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2018 Auditor General Report – A Tale of the Same Woes

The blogmaster feels an infinity for the Auditor General of Barbados. For many years we have regurgitated a similar message, the need for transparency to how we do business. Some ask what has Barbados Underground blog been able to achieve in its 12 years of existence? The blogmaster responds by saying what has the Auditor…

The blogmaster feels an infinity for the Auditor General of Barbados. For many years we have regurgitated a similar message, the need for transparency to how we do business. Some ask what has Barbados Underground blog been able to achieve in its 12 years of existence? The blogmaster responds by saying what has the Auditor General been able to achieve in the decades of that office existence?

The blogmaster is motivated by doing what any civic minded citizen should be minded to do. If the result is that it makes a difference then he will smile, wider. The smile will always be there because a civic minded son or daughter of the soil will always smile when they commit unconditionally to“the cause that lacks assistance, the wrong that needs resistance, for the future in the distance, and the good that we can do”is realised.

Here is the 2018 Auditor General report for those who missed it., The message is the same as it was last year and the many years before. Here is what we also know, it mattered not that the Barbados Labour Party or the Democratic Labour Party were in office. It mattered not that Barbadians are considered a well educated people.

In the 2018 report the Auditor General rapped this new government on the knuckles about the lack of transparency surrounding the restructuring exercise. There is a note about unauthorized spending by the Barbados Police Force. The Central Bank of Barbados and the National Insurance Scheme (NIS) were fingered for being behind in the preparation of audited financial statements. Congratulations to the Enterprise Growth Fund, Financial Services Commission, Grantley Adams International Airport and FAir Trading Commission for doing their jobs by declaring current audited financial statements.

Screenshot 2019-07-02 at 04.40.11

190 responses to “2018 Auditor General Report – A Tale of the Same Woes”

  1. WURA-War-on-U Avatar
    WURA-War-on-U

    And the incestous, corrupt 70 year old practice and wicked behaviour of raping the treasury and stealing taxpayers money for friends and family is never ending.

    https://www.facebook.com/157529867729760/posts/1320406111442124/?sfnsn=mo

  2. John A Avatar
    John A

    @ David

    If You remember a few weeks ago I said to you that this government did not need to enter us into such a severe austerity program when they were options. What they should have done is try to collect the receivables and tighten their financial management. I even went as far as saying if they were incapable of doing that they should hire a foreign company and give them the receivables to collect based on a commission basis.

    Based on all that has been outlined in the report how many hundreds of millions do you think government has wasted, can not account for or do not know they are owed?

    Instead of dealing with those issues what do they do? They murder us with more taxation, increase our land tax by 61% and do nothing to fix their own financial mess.

    I see no difference In the approach of this government to the last in fixing our revenue collection problems or addressing any of the real problems as outlined in the report.

    Then again why rush to do it anyhow when you can just tax the people more to make up for the shortfall?

  3. Wily Coyote Avatar
    Wily Coyote

    Latest evidence of Barbados FAILED STATE status. Wily wonders if IMF ever read the Auditor Generals Reports.

  4. David Avatar
    David

    @John A

    There is no doubt tax collection is a big problem to be solved. It has been the bane of governments by the two major parties. We were told this is the reason BRA was established read to harmonize government tax collecting agencies.

    We need to know how much of monies due is collectible.

  5. John A Avatar
    John A

    @ David

    Well we know as stated by the last MOF that between BRA and Customs they were owed in his words ” in excess of a billion dollars.” But if you recall a good chunk of that was owed by SOEs and central government who had collected VAT and “forgot ” to pay it in. So if you say a government should lead by example you have a piss poor one there!

    Combine that with all the revenue leaks In our indirect taxation systems and no wonder we tail getting the taxed to grave approach.

    What I find most annoying is it appears we are paying 30 ministers to do what others have done over and over for the last 20 years. That is rather than addressing the problems the state faces as outlined in the report, just turn the other cheek and create new taxes.

  6. John A Avatar
    John A

    Then again that seems to be standard operating procedure for governments as they have used the exact same approach with the NIS Fund.

  7. Hal Austin Avatar
    Hal Austin

    @ John A
    @Wily

    We must deconstruct the BWA’s debt; who are the companies and individuals who owe money. Why do companies and professional people who owe taxes, BWA etc still get contracts/paid by government?
    By the way, is Ms Odle related to the Odles of Island Inn fame and to the Tudors? Follow the surnames, dear boy.

