BASSETERRE, St. Kitts – IN response to the Government’s move to borrow a total of EC $510 million from commercial banks, the lone Parliamentary Representative for the opposition party People’s Action Movement (PAM) Hon. Shawn Richards has contended that the procedure was in breach of the law.
On March 3, Minister of Finance Hon. Dr. Timothy Harris put forward five resolutions with the aim to authorize the Government to access loan financing for the Central Government, the Nevis Island Administration, St. Kitts Tourism and Port Authorities. Harris noted that although it is a significant amount, the resolutions would not increase the total indebtedness of the Government.
In an exclusive interview with SKNVibes, Richards said, “In October of last year, the government came to Parliament with a resolution seeking to raise some EC $575 million for current requirements. By the end of Parliament, that particular resolution had been withdrawn so that one would think that since back then the government knew that they were in need of this money. It would appear as though the government went and raised the money without getting the approval of Parliament. And then they came to Parliament on March 3 seeking to regularize it. That is illegal! In is in contravention of the Finance Administration Act 2007.
“It is not just a breach or protocol but it is clearly illegal because this Finance Administration Act passed in 2007 is part of the laws of the Federation of St. Kitts-Nevis. So, this goes beyond protocol but it shows the illegality of what the government is doing.”
Richards referenced the Finance Act of 2007which indicates that money shall not be raised on the credit of the government except under the authority of an Act of Parliament or a Resolution of the National Assembly. It also provides that the Minister may in a financial year, when authorized by Resolution of the National Assembly, for the purpose of meeting current requirements, borrow money from a bank, any other financial institution or any other entity by means of advances in amount not exceeding in the aggregate with the sum specified in the Resolution.
The MP added that the resolution must be sanctioned before loans are borrowed.
“The interpretation of this is quite clear: if the government is borrowing monies by way of the public debt or giving any guarantee on behalf of any statutory corporation or any other body, a resolution must come before Parliament or there must be an act of Parliament giving the government the authority to do so. Not that the government can do it [borrow money] and then come to Parliament to regularize it. That is not what the Act says, and it is against the law! You see, when you have the majority you get away with anything,” said Richards.
SKNVibes contacted Dr. Harris who informed that the Government is in full compliance with the provisions of the Finance Administrative Act, noting that the effect of the resolutions will be to legitimize the nation’s existing debt.
Harris stressed that the Government was careful to table the resolutions as it would be the first step to enable the Federal entity to access loans.
