Senator Caswell Franklyn of the People’s Party for Democracy and Development (PPDD) shared the following email (email addresses were redacted from the email) with the blogmaster. The contents of the email is not new and there is no need for the blogmaster to be prolix except to say-  trivializing the process of law making exposes AND compromises the governance system.

We must do better.

– David Blogmaster


From: Parliament of Barbados <parliamentbarbados@caribsurf.com>
Date: 28 August 2019 at 2:05:26 pm GMT-4
To: “Abrahams, Wilfred” , “Atherley, Bishop Joseph” , “Bostic, Jeffery” , “Bradshaw, Santia” , “Caddle, Marsha” , “Clarke, Gline” , “Dr. Browne, Sonia” , “Dr. Duguid, William”, “Forde, Adrian”, “Forde, Cynthia”, “Gooding-Edghill, G. P. Ian” <, “Griffith, Charles”, “Hinkson, Edmund”, “Holder, Arthur” , “Humphrey, Kirk”, “Husbands, Sandra”, “Jordan, Colin”, “King, John”, “Marshall, Dale”, “Mia A. Mottley, Prime Minister” “Parris, Patricia”, “Payne, George” , “Phillips, Peter” <, “Prescod, Trevor” , “Rowe, Neil”, “Straughn, Ryan”  “Sutherland, Dwight” <, “Symmonds, Kerrie”, “Thorne, Ralph”, “Toppin, Ronald”, “Weir, Indar” , “Beverly, Gibbons”  “Eastmond, Pedro” , “Jones, Nigel”
Cc: “Adams, Rawdon” , “Boyce, Kevin”, “Cheltenham, Dr. Sir Richard” , “Cummins, Lisa” , “Drakes, Crystal”, “Franklyn, Caswell” , “Grant, Rudy” , “Greenidge, Rudolph” , “Haynes, Dr. Crystal” , “Henry, June”, “Holder, Lynette” , “Maynard, Dr. Christopher” , “McConney, Kay”, “Moe, Lucille” , “Moore, Toni”, “Nurse, Lindell”, “Rogers, John” “Sands, Damien”, “Springer, Romel”, “Taitt, Monique, “Walcott, Mr. Jerome” , “Wiggins, Alphea”
Subject: Supplement to the Order Paper for Friday 30th August, 2019

Dear Honourable Members
Please see attached the Supplement to the Order Paper of the House of Assembly for the 49th Sitting to be held on Friday 30th August, 2019 and the measures thereon.
  1. Resolution to grant the sum of $2,073,027 from the Consolidated Fund to place it at the disposal of the Government to supplement the Estimates 2019-2020 as shown in the Supplementary Estimates No. 2 2019-2020 which form the Schedule to the Resolution.
  2. Resolution to approve the borrowing by the Government from Republic Bank (Barbados) Ltd. of the sum up to BBD 26.3 million to repay existing overdraft facilities held by the Barbados Transport Board, the National Housing Corporation and the Queen Elizabeth Hospital.

Regards

Clerk of Parliament

Miss Suzanne Hamblin
Parliament of Barbados
Parliament Buildings
Trafalgar Street
Bridgetown
email: parliamentbarbados@caribsurf.com
Website: www.barbadosparliament.com

Attachments:

274 responses to “Senator Caswell Franklyn of the Opposition People’s Party for Democracy and Development Exposes a Big Problem II”

  1. Piece the Legend Avatar
    Piece the Legend

    @ Senator Franklyn

    De ole man, as usual, is following your articles on the happenings in and about Parliament and the machinations of this wicked Mugabe Mottley

    I have viewed these 2 items namely

    1.Resolution to grant the sum of $2,073,027 from the Consolidated Fund to place it at the disposal of the Government to supplement the Estimates 2019-2020 as shown in the Supplementary Estimates No. 2 2019-2020 which form the Schedule to the Resolution.

    2.Resolution to approve the borrowing by the Government from Republic Bank (Barbados) Ltd. of the sum up to BBD 26.3 million to repay existing overdraft facilities held by the Barbados Transport Board, the National Housing Corporation and the Queen Elizabeth Hospital.