  8. Vincent Codrington Avatar
    Vincent Codrington

    Wily Coyote at 7:51 AM

    It is not the remit of the IMF to read the AG reports. It is for the reviewed institutions to read and correct the infractions and for us, the taxpayers, to insist that the politicians do what is necessary to correct the infelicities.
    The IMF is in the business of assisting governments to make effective policy adjustments that encourage growth. They are essentially short term lenders of last resort. They set conditionalities for their “loans’.

  9. Pachamama Avatar
    Pachamama

    ”””””Here is the 2018 Auditor General report for those who missed it., The message is the same as it was last year and the many years before. Here is what we also know, it mattered not that the Barbados Labour Party or the Democratic Labour Party were in office. It mattered not that Barbadians are considered a well educated people.”””””””””

    David

    Well done!

    You are in danger of having a knighthood bestowed ………………….. or should it be ‘The Most Excellency”

    Separately

    We hope that any notions that this duopoly could ever transform itself are forever things of the past.

    We had warned you that instead of ‘transparency’ we should have an absolute right to recall.

    And of course, that our handy friend, Mr. Guillotine, should always be ……………………. well, handy!

  10. John A Avatar
    John A

    @Hal.

    The austerity program from memory was supposed to be in the area of $400M, you realise had they collected even half the billion owed and trimmed the indirect taxation leaks by even $100M a year, there would of been no need for the pain that we are suffering now at all?

    I would like the PM as the CEO of government to share with us the shareholders, what progress her directors have made with addressing any of the financial issues as outlined in the report.

    I eagerly await a response however i shall not hold my breath in anticipation of receiving one!

  11. John A Avatar
    John A

    @ Vincent.

    This report is like one of those bad dreams that just don’t ever seem to go away. The difference being of course this is reality.

  12. Vincent Codrington Avatar
    Vincent Codrington

    @ David Bu

    I hope that the leader of the opposition and his team are studying these reports and are making the necessary preparations for a meeting of PAC.
    I hope also that they are comparing the CBB Quarterly Reports with the Estimates of Expenditure and Revenue. We need for them to give more incisive analyses of these financial and economic reports. Repeating cliche phrases and dogma is a burden to the ears of the electorate. We are all educated now.

  13. John A Avatar
    John A

    Oh I got another question for the CEO of government.

    What percentage of your estimates are made up of collecting outstanding receivables? I only ask so that when collecting them proves as effective as in the past as outlined by the Report, I would know if I need to but 1 jar of Vaseline or 2 for the next tax onslaught.

  14. Vincent Codrington Avatar
    Vincent Codrington

    @ John A at 8:53 AM

    That is the strategy . Flood the public with information overload and distract them from the real issues. This is not reality. This is what the conspirators would like to usher in. We are better than this. Stay the course.

  15. William Skinner Avatar
    William Skinner

    In the army when you complain about the soup you are told to get another bowl; they never change the soup!!

    Duopoly Rules

  16. Vincent Codrington Avatar
    Vincent Codrington

    @ Pachamama

    Who are the constants in this equation? The Duopoly Model appears to be one of description rather than policy prescription and design. Put it back in the tool box. It is ineffective in informing us where to go from here.

    Do you understand what you have repeated? It matters not which party forms the Government the criticism is the same.. The faults remain. What is that telling you?

    Guilotine my &$#@!!!

  17. John A Avatar
    John A

    @Vincent.

    They better know that we have “linear thinkers” out here still!

    Seriously though this is where a good opposition or even press (Lord don’t let us go there) would pick say the 5 most critical issues out the report and break them down for the public to get a better handle on. Obviously to dissect 100 plus pages would take time, but to hand pick the top 5 and focus on those surely would be possible.

    I am assuming of course any of them actually read the report.

  18. John A Avatar
    John A

    What I would like to see published too is a graph showing ratio of change from one year to another on critical issues.

    In other words a piece of information on one page showing say the top 20 revenue areas comparing say 2018 to 2019. That way one could quickly judge how the government is doing in either addressing or further neglecting those 20 critical areas.

    Don’t worry I got on my cyber helmet so let the party faithfuls bring the BS now!

  19. David Avatar
    David

    @Vincent

    We have had this exchange many times in BU. We claim to be a well educated people but behave in a way that can be generously described as being financially illiterate.

    What have you and John been saying about being educated?

  20. David Avatar
    David

    @Vincent and John A

    Atherley did an interview with David Ellis recently and confirmed the PAC has been meeting. Where have they been meeting? What are the issues discussed and status?

    Where is the info packaged for public consumption?

