BVI News

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FS: Gov’t can’t get loans because of unaudited annual reports

Financial Secretary Glenroy Forbes.

By Esther Durand, BVI News Staff

Unaudited financial statements for the period 2012 to 2016 has affected the government’s ability to secure loans for recovery.

Government’s Financial Secretary Glenroy Forbes made the disclosure during an interview with BVI News on Tuesday, July 24.

He said though talks are being held with various financial institutions, ‘it is done at a point of weakness’, because of the unaudited financial statements.

“I came with a mandate to try to get the accounts tabled. It should not have taken so long but because it has taken so long it poses problems for us in this current year,” he said.

“Because without having our accounts audited and have an independent party come and verify what we say our financials are, we are hard-put when we come to regional and international agencies and financial institutions to say we want to borrow money.”

With an estimated £3.3 billion in damage across all sectors from the 2017 disasters, government said it will be exploring various avenues with the aim of seeking loans and grants to fast-track the recovery process.

Earlier this year the territory was able to secure a $65 million loan from the Caribbean Development Bank (CDB).

Affecting UK guarantee loans too

Unaudited statements are also stalling the BVI’s ability to access loans through the United Kingdom.

The UK promised the territory it was willing to offer a £300 million loan guarantee to assist with hurricane recovery.

“The UK has already said ‘BVI if you want to get this guarantee by October of 2018 we want to see your audited financial statements of 2016′,” Forbes told BVI News.

“As a matter of fact, they were saying [to have the financial audits ready] by the end of June, but the Ministry of Finance has been in negotiations with them given the realities on the ground, with the hurricanes and what have you, we cannot get it done before the end of October.”

He said the 2012 and 2013 financial statements have been audited thus far while the 2014, 2015, and 2016 statements are scheduled to be ready by the end of October.

Notably, audits for 2014 and 2015 have been submitted to the office of the Accountant General for review. It will then be passed on to the independent auditors who will review it and have the statements verified.

According to the financial secretary, he is confident that the British Virgin Islands will meet the October target as all parties involved are working ‘assiduously’ to get the financial statements audited.

Over the years, the Dr  Smith-led government has received heavy criticism for not producing the required annual audited statements.

Copyright 2018 BVI News, Media Expressions Limited. All Rights Reserved. This material may not be published, broadcast, rewritten or distributed.

28 Comments

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  1. Watch says:

    Anyone surprised ? This is the real world

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  2. BuzzBvi says:

    Bit of a rush on now. Why were they not done before?

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  3. VICKIE says:

    How could this premier leave this place get it this mess. If I cannot run a small hospital tell me why you think I can run this place. Like FAHIE or hate him he was constantly asking for audit. I agree with the UK it is time they stop doing what they want with tax money. Now that they cannot get the money they are taking independent. Can some one tell me what we have that we can go that root. We have to get rid of people who want to put us in the incinerator.

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  4. OMG!!!! says:

    Imagine…..who in the BVI with a conscience can support these people. This is really sad…..

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  5. ndp heckler says:

    They ran us on the rocks..High and dry

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  6. Fed UP says:

    Mr. FS what is the function of your Treasury Department besides paying bills? Reporting has always been a Treasury Department Function you can check the service charter. For the past 7 years the same persons have been working there that is responsible for these reports. Why haven’t she produced them? We praising for paying bills to blind people from the fact that the real work hasn’t been done!!

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    • Rolling Eyes says:

      I am very sure the good people in the Treasury Department are working tirelessly. I can be wrong but I do think we have an internal audit department that handles the reporting. In any case the issue is not that the reports are not prepared, it is that they are not audited and that has to be done by an independent firm not any Government department.

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      • Longshanks says:

        Further question – what firm of repute would take on this one? Might explain why the pier park audit has never been finished as people too afraid to publish the findings and keep their reputation.

      • Very true says:

        If you only knew….the Audit General’s office is responsible for completing the Audits. You just need to hire an independent audit to get it done or you will be counted among those that don’t have formal reports – when you have done your part – check it out for yourself!

  7. Hmmmmm says:

    Once again the senior civil servants get no blame and just waiting for the years to past so they could collect their pensions. Must be nice! If we had expats in those posts we would be calling for their heads but theyre our aunty and cousins that born here so lets blame the politicians and keep it moving.

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    • Hmmmmmmmmm says:

      I blame all of them. Civil servants know what they were hired to do and either aint dping their jobs or not dping it because they were told by the PS/Minister to do differently.

      The politicians should full and well know that audited accounts are part of the constitution if they themselves know what that is and what rules they are to abide by.

      What are the consequences? None!!!! Some of them need locking up to set an example and stop calling independence every time the mother country holds them to the grind.

      In time independence yes but not with theae set of corrupt, thieving, lying, inept, kiss mi a$$ leaders that want to lead. Sorry. Do your job which you collect every 15th and 30th.

