There is still close to $100 million to be brought to book regarding the Government of Barbados’ contributions to LIAT over the years.
That’s according to Minister of Finance and Economic Affairs, Christopher Sinckler, who told the Lower House that the figure could be potentially more. He made the point while noting that the final figure should be known soon, as he has the staff investigating the matter, to determine how many advances and in what amounts were made by the former administration to LIAT, that would not have passed through the regular Estimates or Appropriations of the House of Assembly.
“Once that information is ready and collated and calculated, I give the House and the public the assurance that we will bring it Parliament, have it properly booked in the system so that the public record would reflect that it was laid,” he said.
He made the comments while leading off the debate in the House of Assembly yesterday on the Supplementary Estimates No. 1 2016-2017 in the amount of $33 111 620, which is required to bring to book equity contributions made by the Government of Barbados to LIAT (1974) between 2012-2013 and 2015-2016. Sinckler added that all the allocations will be placed within the year they were contracted and as such, he said that for 2015-2016 only $2.8 million will be accrued.
He made the point while noting that due to the significant challenges facing the regional air carrier, shareholder governments have been injecting budget support and other operational support either to manage the day-to-day operations of the airline or to support its investment in equipment, which would allow it to continue to offer its service to the regional public. The most recent time such an injection of money was required by the shareholder governments, he said, was when the decision was made to replace the Dash 8 fleet with new ATR aircrafts. He noted that the planes were estimated to cost US$65 million, and Barbados’ share of the bill was put at US$11.6 million.
“For many, many years, more than a decade, more than 15 years, successive governments in Barbados have invested money in LIAT’s operations and functioning, as shareholders in the company… One would have recalled that in an Auditor General’s report, I believe the last one for 2015, a comment was made highlighting the fact that more than $100 million has been advanced to LIAT to help support the functioning of airline. In fact, it may be more than that, but that is what he has reported in his investigations,” he said.
The Finance Minister added, “Some people took that to mean that over $100 million was advanced by the Government of Barbados in 2015, or 2011, or in 2013. The truth is that a substantial amount of money, far more than $100 million, had been advanced to LIAT by successive governments and shareholders of LIAT for the financing of its operations… The last Government when it was in office, the Barbados Labour Party when it was in office, advanced I believe more than $70 million to LIAT through advances from the Treasury of Barbados, none of which, Mr. Chairman, were approved by the estimates or allocations of Parliament.”
He said that through these various advances is how the Barbados became the largest shareholder with almost 49 per cent. He explained where LIAT cannot repay the advances, it is converted into shares. (JRT)
Section: