Questions raised by Opposition Leader Honourable Ronnie Skelton during the recently concluded Standing Finance Committee have revealed that the territory’s last completed audited financial statement was in 2016.
Financial Secretary (FS) Jeremiah Frett made the disclosure in response to Skelton which prompted the Territorial Representative to further press about the other financial assessments that were outstanding.
Frett revealed that the 2017 financial statement was soon to be presented before the House of Assembly, while the 2018 statement was already under the scrutiny of the Auditor General. Additionally, the FS acknowledged that efforts were underway to finalize the financial statements for 2019, 2020, and 2021.
This revelation has sparked several questions as to the impact that the backlog in unaudited financial statements will have on the territory’s ability to secure loans for recovery and rehabilitation purposes.
Premier and Minister of Finance Dr. the Honourable Natalio Wheatley has numerously expressed his intent to borrow at least $100 million to assist the BVI in its development efforts.
However, history shows that the BVI once faced a similar issue where its borrowing ability was affected by unaudited financial statements following the devastation caused by hurricanes Irma and Maria.
In 2018, former Financial Secretary Glenroy Forbes told local media that unaudited financial statements from 2012 to 2016 affected the government’s ability to secure loans for recovery.
He said discussions with several financial institutions were done at a point of weakness because of the said unaudited financial statements.
At the time, Forbes also disclosed that the lack of financial clarity also hampered the BVI’s access to a £300 million loan guarantee from the United Kingdom during that period.
The current situation raises concern about a potential repetition of history, as the BVI seeks financial assistance for recovery and rehabilitation. The ability to secure loans is crucial for implementing development projects and for the territory to embark on essential recovery initiatives in the coming years.
As Premier Wheatley continues to emphasize the need for significant financial support, there is a growing consensus among both government officials and the public that swift action must be taken to address the backlog in unaudited financial statements.