NDP raided treasury to finance ‘election projects’—Premier Fahie
Speaking on the recent Honestly Speaking radio talk show with host, Mr Claude O. Skelton Cline, Premier Fahie addressed issues pertaining to the Territory’s 2019 fiscal budget—due no later than April 30, 2019.
Shock
The Premier divulged that since taking office, he was shocked at the discovery that aspects of the loan guarantee (from the United Kingdom [UK] ) are tied into the territory’s fiscal budget.
“Its’ multi-pronged now because it’s not only based on the cycle with the MTFP but it’s also based on the loan guarantee...So all of that is tied in,” he said while explaining the budget cycle.
“I don’t think its proposed no more based on everything I have seen, everything is basically signed, it’s just a matter of how much of the loan we take.”
He explained that, “most of it is already in train, there is not much we can do other than to decide how much of a loan we will take...That’s the only choice that I have now, that I am left with at the end of the day.”
According to Premier, his administration now has to look at what they are faced with since taking office and decide how best to deal with.
The Virgin Islands’ (VI) Budget cycle is now, “not only based on the MTFP but it is also based on the (UK) loan guarantee that is tied in.”
Oversight
The previous government which was led by the NDP, under the Premiership of Dr the Honourable D. Orlando Smith, had led the bargaining with the UK for the loan guarantee, securing some $400M, for major rebuilding projects for the Territory following the 2017 devastating hurricanes and floods.
The UK’s loan however, was approved with several ‘strings attached’ including the setting up of the Recovery and Development Agency (RDA), an institution which will have the oversight and control of the loans.
According to Premier Fahie, the situation represents a significant challenge for the incoming government, “but we have methods of dealing with it but it’s going to take a little while is one thing to see the books saying."
He noted however, "...the reality of the situation is a lot of things the books haven’t taken into outstanding, like potential claims that hasn’t been paid.”
Premier Fahie observed too, “...when you look at what government has to deal with, those are not factored in numbers.”
He referred to the rehabilitation of the Pockwood pond incinerator, the Elmore Stoutt High School, “The courts need to be repaired, the Magistrates Courts and all those still needs repairing and the recreational...the list is humungous and they are not factored in the figures.”
Premier Fahie did use the occasion to commend the Financial Services Commission saying, “I must say that last year performed extremely well with financial services.”
According to Honourable Fahie, ”there is an extra fifty something million dollars ($50ml plus) collected but then again when you go to the books given that all of it just about what was blown in election projects we still end up having to start from scratch.”
22 Responses to “NDP raided treasury to finance ‘election projects’—Premier Fahie ”
We can build the bvi back by ourselves, littke by little! You did day yiu are an unconventional government.
touch you.you all are in the outside looking in.. he’s on the inside seeing all..
Frankly speaking there is an atmosphere of transparency is the new Premier. Looking at the House of Assembly meeting I saw Hon. Fahie pleading with Dr Smith for explanation on the spending of government's money and Dr Smith babbled his way, however, the voters were watching and he could not fool them. That is why we had a change.
Some serious money unaccounted for however there are those living among us expect to simply laugh off these serious matters...in any private enterprise such conduct is classified as criminal conduct(I speak about the financial conduct of the former political administration).....
Understand the haste to be quick out of the blocks but haste makes waste. Yes, the electorate wants to see quick change. But there is an obligation to be responsible and do the right things. Address the territory on your findings and the need for a standdown and their patience and understanding. Tell us, is the territory broke?