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by pltm
(PLTM) - A no confidence vote is being sought against Premier and Minister of Finance, Hon. Dr. D. Orlando Smith, for his handling of the Territory's finances, in the face of mounting criticisms over the lack of transparency and accountability, including the absence of financial statements for six consecutive years.
BVI Platinum News understands that on Tuesday, August 1, a No Confidence Motion will be brought before the House of Assembly against the Premier, by Opposition Leader, Hon. Andrew Fahie. Based on the VI's history, it is not unusual for Governments to face No Confidence Motions, but never before has such a Motion been directed against the Premier.
With the National Democratic Party (NDP) administration majority of 11-2 in the House of Assembly, the Motion will more than likely be defeated, but many observers are waiting to hear Government members defend the Premier, given the recent revelations of internal turmoil, where NDP members are also questioning the stewardship of Premier Smith as the Minister of Finance.
Some party members favour Health Minister, Hon. Ronnie Skelton as the best to oversee the Ministry of Finance. Hon. Skelton served as the Minister of Finance when the NDP was elected between 2003 and 2007.
According to the Motion, obtained by BVI Platinum News, the Government, through the Minister of Finance, has allowed for the degradation in transparency, accountability, good governance, and above all, the poor handling of the Territory’s finances through ongoing actions.
The Motion is based on a number of key points, noting that the Government of the Virgin Islands, through the Minister of Finance, issued checks which were not sufficiently covered by the monetary value which was supposed to be secured and guaranteed by the Treasury.
Accordingly, the Motion establishes that the Government of the Virgin Islands, through the Minister of Finance, while failing to fulfill its constitutional mandate to bring before the House of Assembly, audited annual financial reports for six consecutive years, continues to commit the Territory to financial obligations, despite the absence of a true and accurate audited record of the Territory’s financial situation.
According to the Motion, several major capital and non-capital Government projects were reported as one cost to the House of Assembly, but ended up significantly above the stated amounts, without any accountability, including the cruise pier project, that was reported to the House of Assembly to cost $51M, but to date is at $82.9 million dollars, a whopping $30 million increase.
As part of the Motion, Hon. Fahie also mentions the $8M diverted from the East End/Long Look sewerage project to the cruise pier project; Government's inability to pay vendors; ongoing cash flow problems, which forced Government to seek for the first time an overdraft facility of $25M; and the $7.2M agreement with BVI Airways, among many other issues.
The Motion notes that the Government of the Virgin Islands, through the Minister of Finance, continues to sign agreements that are not reflecting the aspirations and the development interest of the people of the Virgin Islands, for example, the agreement signed with BVI Airways.
It was noted that among others, the BVI Airways agreement also lacks the necessary provisions and safeguard mechanisms to address disputes and liabilities, and as a consequence, could further impair the finances of the Virgin Islands and become a burden to the Treasury and tax payers of the Virgin Islands. The historic move by the Governor to exercise his constitutional powers to force Government to provide more funds to the security sector is also mentioned in the Motion.
The Motion speaks to measures being implemented by the Government of the Virgin Islands to generate revenue, which is creating serious hardship on the businesses in the Virgin Islands and the economy.
Also noted in the Motion is that the Government, through the Ministry of Finance, continues to fail to fully compensate Public Servants for increments past due for years, despite bold statements by the Minister of Finance that the Territory’s finances are in a strong position, thereby resulting in low morale and confidence in Public Servants.
The Government's alleged breaches of the Protocols for Effective Financial Management is also raised in the Motion.
The NDP has been in the hot seat over its handling of the Territory's finances and those concerns were also raised by Governor John Duncan, who shamed the government over lack of priority when it comes to spending.
Also, in an interview last week, Governor Duncan said that one of his disappointments is that the BVI has not been able to make progress with transparency.
"I would say those are one of the areas where all I have been able to do is highlight the problem. I don’t feel we have made the progress that should have been made. I have been highlighting the problem of institutions that we should have as a modern democracy," Governor Duncan said.
However, Premier Smith holds firm that the economy is strong, noting at one stage that it was robust.
