Last Updated on December 12, 2024, 10:01 AM AST by Chris Matthew
In the wake of the revelation regarding financial mismanagement at the Development Bank, Prime Minister and Minister of Finance, Dr. Terrance Drew has decided to introduce two resolutions in the Parliament to check such malpractices in the future.
Recently it had come to the fore that the suspension of external audits in 2018 and 2019 at the Development Bank of St. Kitts and Nevis had led to the accrual of a debt of over $300 million.
The Prime Minister said that financial transparency and accountability were very important. In order to ensure the same, the government has decided to bring two resolutions to Parliament.
“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 being introduce to protect 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.”
The Prime Minister said that these two resolutions would ensure that proper financial safeguards were put in place to avoid any such happenings in the future.
Once these resolutions are passed, it will become mandatory for the Development Bank of St. Kitts and Nevis to conduct regular and transparent audits. Besides, the bank will not be able to operate with secrecy and mismanage public funds without accountability.
In order to protect the pensions and benefits of the citizens, the Prime Minister Drew will also be introducing a second resolution, which will make it obligatory for the financial institution to seek full parliamentary approval before borrowing from the Social Security system.
PM Drew said that Social Security was very important for the financial well-being of its citizens, and any decision to borrow money from this account should be approved by Parliament.
It came to light that the Development Bank had taken loans from the Social Security account, which were 7% to 10% of the total assets.
The Prime Minister Drew also criticized the previous government for not being prudent and allowing the Development Bank to borrow money from the Social Security system, which could jeopardize the pensions and benefits of thousands of residents.
The government has already initiated forensic audits of the Development Bank in an effort to restore transparency and build public confidence.
Chris Matthew is a well-seasoned expert in feature writing, with a strong focus on covering international updates.. He blends his creative thinking with a journalistic mindset to report on events and issues across the world with precision and accuracy.
