The recent statement by Premier Dr The Honourable D. Orlando Smith (right) that his administration has been unable to produce audited accounts to the House of Assembly for the last three years because the former Virgin Islands Party (VIP) allegedly failed to practice proper accounting standards has been termed an indictment on the Financial Secretary Mr Neil M. Smith (left) and former Premier and Minister of Finance Hon Ralph T. O’Neal OBE by senior VIP member Hon Andrew A. Fahie. Photo VINO/File

Senior Virgin Islands Party member Hon Andrew A. Fahie (R1) said it is ironic that the same NDP administration has been lauding the former Minister of Finance in every quarters as a stalwart leader who did well for the country but it is now time to get back to the polls and so they question the financial legacy of this 'great giant'. Photo: VINO/File

Speaking on the VIP radio show ‘Let’s Talk’ heard on ZBVI 780 AM on April 15, 2015 Hon Fahie said Premier Smith’s statement was like a paradox as it seems to be an indictment on the public servants especially the Financial Secretary, Mr Neil M. Smith who has served in that post for both the VIP and NDP administrations.

“And I did not expect the Minister of Finance to do that to the Financial Secretary, given that he was there for other administrations. So I find that to be an indictment on the Financial Secretary, which is not right.”

NDP’s failure to produce audited accounts

Noting that he was moved to make a statement in response to an article on one of the online news sites that carried the headline "No Gov't Audited Accounts For Three Years", and published April 10, 2015, Premier Smith, in the statement issued April 15, 2015 said, among other things, that the VIP Government in 2008 stopped the Financial Management Reform Initiative that was created by the NDP Government in 2006 to promote Transparency through established accounting standards.

“That decision by the VIP Government to stop the Financial Management Reform Initiative in 2008 created a failure to practice proper accounting standards.

“This irresponsible action caused a backlog of proper accounting and resulted in the NDP Government - upon taking office in November 2011 - having to hire the globally recognised firm of Price Water House Coopers (PWC) to conduct a scientific accounting investigation (forensic Audit) in order to determine the country's true financial position,” Premier Smith said in the statement.

The Premier further said the scientific accounting investigation by PWC found that the VIP Government's financial statements were not completed in a timely manner and could not properly inform financial and strategic decision making.                                                                               

Further, he said the reported statements of assets and liabilities were misleading and could not present a fair statement of the government's true financial position; Ten of the eleven reported Fund balances, which should represent amounts actually appropriated, transferred and available for specific uses, were incorrectly reported by the VIP Government over the financial year 2008 to 2009 and that one hundred and thirteen point five million dollars (US $113.5MM) in public debt were not reported on the face of the statement of assets and liabilities.

“After the forensic examination by our external consultant received in March 2013, corrective measures were put in place. It was only after these processes were completed in 2013 that we were then able to turn to the process of first reworking the financial statements for 2010 and 2011 in accordance with International Public Sector Accounting Standards. These have been submitted to the Auditor general.

“It was after these were complete that we were able to turn our attention to the financial statements for 2012 which are now complete and 2013 and 2014 which are being prepared, Premier Smith stated.

Two-faced NDP?

But according to Hon Fahie, it is ironic that the same NDP administration has been lauding the former Minister of Finance in every quarters as a stalwart leader who did well for the country but it is now time to get back to the polls and so they question the financial legacy of this “great giant”.

“I find it to be an indictment on the former Minister of Finance and that is not right either.”

Meanwhile, Chairman of the Virgin Islands Party Hon Julian Fraser RA (R3) said he found it strange that the accounts for 2011 and 2010 were wrong when from 2003 to 2007 they were right and it was the same principles used to develop the account systems for government.

“I find it strange also that each time this government is caught in the wrong it can blame the former administration for everything.”

Hon Fraser also reminded that the NDP has been in office since 2011 and finds it strange they can’t yet bring the audited accounts to the House of Assembly while continuing to blame the former administration.