  21. Vincent Codrington Avatar
    Vincent Codrington

    @ John at 9 :20 AM

    Journalist need to concentrate on the Executive summary of these reports. Precis them and put that on the front page. Their main editorial three days later should express an opinion after consultation with “experts”. In the week end issue Their columnist can write another well researched opinion piece.
    Currently they push a cell phone to so called experts mouths and get bits/bites of incoherence which they proceed uncritically to publish. That is not good journalism.

  22. John A Avatar
    John A

    @ Vincent

    Yes all we are asking is that you take the top 5 critical issues and address them in a simple clear summary that all can understand.

    If they could do it in an online format then persons could ask questions that would even be better.

    In this world of interactive exchange why is it so difficult to get things like this done?

  23. Vincent Codrington Avatar
    Vincent Codrington

    @ David BU

    My bases for claiming that we are an educated society are:
    The continuous reports of progress in the 11= results annually
    The Contnual reports of improvement in the CXC and Cape.
    The number of graduates exiting our Universit.
    The number of printed newspapers bought per week
    The general level of opinions expressed compared with those in more developed countries.

    My biggest fear is that of being fed fake news and mis information as well as too much unuseful information and malicious gossip.

  24. Sunshine Sunny Shine Avatar
    Sunshine Sunny Shine

    And the many faces God in the form of King David makes sure that his criticism of this government remains soft. How comes you ain’t throwing boulders at Rogue Works head for not living up to her promise of more transparency and more accountability. Must be the IMF singing she praises for meeting targets that got you reserve. You think you can write a piece entitled-Tthe Plundering continues in a different crooked way as Revealed in the AG Reports Under Mia ‘Me Got this’ Mottley? But, but, but, I got to congratulate you for letting everyone know, what they already know, is that the auditor general reports are not reading any different to all the years he has been writing these reports. At least ya keeping it real, and out there so.

  25. Wily Coyote Avatar
    Wily Coyote

    Vincent Codrington July 2, 2019 8:42 AM

    Wily knows very well what IMF MANDATE IS, however Wily knows IMF “FREE FUNDS” come from other better controlled and financed countries and IMF “should” only be lending assistance funds to countries that are in genuine need of temporary financial ssistance. Barbados in its 65 years of supposed independence has found it necessary to approach IMF no lee then four(4) times in 65 years for assistance all because of the same underlying issues. This is not a temperary financial issue but a systemic problem financizl problem that should be corrected lrior to loaning any IMF FUNDS, PERIOD. Its time to STOP this type of Financial incompetence.

    As IMF is “loaning” other jurisdictions funds then these jurisdictions are due “DUE DILIGENCE” by the IMF organization. If IMF funding STOPS, game over.

  26. Vincent Codrington Avatar
    Vincent Codrington

    @ Wily Coyote at 11 :30 AM

    We can agree that the problem is systemic. To me that means we should have the means and courage to correct it without the help of the IMF and its conditionalities. The SDRs are not other people’s funds it is a loan based on a country’s allocated quota. It is fiat money.

  27. Vincent Codrington Avatar
    Vincent Codrington

    The assumption that the IMF has superior know how and expertise is a fallacy. The so called experts are drawn from member countries following a prescribed manual. I was therefore annoyed to see this topic resurfaced. The Executive Board seldom changes the report of the visiting team. But this is good theatre.

  28. David Avatar
    David

    The IMF is invited by the member country to lend technical and sometimes financial assistance. A country entering an IMF program speaks to a lack of financial discipline by the country. In essence Vincent is saying the two major parties supported by the citizenry who brought us here have the capacity to extract ourselves.

    #hmmmmm

  29. Lloyd P Gulston Avatar
    Lloyd P Gulston

    Dear Vincent Codrington and Barbados Underground

    A statement as profound as your comment at 9:42 AM should be featured as an article for Barbados to read.

    I have shared my disappointment with the media. You and Hal Austin have exposed the fundamental weakness in their journalistic profession.

    Are they listening?
    Are they reading?
    Are they understanding?

    Best regards

    LPG

  30. Mariposa Avatar
    Mariposa

    So Atherley lit a flaming torch headed in govt direction acussing govt for withholding funding which is legally allocated to them as opposition

  31. Artax Avatar
    Artax

    Page 50 of the AG’s report, as it relates to the BRA:

    Deposit Account

    3.29 Revenue collected on behalf of the Crown is deposited to a commercial bank. The Authority reported a balance of $17,187,000 on this account at March 31, 2018. While a reconciliation was presented, the related bank statements were not presented to allow for an audit verification of the bank related figures on the reconciliation.

    Authority‟s Response:

    The Authority apologises for the non-submission of the bank statements and will ensure that such crucial information is available in future.

