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Gov’t attempts to divert insurance claim $$ for other spending
The information came to light when the House of Assembly (HoA) met recently on July 24, 2018, and Premier Smith was made to respond to queries laid in the House by First District Representative and Opposition Leader, Honourable Andrew A. Fahie (R1).
Impact Readiness Report
The Opposition Leader in his question—laid in the HoA—to the Premier, asked how much money had been received in insurance claims for the CAC and was told, while a claim was made for $19M, a settlement had been reached which saw government receiving a net claim of $11.3.
He told members of the HoA, “…insurance coverage on the Central Administration Complex is the responsibility of the Government of the Virgin Islands (VI)… Monies received from the insurance settlement will be managed by Central Government for the restoration of the physical structure.”
Asked by Opposition Leader, Hon Fahie, “…if any of the payment received was repurposed and if so give full details inclusive of, but not limited to, each purpose and the reason,” Premier Smith told the HoA, it was agreed that in the short term, monies would be made available from the CAC’s insurance proceeds to support” works identified in a VI Hazard Impact Preliminary Readiness Report.
Hurricane Season
He explained saying, based on the results of the VI Hazard Impact Preliminary Readiness Report, a decision was taken on April 25, 2018, to urgently address specific priority areas identified in that report, ahead of the peak of the 2018 hurricane season.
The short term priority areas identified—according to Dr Smith—include: “Key repairs to emergency shelters; Finalizing the restoration of emergency communications and equipment; Protection of critical government assets and document protection plan; Reestablishment of contingency stocks and establishment of satellite warehouses in various communities; Reinstallation of a moorings system at the Paraquita Bay shelter; Debris management and Clearing of ghuts and watersheds.”
Rescind Decision
He said, in order to fund the identified priorities it was agreed that in the short term monies would be made available from the CAC’s insurance proceeds to support work in these areas “with the understanding that any funds advanced from the insurance proceeds should be replaced at a later date.”
According to Premier Smith however, “I have been advised and am satisfied that the amount approved to be taken from the insurance proceeds can be adequately provided for under savings in the 2018 Budget…I will, therefore, be asking Cabinet to rescind its earlier decision.”
A total of $3.9M had already been allocated for the priority works however, and according to Dr Smith, “…no decision was taken as to where funding would come from to replace the insurance proceeds.”
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