Democratic gubernatorial primary candidate Moleto A. Smith Jr. expressed outrage at Governor John P. deJongh’s actions in presenting a lame duck $169 million dollar bond package to the Virgin Islands Legislature this week. Photo: VINO/File

“For the governor to engage in activities that may obligate the people and any in-coming Administration to this type of indebtedness is reckless,” stated Smith. “Floating bonds during these economic times bears a high likelihood of government layoffs or the Administration using sly tax maneuvers to cover short falls.”

Candidate Smith recalled that it was not long ago that government employees were told to take an 8% pay cut and businesses were saddled with a gross receipt tax increase to cover Territorial indebtedness and guarantee new bonds.

Additionally, in borrowing money to pay into the general fund, the Governor is cushioning bonds already guaranteed with the tax increase.

“Lest we forget, the increase in the gross receipt taxes was pledged to help pay for bonds,” explained Smith. “Gross receipts pay into the general fund, which the governor now wants to prop up with $30 million dollars of borrowed money.”

Smith is extending an olive branch to Governor deJongh and requesting that declared gubernatorial candidates be invited to a courtesy meeting to discuss the financial state of the government and discuss alternatives to the bond plan.

“Only a portion of the bonds have received a high investment rating,” said Smith. “When we are looking at Capital Project Bonds paired with Transportation Guarantee Bonds plus the presence of Working Capital Bonds and other financial instruments it must be realized that more than half of the bond floated will probably not carry an affordable interest rate.

These concerns coupled with potentially exorbitantly high administrative costs associated with issuing the proposed bonds, create a scenario that may not bode well for the people of the Virgin Islands.”

“This election is about ending government corruption in all its forms, including mismanagement of our financial grade assets.

It is time to shed sunlight on these frequent bond dealings,” concluded Smith. “Meet with the candidates. Give the voters the respect of having your replacement fully informed on the financial mess that is the legacy of too many of our elected officials.”