Finance Ministry flagged $25M gap, but the report was buried
The Ministry of Finance flagged a $25 million gap in the budget for public service salary increases in 2024, but the warning was not disclosed to Cabinet or the House of Assembly, according to the Auditor General’s latest report.
The audit examined how the Virgin Islands government financed pay raises for more than 2,500 public officers after the first full compensation review since 2002.
The PricewaterhouseCoopers (PwC) study, completed in November 2023, recommended adopting a new market-based salary structure estimated at $9.4 million above the 2023 wage bill.
Cabinet approved this figure and added statutory obligations, bringing the allocation in the 2024 budget to $11.7 million. But auditors found the Ministry of Finance’s Budget Unit had produced its own estimate weeks earlier, showing the real cost could reach $25.5 million, with social contributions pushing the total to $27.7 million.
“The Budget Unit forwarded to DGO a schedule that showed that implementation of the new regime would require an additional $25.5 million for salaries. This, together with the related statutory obligations (payroll taxes, SS and NHI) of $2.2 million brought the overall total of $27.7 million,” the report stated.
Despite the discrepancy, the Cabinet submissions in November 2023 relied solely on PwC’s $9.4 million projection. “The submissions to Cabinet did not mention the verification exercise or the Ministry of Finance’s estimate,” the Auditor General found.
The report said this lack of disclosure meant the 2024 budget “did not provide clear disclosure of the full cost of the increase” even though enough funds were later reallocated across ministries to cover actual spending of about $120 million.
The review also highlighted that legislators voted themselves salary increases of up to 119 percent in December 2023, taking the total for House of Assembly members from $681,000 to nearly $1.5 million. That decision, separate from the public service review, required an additional $809,652.
The Auditor General concluded that “there were indications that the cost of the implementation would be substantially higher than the consultants’ estimates, but this information was not presented when the decision was brought before Cabinet”.
The issue has fuelled intense public debate about transparency in government. In April 2024, opposition lawmakers made calls for clarity on how the government would sustain the salary increases given other spending pressures, including health services and infrastructure.
The audit recommends that the Deputy Governor’s Office and the Finance Ministry explain why the higher estimates were not disclosed, and that the government provide greater public transparency around salary decisions, including their impact on pensions.
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Please invoke some sanity here. Lock these criminals up and stop the fleecing of the taxpayers while there is still time.
Until BVI takes a strong stand against what these politicians are doing it will never change. We are too easily bought, they do whatever they want to do with no consequences for their actions. People will still go to the polls and reelect them. In 10 days this will be swept under the rug like every other thing.
EXACTLY! If you have elections now, results will be no different/better.
Feast of Hypocrites
Natalio Wheatly, Premier crowned,
his purse near tripled, obscene, profound.
From seventy grand to one-seventy-six,
while pipes leak rivers and roads play tricks.
Kye Rymer preaches transport’s way,
but potholes bloom where children play.
A Minister paid a doubled share,
yet infrastructure in despair.
Lorna Smith speaks of finance true,
while coffers bleed for the privileged few.
Her doubled wage, a golden prize,
while widows beg and prices rise.
Sharie de Castro sings of schools,
yet classrooms crack and leak like pools.
Her salary soars, her speeches grand,
while chalk turns dust in the teacher’s hand.
Vincent Wheatley, labour’s guide,
now feasts on wages magnified.
He calls for patience, a steady hand,
while workers scrape in a hungry land.
And those that sit in opposition’s seat,
still dine on hikes, the feast complete.
They too speak of change with solemn tone,
yet lines their pockets, guards their throne.
They cry “transparency,” “due process” sweet,
but doubled pay is the bread they eat.
They say “have patience, trust, believe,”
while public coffers they deceive.
So mark ALL names in fire and ink,
their pleas for patience foul and stink.
For while the islands thirst and ache,
our leaders gorge, our spirits break.
The House that feasts while people fall,
shall wear hypocrisy most of all.
So it looks like it is all down to whoever leads the Ministry of Finance.
If only they had access to Cabinet!!!!
The BVI politicians and liars and thiefs and did not learn a single thing from the COI or the arrest of Fahie.
