Tonight, the People United Party announces that they seek an explanation for amendment to finance instrument.
PUP Chairman of the Public Accounts Committee of the House of Representatives, Julius Espat, and his colleague Rodwell Ferguson have issued a public condemnation of the an amendment, known as S.I. 63 of 2013.
This change was made about three weeks ago to the Exchange Control Regulations by Prime Minister Dean Barrow, who is also Minister of Finance.
The amendment, according the interpretation of the PUP, removes from Central Bank oversight in relation to any and all bank accounts controlled by the Government of Belize.
This, according to them, allows any Ministry or Department to open such an account for Government-related business without the authority of the Central Bank of Belize.
Today, the PAC Chairman spoke to our colleagues from Plus TV, where he explained the issue that they have.
Hon. Julius Espat - PUP, Public Accounts Committee Chairman
"[The Statutory Instrument #63 of 2013 - regulations made by the Minister responsible for Exchange Control in exercise of the power of control appointed by section 3 of the Exchange Control Regulations Act Chapter 53] is a document that is four pages long but it deals with the regulations of how you deal with money and the transactions of money and in this specific case the Government had signed an SI where we are taking out the supervisory and administrative role of the Central Bank as it pertains to foreign currency accounts used by government. That is where we have a concern, it is taking away oversight - the same thing that the public committee has is the same thing that's happening here.
What we are asking the government is to come clear to the Belizean people and explain to us - because a lot of this has legal jargon and it's difficult for us to go through and understand the details - we want them to come to the people and explain to us why all of a sudden they have changed the law to take away the oversight from, and it says here 'nothing in these regulations shall apply to the Government of Belize and no permission, permit or approval of the Central Bank or any other authority shall be required by or on behalf of the Government of Belize for opening and operating a bank account in any currency or for conducting any transaction in relation to any securities or otherwise for any other deeds in foreign currency' - this gives the Government total freedom to do what they want and without anybody having oversight.
For too long the Belizean people are clamoring for transparency and accountability but for too long we have not been receiving it."
Today, we sought a response from Prime Minister Dean Barrow, on the issue raised by the PUP, and he responded to us via text message, saying that the PUP has completely misinterpreted the SI, and its intent.
Prime Minister Barrow said, quote,
"When were GOB bank accounts ever subject to Central Bank oversight? All GOB monies are ultimately for the Consolidated Revenue Fund and Government's treatment and control of public funds is subject to a raft of laws and Regulations and to the Auditor General's scrutiny, but not to CBB."
He continued,
"The SI was passed to deal with the need for GOB foreign currency bank accounts onshore, because of the re-assumption of control of the IBC and Ships Registries, since all payments to and from the Registries are in foreign currency."
And he explained why this SI came now by saying, quote,
"GOB did not locally hold foreign currency accounts before and the law did not so prescribe, because there was no need."
End Quote.
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