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Shaw to tackle Gov't on debt figures
published: Monday | March 15, 2004


Shaw

OPPOSITION SPOKESMAN on Finance Audley Shaw is expected to tackle the Government in Parliament tomorrow on the outstanding debts of public sector entities for the past three financial years.

Mr. Shaw will pose questions in response to a document tabled by Dr. Omar Davies, Minister of Finance and Planning, during last Tuesday's sitting of the House of Representatives.

The Finance Minister revealed that $1.2 billion is still owed for goods and services supplied to state ministries, agencies and departments between April 2000 and March 2003. This figure does not include the debts incurred for the current fiscal year, which at October 2003, had exceeded $4 billion.

Describing the information documented as 'voluminous', Mr. Shaw requested and received permission to pursue the matter at a later date, giving him time to 'carefully examine it'.

The information was provided in response to questions posed in a previous sitting by the Opposition spokesman and also included details of statutory deductions owed by Government bodies as at January 31 this year.

It has been revealed that over $1 billion of P.A.Y.E (income tax) has not been paid over to the Inland Revenue Department by public sector entities. More than $396 million in education tax has been withheld while $26 million in property tax has not made its way to the national coffers.

CHIEF OFFENDERS

The chief offenders ­ in terms of statutory deductions owed up to March 2003 ­ are the Jamaica Urban Transit Company, with $917 million outstanding and the National Water Commission, which owes the Government $869 million. Of the latter figure, $817 million relates to income tax.

Other public sector entities owing large amounts of statutory deductions are the Sugar Company of Jamaica with $242 million, the Civil Aviation Authority with $85 million and the Port Security Corps with $64 million.

However, the indebtedness of 12 entities could not be ascertained, as their information was not submitted. Hence the total figure of $2.2 billion could potentially be much higher.

In terms of arrears for goods and services received over the previous three financial years, the Ministry of Local Government, Community Development & Sport is most indebted, with $599 million owing to suppliers.

The Ministry of Justice is next with $324 million while the Ministry of Health, which it has been reported owes more than $3 billion this year alone, is an additional $63 million behind, based on the data given.

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