The Mottley government ran a political campaign in 2018 and 2022 on a commitment to being transparent and delivering good governance. In her victory speech in 2018 she proclaimed, “We believe that transparency and accountability are not optional—they are essential to restoring trust in public life.” Seven years later is enough time to make a judgement call on whether Mottley has delivered on the rhetoric.
There has been no haste to implement transparency legislation. There has been no haste to ensure the Public Accounts Committee (PAC) does its work. Despite ‘pretty talk’, Prime Minister Mottley risks falling into the same bucket as her predecessors—talking transparency while sidestepping implementing legislation to enforce it.
The Mottley government took office in 2018 and immediately defaulted on its debt to local and international bondholders. It hired a little-known firm by the name of White Oak Advisory to assist and claimed the right to execute a no-bid contract given the dire economic circumstances that faced the country. The late Walter Blackman joined others on Barbados Underground by being über-critical of the decision, suggesting homegrown actors should have been contracted to do the job if restructure was the decision to make. The Financial Times published an article highly critical of the US$27 millions and other retainer fees paid to White Oak as being “absurd” for a small country like Barbados. Prime Minister Mia Mottley was not deterred.
Even if some expertise was required to deal with international bondholders, why did the Mottley government continue to support its decision to contract White Oak Advisory because of savings associated with the restructure of local government securities? There was no complicated negotiation required, it was a directive administered by the Central Bank of Barbados to apply the haircut on a few Barbadians holding bonds AND notably the National Insurance Scheme.
Since 2018 there have been questions about the full scope of White Oak’s role in Barbados. Although there have been snippets in the media to support that White Oak remains government’s financial advisor, details surrounding its function have lacked transparency. Recently the name of White Oaks “popped-up” as the financial advisor that assisted with the US$500 sovereign bond issue. Resident BU family member Northern Observer has been highly critical of the coupon rate of 8% which contrast with lower rates offered in the local market.
White Oak was invited to Barbados in 2018 to assist with the restructure of debt when the government decided to undergo a Selected Default and enter an IMF program. Seven years later the government has indicated it will terminate the arrangement with the IMF, however, the relationship with White Oak Advisory continues. The Prime Minister owes it to the Barbadian public to ‘fully’ disclose the nature of government’s ongoing relationship with White Oak Advisory, what it entails, what it the cost, and why it remains necessary. In a democracy, taxpayers are not just deep pockets, we are key stakeholders and we deserve and demand full transparency.
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