Strengthening Financial Transparency and Accountability in St. Kitts and Nevis

Prime Minister Announces Resolutions to Safeguard Financial Integrity

Basseterre, St. Kitts —

In a bold move to strengthen financial transparency and accountability, Prime Minister Hon. Dr. Terrance Drew has announced plans to introduce two significant resolutions in Parliament. These resolutions are designed to safeguard the financial integrity of the Development Bank of St. Kitts and Nevis and the Social Security system, ensuring that the mismanagement of the past is never repeated.

Resolutions to Enhance Transparency and Oversight

The first resolution will mandate that any decision to suspend external audits at the Development Bank must be brought before Parliament, and the second will require full parliamentary approval for any borrowing from Social Security. These measures are critical to protecting the interests of our people and maintaining public confidence in our financial institutions, said the Prime Minister.

The absence of external audits created a veil of secrecy under which hundreds of millions of dollars were mismanaged. This negligence not only weakened the Development Bank but also threatened the financial stability of the Social Security system, which held significant loans with the bank.

Preventing Future Mismanagement

Dr. Drew emphasized that the proposed resolutions are designed to prevent such situations in the future by requiring transparency and parliamentary oversight for key financial decisions. The first resolution will ensure that the Development Bank is subject to regular and transparent audits, with any decision to suspend such audits requiring parliamentary approval.

The second resolution will require full parliamentary approval for any future borrowing from the Social Security system. This measure aims to protect the pensions and benefits of citizens by ensuring that Social Security funds are not misused.

Conclusion

The proposed resolutions are part of efforts by the Drew administration to uphold the principles of good governance and rebuild public trust in the nation’s financial institutions. The Prime Minister has already taken steps to restore transparency, including commissioning forensic audits of the Development Bank and resuming regular external audits.

FAQs

Q: What are the two resolutions announced by Prime Minister Dr. Terrance Drew?

A: The two resolutions are designed to mandate that any decision to suspend external audits at the Development Bank must be brought before Parliament, and to require full parliamentary approval for any borrowing from Social Security.

Q: What are the potential risks posed by the mismanagement of Development Bank loans to Social Security?

A: The mismanagement of Development Bank loans to Social Security posed a risk to the entire Social Security system, threatening the pensions and benefits of thousands of citizens.

Q: What is the goal of the proposed resolutions?

A: The goal of the proposed resolutions is to prevent future mismanagement of public funds, ensure transparency and accountability, and rebuild public trust in the nation’s financial institutions.