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
Lasco Financial Services Partners with FirstCare Medical Plan to Expand Access to Financial Products and Affordable Healthcare
#Kingston, Jamaica – June 19, 2024 – Lasco Financial Services, a leading provider of financial products, including their LASCO GOLD Visa prepaid card, proudly announces its strategic partnership with FirstCare Medical Plan. This collaboration aims to expand access to financial services and affordable healthcare for individuals and small and medium enterprises (SMEs) across Jamaica.
As part of this groundbreaking partnership, cash-based customers can now load their LASCO GOLD Visa card to pay for their FirstCare membership online, further broadening the healthcare plan’s accessibility. This partnership allows Lasco’s clients to use their cards to pay for their healthcare plan as well as provide another payment option for FirstCare members.
“We are excited about this partnership as it opens new avenues for financial inclusion and healthcare accessibility,” stated Jacinth Hall-Tracey, Lasco Financial Services Managing Director. “Our goal is to empower cash-based and underserved communities by providing them with the tools they need to lead healthier, more financially secure lives.”
Cash-based customers can use the Lasco prepaid card to pay for their FirstCare membership online, significantly broadening the accessibility of this essential healthcare plan. Additionally, LASCO Microfinance Ltd, with its nine branch locations island-wide, provides financing up to $2.5 million for personal loans and up to $10 million for business loans, supporting SMEs in their growth and development.
Addressing the partnership, Jheanell Thompson, FirstCare Country Manager, highlighted the company’s dedication to creating sustainable healthcare solutions.
“At FirstCare, we believe in the power of partnership to transform our community’s health. Our strategic alliance with Lasco is
designed to expand affordable primary healthcare access to all. This initiative will empower individuals and small and medium-sized corporate groups to maintain their health without sacrificing their bottom line, reinforcing our commitment to helping build healthier, more productive individuals and teams.”
Meeting the Healthcare Needs of Jamaica
Today, many individuals and small business owners are struggling to afford comprehensive medical care. FirstCare addresses this gap by providing free doctor visits and significant discounts on specialist services, labs, imaging, optical, pharmacy, and dental services. The plan’s vast network includes more than 300 medical providers, with over 100 General Practitioners spanning ten parishes, ensuring quality healthcare is accessible to all Jamaicans.
“Recognizing the critical gaps in healthcare accessibility in Jamaica, together with Lasco Financial, we aim to bridge these gaps,” shared Thompson. “SMEs often struggle to provide comprehensive healthcare benefits to their employees due to the high cost of healthcare services. Our collaboration marks a significant step forward in ensuring that business owners and their employees can thrive professionally and enjoy healthier lives with access to essential medical services.”
Key Benefits of FirstCare:
- No Cost Primary Care Visits: Free unlimited visits to more than 100 in-network general practitioners, plus discounted ambulance services and 24-hour urgent care.
- Discounted Labs & Imaging: Up to 15% savings at in-network labs and imaging centers.
- Specialist Doctors: Discounts at more than 100 in-network specialists across major cities.
- Optical Benefits: Save up to 40% and enjoy a free eye exam at over 20 locations.
- Pharmacy Savings: Instant savings of up to 15% at participating pharmacies.
- Dental Services: Save up to 20% on dental services.
- Lifestyle Rewards: Discounts at spas, restaurants, hotels, and more, which enhance overall well-being and lifestyle enjoyment.
Enhanced Financial Solutions for SMEs
Lasco Microfinance Ltd (LASMF), a subsidiary of Lasco Financial Services Ltd., will now offer FirstCare Medical Plan as an added benefit to their loan packages.
SMEs who secure loans from LASMF will also receive healthcare coverage through FirstCare Medical Plan, ensuring that essential healthcare services are more accessible. This initiative helps ensure that business owners and their employees can prioritize their health while focusing on growth and development.
FirstCare is at the forefront of digital innovation in healthcare, making it effortless for individuals to sign up and manage their health plans entirely online. Customers can easily enroll in the FirstCare plan from their smartphone or any device with internet access in under five minutes using their Lasco prepaid card and begin using their benefits immediately within the local network.
This streamlined, digital-first approach not only enhances accessibility but also empowers all Jamaicans to take proactive steps toward maintaining their health efficiently and affordably. Once enrolled, members can present their FirstCare membership card at any of the over 200 medical providers in the network to access their benefits.
For more information, visit FirstCare Jamaica and Lasco Microfinance.
Photo Caption:
Strategic Partnership Announced to Provide Enhanced Healthcare Benefits: Jheanell Thompson, FirstCare Country Manager (left), and Jacinth Hall-Tracey, Lasco Financial Services Managing Director (right), sign partnership agreement, marking a new era of healthcare accessibility and financial empowerment for individuals and SMEs across Jamaica.
Caribbean News
Caribbean Central Bank Governors agree to NEW Trade Regime for ease of doing business
Garfield Ekon
Staff Writer
#TurksandCaicos, June 18, 2024 – Regional Central Bank Governors have agreed to implement a system that allows countries in the Caribbean to trade using each other’s currencies without a third-party currency.
Making the disclosure, Governor of the Barbados Central Bank, Kevin Greenidge who is also the Chairman of the CARICOM Central Bank Governors, said it will be a version of the Pan-African Payment and Settlement System (PAPSS) which was launched by the African Export-Import Bank (Afreximbank) in January 2022 to reduce reliance on hard currencies like the US dollar for transactions between African nations.
Once it is replicated in the Caribbean, the system could allow goods and services to be paid for directly in the currencies of the respective CARICOM nations involved, rather than being settled in a third currency like the US dollar, arguing thatg the payment system would reduce transaction costs, minimise the need for holding substantial foreign currency reserves, facilitate smoother intra-
regional trade and lead to lower retail prices for consumers.
Noting that the decision was unanimous, Mr. Greenidge said “we just had a meeting in May, and we agreed to push ahead with the pilot programme and we have a technical team working out some of the kinks, how to move ahead with the programme. We are approaching that as soon as possible,” he said while addressing the recent AfriCaribbean Trade and Investment Forum (ACTIF2024), at the Baha Mar Convention Centre in Nassau, Bahamas.
The Central banker who once served as the senior economist who supervised Barbados’ economic restructuring programme for the International Monetary Fund, before taking up the Governor’s job in March 2023, argued that “If we get with one voice and start to speak to these things, call for reforming the way the rating agencies view and assess our position, including debt, we will then make a difference,” he told his audience.
Adding further, he said the region can get where it wants on its own, as he urged both regions to speak with one voice on reforming global financial architecture, while accusing credit rating agencies of bias against small economies.
Speaking with one voice in the Caribbean, in support like the Bridgetown Initiative, Mr. Greenidge believes “we can make a difference.” The Bridgetown Initiative calls for reform of multilateral development banks and international financial institutions to better support climate-vulnerable countries.
“The more we can achieve partnerships around the world, the better we are regarding financing and investment in Barbados and providing the necessary diverse products to do the financing we need. Naturally, the African continent would be a partnership,” he said
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