    Refunds Account

    3.30 The Authority has a bank account dedicated to the payment of refunds. Funds are deposited to this account by the Treasury Department to honour refunds to taxpayers. The Authority reported a balance of $3,068,000 on this account at the 31st March, 2018. It was however noted that the reconciliation presented carried an unexplained difference of $894,681.81 between the bank statement and the records of the Authority. No satisfactory explanation was given for this figure.
    +++++++++++++++++++++++++++++++++++++++++

    It’s clear why the bank statements are missing.

    How could this occur in the BRA……….. and the accounting officers be allowed to simply tell the auditors: “Sorry, yuh…. we en got dem bank statements to verify de bank reconciliations…… but don’t worry, we gine gih wunnuh dum next time.”

    No one in the BRA will be held accountable………… and in next year’s Audit Report we will be reading of similar occurrences, because the officers who were responsible for these “mistakes” are not transferred or reprimanded….. but they will be allowed to continue working…… doing the same shiite over and over…… year after year……….

    ……… and not a boy en gine get locked up.

  32. crusoe Avatar
    crusoe

    It doth seem that some in aufority tek the Auditor Generals to be the Orator Generals.

    The mostest exemplar fellow expoundeth on matters of critical impotence, oops, importhance and yet, narily a man, woman, trangender or whatsoforth be in between, does tek he on.

    Forsootheth, the exemplary gentleman must feel he is out in de wilderness for forthy days an forthy nights, all alone despite the madding crowd.

    Alas, whereto will our chariot be guided, if no one listens to de call of the wise man? What shall become of our nation, from east coas to wess coas? Will there not be others to stand and restate their allegiance to the flag of blue and yellow, rather than to the paper of green?

    Where is the morality, lost in the wikup, lost in the mire of greed and lust, the hips grinding and wining, frenzied with anticipation of glorious satisfaction, consumed with the sweat of the brow and back. Oh dost thou yearn for flesh over soul?

    As they give their souls to the screaming satan, who promises gratification instant and crude, all things earthy but none earthly, nor celestial.

    Whereto from here, after, like Brute et al stabbed Caesar in betrayal, you have stabbed the goodness of the land without a thought.

    Oh pray tell, your earthy salvation will be your celestial damnation.

    Woe betide.

  33. NorthernObserver Avatar
    NorthernObserver

    For all the standard political comments, the AudG 2018 report was for a period up to March 31 2018. To my reading it had some subtle differences from past reports. Specifically that unrecorded advances to SOE’s and Clearwater Bay were ILLEGAL. Not inappropriate, or unauthorized, but ILLEGAL.

    These are very strong words. The AudG also reminds us of the huge unfunded Pension Liability in the public sector, and also that we have not been deducting NIS monies from these pensions and thus overpaying. An easy fix? Nor does the AudG mix words when it comes to assigning responsibility in the matter of “squatting”. But notes “Personnel from the Ministry of Housing indicated that it is difficult to contain these operations as there is a level of sympathy and empathy from the public and politicians for persons operating these businesses.” And further the MoTransport has built roads up to some of the lands to literally encourage squatting!!!!!

    The construction at Six Roads is so typically Bajan government style. The tender committee recommended Firm 1, but MoEducation and Cabinet decide on firm 2 for $2M more because of the “view” an award to Firm 1 “would not lend itself to the most effective utilization of domestic labour…..” In most places you put a labour clause into the contract, here they switch for more money but do not enforce any labour clause. But it gets better. Now several years behind schedule and overbudget, they decide they need more parking. They advance funds to the contractor for its construction, but it still hasn’t begun because there is a boat on the land. AND, the boat has an occupant!!!! Another squatter. Meanwhile, the new kitchen is inoperable, and battles still continue over what material outlet pipes should be. “We like it so”?

    The AudG also notes that $310M in Bonds issued by GoB to fund BAICO and ResLife were OMITTED from the books. Comparing actuals to estimates becomes a useless exercise if the numbers are mis-stated by huge amounts.

    Beyond squatting, the most symbolic comment was “The Government owes the National Insurance Fund a considerable amount of money and this may have triggered the Board‟s refusal to pay over the revenue.” This may also be a reason why private warehouses are not properly bonded or remitting duties when due, because they are owed tax refunds. Offsetting in their opinion?

    Anyway I pun Kawhi time.

  34. fortyacresandamule Avatar
    fortyacresandamule

    Fundamentally, the IMF is the lender of last resort for a country experiencing balance of payment problem / shortage of foreign reserve. The IMF loan RARELY goes into the central government coffer for budget support, instead it goes straight into the central bank account to build up the reserve. However, since the last financial crisis, the IMF has stealthly expanded its mandate to lend funds directly to government experiencing fiscal crisis or banking crisis.This was never the original function of the IMF.