    Grateful if you could explain the context of these items to an ole man

    I guess I would deduce that government is not to use the Consolidated Fund in this way NOR should it borrowing $26.3 million.

    I am bothered though that the overdraft of these entities could be so high

    Grateful for your clarification

  2. Piece the Legend Avatar
    Piece the Legend

    @ the Honourable Blogmaster your assistance please with an item here thank you


  3. David
    There is currently one Bill before the Senate and zero resolutions. You receive copies of two resolutions a week in advance of the next sitting. For MPs that would be 2 days. One is $2M to supplement the summer school repair programme and the other is $26M related to overdraft facilities for TB, QEH and NHC. Where’s the trivialisation? Lower, upper or both houses?

  4. Vincent Codrington Avatar
    Vincent Codrington

    @ Enuff

    Thanks for clarification. Is GoB exceeding its current borrowing limits?


  5. @ Vincent

    The IMF would have insisted on a fiscal rule or guidelines before lending any money. It is up to the government to make this public, but it is there. A fiscal rule is the foundation of a policy of austerity. (Read the 1995 Canadian Budget Speech on deficit reduction).

  6. Vincent Codrington Avatar
    Vincent Codrington

    @ Hal Austin

    GoB for over 70 years has fiscal rules. We do not need an external body to design or impose fiscal borrowing limits. These are generally set by Parliament on advice of MoF and CBB. There is a tendency on this blog to give more powers to external bodies than they have. We are a sovereign nation.

    But then again THAT IS OBVIOUS.


  7. @Vincent

    Over 70 years? Interesting. We did not have a central bank 70 years ago. Plse direct me to the copy of Hansard that sets out our fiscal rules independently in 1966-71. The lender stipulates the rules.

  8. Vincent Codrington Avatar
    Vincent Codrington

    @ Hal Austin at 9:35 AM

    I have no intention of engaging you at that level of debate today.

  9. NorthernObserver Avatar
    NorthernObserver

    @VC
    with your being the resident BU banking expert, maybe you might explain to the rum shop, why a body, in this case 3 of them, would seek to pay (repay is the term used) their overdraft facility?
    And given the clause “All interest payable hereunder shall accrue from day to day on the basis of the actual number of days elapsed in a 365/366 – day year”, how is interest calculated?

  10. Vincent Codrington Avatar
    Vincent Codrington

    @ NorternObserver at 10 :08 AM

    The balance of an overdraft is expected to fluctuate from day to day. It is a facility which allows businesses to take temporary loans without having to go through the lending process. The upper limit is set at the beginning of the arrangement.
    In the case of the three State Corporations and from BU discussions ,it would appear that these fluctuations in bank balances are not occurring. Subsequently there is a hardcore of debt that is not being repaid. The submission suggests to me that the GoB has decided to borrow from another bank to liquidate this hardcore of debt.

    2.
    Like personal and private sector overdrafts, interests are paid according to the balances outstanding and interest is calculated and accrued on a daily basis or whatever terms are agreed. This is normal practice.
    Let us hope that this is not another case of rearranging the deck chairs.

    I hope the responses answer your concerns. If not reformat them and I will try again.


  11. ” the borrowing by the Government from Republic Bank (Barbados) Ltd. of the sum up to BBD 26.3 million to repay existing overdraft facilities.

    Operative words to this layman. BORROWING to repay EXISTING.

  12. NorthernObserver Avatar
    NorthernObserver

    @VC
    Thank you.
    Is it not odd, that given the TB, QEH and NHC are all bodies corporate, they are not seeking the loan themselves, and the GoB is seeking it “on their behalf”. Should we interpret that none of these three SOE’s could qualify, and hence why the loan is to the GoB?
    Is it “normal” that the document laid before parliament (I appreciate this extends beyond the actual loan agreement, and is the parliamentary explanation) would reference causes for upward interest rate hikes [Covenants A (ii)], without specificity on what those rate increases could be or the specific causal factors?

  13. NorthernObserver Avatar
    NorthernObserver

    @to our parliamentary procedure experts
    Resolution No. 2 2019-2020 $2,079,027
    Is it standard that our elected representatives are presented with SUPPLEMENTARY requests which are many times beyond the already approved estimates WITHOUT any explanation as to why, or what, the amounts are for, just dollar amounts? And merely told these “should be approved”.


