Turks and Caicos, April 6, 2017 – Providenciales – Commenting on a recent report on the management of the NHIB by the Chief Internal Auditor, His Excellency the Governor said, “In December 2016, I commissioned the Chief Internal Auditor (CIA) to conduct a review of the management of the NHIB in light of the serious issues involving significant liabilities that had arisen earlier that month. The report by the CIA has since been considered in Cabinet, most recently following receipt of responses from the NHIB.
The CIA’s report serves to remind us all of the important responsibilities placed on the Boards of Statutory Bodies, responsibilities made especially weighty in those instances, such as the NHIB, where the Boards are responsible for very significant financial resources with contingent liabilities for the public finances.
TCIG transfers over $45m each financial year to the NHIB in respect of payment of the TCI Hospitals Infrastructure costs, the Treatment Abroad Programme and Contributions for Wards of the State. This accounts for a significant proportion of TCIG’s overall expenditure costs and along with the contributions of residents across TCI requires prudent management and accountability.
Given the considerable financial impact Statutory Bodies can have on the TCIG budget, it is crucial that CEOs and Senior Management as well as Boards recognize their responsibilities in adequately providing oversight and management over these entities. Board members must be prepared to carry out the required governance and performance monitoring activities needed to ensure effective management of these entities. By extension, CEOs and other Senior Management Officers must be prepared to be held accountable for management shortcomings.
The object lessons from the NHIB are particularly acute: it is not beyond the realm of possibility – as I have illustrated – that serious mismanagement of the NHIB or of certain other Boards, could cause a serious run upon the budgetary resources of TCI. The need to address the issues raised as regards the NHIB are evident and are now being taken forward. But I believe they also reinforce the need for a proper review of the Statutory Bodies, especially of those which carry the largest risks, managerial and financial but also reputational for TCI. The Premier and I are committed to setting such a wider review in train as soon as possible.”
Press Release: TCIG