They will continue to steal and lie and independence would be a DEATH SENTENCE for the BVI
the u.k needs to take over
6 GOD……. Wa now? This yuh boy. You Ain tell we you does read these reports and legislations back to front dehman? How you ain’t tell we bout this bro??….. WFISH First you ain’t tell we S* on the pier closed, now this…….how much thing you going keep from your fans mon??? Boy I hope GBM can save you from this one bro
We must protect the Auditor general at all cost
only transparent person in government.
i would like her to run for politics but then there will be no transparent person at the helm of the AG so nvm
good work as always
It doesn’t take a rocket scientist to see what happened here. There are three persons/ministries responsible for this whole mess – the ministry of finance, the deputy governor’s office and the minister of finance himself. This level of incompetence isn’t coincidental.
at this point free the Drew forreal cause non ain better than NONE, an absolute shame and disgrace. but when is simple things VI ppl in an uproar, now when we suppose to be in an uproar….radio silence, at this point i cant feel for us again.
When Heritage had the March you all stayed far from it, as cowards do.
We need to see how each individual member voted. We do not want their spin please just release the votes for Christ sake
I could bet my bread and butter that EVERY da*n one voted in favour of the grand theft hike. Come back and tell me so I could eat my bread and butter in peace. Can’t even buy salami to put between it.
Then added the Bank of Asia report and reburied it.
Another sun rise and other day when the sun will set in the Virgin Islands with the worst set of elected thieves, robbers and punderers ever elected and appointed to service.
One is now asking oneself if the gentleman from the UK who is functioning as Governer is not in on the embezzlement of the peoples money as well.
As, how is that such huge amounts of money continue to be mismanage and disappear on his throne and he appears to noot knoow or allow it?
Why is it that there is never a paper trail to be followed bu auditors? Or, why is it that independent auditors cannot be hired too look intoo the continued disappearance og millions and more?
And why is it that the people do not see what is happening, organize the whole territory into creating major disruptions of work, goods and services?
This evident roobbery, theivery and plundering of government/the peooples money will not cease by itself. It is going to take firm organized action by everyone in the coommunity to stop it.
It is time to send the message that the people
have had enough.
Where are our modern day Faulkners, Llyods, Ras Uhurus and others? Such revolutionary minds at this critical time is mssng inaction. Do we have to dig them up from the grave?
We have finally lost our country to plunderers of
unscrupelous immoral men and women it seems, ever since the election of this government. And, who is not seeing this is either politically blind or is in denial.
Either politically blind, in denial or reaping some form of sweet.
Aryo got to giw BVI News ah big piece ah cheese keep um quiet.
Where is the Alliance? They weren’t the breath of fresh air everyone was touting? They were calling on AG and Governor to investigate this and that, they were howling like mad dogs because the government gave $100K to affected businesses in the East and allocated 300K for Uber Soca Cruise visit to the BVI. But nobody heard a peep from them when their salaries were double despite people hurting badly. They now have a parachute pension and added to that, these pension rewards will now double as they have to be paid based on the increased salaries. So once again the people get the finger while they eat the spoils. I am not shocked at the VIP Government but shocked at the Opposition’s silence, particularly the Alliance grouping who said they were for the people. Now it’s clear why everyone wants to be Ministers and Premier. I’m glad I don’t vote because all of these people are the same.
Because he apparently overthrow Ronnie for the bigger salary
Ya’ll morons sleeping while the boat moving without you all!! In HOA it was brought up by Natalio that they were given raises for themselves – this went over the majority of heads! Imagine you quit your job to run for politics and are successful; yet the salary is at $36k – what ya’ll expect that person to do to cover their expenses – thief? That’s why they were thieving the treasury monies for decades!!!
Now it is evident that the DG is who pushed thru the raises for legislators and HIMSELF!! The DG has been aligned with the former premier (Head Coach) for decades! He has been identified as a potential VIP candidate for the 2nd district if he decides to retire and run. Makes sense he would want the same or close to the same salary he gets now or MORE!!
Ask the DG why he pushed it through with Natalio and his then cabinet! The opposition could not stop it going through because they do not have the numbers to have voted it down. I see why Julian and Lorna both want to be ministers now! The big salary and bigger pensions payouts!
Blame the DG and the Spreemeir for this underhanded cook up! Blame MoF for dropping the ball.
Did all members of the House of Assembly vote for this?
Look at the news article the yellow news site put out. They straight out the door to defend their corrupt cronies with inflated salaries and try a divert people attention. Mr. w*****k, we can see right through you..
Well what do you expect of a person who have no expertise in financial matters …
Myron would have never given himself something he is not expert in like finance matters, he would have delegated that someone like Lorna or Ronnie.
He and Mather might have tough it out for education.
The finance minister is the boss, he flogged it, the burried it, This either confusing, or its a flying fish..
You all elect a man with a doctorate in some type of history or African studies to be premier. An American at that.
What you all expected?
This government Bollocksing everything up since they got in.