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.
Nassau, Bahamas, January 15, 2025 – CIBC Caribbean has warned about an ongoing ‘smishing scam’ targeting clients in The Bahamas and Turks and Caicos Islands.
It noted that fraudsters have been sending text messages to persons stating that their accounts were placed on hold or that their cards were locked and requesting them to click on a link and to enter their banking credentials in order to regain access to their accounts.
The bank has reiterated that it does not send out texts or SMS messages with links for clients to click on.
Clients who receive any communication with links should check that they are from a bona fide source prior to attempting to click on them.
The latest fraud attempt is a smishing scam and we are taking the necessary steps to report the fraudulent sites, the bank said.
Smishing occurs when fraudsters attempt to steal customers’ data or money through a text message that tries to trick them into following a link and revealing personal details or login information.
If you believe that you have encountered a suspicious message, just follow these simple tips.
Firstly, don’t click on any links or attachments and don’t reply to the message. Try and establish the legitimacy of the message by getting in contact with the organisation through alternative means, for example, calling the phone number on your printed statements.
If the sender claims to represent CIBC Caribbean, then forward the email as an attachment to our dedicated fraud team (fraud@cibcfcib.com) and delete the message from your system.
It is also a good idea to regularly review all your financial accounts and if you spot any irregularities, contact the bank immediately. Additionally, email security should be reviewed and consider changing your password to a stronger one, using a combination of characters, letters and numbers. Never share your internet banking log-in credentials or One-Time Verification Codes (OTVC) with anyone!
Finance
SENIOR CITIZENS FINANCIAL ASSISTANCE PROGRAMME (FAP) – FOURTH BATCH PAYMENTS READY FOR COLLECTION
Providenciales, Turks and Caicos Islands – Friday, 10 January 2025: The Financial Assistance Programme 2024 is making its fourth (4th) batch of payments for new applicants. These are applicants approved for payment prior to 15 December 2024.
Cheques are ready for collection at the Government Treasuries and Subtreasuries. For persons who applied for the FAP and have met the FAP eligibility criteria, your application, if approved for payment, will have a cheque that is ready for collection.
Pensioners are advised that the only method of payment for this round of payments is by cheque. Efforts are being made to ensure that future monthly pension top-ups can be paid according to the preferred method of payment indicated in your applications.
The list of pensioners with cheques ready for collection in the fourth batch is given below.
Pensioners must present a Government-issued photo identification to collect payments.
If you are a pensioner who is unable to collect the FAP cheque in person, the authorised person collecting the cheque must present a letter duly signed by the pensioner and notarised, giving him/her the authority to do so on the pensioner’s behalf.
Applicants deemed duplicates have been substantively cleared and will be released for payment by 17 January 2025.
PLEASE ALSO NOTE THAT THE SENIOR CITIZENS FAP PORTAL REMAINS OPEN FOR NEW APPLICATIONS. PLEASE SUBMIT APPLICATIONS BY THE 15TH OF EACH MONTH TO FACILITATE THE TIMELY PROCESSING OF PENSIONS BY THE END OF THE RESPECTIVE MONTH.
Providenciales, Turks and Caicos Islands, Monday, 6th January 2025 – The Ministry of Finance, Investment and Trade is pleased to announce the resumption of the Cost-of-Living Relief Programme payment collection on Wednesday, 8th January 2025 which had been temporarily disrupted due to a recent cyber incident.
We understand the importance of these payments and we are committed to ensuring that all eligible recipients receive the assistance they require.
The Ministry is currently in the process of distributing the final batches of payments: Batch 4 and Batch 5. Batch lists can be viewed by visiting www.gov.tc.
Approved applicants can collect their cheques at the Treasury on Providenciales, the Treasury on Grand Turk, or the sub-treasury on South Caicos and North Caicos. Collection times are Monday to Thursday from 9:30 AM to 3:30 PM, and Friday from 9:30 AM to 3:00 PM. Please
remember to bring your reference number along with a valid form of identification for collection.
Please be advised that cheques are for in-person collection only. There will be no deposits to any bank accounts for the Cost-of-Living Relief Programme.
For relief recipients who are disabled or confined to their home (in Turks & Caicos Islands), the Treasury will provide a cheque delivery service. To utilize this facility, approved applicants or his or her representative are asked to make a written request, for the delivery of the cheque to colreliefsupport@gov.tc.
The request must include the following:
- a copy of the approved applicant Government Issued ID
- application number
- phone number and
- address for the cheque to be delivered
Cheques will be valid for six (6) months from the printed date. All uncollected cheques will be voided and cancelled. Lost or stale dated cheques will not be reissued.
We genuinely appreciate your patience and understanding throughout this challenging period. Your support has been invaluable, and we remain committed to keeping you informed as we progress.
For any assistance or inquiries related to the Cost-of-Living Relief payments, please do not hesitate to reach out to our support team at colreliefsupport@gov.tc. We are here to help and provide the information you need.
Thank you for your continued trust in us as we work together to support our community.
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