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  8. /////// says:

    My God as if it wasn’t bad enough already…now this because lack of accountability and reporting. Looks like we are really going to become a Bird Sancutary! Haard to believe the people of the BVI have let 13 people bring us to this.

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  9. My take says:

    Hon. Fahie has been requesting of the NDP government for the audited financial statements for the last 6 to 7 years now but have been ignored. Now it has come home to roost.

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  10. Sam the man says:

    One of the consistent criticisms I have raised for years now has been how the Premier as Finance Minister has got away with failing to produce audited yearly accounts….Now the brown stuff has hit the fan as nobody wants to loan to a government/country that is so negligent with the management of its finances!!! (no surprises there – who can he blame for that?) ….no wonder he’s stepping down – the disappointment is he should have been sacked for dereliction of duty, he certainly would have been if he’d been employed in a private financial institution!…but then he’s always had his name/influence/power/position/supporters to cover up for him…

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    • Lamentable says:

      Dr Smith’s legacy will be a massive “F” – failed promises, failed delivery of audited annual accounts, failed management during Irma a.w.o.l and the new governor had to cover!, failed leadership, failed projects – on time,cost and quality…failed management of the “No Direction Party” – which has left it bereft of anyone remotely capable of leading us….failed focus on pleasing just himself earning air miles first class across the globe pretending to be doing stuff for the BVI! failure to provide decent roads, failure to provide appropriate sewage systems, failure to address corruption within the NDP, failure to actually achieve anything of merit during his tenure – a legacy of abject FAILURE but we too must be accountable for allowing him to get away with it for so long….

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  11. Political Observer (PO) says:

    This is no surprise or it should not be. Some things in life happened naturally, ie, the sun rises in the east and sets in the west, bread and cheese go together, brick and mortar, certified audited annual financial report(CAAFR) ……etc. Here is a news flash. No sober financial agency will loan money to any customer without reviewing the financial health of the customer.

    The CAAFR is often the tool used. Why no CAAFR has been produced in 6 years? Is the criticism for not producing/showing them better than would be received for showing them. What is been hidden? This is a clear example of a failed government, a government that is underperforming……etc. Does this performance earn re-election? FS let’s get busy. The taxpayers, lenders, UK,……etc. needs to know.

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  12. New party says:

    It dem ayo want to put back in mayson?

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  13. Reality says:

    we are truly F…cked now as a country – he should be imprisoned for this neglect and held accountable for his dereliction of duty….

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    • Tigress says:

      I think we should hold their- politician salaries for 3 months until the audits are completed and investigate their businesses. Shoot, this is very bad for his govt

  14. Joe says:

    The UK needs to offer the 300 million pounds as a Grant. Why a Loan–given the tremendous hurricane losses?

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    • BE CLEAR says:

      It’s not even a loan, its a loan guarantee, they UK ain’t actually giving us one red cent. We have to go to financial institutions and try to acquire loans from them on our own, the max amount for the collective loans cannot exceed 300 million.

      So we are put into debt for a maximum amount of 300 million, and we have to repay it. UK only will step in if we some how fall short on repaying these debts. If they ever have to step in and help repay then come colonial rule 🙂

  15. Hmmmm says:

    Hire Expats to run the government. This out of your league islanders. LOL

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  16. Maria Louisa Varlack says:

    That is the point I am trying to make to you guys, that you can not start a war with the UK Government, because you guys are to blame for the bad financial state that The Territory of The British Virgin Islands is in, so therefore, it behooves you guys to keep your mouths shut and do not go running off to London to meet with the Queen and then argue that they are the ones being racist towards British Virgin Islanders. No it is the opposite way, you guys have no clue how to run the Government of The British Virgin Islands, so therefore do not blame the UK Government and one more point, stop calling the UK Government colonial rule. No. The United Kingdom is the most democratic country in the world. No. Her Majesty Queen Elizabeth The Second is peaceful. The United Kingdom is a soverign nation. It does not impose colonial rule, slavery or dictatorship or human right abuse towards the British Virgin Islands.

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  17. Whew says:

    Glad i left while the ship was leaky…now shegoing down..what a shame…gladIhadthebestyears.

  18. Bring the Brits says:

    No bank, financial institution, country, etc is going to loan money to the BVI. The BVI is a corrupt and racist territory. Only chance of survival is the Brits taking over. Then the islands will prosper but the politicians pockets will suffer. You need emancipation from your racist suppressors. Jesus was white!! Don’t be hating!! Welcome back British rule and save yourselves!!!

  19. Concern Citizen Movement says:

    My people of the BVI the facts speak for themselves. Evidently based on the current fiscal issues and our Socio-economic state of affairs both Political Parties are responsible for the present mess that are drowing us. The time is conducive for the Voters of the Territory to throw their unwavering political support behind the Concern Citizen Movement PRONTO. Please e-mail “ccmovement*[email protected]” for more information. God is Watching Us!!

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