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Skelton criticises government’s resolution for $100M loan

Opposition Leader Ronnie Skelton has criticised the government’s loan resolution introduced in the House of Assembly yesterday, claiming that the measure lacks substance and transparency.

Skelton questioned the resolution’s appropriateness, which seeks to borrow $100 million for government infrastructure projects, refinance existing debt, and cover associated administrative costs.

“This resolution cannot be in order. It says the government wants to borrow $100 million for infrastructural projects, but then it includes provisions for recurrent expenditure and refinancing existing loans,” Skelton said. He argued that such a broad scope suggests poor planning and called for the resolution to be revised, as it did not provide a clear breakdown of how the funds would be allocated. 

The Opposition Leader also pointed out that the government failed to provide adequate documentation for the loan request. “You went out and you tendered for this… We don’t have that evaluation, and this is the House that’s got to make the decision,” Skelton argued. “We don’t have the list of projects that the government intends to do with this, to use this money to fund.” 

Skelton argued that while the territory needs infrastructural development, the absence of necessary information makes it difficult for lawmakers to make an informed decision. “We are expected to approve $100 million worth of additional borrowing. But all we have is a two-sheet piece of paper with no supporting documentation on this side of the aisle. I don’t know if the other side has,” Skelton said.

Borrowing is essential

The loan resolution, introduced by Premier Dr Natalio Wheatley, seeks to secure funding for critical government projects, including developing infrastructure such as roads, water distribution systems, and public buildings. Wheatley argued that borrowing is essential for advancing development in the Virgin Islands, particularly in light of recent natural disasters and increasing government expenditures.

“The estimated cost of damages from Hurricanes Irma and Maria was about $3.6 billion, and the government continues to fund projects under the recovery programme,” Premier Wheatley said in his introduction of the bill. He explained that the government has carefully evaluated the loan terms and believes it is a sustainable financial move for the territory.

Meanwhile, Third District Representative Julian Fraser proposed that the government explore alternative sources for the loan, such as local institutions, including the Social Security Board and the National Bank of the Virgin Islands. He said, “Why are we borrowing from a foreign bank?” Fraser asked. “We have to start thinking and thinking of our own. We have to start thinking about the future. I’m talking about starting the future by doing the things that we need to do now so that in the future, the long-term future, we would be where we need to be.”

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12 Comments

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  1. 2024 says:

    The NDP is very much responsible for the current financial conditions our economy is now facing . As a matter of fact an associate of the NDP was taken into custody for questioning associated with the questionable spending of government funds not to forget the Aeroplane of about 10 million all now our tax money gone yet we have not seen…..

    Like 9
    Dislike 14
  2. Laslow says:

    “You went out and you tendered for this… We don’t have that evaluation, and this is the House that’s got to make the decision,”

    “We are expected to approve $100 million worth of additional borrowing. But all we have is a two-sheet piece of paper with no supporting documentation on this side of the aisle. I don’t know if the other side has,”

    Is the public paying attention to this?
    The government really presented such in the house without a detailed breakdown?
    The BVI is in trouble. This can’t be the same set of people who want to be independent.

    Like 25
    Dislike 1
  3. Sorry says:

    Any conscientious lender will NEVER lend any amount of money to the BVI without a full audit of all the relevant accounts since 2000.

    Like 13
  4. TruDat! says:

    So the same man that says “…the government has carefully evaluated the loan terms and believes it is a sustainable financial move for the territory.” is the man that told us they F***ed up the payroll budget by $21 million. But now we are supposed to believe that they understand math.
    Wheel and come again Sl** Andy. We want to see your “working out” on the side of the page – just like we are back in school.

    Like 14
  5. Gateway says:

    If local entities, ie, VI National Bank , Social Security, etc have the capacity and need to issue competitive loans, why go to external entities? Spending and supporting local(s), have a multiplier effect in the economy. Further, banks creates money with loans.

  6. WHERE WERE THEIR MOUTHS says:

    when BIg daddy Andy bluntly REFUSED , THE – UK’S LOAN ❓️ AND ALL OF A SUDDEN/ after scapegoating the COI / these hypocrites has opened one of their eyes / as SKELIE SAID ” ALL AH WE SHOULD BE IN JAIL ” ( @2024 ) all you good for , is create controversy , did Smith steal or SQUANDERED the government money ❓️ if you are a judge why don’t put on your WIG
    you lock him up ❓️ EH WIGO

  7. I hear you clucking big chicken says:

    Let’s see how you vote

  8. Clearify please says:

    How much of the loan is new fund and how much is refinanced?

  9. Good to Vote. says:

    “This can’t be the same set of people who want to be independent.” Nope, that is just a camoflague.

    The hidden intention is to leavethe cofere dry/empty when they leave. That’s what they campaigned for.

    We BVIslanders contine to remain blind, dumb and politically stupid, thoughtless emotive party lovers.

    At least put some thinking into yourchoice and sstudy he/him from Hell to thy kigdom come, then yo good to vote.

  10. A 51 says:

    Dr N W need to get sniper out of office

  11. Boo says:

    National Bank is barely solvent and able to maintain its license. Hasn’t the Social Security fund been raped enough?

  12. Go sit down says:

    You , Kedrick Pickering and Elieen Parsons are responsible for breaking up the NDP government because of nepotism and nationalism born here issue
    So keep your mouth quiet
    When you had a chance to join 3+ 3 = 6 with Lorna you did not want to give someone else the lead
    All ayo are the dame SELF SERVING mentality
    Power corrupts and that is why the other side good or bad stick together

    As a country we have no faith in all 13 of you only Myron and DeCastro speaks with some kind of sense .

    The UK should drop the hammer for two years so we can make comparisons.

    Lying set as if we in the country do not have common sense

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