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Statutory Bodies struggling; Some may not be able to pay salaries

- One Statutory Body having cash flow issues in paying staff
The BVI Health Services Authority allegedly told some of its senior staff that it was having challenges meeting salaries, however, the salaries for May 15, 2016 have been paid. Photo: Internet Source
Statutory bodies like the BVI Ports Authority (BVIPA) started off around 2012 with over $15M in the bank, however, today they have less than $2 Million, according to reports reaching our newsroom. Photo: BVIPA
Statutory bodies like the BVI Ports Authority (BVIPA) started off around 2012 with over $15M in the bank, however, today they have less than $2 Million, according to reports reaching our newsroom. Photo: BVIPA
ROAD TOWN, Tortola, VI- Word is that most of the state owned Statutory Bodies are struggling financially to keep up.

All Statutory Bodies have one main shareholder which is the Government of the Virgin Islands. It means for the most part, unless you are the Financial Services Commission, the Telecommunications Regulatory Commission, Social Security Board or the BVI Electricity Corporation among others who are seen as self-sufficient, others have to be subsidised by Government through a quarterly subvention.

Funds depleted; hiring up

Other Statutory bodies like the BVI Ports Authority (BVIPA) started off around 2012 with over $15M in the bank, however, today they have less than $2 Million, according to reports reaching our newsroom.

It is also reported that between 2012 to 2015 the BVI Ports Authority saw approximately 30% increase in staff hiring. Today, the agency is reported to be having cash flow challenges in keeping its head above water, as it is seen as a revenue generating agency.

Others like the BVI Tourist Board and the H. L. Stoutt Community College depend almost entirely on Central Government for its normal subvention, which for the past years most often was either delayed or what was expected was not granted.

Last month it was reported that one Statutory Body- the BVI Health Services Authority- told some of its senior staff that it was having challenges meeting salaries, however, the salaries for May 15, 2016 have been paid.

Where will the money come from?

With many critics saying that the National Democratic Party (NDP) raided the Treasury, leaving the country broke to win the 2015 snap elections, it is unclear how many of the statutory bodies who depend on the central government for all its funding will survive.

In addition, the NDP Administration is about to embark on another loan for between US$150M to US$160M to fund the airport project.

It remains unclear how Government will navigate the serious financial challenges, along with the fallout from the so called ‘Panama papers leak.’

36 Responses to “Statutory Bodies struggling; Some may not be able to pay salaries”

  • lord o. (26/05/2016, 13:01) Like (28) Dislike (4) Reply
    Our once prosperous country is now bankrupt.. Omg. How could this be.
  • vex (26/05/2016, 13:05) Like (6) Dislike (0) Reply
    Well sah
  • no money (26/05/2016, 13:24) Like (8) Dislike (21) Reply
    I was in the meeting she almost cry when she told us that
  • BVIEC (26/05/2016, 13:54) Like (12) Dislike (7) Reply
    And Govt owes the BVIEC over $20 Mil while BVIEC has loans trying to expand with the new engines. Chickens coming home to roost, hold on to your seats.
  • bvi (26/05/2016, 14:01) Like (13) Dislike (14) Reply
    This government an is NDP really sicking now NDP ofto go
  • ccc (26/05/2016, 14:25) Like (10) Dislike (4) Reply
    The fsc and ssb canot pay all the bills
  • foxy (26/05/2016, 15:05) Like (20) Dislike (1) Reply
    Some of them stat bodies needs to be audited
    • @ foxy (26/05/2016, 22:38) Like (7) Dislike (0) Reply
      It's not purely corruption that costs us money more often than not more money is lost, wasted because of the serious lack of oversight or people thinking they are getting a good deal
  • Blu (26/05/2016, 15:09) Like (33) Dislike (0) Reply
    SOLUTIONS:

    1. Have people pay for services provided – and all government employees with outstanding bills at these statutory bodies, deduct it from their salary.
    2. FIRE employees who are not functional. A good set of them are only in the work place to mind others business, provide shitty services and complain about salary.
    3. PUNISH GOVERNMENT MINISTERS who forces these HR departments to hire their STUPID family members who come on the job to smoke, sleep, and do nothing and still get pay. Then again I’ve never see anyone punish himself for doing wrong deeds.
    • wize up (26/05/2016, 17:46) Like (5) Dislike (1) Reply
      @ Blu: wonderful and the those elected members knows this BUT just to get votes they running this territory right into the ground...most of government financial burden is payments to civil servents but because of political influence not one of the elected members have the political balls to down size the civil service and take that burden off government books....
  • wellwell (26/05/2016, 15:10) Like (12) Dislike (2) Reply
    look what this administration has caused. They saw this long time, from 8 years ago and did nothing to curve the frivolous spending and multi projects all at the same time. Anyway! is people like me vote them back in....Only God can do it for us now.....
    • No! (26/05/2016, 16:28) Like (7) Dislike (0) Reply
      Look at what WE have caused! Our greed and selfishness as a people caused this! Now live with it!
  • stupidness (26/05/2016, 15:24) Like (5) Dislike (0) Reply
    finance gives these people money why don't they spend their share wisely
  • wize up (26/05/2016, 16:12) Like (14) Dislike (1) Reply
    this is only the smoke; fire soon come.....I hear the airport project have issues....one set of your elected members wants their business associates from china to do the work while one set off your elected members making noise because their east end business associated must get that job.......
  • Political Observer (26/05/2016, 16:20) Like (13) Dislike (0) Reply
    Was government over ambitious in creating all these statutory bodies? Did their operational cost go down, did productivity go up, did the level and quality of service improve, were they manage more effectively and efficiently.......etc changing from a department under the central government to a statutory? Are not statutory bodies to operate independently, generating their own revenues? The AG rule just before the election that statutory are not government. IMO the AG was playing politics. Does not each statutory body report to a ministry? Are not some being supported through a subvention?

