practice during their term in office that ended in 2011. The report also accused the then VIP government of approving projects before they were put into tender.

The report was focused specifically during the period 2008-2011 and was commissioned by the NDP government.

Hon. Fahie said the NDP government commissioned PWC report used the very contract splitting definition of the FMR in arriving at its conclusions, which accused the former VIP government of contract splitting.

Premier Smith countered that what his government has done, “given people various parts of contracts to engage many contractors.” He added that the government was not splitting contracts to avoid the tender process.

The Premier assured that his government was not engaged in contract splitting by any definition, including any that could be found in the FMR.

It was later revealed that four projects commissioned by the NDP amounting to over $3.5M and were not tendered but rather issued through the method of petty contracts, according to the Premier. He also denied that any of the projects entailed any form of contract splitting.

Petty contracts are deemed to be those for any projects which amount to less than $100,000.

The PWC report was laid before the HOA in its previous sitting on April 4, 2013 and subsequently withdrawn by the Premier following several concerns about the propriety of its release aired by Hon. Fahie.

A request was also made by VIP Member and Second District Representative Hon. J. Alvin Christopher during the previous sitting of the HOA for the report to be debated at the next HOA sitting but this has not been done. The report was instead taken from the table.

27 Responses to “Premier flatly denies gov't involvement in contract splitting”

  • the rock (26/04/2013, 08:01) Like (8) Dislike (26) Reply
    what a big fat lie by doc
  • ooooo (26/04/2013, 08:12) Like (6) Dislike (16) Reply
    i had never had dr smith to be a liard
  • DON Q (26/04/2013, 08:14) Like (5) Dislike (0) Reply
    So we have learnt a lot from the braying yesterday in the HOA ...
  • critic (26/04/2013, 08:15) Like (5) Dislike (3) Reply
    six of one half dozen of the next....splitting , dividing and sharing.. all the samething
  • ooooo (26/04/2013, 08:22) Like (9) Dislike (18) Reply
    both doc and mark were caught telling lies yesterday in the house....wait! isn't it illegal to be telling lies in the house?
  • ausar (26/04/2013, 08:31) Like (5) Dislike (0) Reply
    Dem NDP hypocrites since when they concern bout dey small man…yaaawn
  • ASHAMED (26/04/2013, 08:53) Like (8) Dislike (0) Reply
    I am ashamed of Doctor Smith. He is letting Mark & the,m turn him into an unethical man. It proves that NDP are saying one thing but doing a next.
  • enough (26/04/2013, 08:56) Like (10) Dislike (0) Reply
    I heard enough yesterday from the NDP in parliment to prove to me that they can't be trusted. They accussed the VIP of contract splitting in their financial report by PWC & the NDP now doing the same thing but come to the parliment and lied so the VIP can look bad but it is Doc Smith & his NDP who is looking bad.
  • Yes (26/04/2013, 08:59) Like (8) Dislike (0) Reply
    Doc got tangled up yesterday in his own web of lies. So much money NDP spending since taking office on all kinds of questionable things like ninety nine thousand dollars $99,000 by Myron for one night dinner with teachers. When the NDP done do all their questionable financial acts then they come to we the public & continue to sell that VIP left the country broke. These NDP guys are criminals.
  • mother hen (26/04/2013, 09:08) Like (5) Dislike (0) Reply
    Put a fox in the chicken coop, you will have chicken for dinner all the time...
  • well well well (26/04/2013, 09:08) Like (9) Dislike (0) Reply

    I don't want to hear from these NDPs no more. Listen to what all we learn yesterday that they had hidden from the people: W....W a worthless smooth talking crim!n@l as a consultant getting $405,000.00; One night for teacher's dinner $99,000; Craft Alive over one million: Hospital parking over one million; Mance Road over one million dollars. Spooner roads over one million; PWC unethical financial report one hundred thousand dollars; no approval from UK for airport nor port project; & on & on. The NDP got to go! And NOW!

  • chad (26/04/2013, 09:34) Like (7) Dislike (0) Reply
    When I heard what Doctor Smith was forced to tell us what the consultant for the airport Wilson is getting from our treasury I nearly fall clean off of my chair. Imagine this man quietly have a half a million dollar contract from our money from the NDP for a project that we ain't sure going no where. Meanwhile we the people sufferring daily.
  • good job (26/04/2013, 09:37) Like (8) Dislike (0) Reply
    Good job Opposition Members because whether we like you guys or not, without you guys asking questions of the NDP on behalf of the people we would not know half of the nonsense that the NDP is doing while speaking as if they are saints.
  • EYE opener (26/04/2013, 09:43) Like (5) Dislike (0) Reply
    Yesterday I learn to start asking for facts & stop repeating things I hear because I truly beleived the NDP that VIP gave us a Public deficit of 113 milllion dollars. However out of Doctor Smith's own mouth I heard that since his 2007 NDP Administration signed the unnplanned & questionable (Santo)hospital construction project & loans the NDP from back then contributed 95million dollars of the 113million dollars public debt totalling 84% of our public debt. This is clear proof that the NDP are the ones that broke this country & put us in this crisis.
    • nonsense (26/04/2013, 14:35) Like (0) Dislike (0) Reply
      If you take out a mortgage for $400,000.00 and have other bills totalling $40,000.00, your debt is $440,000.00 with the House being over 90% of that debt. Does that mean you're broke? LMAO!! The Hospital will be worth over $100mil when finished so I don't get the point here. We can see where the money went. What about the other stuff those same guys asking questions have done? What have we seen for the money spend on illegal land fill, greenhouses, medical study, drag study, picking up and dumping dirt all over, millions and millions nothing tangible. at least we can see where the $90+ million went.
      • to nonsense (27/04/2013, 19:22) Like (0) Dislike (0) Reply
        We don't want to hear you with these same old NDP propoganda. We realise half of what you saying is just mischief from the last election that people like me bought & voted for the NDP. Not again will I do such. I am tired of people like you coming with this same old political rethoric about the past Administration that even if so can't compare to the first 2yrs of this NDP Government spending habits.
  • concern (26/04/2013, 09:46) Like (9) Dislike (0) Reply
    If the Premier here lying to us locally then it makes me seriously wonder what he is really doing internationally with this FSC fiasco.
  • rat tail (26/04/2013, 09:48) Like (9) Dislike (0) Reply
    This man smith is talking rubbish
  • POPE (26/04/2013, 11:40) Like (0) Dislike (6) Reply
    Where were you all when the vip was lying?
  • wise-up (27/04/2013, 01:38) Like (1) Dislike (0) Reply
    and the bottom line is ?????? once our people are getting this money i personally do have problem how the package the paper-work BUT one must alway remender the NDP is very crafty and very deseptive....this group of guys tells the citzens what we want to hear while they actually doing something far diffrent....
  • fire truck (27/04/2013, 11:56) Like (0) Dislike (0) Reply
    the guy pants is on fire people
  • Dan (29/04/2013, 02:55) Like (0) Dislike (0) Reply
    It is time to dump the old ways and find a better new way.
    Otherwise the BVI will never be as great as she was destined to be!


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