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Hon Fraser accuses Premier Smith of lying to public again!
Both Hon Fraser and fellow member of the Opposition, Hon Andrew A. Fahie (R1), have in the past accused Premier Smith of bringing misinformation to the House of Assembly.
According to a press release issued today, July 11, 2016 by the Leader of the Opposition, Hon Fraser, it was at the Ninth Sitting of the First Session of the Third House of Assembly on June 23, 2016 that he was shocked at the ease with which the Premier casually responded to questions regarding Government’s Agreement with BVI Airways with answers that "did not square fully" with the facts of the Agreement.
‘Misinformation’ by Premier Smith?
Hon Fraser explained that he specifically asked the Premier how his government expects to reimburse BVI Airways its estimated start-up cost, to which Premier Smith replied “The agreement signed with BVI Government makes no separate provision for reimbursement of these startup costs.”
The Premier’s answer was untrue, claimed Hon Fraser, noting that Sec. 5 (c) of the Agreement, which has not been made available to this news site, Government agreed to reimburse BVI Airways for its estimated start-up costs.”
“My Question (B): To reimburse it its estimated operating loss to be incurred during its first three years of operation? Premier’s Answer: The cost of any anticipated losses during the three-year contract are also covered by the seven million dollar ($7 M) injection agreement.”
But according to Hon Fraser, Sec. 5 (c) of the BVI Airways Agreement states that Government has agreed to reimburse BVI Airways the estimated operating losses to be incurred during the initial three years of operation.
The Opposition Leader continued that he also asked about an agreement to guarantee BVI Airways an annual return of 20% on its investment and that Premier Smith said “The Government cannot guarantee the 20% annual return on the investment made.”
This was also misleading, according to Hon Fraser, who said that “In The Agreement: Sec. 5 (c) Government: Agrees to guarantee BVI Airways an annual return on investment of at least 20%.”
Premier Smith had also stated that his Government is obliged by agreement to make no further injections beyond seven million dollars to BVI Airways, however, this too has been shot down by Hon Fraser as misleading.
“You will note that the Premier did not answer to the question of gross ambiguity in the Agreement, where he is guaranteeing a profit; covering any losses; reimbursing start-up expenses; and still be sure that it will be within the seven million dollars, ($7,000,000). I submit to you that both the Premier and BVI Airways know full well where any additional funds will be coming from should government’s guarantees in my questions…exceed the seven million dollars, ($7,000,000).”
Premier Smith repeatedly denied further monetary obligations to BVI Airways
Hon Fraser stated that knowing the contents of the Agreement, and seeing that the answers given by the Premier were at odds with what is contracted for in the Agreement, he asked a follow-up question to the Premier with the hope he would rectify that the VI Government is not committed to covering the start-up costs, and to also reimburse BVI Airways on its loss, and the 20% annual return on its investments.
Again, Hon Fraser said Premier Smith’s response was contrary to what is in the Agreement.
“Premier’s Answer: By virtue of injecting the money, Government has agreed to participate in part of the startup costs.” This is “NOT TRUE” according to Hon Fraser, who said that “In The Agreement: Sec. 5 (c) Government agrees to reimburse BVI Airways for its estimated start-up costs and estimated operating losses to be incurred during the initial three (3) years of operations and to guarantee to BVI Airways, an annual return on investment of at least 20% (the ‘guarantee’).”
Hon Fraser concluded that after having gone through this experience with the Premier giving less than factual answers in the House of Assembly one too many times, “I thought it right to bring the matter before the public with the hope it will end. My own opinion is that the people responsible for providing the Premier with this information in their efforts to be correct, are doing the Premier a disservice by causing him to mislead the public,” Hon Fraser said.
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25 Responses to “Hon Fraser accuses Premier Smith of lying to public again!”
BVI Airways ain't going fly, that $7 million going end up in them pocket just like the millions of $$$ from the Cruise Pier Ptoject.
Fraser wall was smaller and shorter and it cost $1 million.