  14. @ NorthernObserver August 29, 2019 11:10 AM

    That is exactly the purpose of the resolution.

    It’s a matter of tidying up the government’s balance sheet since the government is the ultimate guarantor of all liabilities incurred by the SOE’s.

    This should give those statutory bodies some elbow room to carry out the much needed (and IMF-demanded) restructuring programme.

    Next patient up for surgery should be the CBC.

  15. Vincent Codrington Avatar
    Vincent Codrington

    @ NO at 11:10 AM

    These occurrences are not odd.
    The GoB would have been the source of the deficits in the first place.Their subventions were cut by the GoB. These State owned corporations were designed to receive subventions and subsidies from the Consolidated Fund.
    Making them SoC was to remove bureaucratic management practices not to reduce the size of public subsidies/ funding.

    That clauses recognize financial realities that interests rates fluctuate by fiat and in the free markets. Interest rates are indeterminate.

  16. Vincent Codrington Avatar
    Vincent Codrington

    Northern

    They are sent to Parliament for debate. The result of the debate is a foregone conclusion. The MoF will provide all the information you want to see. Under normal conditions we should not be having this discussion. These are matters for our elected/ appointed representatives.

  17. de pedantic Dribbler Avatar
    de pedantic Dribbler

    @Vincent, what are “… Under normal conditions we should not be having this discussion.” And why should the people (here and otherwise) not delve into these matters and debate them for their education!

    Don’t you believe that the 30 -0 drubbing and too the openness of social media make these times abnormal enough for this type of people’s review of the mundane business of the senate/govt!

    When you say “These are matters for our elected/ appointed representatives” , I would add: ‘…And so too definitely now for the average Bajan’.

    I cast my memory back some 30 odd years ago when a now deceased PM initiated his soon to become outsized public acclaim by taking apart the same Senate as too profoundly ‘business as usual when as a 17-18 6th former he comprehensively out debated a then attorney/Senator on CBC.

    Alas and unfortunately despite his (the student’s) conviction of the almost purposeless rubber stamp role of the Senate he led no successful charge to make meaningful change to the system when he became an elected leader…. so it’s still as ‘trivial’ as he alleged those many years ago!

    Thus, now that the Blogmaster has created the attention ‘hook’ by calling out the Senate as “trivializing” the governmental process and we have an activist Senator in the chamber it would be very impressive if the business of the Senate could become a regular presentation here for debate via Mr. Franklin’s email.

    But I wonder if the really mundane would elicit much interest…here for example, you offered simple but solid info on the wheretos and wherefores of the items on this ‘order paper’…nothing too scandalous really…but very, very important as to the SIGNIFICANT underlying issues like those initiated by @NO… THAT’s a level of debate worthy of this people’s assembly as was @Pieces original query!

    I gone.

    I wanted to hear you guys pontificate about that big foot move by PM Johnson but it seems to interest no one here, no less the resident ‘failed state’ adjudicator, ah well!


  18. @enuff

    Thanks.

    WordPress offers the functionality to copy and existing blog to create a new. Until we see the Upper Chamber being taken seriously there is merit in the approach.


  19. @enuff

    The blogmaster has a confession for you, the debate in the upper chamber in this term appears to be revealing.


  20. @Vincent

    It the situation here analogous to an individual seeking to consolidate debt to improve cash flow? If yes the underlying behavior will have to be addressed?


  21. Let us forget the window dressing and look at reality.

    We have 3 government entities the Transport Board, NHC and the QEH whose boards have allowed them to max out their overdraft facility for what ever reason to the tune of $26M. Central government now says to them ” don’t worry fellows we going bale wunna out by borrowing the $26M.” So central government now goes further into debt by that amount so as “top back up” the cheque book of these 3 entities. My questions are therefore these to the MOF.

    When last have these 3 entities filed audited financials with central government? Please supply dates of the last audited financials on hand for each entity.

    Secondly what conditions were their cheque books ” refilled” under? Were they given 6 months to bring their financials up to date? Were cash flow projections required from each entity as a condition of receiving the top ups? Were revised business plans demanded from the boards of each entity for the next 12 months say?

