With no Audited Financial Reports can we trust the 2017 Budget?
On one hand Premier Smith was claiming that his Administration is not to be blamed for leaving the country broke and even the reckless spending, something confirmed by Governor John S. Duncan OBE, but instead the Finance Minister told the public the hard times and financial struggles they feel in their daily lives were due to global economic challenges.
As many critics remain convinced that Hon Smith, who was first elected in 1999, has his 'head in the sand' about the reality on the ground, he painted in some areas a rosy picture on Monday January 16, 2017 in his six Budget Address after taking back the Finance portfolio following the 2011 general elections that saw his party gain power.
The Minister said the Virgin Islands (VI) Gross Domestic Product (GDP) has grown by 3.2% in 2016. In addition, Dr Smith said employment and average earnings have also risen steadily since 2012 to 2015 with a four percent increase (4.4%) in employment and a six point three percent (6.3%) increase in earnings.
Primer Smith, who is the territory's sixth Minister of Finance, also boasted that in 2015 tourism increased some 22% up from 2014 that only saw a mere 1.8% increase.
Budget not legitimate? Gov’t are law breakers
However, there are now serious questions as to whether the public can believe anything coming from Dr Smith on the Budget or the territory's finances. The National Democratic Party (NDP) has continued to practice reckless disregard for law and order, as they have no regards for upholding the constitution of the British Overseas Territory.
Take for example, the Public Finance Management Act 2004 Part III article 17 (1) where it states, "it is the duty of the Minister to supervise the finances of the government to ensure that a full account of them is made to the Legislative Council."
It is now public knowledge that since the NDP government took office in 2011 not one audited financial statement has come before the House of Assembly (HoA), a clear contravention of the territory's laws.
In developed democracies elected officials are jailed or impeached for violations of the laws of the country, as they have taken an oath to uphold the laws, just like all Legislators here in the VI did.
However, despite calls by the Virgin Islands Party Opposition, His Excellency Governor Duncan and civil society, the current Administration continues to break the laws with no consequences from the United Kingdom appointed Governor.
More law breaking Public Finance Management Act, articles 32 & 33?
The Government and the Minister of Finance in particular, cannot act in contravention to the laws of the country when coming to issues of financial management. Take for example, section 32 and 33 of the Public Finance Management Act.
These two sections clearly state that the Government or any person acting on their behalf has no power to borrow money except it comes to the Legislative Council. In addition, no one has the power to give a guarantee involving the government in any financial liability unless it goes to the Legislative Council.
In his 2017 Budget address, like that of 2012, 2013, 2014, 2015, 2016 while the Premier told the public about things accomplished, money raised via taxes and short falls on collection, the public will never know the truth to his reported figures, as the credibility is undermined without audited financial statements.
The Financial Laws & this Government
In the Amendments to the Public Finance Management Act of 2012 in sec 45A and 45B, there are also some specific obligations. The Financial Secretary, for example, is to have tri-annual assessment on liabilities to the Government, which should be reported.
Furthermore, all major projects shall have a strategic plan and shall include a business case and appraisal according to law. There is also in law that statutory bodies must provide government with annual audit reports, debt and public private partnerships breakdowns among other items.
Many residents believe that as long as the Dr Smith led Administration continues its violation of many of the financial provisions, it will be very difficult to gain respect both locally, regionally and internationally and it has reached the point where it has begun to undermine even the legitimacy of the Budget Address, hence the VI's financial position.
Please see the Public Finance Management Act 2014 & the amended 2012 Act attached
Public_Finance_Management_Act,_2004.docx
No._9_of_2012_-_Public_Finance_Management_(Amendment)_Act,_2012.docx
.png)
.png)
.png)
.png)
.png)
Follow Us On
21 Responses to “With no Audited Financial Reports can we trust the 2017 Budget?”
It is our money,and they need to start addressing the 30,000 plus wisely.
It is either that they were not prepared or they are afraid about what they will revealed. Is is a calculated decision. Is the cost of not releasing is less than releasing them? This is probably the same reason why Trump did not release his tax returns during the recent US presidential primary and general election campaign. He won without having to release them so he will never release them and he has said as much.