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Fri 8th Jan 2021

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Gonsalves and Gonsalves should resign for destroying the SVG economy to the verge of instant collapse

According to the Vincentian newspaper of 31 December 2020, Minister of Finance Camillo Gonsalves said that while the government had to watch its long term borrowing, it became necessary for them to do what they had to, in order to keep the economy afloat under the present pandemic, and borrow $125 million in an emergency loan.

This article shows that Gonsalves and Gonsalves do not have the appropriate skills and competence needed to manage the SVG fragile economy and turn it into a strong economy. It is astonishing that after 20 years in power in SVG, the SVG Treasury has been run dry. Just a few weeks before the 2021 Budget Estimates, the highly incompetent and grossly useless ULP regime was forced to borrow $125 million toward the end of December 2020.

Having to borrow money in an emergency shows financial incompetence and having to borrow so much money - $125 million – in an emergency shows an even greater level of financial incompetence. Warrant Officer Ivan O’Neal BSc (hons), MSc, MBA, who has a BSc (hons) in Accounting and Finance and Economics, asks ‘What on earth is going on at the Ministry of Finance?’

When you run public finances, you are meant to do financial forecasting and financial planning. You are meant to look ahead months and years to understand the financial situation at any point in time in the future. You are also meant to plan your financial activities based on the data from the financial forecasts, so that you do not go heavily into debt or need to do anything in an emergency.

Clearly, this government has more water than flour!

Also, what will be the true cost of this emergency borrowing of $125 million to the people of SVG? Where is the money being borrowed from? Given that SVG has a poor credit rating, what extortionate amount of interest will the people of SVG be paying on the loan? Public debt is out of control and the ULP regime is just digging a hole to fill a hole.

The table shows the terrible state of the SVG public finances under the incompetent ULP regime.

FINANCIAL SUMMARY ESTIMATES - 2021

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(Source SVG Budget Estimates 2021 - Researched by Warrant Officer Ivan O’Neal)

The Vincentian newspaper article also shows that the SVG economy is on the verge of collapsing and we question whether the incompetent ULP regime has enough money to pay public servants and fund education and health facilities properly.

Warrant Officer Ivan O’Neal BSc (hons), MSc, MBA, Leader of SVG Green Party, says that there would be no need to do any emergency borrowing of millions of dollars, if we taxed Taiwan and the white, super-rich migrants of Mustique and Canouan. If we abolished the tax and customs exemptions worth hundreds of millions of dollars a year, SVG would have a strong and sustainable economy.

Warrant Officer Ivan O’Neal BSc (hons), MSc, MBA calls on the leader of the Opposition, Dr Godwin Friday, to hold a vote of no confidence in the SVG House of Assembly on the ULP government for the poor management of the SVG public finances and economy.

Gonsalves and Gonsalves should resign for plunging SVG into emergency borrowing and destroying the SVG economy to the verge of collapsing.

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