    My point is if central government does not make rigid demands of them with consequences for failure to implement change, they will simply show back up at our doorstep in 12 months with their overdraft maxed out once again. What will we do then go and borrow another $26M to fill their cheques books up once more?

    Our way of handling situations like these is laughable to say the least. We place a towel under the car to stop the oil dripping on the floor, but we do nothing about fixing the oil leak.

  22. NorthernObserver Avatar
    NorthernObserver

    @VC
    I get all, but your comments about interest rates. The loan is for 18 months at a fixed rate of 5%.
    The document referenced states….”such other information as the Bank may from time
    to time reasonably request, and provided that if the financial information requested is not submitted as
    stipulated, the Bank reserves the right to have the said financial information prepared, and to debit the cost
    to the Borrower’s account, and to vary upwards the interest rate on the facility having given notice of such
    variation.”
    The remedy stated is two fold…a) have those requested financial documents prepared at the Borrower’s cost AND b) increase (vary upwards) the interest rate.
    Given the paucity of timely financial reporting from many public bodies, this reads to me, like a carte blanche to raise the rate charged?

    I also found the following interesting…”The Borrower will not, without prior written consent from the
    Bank create or suffer to exist any encumbrances against property or assets now being charged to the Bank”

    This is not your typical sovereign debt, where the collateral is implied by the Sovereign’s ability to tax its inhabitants. It seems the Bank has sought specific pledges, property and/or other assets, against the loan. Possibly it is this security which produced a 5% rate? Which seems low given recent events.


  23. https://barbadostoday.bb/2019/08/29/still-no-word-from-government-on-outstanding-benefits/
    I used to get angry when The Minister would issue pay by dates and the dates would then pass without people getting their money.

    Looks like the minister got tired of telling lies and now keeping his mouth shut.

    I now have to change my stance…Lie a little, say something… Tell them November.


  24. https://barbadostoday.bb/2019/08/29/gray-play-cornwall-drop-bravo/
    Playing Jesus wouldn’t help this sad lot.


  25. https://barbadostoday.bb/2019/08/29/flawed-justice-2/

    “There is no justification for the excessive lapse of time,” Sir Marston admitted.

    In that case hand in your damn letter of resignation.

    Ahole, resign.


  26. Stupid, ARROGANT government, forgivng billion dollar (thefts of VAT/TAXES) debts, not collecting money STOLEN FROM PENSIONERS by wicked criminal minorities……= pensioners and everyone else SUFFERS… a USELESS government..

    29-0

  27. Vincent Codrington Avatar
    Vincent Codrington

    @ Northern Observer

    All bank loans have conditionalities attached to them. In view of recent financial history , I think the terms are reasonable . The banks have to manage its credit risks.

    I am surprised that you think GoB ability to impose tax would merit a waver of collateral. Does recent historical record support this? We keep forgetting how we reached this stage.

  28. Vincent Codrington Avatar
    Vincent Codrington

    Northern Observer

    The terms if true are reasonable. We are into a low/negative interest rate regime on deposits ….the source of funding. The assets pledge as collateral are probably the same held on behalf of the State Owned Corporations. It is just a transfer of loans from the SOCs to Central Government. Nothing new. Nothing to be excited about. The GoB has moved from Guarantor to Debtor, a point which Miller made quite eloquently.

  29. Vincent Codrington Avatar
    Vincent Codrington

    @ NorthernObserver

    Just to stir the pot, do you think your northern banks would have entertained the proposal?

  30. Vincent Codrington Avatar
    Vincent Codrington

    @ David BU

    Does consolidation of debt really improve cash flows? Or does it put the creditor in a better position to manage and assess his risks?


  31. @Vincent

    It does both.


  32. Theogaz
    Why must it be lies? So shallow!!
    If these disability recipients receiving 2 pensions, them lucky and should be patient. If my interpretation of the situation is right, it seems they were paid in error. If true, I can see the government making sure this is the last batch of the 2 state pensioners. Isn’t a disability a grant until yuh reach pensionable age?


  33. IMAGINE IF THIS HAPPENED TO YOU.

    ” Wayne “Ricky” Gibbons of Gall Hill, St John, has suddenly lost his $750 pension which Government replaced with a $24 monthly cost of living allowance.

