Finance
E. Jay Saunders and Team spearhead landmark change in Public Financial Management; Budget ROLL-OVERS now approved
Dana Malcolm
Staff Writer
#TurksandCaicos, April 7, 2024 – For the first time since 2012, significant changes have been made to the Public Financial Management (PFM) framework of the Turks and Caicos, giving the Government more say over how it spends the people’s money, erasing the need for any back and forth with the British. It is a change E Jay Saunders, former deputy premier, credits to him and his team when he served as the Minister of Finance.
“I picked that up, marked it up and said it was too restrictive. We negotiated that at the Cabinet level and the PS negotiated it with the technocrats in the UK,” he told Magnetic Media in an exclusive interview on March 28.
The new PFM allows for three main things:
- It raises the debt limits that the country can borrow without needing approval from the UK
- It mandates strict timelines to ensure a timely budget each year.
- It makes provisions for more money to rollover from any surplus that is gained into the next budget giving TCIG more ‘spending money’
“It increased the borrowing guidelines, it allows us more money, allows us to finance debts, and the goal is to increase what we can use for financing on a yearly basis; we can borrow more, we can spend more money for finance during the year,” Saunders said.
The former finance minister also told us that every time a budget was late it gave the government less time to complete their objectives. Specific clauses were included in the new PFM in order to put an end to that.
Before the budget can be approved a Fiscal and Strategic Policy Statement (FSPS) must be sent to the United Kingdom outlining the budget objectives for the respective financial year; only after that is assessed by the UK and returned to local politicians can they table and debate the budget for approval.
Under the new PFM that must be handed into the UK in January giving them several weeks to pour over it and return it in time for a
March budget.
”What it does is give all the departments 12 months to execute. By changing the PFM, I put our government and all future governments in the position where they can deliver the budget before the financial year starts.”
Saunders says the observance of Holy Week was the only reason why the 2024/2025 budget was not debated prior to April 1. Easter fell earlier this year.
Hon Saunders explained that whenever a surplus was recorded, the money didn’t go back into the budget.
“A significant portion of it had to go to the National Wealth Fund, and you would never see it again, unless under special circumstances.”
That fund powers a few select projects and once money is in it, the process to get it out is extremely complicated, Saunders explained. With changes to the PFM more money from any surplus will remain in government hands, allowing them to reuse it for capital projects and more.
The document mandates that if the actual revenue exceeds the estimated revenue by: 5% but is less than 20%, then only 50% of the excess of the revenue for that financial year has to be withdrawn from the Consolidated Fund and deposited to the National Wealth Fund.
If the actual revenue is 20% or more, 70% of the excess of the revenue for that financial year will go to the Wealth Fund.
Saunders says he wanted those percentages to be higher, but is pleased nonetheless.
”While it still has a feel of us losing, we’re not going to be losing as much as we would in a normal financial year, because a higher portion gets rolled over to the new financial year.”
He explained why the 2012 version of the framework could have been so restrictive.
”It saw the TCI at a time when the constitution had gotten suspended, the government had gotten put out of office, the SIPT investigations were starting, and the country had just gotten a $200 million loan that was guaranteed by the UK government,” he explained.
With over ten years passed since then, in 2023 Saunders said he revisited the document of his own accord and began the process of updating it. When it was all over he says he got the seal of approval from the UK personally, providing for the media, a letter addressed to him by David Rutley, FCDO Head, which congratulated Saunders and TCIG on their prudent management of the country’s finances.
For Saunders it is an indication of what can be achieved with more work.
”This might have been the first time one of these frameworks was sent back to be re-negotiated. It clearly shows now they have an appetite to say there is enough distance between the constitution being suspended. Now we’ve seen enough evidence that TCI can run a good government, now we’re willing to ease up.”
He expressed disappointment that he was unable to tackle other similar frameworks left behind by the British after the interim administration, like the pesky Procurement Ordinance and says, had he been allowed, those would’ve been next on his list.
The finance portfolio was shifted back to the premier in a messy squabble over their party’s leadership. Saunders now occupies the backbench.
Washington Misick, TCI Premier and Dileeni Daniel-Selvaratnam, TCI Governor signed the PFM into law since January.
Caribbean News
CIBC Caribbean and JetBlue Expand Partnership with Introduction of New JetBlue Business Card for Business Clients in Four Caribbean Destinations
Bridgetown, Barbados (June 23, 2025)– CIBC Caribbean and Mastercard have unveiled a third card, the JetBlue Business Credit
Card, designed for business clients across four Caribbean markets where JetBlue operates: The Bahamas, Barbados, The Cayman Islands and Jamaica. Developed with customers in mind, the new JetBlue Business Card offers exclusive rewards, valuable travel benefits, and enhanced opportunities to earn and redeem TrueBlue points, underscoring JetBlue’s ongoing commitment to fostering loyalty by becoming an integral part of its customers’ daily business journeys.
“We are thrilled to expand our card offerings with the addition of the JetBlue Business Card by CIBC Caribbean which will offer a truly enhanced travel experience for the business traveler,” said Jennifer Fuller, Director Enterprise Payments, Cards and Merchant Services.
“As a leading airline in the Caribbean, JetBlue takes great pride in our continued commitment to delivering innovative programs and products to our loyal customers throughout the region,” said Edward Pouthier, Vice President of Loyalty and Personalization at JetBlue. “We’re excited to strengthen our partnership with CIBC Caribbean through the launch of the new JetBlue Business Card, an offering designed specifically for our business customers. This new card provides exclusive rewards and benefits, allowing cardmembers to earn and redeem TrueBlue points across JetBlue’s network of more than 100 destinations and partner airlines, bringing them one swipe closer to their next journey.”
The JetBlue Business Credit Card offers TrueBlue points based on eligible spend, and clients with frequent travel to North America and
beyond, will also benefit from using the business credit card for purchases instead of using their personal cards.
The new business card will allow holders in The Bahamas, Barbados, The Cayman Islands and Jamaica to enjoy Group A priority boarding on select flights, the first checked bag free for up to three eligible travel companions in the same reservation, earn 4X points on eligible JetBlue purchases and get 10,000 TrueBlue points annually.
The new JetBlue Business Credit Card by CIBC Caribbean is the latest offering following the launch of the JetBlue Mastercard and JetBlue Select Mastercard by CIBC FirstCaribbean which were introduced in November 2023 in The Bahamas, Barbados, The Cayman Islands, Jamaica and Trinidad and Tobago. These cards provide cardmembers exclusive rewards, benefits, and an opportunity to earn TrueBlue® points that can be used to travel to more than 100 destinations in JetBlue’s network.
PHOTO CAPTION:
HEADER: L-R Head of Country – Gemel Sobers, Deborah Mercer, Director, Strategic Business Units, CIBC Caribbean, Mr. and Mrs. Rodriguez, Samuel McField Morgan, and Chris Morgan.
1ST INSERT: L-R Grand Prize winner Susan Boyko congratulated by Donna Wellington, Chief Country Management Officer, CIBC Caribbean.
2ND INSERT: L_R Jose Vargas, Vice President, Head of Sales and Account Management, Mastercard Direct Services, Edward Pouthier, Vice President Loyalty and Personalisation, JetBlue, Pim van der Burg ,Chief Commercial Officer, CIBC Caribbean, Danielle Dumas, Director, Business Development Mastercard, Jennifer Fuller, Director, Enterprise Payments, Cards & Merchant Services, CIBC Caribbean, Lucia Bastidas, Manager, Intl. Co-brand and Loyalty, JetBlue.
