BASSETERRE, St. Kitts - "SOMEONE said to me it is tantamount to financial terrorism. This clearly has been my opinion...an unwarranted position". So said Premier Vance Amory in an address to the people of Nevis last evening (Apr. 23) regarding the government's inability to make payments to its public servants.
The Nevis civil servants were expected to receive their monthly salaries yesterday (Apr. 23) but were disappointed, as that obligation was not met by the Concerned Citizens Movement-led Nevis Island Administration (NIA).
The St. Kitts-Nevis-Anguilla National Bank, through which the public servants are paid, did not honour the cheques which were sent to that financial institution to have them paid.
This publication understands that the non-payment of the workers’ salaries was as a result of an increase in the NIA’s overdraft. However, in his address to the island’s inhabitants, Premier Amory was adamant that his administration did not incur an increase and noted that Nevis’ finances are being properly managed.
"I want to make it quite clear that the CCM Administration has not, over the past 15 months, increased the overdraft which it inherited in January of 2013. The level of that overdraft was just about $62M. Today, as we have been going through this traumatic and embarrassing experience, the level of the overdraft is $61.8M.
"The Nevis Island Administration has done all within its power to manage its finances responsibly. We have sought to curtail any excess expenditure to ensure that we pay our major priority obligations, and one of those priority obligations is the payment of salaries of public servants."
The Nevis Premier ensured that the resources to secure the public servants salary payments for this month were already deposited at the bank.
"For our information, in this month, the Nevis Island Administration paid into its bank $3.2M in addition to having $1.8M in cash deposit at the bank to secure and cover the payment of salaries, which should have been paid today without all of this stress and trauma.
"I want also to advise that the Permanent Secretary (acting), the Treasury personnel have been in ongoing discussions with the representatives of our National Bank to ensure that public servants were paid, and I advised just now that we put into our account the resources which should have covered the expense of our salaries today (Apr. 23).
"I make this comment, not with any pleasure but to state a situation which today (Apr. 23) must go down as one of the saddest days in the history of the people of Nevis, of the Nevis Island Administration. A sad day indeed...that our employees, having worked, had to have some uncertainty as to whether they will get their pay. I want to remind us that this should never be allowed to happen again," he enunciated.
He went on to state that since taking office in January 2013, the NIA has been unable to receive any budgetary assistance through the Federal Government.
He revealed that requests to the Sugar Industry Diversification Foundation (SIDF) for similar accommodations that were given to the previous government were refused, but noted that some assistance was given via the double salary paid in September 2013.
"We will need and we can benefit from assistance from any budgetary support either from the Federal Government, the SIDF or from any source including the IMF," he said.
Amory disclosed that the Federal Government received nine million Euros (approximately EC$36M) from the European Union this year for budgetary assistance for the Federation, but has not transferred any of those resources to the NIA, "even though it was intimated to me that those nine million Euros...were to be for the support of the budget for the Federation which, and I remind all of us, comprises the Federal Government and the Nevis Island Administration, the Nevis Island Government".
He told Nevisians that the issue at hand is that the NIA should transfer land for debt to the National Bank through the Special Purpose Vehicle which was created in 2012. "But let me also advise that the 238 acres of land at Stock Pen is already held by the Bank in mortgage to secure the overdraft".
"We have subsequently signed a memorandum to transfer that land and this was done before this week. And I trust, as I said earlier, that we do not have a recurrence and that in our dialogue which we hope to have on Friday, that we can resolve our problems, get a greater understanding and get a facilitation of the Government’s business, so that those who work for government and who depend on their wages and their salaries would be able to honour their own debts, buy food, buy formula for their children, be able to make an easier life for themselves and not to be subjected to embarrassment as they were today," he added.
He placed on record his appreciation of the Chairman of the SKNANB Board and the Board itself for accommodating the NIA to have the have the salaries paid.
"I want to say as well that the National Bank, our creditors, have agreed to honour the cheques of the Nevis Island Administration and to pay the salaries for the month of April. The situation, therefore, has been temporarily resolved, but it is my fervent hope that we shall be able to have a permanent resolution to the financial arrangements with the National Bank as soon as we are able to meet after Friday the 25th of April.
"The CCM [Concerned Citizens Movement] Government is a government of all the people of Nevis and anything which affects the Government affects every citizen of Nevis as well and, by extension, affects citizens who live in St. Kitts and elsewhere," Premier Amory said.