    Many of these statutory bodies that cannot support themselves need to be brought back under the central government where they have been in the first place. Save the tears that it will require additional ministries. The ministries will not be over worked. Their span of control is low as it is. Well, scratch the idea, for it will make matters worse under ministries. The BVI needs a radical change in its government structure . The elected members can be the policy makers and non elected be the administrators( experience and skilled professionals) that carry out the policies. Convert the current nebulous City Manager position into a Territory Manager(TM) with Assistant Territory Managers. The TM can report to the policy making body.

    By the way, when was the last time, the territory had a Comprehensive Audited Financial Report conducted? And if none was done recently, why not? How can any agency, organization, ministry, institution......etc run effectively without a financial check up------AUDIT? Maintain good physical health require periodic complete physical.
    • Diaspora (28/05/2016, 14:26) Like (1) Dislike (0) Reply
      Agree completely. All these statutory bodies should be governmrnt departments. Like the out of the box thinking suggesting that the HOA should set policy and policies carried out by administrators/professionals. But doubt that this will see the light of day, for politicians will not want to give up power, although as ministers most of them are thrust into a Peter Principle situation---elevated to a level of incompetence.

      Statutory bodies should be self supporting and if they cannot they need to be put directly under government control. Their operations should be evaluated by an independent agency and adjustments made to make them more efficient and effective. Let's us not pretend that we are bigger than we are. Everything that occurs in developed countries we cannot adopt wholesale. We must adapt them on a scale that suits our needs and situation.
  • LOOKIN' (26/05/2016, 17:02) Like (9) Dislike (0) Reply
    It's a ripple effect. A chain is only as strong as its weakest link. Once the central government has a problem with funds, it will trickle down to all the other bodies that come under it, it was only a matter of time before we see that this would happen.
  • Thing to talk (26/05/2016, 17:29) Like (7) Dislike (0) Reply
    Why is it these statutory board has to depend on the government that heavily.... The last time i check these bodies collect funding for every last service they provide.... So where does that money go??? Now if the government cut back and all the contract here and there ppl foing talk look at other countries you think the government just give out contract just like that especially when u have a public works department full of employees that does nothing and a prison full of strong young men....
    • affected (26/05/2016, 18:53) Like (12) Dislike (0) Reply
      @thing to talk
      I have been preaching d same ting u saying now FOR YEARS but nobody listening to we small ppl . Put d prisoners to WORK and cut back on stupid contracts ; let dem earn their vacation in balo .NOW WE ALL BAWLING
    • Reader (27/05/2016, 00:09) Like (2) Dislike (1) Reply
      @ Thing to talk......worthy point.
  • wize up (26/05/2016, 17:35) Like (11) Dislike (1) Reply
    poor management is the issue especially the money management of these departments..when this territory had the cash flow we squandered some of it now times tuff we baling long eye water...persons doing projects for government charges 3 times the cost and gets paid although the department know the cost of the project is inflated....
  • Really? (26/05/2016, 18:39) Like (4) Dislike (0) Reply
    Well, part of the problem could well be too much staff. As I recall, the govt commissioned an efficiency study of its activities in 2014. A summary report was made public about a year or so ago. The final (of course) was never made public. Never mind, the summary report indicated that the govt had about 33% too many employees to conduct its stated functions. Leaving side any issues associated with fiscal management, the excess wages will quickly deplete funds, as seems to be manifesting now.
  • VG (26/05/2016, 18:55) Like (0) Dislike (0) Reply
    Some of them talk too much
  • ....ayo (26/05/2016, 19:34) Like (5) Dislike (0) Reply
    poor management from the st lucian ladt at peebles... noel lloyd crying
  • Late again (26/05/2016, 21:44) Like (2) Dislike (0) Reply
    Late salary at hlscc has become a normal part of operations.
  • taxi coleague (26/05/2016, 22:16) Like (6) Dislike (0) Reply
    The country needs ah change of Government fast.
  • Rammy (26/05/2016, 22:26) Like (2) Dislike (0) Reply
    .The BVI Governments are well known for their bad handling of MONEY!

    • wize up (27/05/2016, 08:44) Like (2) Dislike (0) Reply
      @ rammy: I agree because VIP & NDP are both guilty of mismanagement of tax money....
  • Well Well (27/05/2016, 00:07) Like (0) Dislike (1) Reply
    Everything you'll blame expats, blame them for this too.
  • Bernie Sanders (27/05/2016, 02:55) Like (3) Dislike (0) Reply
    This is the worst Government ever copper cents we spending now..
  • Well (27/05/2016, 07:42) Like (1) Dislike (1) Reply
    That gang bankrupt ports spending, spending, spending.
  • BOTTOM LINE (28/05/2016, 15:43) Like (4) Dislike (0) Reply
    Some top government workers' salaries are much too high.
  • Observing (31/05/2016, 02:29) Like (0) Dislike (0) Reply
    The rich continues to get rich and the poor gets poorer. Reduce the high salaries at these Boards. They speak about contributions to the global economy. What about our local economy ? It is high time for improvements to the lowest paid employees in this Territory. But then again we only know how to pay unneeded consultants


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