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Premier’s own speech has betrayed him - Opposition leader
Hon. O’Neal was at the time delivering a public address, which was aired on ZBVI radio yesterday evening Tuesday December 20, 2011.
“I would say first of all that if this Territory was in such a bad financial state, how is it that such big contracts could be signed and the Contractees are in office?” Hon. O’Neal asked.
Although not specifying which contracts, the controversial signing of a $96,000 one-year contract to pay defeated second district candidate Claude Skelton-Cline for a consultancy, and which was made just days after Minister of Finance Dr. D. Orlando Smith told the nation that the Virgin Islands Party Government left the country broke and with a deficit of 51 million dollars, may be one in question.
According to Hon. O’Neal, it appears that monies were found immediately after the November 7 General Election when the Premier had given his report, but it is when the details of the statement are examined the Opposition Leader finds himself saying that it was the Premier’s speech that betrayed him.
Premier Smith, he said revealed that cash advances as of November 4, 2011 were slightly over $40,000,000 and asked why, after being Finance Minister for a month, he did not take into account the receipt from the Financial Services, bearing in mind that November is one of the best months.
“This is the second time he tried to play that trick as he did when he questioned the remaining balances at the end of April. Those who follow his speeches will remember that when I answered the question (in HOA) I admitted that the balance was low at that date because the money from the Financial Services Commission, which forms the greater part of our local revenue is paid in the month of May and November. By the 6th December when the speech was made he would have already received the money from Financial Services to run the country for the rest of the year.”
The Leader of the Opposition contends that while he could not say what the exact figure was, from his experience in former years and up to last year, the November figure could be anything from fifty to sixty million dollars. “This is one of the reasons why all members of the House of Assembly for years now have supported the Financial Services Commission because they recognize the important role that the Financial Services Commission play, in helping to provide revenue for the territory. This is why the International Financial Centre which is the organization that promotes and advertise the financial services commission throughout the world must be equipped with the quality staff that can advertise and promote the BVI, especially to the richer countries.”
Borrowing guidelines were signed by Dr. Smith and kept secret
Addressing the claim by the Hon. Premier that the Auditor General Report of 2007 showed that the National Democratic Party (NDP) left healthy cash balances of eighty-two million and was in compliance with all the provisions of the borrowing guidelines, Hon. O’Neal said, “This on first reading could seem to be true, but why 2010 the Virgin Islands Party (VI) Government had to introduce and pass legislation covering some forty-six million for over expenditure in 2006. The answer my dear people, is quite obvious.”
The Territory’s first Premier reminded that the borrowing guidelines were statements signed by the Premier Smith, when he was Chief Minister of the Virgin Islands and Mr. Macan, then Governor of the British Virgin Islands with Lord Triesman (Parliamentary Under Secretary of State for Foreign and Commonwealth Office) on 22nd September 2005.
“I did not become aware of its existence until just before the Hon. Fraser and myself went on a visit to make acquaintance with the new Government in London in June 2010. Had the Financial Secretary or the Permanent Secretary properly briefed the Minister this would not have been overlooked. I took immediate steps and laid the document on the Table of the House of Assembly so that all the members as well as the public could have access to it," Hon. O'Neal stated.
The Premier, in his speech which was made on December 6, 2011, added, “Indeed this same report showed that there was a surplus of close to $407,535 in that year. The current breach of the borrowing guidelines potentially have very serious implications for our Territory as it suggests that we are on a path of un-sustainability. Further, as a result of our current state of play with respect to this, the loan that was approved by the Caribbean Development Bank (CDB) in May of this year for fixing our roads cannot be finalized without approval from HMG.
“As of today we do not have that permission. But I am confident that my Government’s commitment to prudent financial management as we go forward will help us to address the concerns of the Foreign and Commonwealth Office and secure this approval,” Premier Smith had said.
Meanwhile, Hon. O’Neal expressed gratitude to his supporters of the Ninth Electoral District for returning him to the House of Assembly for a tenth consecutive time and said he would continue to serve in whatever way possible, bearing in mind that there is quite a lot to be done.
“We must recognize that everything cannot be done at one time and with the challenges that we face, and I am sure you have heard over the radio, television and other forms of communication, the serious financial situation the world is in, although during the campaign there were those who tried to fool you that the British Virgin Islands was not affected by the recession,” he added.
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