fp Turks and Caicos

His Excellency the Gov. Gordon Wetherell issued his second quarterly report on the interim government Feb. 26, touching on a wide range of topics.

The interim government’s attempt to borrow $85 million to pay off the country’s debts to local businesses and to stabilize its finances has been set back because details of the loan were released publicly before the agreement was signed.

The governor did not say who leaked information about the loan, but PDM leader Doug Parnell talked about the loan at length during a press conference last month, criticizing many of the loan’s details.

“As a consequence, finalisation (of the loan) has been postponed,” Wetherell said. “The leak has also undermined the government’s capacity to negotiate with potential investors on current and future investment projects. I need hardly emphasize that this damaging and irresponsible breach of confidentiality is a very serious matter.”

“The result is severe and immediate pressures on our cash flow. Preparatory work for the 2010-11 budget was already in hand on measures to find the savings necessary to match revenue and expenditure over the next financial year and enable us to live within our means. Tougher decisions may now need to be taken and the depth and timing of their implementation deepened and brought forward.”

In other financial matters, the governor said the government is owed more than $12 million from businesses and individuals for water bills, conditional purchase leases and vehicle licenses — including $3 million developers owe to the country’s scholarship fund.

“We are now putting in place measures to recover unpaid monies including taking some individuals to court,” the governor said.

The government also is lifting certain administrative, tax and other hindrances to proposals for resorts, housing and renewable energy sources.

As for Commission of Inquiry recommendations last year concerning alleged government misconduct, “criminal investigations and the recovery of unlawfully obtained property and money will be pursued vigorously, with money repaid to the public purse wherever possible,” the governor said. “This will be for the longer-term benefit of all of the people and the public finances of the TCI.”

In other matters, the governor announced that:

• Attorney General Kurt de Freitas will not seek a third three-year term. “A vacancy notice for a new AG will be published very soon, but I am grateful to Mr. de Freitas, QC, for agreeing to remain in post until a successor is employed.”
• “The U.K. has funded the compilation of a crown land inventory for the whole territory and the computerisation of all Conditional Purchase Leases. Data from the completed crown land inventory will be used to complete the draft policy.”
• “In March the Chief Executive and I will undertake a second round of Town Hall meetings to communities on all the Islands when we look forward to much lively debate.”
• The U.K. has provided $140,000 for a National Integrity Study by Transparency International to ensure integrity in public service fight corruption. The review will consult the public and contribute to anti-corruption reform, the preparation of new constitution, support for the Integrity Commission and improvements to the AG’s chambers.