Does The Barbados Government Falsely Show Operational Expenses As “Capital Expenditures” ?

Bahamas Government Admits Bookkeeping Deceit!

Bahamas Prime Minister Ingraham has apparently just admitted that his government has been doing that for some time…

“Fundamental decisions must be made about loss-making public sector enterprises such as Bahamasair, Water and Sewerage Corporation and the Broadcasting Corporation of The Bahamas. At least 20 per cent of the monies borrowed by the Bahamas government under the disguise of capital expenditure will continue to be transferred and pumped into these entities to pay operational expenses, such as salaries, office supplies and gasoline, diesel and whatever other recurrent expenses.”

“And then we burden the taxpayers of the Bahamas for 20-30 years to pay that money back. In respect of these items that can’t be seen, can’t be felt, anything. Just consumed, it disappears. Generations after generations have to pay it back. Fundamental decisions have to be made…”

…Bahamas Prime Minister Hubert Ingraham

Can We Please Have The Same Honesty From Our Barbados Government?

Will we in Barbados ever know the full truth about GEMS Hotels, the Warrens office complex, the new jail, the flyovers and so much much more?

Prime Minister Thompson has just about another 30 days to show that he is not going to let the misdeeds of the past government slide before he loses our support. We have no doubt that VECO’s bribes, kickbacks and “offshore consultancy fees” benefited members of the last government and their families.

If the current Barbados government is willing to look the other way on all the unethical activities of the BLP government as we and our children continue to pay for the next generation, it will show that nothing really changed at the last election. The old boys club is still well entrenched no matter which party the individual old boys support.

Further Reading

WeblogBahamas.com – Bahamas Prime Minister Ingraham – Some government corporations face ‘cut backs’

19 Comments

Filed under Barbados, Crime & Law, Political Corruption, Politics, Politics & Corruption

19 responses to “Does The Barbados Government Falsely Show Operational Expenses As “Capital Expenditures” ?

  1. Tony Hall

    BFP,
    What a statement to make. Do you really understand how gov’t operates with all the bureaucracies involved?

    Prime Minister Thompson has just about another 30 days to show that he is not going to let the misdeeds of the past government slide before he loses our support

    **************

    BFP says,

    So far, the Prime Minister has done nothing to show that he intends to examine the spending of the past government on a priority basis – with a view to documenting the outrageous cost overruns. Without this basic step there will be zero accountability for those elected and appointed government officials who unethically profited from their positions.

    We are not being unreasonable in stating that if the government has not implemented a serious effort in the first 90 days to determine the extent of the loss to the Bajan people, that the government has no serious intent to do so – or to hold members of the previous government to account.

    A very simple test would be the VECO FBI investigation. It has been conclusively proven that VECO, the builder of the oil terminal and the new jail, used bribes of public officials as a standard operating procedure both in the United States and in foreign countries. Our new jail is oh… what? US$100 million over budget.

    If the current Barbados government does not launch a serious enquiry and request access to the thousands of hours of conversations recorded by the FBI – and the hundreds of thousands of seized documents and business records – then it is quite obvious that Prime Minister Thompson intends to let bygones be bygones with members of the former BLP government.

    So… about another 30 days should be about right, don’t you think?

  2. Backwards

    Maybe you should be more worried that it’s the other way around.

  3. BFP-
    Much as I agree with your thrust to force DLP to open up the suspicious books of the BLP on past contract overruns, this sounds easier to document than it really is. And takes longer.

    On nearly all contracts there are Variation Orders which are alterations and supplements to the original contract signed for a certain price.

    When a Variation Order is agreed to by an authorised ministry representative, the contractor can legitimately add a large amount to his contract figure.

    That supplement may be $5myn or $10myn, nobody knows at the time the V.O is signed. One does not say, “We agree to it if you can do it for $5myn but not if it is going to cost $10myn.” It is fait accompli, price unknown.

    On Dodds, for instance, some consultant may say, “I think the lighting of the cells should be recessed so the inmates can’t break the bulbs.” “OK,” says the contractor, licking his chops, “Will do.”

    In comes the V.O for an additional $Xmyn because the well-meaning consultant did not know (or maybe did) that each recessed light fitting would be billed at $1,500 each, probably way more than it should be.

    Variation Orders are where the General Contractor makes his profits because they are inadequately vetted. It could well be that money is passed to have such supplements inserted in a contract, but to try and prove who was wrong, and if it was deliberate, is the devil’s own job. In an arbitration it becomes impossible to prove wrongdoing.

    So it is easy to say the cost overruns were rigged, but virtually impossible to affix blame unless it is so flagrant the surcharge is condemned on its own face evidence.

    *************

    BFP says,

    Such bullsh*t, Naive. Such Bullsh*t

    1/ The FBI has been delving into VECO’s wrong doing for years. They have tapes that mention Barbados. No doubt they know where a good portion of the slush funds went already!

    2/ Your argument that all corruption is too complex for any professional investigation to track down is pure nonsense and disinformation propaganda. You’re not Owen Arthur, are you?

    3/ We must do everything we can to track down EVERY COMPANY in the supply chain because that is where and how the graft is paid. There will be companies that did nothing but source or “handle” materials or provided “consulting”… and these companies are tied to members of the BLP government or their families. In the prison project, most will be offshore companies that VECO will have paid without the money passing through Barbados. That is how VECO worked. You think that the almost billion dollars of business they did on Barbados was any different?

    4/ We should also investigate all contracts and look at them for value and legality….and then CRIMINALLY prosecute or SUE in civil court any politician or appointed official who facilitated or signed contracts that are outrageous. (Like that load of paper that was delivered to the QEH last year at US$18 per package when the going street rate is US$6 per package)

    5/ Political will is all it will take. The investigative skills can be hired. The search warrants can be obtained unless we lack one honest judge on this island. Let the pieces fall where they may.

    If Thompson lets it all slide and does not embrace integrity and accountability he will set off a chain of events that will result in the fall of his government at the first available opportunity. You think that is a big statement, but I am convinced that the political class in Barbados has no idea how thin their relationship with the ordinary Bajan has become.

  4. Hants

    BFP…..You are a hard task master.

    You do not call the FBI like you call a police station to report a crime. There are procedures that the Government has to follow and that takes time.

    Consultants Gone.

    http://www.nationnews.com/story/308726719066700.php

    The DLP will govern with Integrity and honesty but the are not going to let BFP set the time frames for action even though you can take credit for the Influence this blog has on Barbadian politics at this time.

    Has this Government done anything you like so far?

    ************

    BFP says,

    This government has so far totally failed to implement any of the integrity steps that they said they would immediately upon winning the election. We’re not talking about the 100 days promises… we’re talking about what they said they would do IMMEDIATELY UPON ASSUMING OFFICE.

    Those items include declaring a Ministerial Code and having the DLP members declare their assets.

    Of course, we have to remember that the DLP cut and pasted their integrity initiatives from the internet at the last moment, and every day that they fail to do what they promised pushes us closer to the inexorable conclusion that …

    Well… never mind. We’ll wait a while longer before we push the button.

  5. reality check

    it sounds like the Barbados Government will need to get ahold of the cheques of Veco and its sub contractors and follow the bribes with related documentaion. An enquiry or hearing won’t cut it until a pitbull forensic auditor has gathered the evidence.

    The Americans will need to be seen to be actively and diligently cooperating as there is lots of legislation in the US against these bribes and pay offs.

    ps come on Hants— get a grip—BFP within the last article or two said they like the appointment of Adrian Loveridge to the Board of BTA although the silence on the death threats to Adrian Loveridge and lack of charges by the government is a much more serious matter in my mind.
    .

  6. BFP

    BFP says,

    This government has so far totally failed to implement any of the integrity steps that they said they would immediately upon winning the election. We’re not talking about the 100 days promises… we’re talking about what they said they would do IMMEDIATELY UPON ASSUMING OFFICE.

    Those items include declaring a Ministerial Code and having the DLP members declare their assets.

    Of course, we have to remember that the DLP cut and pasted their integrity initiatives from the internet at the last moment, and every day that they fail to do what they promised pushes us closer to the inexorable conclusion that …

    Well… never mind. We’ll wait a while longer before we push the button.

  7. littleboy

    BFP
    You are over reacting!!! How serious can you be about the new government not putting measures to curb/prevent corruption , pass legislation etc etc when there has only been ONE meeting of the House of Assembly, many statutory boards are yet to be set up, and a plethora of other house-keeping matters have to be dealt with? It has been less than 6 weeks that the election was held.
    I believe that the pressure you are putting on the DLP is unjustified. Give them time and then apply pressure if they do not come up to speed.
    Be fair!!!

