Barbados government continues to spend what it doesn't have – Boos

Peter N. Boos FCA

BRIDGETOWN, Barbados, Wednesday July 31, 2013 – When we buy goods and incur liabilities we do so with the understanding that we will pay for them on the agreed terms and in accordance with the law.

Delinquency in payment always results in a penalty of some sort: foreclosure, an interest penalty, frozen account etc.

The Barbados Government continues to spend what it does not have and can’t settle its current liabilities when due. VAT and other Tax refunds, emoluments to Government employees, debts for goods and services and more go unsettled and increase daily.

It is illegal and dishonest to buy anything without the wherewithal to settle the liability.

In commercial terms Barbados would be deemed to be ‘trading while insolvent’.

This is scandalous and a very bad precedent.

Does anyone know the extent of Government’s delinquencies and how soon they will be settled?

Why is this not made known to the Public ?

Peter BoosThe impact on individuals, businesses and other organisations that are owed money by Government is serious and leading to higher unemployment, mortgage defaults, project postponements, capital flight, stress and worse of all it is destroying our hard earned reputation for astute financial management. Our Sovereign Debt Rating is below investment grade with a negative outlook according to S&P.

Young people will begin to look elsewhere to make their future if we can’t provide an environment for them here to succeed.

The cost of Government debt is rising i.e. lenders want higher returns to lend money to Barbados. The one exception appears to be money borrowed from the NIS ! At what rates are NIS funds being advanced to Government and on what terms?

This too is scandalous and the Board of the NIS are exposing themselves to litigation for failure to execute their fiduciary duties responsibly.

When will the true picture of the NIS be disclosed to the Public?

Confidence, of which there is little at present, can only be regained through leadership that has integrity. Click here to receive free news bulletins via email from Caribbean360. (View sample)

The opinions expressed in this commentary are solely those of Peter Boos.