SHAWAudley Shaw MP, Contributor
SEVERAL WEEKS ago, during the debate in Parliament on the Economy, on a motion tabled by the Most Honourable Edward Seaga, Leader of the Opposition, I challenged the Minister of Finance to answer the following questions.
1. Did he not know long before the elections that the expenditure target he had tabled in the Budget Debate in April, and which were supplied to the International Monetary Fund under its Staff Monitored Programme (SMP) would be far surpassed and were in fact fictitious?
2. That it would be surpassed because of the massive amount of roadwork being done (some at substandard quality levels) as well as an additional $8 billion on the wage bill, which was paid out in the three months prior to the elections?
3. That by September, did he not know that despite this increase in expenditure, revenue collected was 10 per cent below target and overseas borrowing was some $11 billion short?
4. That in consequence, it would lead to an expansion of the Debt to GDP ratio from 133 per cent of GDP to 141 per cent of GDP adding $70 billion to the debt stock instead of the targeted reduction of 126 per cent to GDP?
5. That also in consequence, the fiscal deficit target would balloon from 4.4 per cent of GDP to 8.4 per cent of GDP?
I suggested that before and during the campaign, the Minister had engaged in a systematic programme of concealment and deception in order to keep the truth from the people of Jamaica.
I further suggested that no-where in published documents, was any indicative information available that would provide insight into the gravity of the hole in the budget that awaited us and was in fact only announced in Parliament during the debate on the supplementary Estimates in December.
The minister responded in his usual arrogant and dismissive way, suggesting that he would move on to discussion of the "substantive issues" in the debate.
What could have been more substantive than the issue that I had put on the table reminding the minister that he and the Government prior to the election had made claims of macroeconomic stability and that the economy was now poised for take-off? And that this therefore amounted to a monumental piece of ministerial deception. For the minister to suggest that he had given the public notice by way of vague statements like "challenging times ahead" as adequate warning, is an insult to our intelligence.
CONSTITUENCY CONFERENCE
The minister's speech last Sunday must therefore be taken in the context that it is not the first time that the issue of deception had been raised. The difference is that on this occasion out of his own mouth - live and direct - were sputtered the essence of fiscal imprudence and responsibility. In so doing, Dr. Davies has confirmed the truth of my charges.
Lets examine some of the things the minister said, in order to explore the full depth of his contempt and disrespect for the people, our democracy and the unique fiduciary duty that is imposed on him by the Constitution of Jamaica to protect the revenue of the country.
The minister is reported to have said that the Government had made spending decisions prior to the election knowing that they were "financially unsound". He is quoted as saying, "last year on the road to the fourth term, there was no way I was going to stop any project, which we had on the ground". He further stated, "If it was another time I probably would have held back on other things and dealt with the flood damage."
This admission amounts to a betrayal of public trust and an abandonment of the fiduciary duty that is reposed in the Finance Minister by the Constitution of Jamaica. The minister knowingly made decisions that negatively impacted on the people in distress and caused further serious damage to the economy. He put the PNP first.
The mnister now claims that he was making reference to specific road projects, but surely such an admission opens other vistas of mismanagement, corruption and ministerial negligence for political gain. It was clearly a guiding principle established to guarantee the fourth term at all costs.
For instance, was this the guiding principle that caused the Differed Financing Programme to significantly exceed the amounts initially targeted, thereby virtually doubling the "off budget" expenditure under this programme last year running into BILLIONS OF DOLLARS of contracts, some of which were questionable?
Was this the guiding principle that allowed the Finance Minister to ignore the 'goings on' which involved taxpayers' money at Operation Pride, where BILLIONS OF DOLLARS of money was paid out to unscrupulous contractors for work not done and has driven up the cost of lots to poor people all across Jamaica?
Was this the guiding principle that allowed the Finance Minister to turn a blind eye to the awarding of contracts, which routinely bypassed the contract award process, improperly awarding contracts at the National Water Commission and Caribbean Engineering Company Ltd., and which has now led to his need to write off $6.5 billion at the NWC?
BRUSHING ASIDE FISCAL RESPONSIBILITY
During his Sunday speech, the Minister poured scorn on those who made charges of fiscal indiscipline, and with characteristic arrogance, suggested, "is alright, them can talk", meaning that the election agenda took precedence over everything else. The election machine was in full swing and the man conferred with the constitutional duty to protect the country's revenue was now willing to cast aside his fiduciary responsibility on the altar of political expediency.
The ultimate piece of arrogance, however, was the minister's closure to that section of his speech, when he said, "So comrades, now that we reach, we have to correct it."
A CREDIBILITY PROBLEM
The Finance Minister, should he be allowed to remain in his position, will have a wide credibility gap which will seriously militate against his ability to perform in the country's best interest.
For instance, how will a minister who has played footloose with the country's resources, and after election has publicly bragged about it to party delegates in an undeclared bid for leadership of his party, have any credibility to ask the people to tighten their belts, pay more taxes and continue to suffer the indignities of governmental mismanagement under his watch?
How can the people who were ravaged by flood damage islandwide trust a minister who said he refused to stop projects in order to provide assistance to people in distress?
How can the people trust a minister who promised that this was not an election Budget, but after election, by his utterances and other evidence revealed, is found to have betrayed that solemn undertaking and is publicly bragging about it?
The minister's disgraceful attack on the Jamaica Employers Federation in which he alleged that they know who had stolen money, is also to be condemned. Why doesn't the minister act in matters of this nature, if he has information, why doesn't he act instead of engaging in cass, cass, tracing and innuendo?
Many persons have spoken of how "good" the Finance Minister has been. What do they mean? Having presided over the destruction and divestment of the financial sector to foreigners, destroyed businesses, decimated the entrepreneurial class, and after ten years as Finance Minister, he has never met any of his own targets set for interest rate or growth, how can this be said?
Some cynics have said that every Finance Minister has done the same thing. I call your attention to the post-Hurricane Gilbert period which was just before the 1989 General Election. Mr. Seaga who was Prime Minister and Finance Minister could have easily succumbed to the temptation to distribute zinc and other materials on a partisan political basis, he refused to do so, and set up a transparent system for the distribution of the materials, regardless of the election which was imminent.
Though he lost the elections it cannot be said that he had put his party or politics before his duty to act responsibly as Prime Minister and Minister of Finance.
The minister continues to show contempt and disrespect for the people of Jamaica. He has violated the canons of acceptable behaviour as a Finance Minister. His time is up, the minister must resign to preserve the integrity of the office of Minister of Finance and preserve Jamaica's credibility both locally and overseas.
I had called for both an apology and his resignation so what we have now is an apology. We also need his resignation because the gravity of the situation can in no way be exaggerated, as the integrity of the Finance Minister in the performance of his duties have been severely compromised. An apology alone cannot restore confidence to the position of fiduciary trust which is reposed in the minister.
Audley Shaw is the Opposition Spokesman on Finance and the Public Service
