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by pltm
(PLTM) - The accounting system of the government was shut down for several months last year and Governor John Duncan has warned Premier and Minister of Finance, Hon. Dr. D. Orlando Smith against a recurrence.
"You are aware of my concerns about the events that led to the shutdown of the BVIG (BVI government) accounting system for several months last year," Governor Duncan, the United Kingdom's (UK) representative said in a memorandum to Premier Smith earlier this year, BVI Platinum News has since learnt.
The Governor said that he understands Financial Secretary Mr. Neil Smith declined the offer of technical assistance from the UK to help with better cash management and financial control mechanisms. He said consequently, it will be important that the government avoid any repeat of last year's shutdown.
Governor Duncan lamented that in a modern developed economy such as the BVI, it is surprising that the beginning of each financial year is characterized by the effective closure of the government accounts and the inability of contractors to receive payments or new contracts to be let, even for relatively insignificant amounts.
"Again, it would be very helpful to have an update on the structural changes you are putting in place in order to prevent this from happening again," Governor Duncan said.
Failure To Produce Audited Accounts
Meanwhile, the Governor expressed that he notes his predecessor, Boyd McCleary wrote the Premier in June 2014, expressing concern that the BVIG was in breach of their obligations under the Constitution, having not presented audited accounts to the House of Assembly for several years.
He said that his understanding is that the last audited accounts are for financial year ending December 2011. The other audit was completed in mid 2013, but even these have not been submitted to the House of Assembly.
Governor Duncan said that along with his London colleagues, they would welcome an early update on where matters now stand and the action plan to address this serious lacuna.
"FCO (Foreign and Commonwealth Office) has asked me to note that without a formal audit of the BVIG's accounts, they cannot be certain as to the extent of their own contingent liability for the BVIG."
The Governor further expressed to the Premier, "Consequently, if this matter is not seen to be addressed with some urgency, they will have little choice but to consider carefully with the Secretary of State what action to take."
Premier Smith is yet to make those audits public.
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