    And he doesn’t understand why, since the Government said it would reverse the decision.

    Gibbons spent more than two decades watching over the Queen Elizabeth Hospital as a security officer until it took its toll and he was forced to retire medically unfit with severe back problems. He agreed to take the gratuity and reduced pension and also applied for the invalidity benefit from the National Insurance Scheme.”

    https://www.nationnews.com/nationnews/news/241549/pension-pressure-st-john


  34. @enuff

    This is not the issue, the conflicting positions given by Jordan and then Straughn.

    Then the promise it would have been rectified by now.

    The same leadership we saw by the government managing Tropical Storm Dorian should be seen with this matter as well?

    >


  35. This govt has governed through the lenses of smoke and mirrors
    Hence their inability to tell the truth on the ongoing issues of invalidity checks cannot be filtered as conflicting stories told by govt ministers have this govt caught in a dragnet of lies
    A couple months ago Jepter Ince spoke truthfully to this issue in which he stated that a deal to cut the pensioners payments was part of the IMF deal
    Govt needs to come clean on this issue

  36. William Skinner Avatar

    Why can’t we just accept that the IMF is calling the shots. This is nothing new; once they come in they tend to make cutting expenditure their main focus.
    The IMF recommends retrenchment; reducing pensions and capital expenditure. It’s a common fact that we are trying to reform the economy via the IMF , with an arrival date set for 2033. That’s fifteen years. We’re not into two years and we still can’t get it.
    Stay away from the cool aid. Wish the government well and hope for the best.
    There is no alternate universe. The visionless Duopoly has brought us here. It’s a result that has been predicted for over thirty years by those who don’t cater to the jokers.
    We are technically broke.
    Time to rally around the Broken Trident. Park the parties’ membership cards and think Barbados.


  37. This is not the issue, the conflicting positions given by Jordan and then Straughn. (Quote)

    @David BU

    I understand that people who joined the civil service after 1974 or 5, are not entitled to two pensions.

    I think it is unreasonable for people to want to receive their pensions at 65 years and still receive an invalidity benefit.

    @ David BU, why not ask Caswell Franklyn to explain or clarify the issue. I’m sure he should have some experience in dealing with a matter such as this.


  38. DOES ANYBODY CARE ?

    ” suddenly lost his $750 pension which Government replaced with a $24 monthly cost of living allowance”.

  39. William Skinner Avatar

    The duplicity of the Duopoly is on show once again. The government has two choices either enforce the law or allow the status quo to continue. Ministers giving conflicting statements is perhaps organized confusion. All of these matters could have been easily addressed almost forty years ago but political expediency remains the major focus of the Duopoly.
    To enforce the law by placing the blame on its twin brother would have to be a very clinical exercise and to allow the status quo to remain , obviously puts pressure on limited funds. The IMF and foreign creditors would not be happy with such.
    In the meantime the faces of those suffering remain the same.

    The Duopoly Rules

  40. Vincent Codrington Avatar
    Vincent Codrington

    @ Enuff at 6:59 AM

    In my humble opinion it is. The disability pension is intended to fill the gap from the disability to pension age. They will be getting more than they are entitled to. Old age is a disability. This will put the National Insurance Scheme under unnecessary pressure. Some persons are greedy to the point of risking the future viability of the Fund. It is not a free. The funds either come from the Consolidated Fund or the contributions of current contributors.

  41. Vincent Codrington Avatar
    Vincent Codrington

    @ David BU at 7:02 AM

    The alleged conflicting opinions of Mr. Straughn and Mr. Jordan is not the issue. The issue is the entitlement under the rules that govern the pension pay out. This should be left to the technocrats and their legal advisers at the Treasury and the NIS. It is not a political matter. It has financial consequences for the Fund.