    Technically speaking, a loan from the IMF is really a country ‘buying’ foreign currency from another IMF member country with excess foreign reserve. The IMF is just the facilitator of these transaction.

  35. Vincent Codrington Avatar
    Vincent Codrington

    @ David Bu

    Expressing a view certainly does make a difference. It lays bare the magnitude of the problem we need to tackle. It is indeed a complex one where we have to deal with the human factor.

  36. Vincent Codrington Avatar
    Vincent Codrington

    @ David BU

    Is this the system you want to “digitize” ? If one cannot follow a paper trail,how are you going to verify a computerized one?

  37. Vincent Codrington Avatar
    Vincent Codrington

    @ Hal

    @ Jorh A

    Are you gentlemen still willing to give the master class in Money, Finance and Accounting?

  38. Vincent Codrington Avatar
    Vincent Codrington

    I meant to type “John A”

  39. Hal Austin Avatar
    Hal Austin

    @ Vincent,

    You have the wrong person. I cannot teach what I do not know.

  40. John A Avatar
    John A

    @ Vincent.

    I like Hal i could only add and subtract little bit! Lol

  41. John A Avatar
    John A

    @Vincent.

    Plus I wouldn’t last too long as I don’t pull no party line so I will get my first months salary and severance letter in the same envelope. 😂

  42. Hal Austin Avatar
    Hal Austin

    @ John A

    You intellectual. I did not even go to school. I must do before I am too old.

  43. John A Avatar
    John A

    @ Artax 1.34pm

    All you mentioned basically goes to confirm that no senior person even bothers to do a bank reconciliation at month end. This not only is ludicrous but opens the entities finances to all kind of “issues” especially where cash deposits are concerned.

    The truth is all in charge want firing from the top down who were involved in these issues. But as we both know it will never happen for fear the unions shut the country down for 2 weeks. I bet if you go back today and follow up on just those 2 incidences you outlined, nothing as of today has been done to address them.

  44. NorthernObserver Avatar
    NorthernObserver

    @VC
    i “sense” in recent threads a growing frustration. The stalwart of sound principles seems rattled at the persistent indifference on display.

    @JohnA
    maybe with time, and a growing list of ‘book cooking’ exercises, the depth and breadth of the Barbadian situation maybe coming clearer. SD was not the only option, but the other options seem more mountainous as time progresses. There was nary an area which wasn’t extended to the full ballah and then some.

  45. John A Avatar
    John A

    @ Hal

    Lol I don’t think no school would accept us now as they would say we too old and set in our ways. Plus we might ask too many questions and get put in detention!

  46. Vincent Codrington Avatar
    Vincent Codrington

    @ John A

    @ Hal

    Do you see why I taking long on these lyrics for my calypso? When I go on stage with the two of you as back up singers, I bound to go off key. But I understand. Some in the audience are tone deaf.

  47. John A Avatar
    John A

    @ Northern

    I think it is a combination of things that frustrate many of us. Not only are these things allowed to happen, but what adds to our frustration is that there is little if any consequence for such when it does occur. I have to tell you I have the greatest of respect for the auditor general as a lesser man would or resigned years ago.

    Ask yourself one question, why with a majority of 30 to 0 in the house hasn’t this government moved with haste to change the laws so that the Auditor General would have teeth to take his findings to the level of prosecution, obviously with the assistance of the DPP?

    It don’t need too much though to figure out does it?

  48. John A Avatar
    John A

    @ Vincent

    Well I practicing my moves all like now “wuk up wuk up wuk up, turn and pass out! Plus we old men could only perform at the early matinee show! Lol

  49. Hal Austin Avatar
    Hal Austin

    @ John A

    You got me trapped. I can’t learn. Hard ears. @Vincent, I am no backing singer and I am a soul man. Soul/calypso = Soca.

  50. John A Avatar
    John A

    @ David

    I was not aware he told David Ellis the PAC was meeting. I eagerly therefore awaiting a published and clearly documented report from the PAC outlining the findings and plan of action.

    Wait though wasn’t the PAC also meeting in the good old days of Stewart and Sinkler, I wonder what ever came of those reports?

    You starting to see any glaring similarities yet in the value and efficiency of the PAC? Just give the dam Auditor General teeth in collaboration with the DPP and done with that.

    I tired hearing the same old crap from the duopoly that’s the truth. I voted for change and the only one I see so far is old taxes under changed names accompanied by little else.

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