    **************

    BFP Says,

    It was the government that stated they would immediately declare ministerial standards upon taking office. It was the government that stated they would declare assets immediately upon taking office.

    But… then again, maybe it was all cut and paste at the last moment from the internet.

  8. GreenBB

    Changes are being made, it will take time, but I have seen it. Patience…

  9. 2 Cents

    Crap! Let’s see the evidence of the changes. Where are the investigations? Appoint a committee to undertake a review of every material government undertaking under the last governmentLet’s see some action. Everybody appears to be on a PR joyride. Heelllooooooo! The honeymoon will come to an end.

    We need to see declaration of assets and interest by all these Ministers and boards etc. so that when we start to see the people’s money going to certain projects etc. we will be able to asks the tough questions.

  10. Donald Duck, Esq

    Hants

    What about the consultants that the new DLP Government will have to hire? How much will they cost? How much did the “consultant(s)” for the Rihanna show cost? Bajans have short term memories. What position did Frank Dasilva hold in the last DLP Government?

  11. 2 Cents

    I would like to know how much the Rihanna event cost including the whole BTA-BET gig.
    How much did the tax payers had to fork out for this disaster.

  12. Anon

    The “firing” of consultants is a non issue, it is just a matter of time before the DLP appoints its own consultants, consultants might be the new term used but this has been going on ever since independence and you know what the present government will continue the trend, in fact it has started already. A “consultant” by any other name is still someone who in most instances free loads off the taxpayers while being rewarded for their loyalty to party…

  13. Jerome Hinds

    2 Cents
    March 3, 2008 at 1:31 am
    I would like to know how much the Rihanna event cost including the whole BTA-BET gig.
    How much did the tax payers had to fork out for this disaster.
    ######################################

    It is sure cheaper than that white elephant standing up down Fontabelle !

    By the way……for 2 DOLLARS and not ….2 CENTS..

    Who own’s the land that white elephant is standing up on ?????

    That is brilliant LEADERSHIP of a dumb Barbados Licorish Party ( BLP )

  14. Bimbro

    Do u think that Arthur has truly, gone????

    I think he’s just allowing Mia to front the Party for a while, while he re-collects his forces and takes over again, in time for the next election or the one after that!!!!

  15. Jerome Hinds

    Well in the story below….it is quite obvious that the TOOTHLESS RAT is alive !

    He says he is on the WARPATH…..!

    Was HE on the warpath also when :

    * In 1996 HE put 3 of the top brass at the QEH on half – pay salary ?

    * In 1994 HE caused hundreds of DLP supporters in the Public Service to revert to their lower paying jobs – by stopping their acting appointments ?

    * When HE took that $ 75,000.00 cheque ( which was part of the $ 750,000.00 ) dished out to the BLP ?

    * When Clyde Griffith pelt some licks in HIS tail the other day ?

    Tell the toothless DRUNKARD…….go back to HIS rum BOTTLE !

    The DEMS…..gine expose HIS……..FILTH !

    http://www.nationnews.com/story/300393175549786.php

  16. Thistle

    Yes, Yes, Yes!!! Praise the Lord and pass the amunition! Owen Arthur is “waging war” again. He thinks he’s still in charge!! Let him wake up from his drunken slumber and start ranting all over again. Pour the see-through down his throat while he basks in his luxury condo at Port St. Charles. He never expected David Thompson to come out fighting and to get rid of those blood-sucking so-called consultants who were living off the fat of the land while poor people were scrunting. It has blown him out of his drunken stupor. Let him rant – we’ll all get a good laugh. Do what you gotta do, David.

  17. Anonymous

    BFP, that article is one to save. Please start a thread on Mr. Arthur’s warpath.

  18. BFP-
    You sound rather ridiculous when you accuse me in saying “Your argument that ALL CORRUPTION is too complex for any professional investigation is pure nonsense and disinformation propaganda.”

    I said no such thing as you can verify by rereading my text.

    We are all keen for any provable corruption by the BLP to be exposed, and those responsible brought to account with criminal charges.

    But your (well intentioned) ranting shows a total lack of familiarity with the complexities of contract law, and you better get a quick course in your arfeas of ignorance so that you can throw your accusations around with to better effect.

    You don’t want people laughing at you, do you?

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