  42. William Skinner Avatar

    @ Vincent Codrington

    It ought not to be a political matter. To the ordinary citizen it’s interpreted as : “
    Taking away my pension/ benefits “.
    That’s why we need to make transparency more than a slogan. The next political question will be:” Barrow never enforced it why it’s being done now with along with the increase in taxes.”
    Remember the University fees debate? That became a political hot potato. That’s our problem. Bet you a million dollars if this was being done under their identical twin brother, they would not give a hoot about technocrats in the NIS. The political argument would be : Dont take away the peoples’ pension/benefits.
    That’s where we are as a country and anybody who denies that is a pure bred hypocrite. It’s all about political expediency .

    The Duopoly Rules

  43. Vincent Codrington Avatar
    Vincent Codrington

    @ Hants at 8:18 AM

    I know that you are quoting. Neverthe less it is necessary for you to give BU household your interpretation of the quotation. Surely it is important to state whether the $750 was his reduced GoB Pension, or the disability pension. Very often we are tempted to be guided by shortterm benefits. The option for a reduced pension was a bad decision in his case. Perhaps the misguided practice at that time was to receive both a disability pension and a retirement pension. The unions need to keep members informed.

  44. NorthernObserver Avatar
    NorthernObserver

    @VC
    other than you previously noted, “The submission suggests to me that the GoB has decided to borrow from another bank to liquidate this hardcore of debt.”, why wouldn’t one of the northern trio provide the funding? Maybe not the one with the current o/draft, assuming it is one of them, or could be >1. It is only $26.5M repayable over 18 months. As you also noted, the cost of money is near 0, hence a spread near 5 points is good, esp if you can extract another 1/2% in closing costs.

    The thread title, was “exposes a big problem”, hence my comments were less my concerns than seeking to locate the issue.


  45. Gibbons spent more than two decades watching over the Queen Elizabeth Hospital as a security officer until it took its toll and he was forced to retire medically unfit with severe back problems. He agreed to take the gratuity and reduced pension and also applied for the invalidity benefit from the National Insurance Scheme.”(Quote)

    This is a rather sad tale. Mr Gibbons worked for the QEH for two decades. Did he make contributions to his occupation pension for those years? If so, what was the scheme retirement age and how old was he when he stopped contributing? What was his actuarial entitlement when he stopped contributing? What has happened to this contribution?
    Was his invalidity benefit from his occupational pension or from the NIS? Ignoring for the time being the policy that one cannot obtain invalidity benefits and a state pension? Has he now reached the state retirement age?


  46. The question should be asked of govt why would govt want to increase the levels of poverty in a country where the levels of poverty are already at a high rate


  47. @ Mariposa

    Spot on. it is the role of government to improve people’s lives.


  48. @ Vincent Codrington who wrote ” I know that you are quoting. Neverthe less it is necessary for you to give BU household your interpretation of the quotation.”

    ok. Here is my interpretation. The man used to get $750. per month. Now he only getting $24. per month.

    He now has to beg borrow or steal until the technocrats can sort this mess out.

    I rely on the maguffees on BU ( including you ) to provide expert opinions.I just read and learn.


  49. “The issue is the entitlement under the rules that govern the pension pay out. This should be left to the technocrats and their legal advisers at the Treasury and the NIS. It is not a political matter. It has financial consequences for the Fund.”

    “The option for a reduced pension was a bad decision in his case. Perhaps the misguided practice at that time was to receive both a disability pension and a retirement pension.”

    Mr. Codrington

    We have a way of politicizing every issue into BLP versus DLP scenario. So far, your responses to this issue have been rational and reasonable.

    I believe people should show a bit more responsible in dealing with their personal affairs.

    Obviously, to receive an invalidity pension (or benefit), one would’ve had made the appropriate contributions to the NIS. Payment of this pension continues until the individual reaches pensionable age, at which time it is converted to an old age contributory pension of an EQUAL amount.

  50. Vincent Codrington Avatar
    Vincent Codrington

    @ Artak at 11:41 AM

    Thanks for confirming my suspicion that the invalidity pension transitioned to the old age contributory pension;and the $25.00 was the periodic increase the NIS add to this pension. We tend to bring too much emotion into decisions, the guidelines for which are already established. This is not the sign of a mature society.
    We cannot govern a country in this manner. And the BU Household should not encourage this type of behaviour.

The blogmaster invites you to join the discussion.

Trending

Discover more from Barbados Underground

Subscribe now to keep reading and get access to the full archive.

Continue reading