THE FRAMEWORK: A MECHANISM FOR BETTER GOVERNMENT ON ANGUILLA

His Excellency Governor Harrison summery: 

"... moral responsibilities are linked to fiscal responsibility"

The underline principle behind the British’s insistence that the Framework for Fiscal Responsibility be applied as a mechanism within government is a good thing for the people of Anguilla. It demands the transparency that is so much talked about, and insists on proper application of discretion in the execution of business in the interest of the people. It gives the people the right to know! Reasons given for the standoff by Mr. Hughes are not coherent with the implied theory of good governance, which should be a justifiable motivation for the Chief Minister to willingly comply and sign the document. There is much talk of the intricacies and complexity of coming to “a decision” to sign or not to! What is very telling is that a document very similar in nature has been signed by the other remaining Territories of Great Britain in the region. Why Anguilla finds this document so offensive and detrimental to the future of the Island is not a convincing argument the Chief Minister is bringing to the people and therefore fails to generate enough enthusiasm to respond to the British with a resounding “NO!” Time is now running out! And Mr. Hughes is locked into a decision of principle which is to compromise on his adamant position of not signing!

The Chief Minister is an experienced politician and knows the British cynicism of his brand of government, so the question must be asked why Mr. Hughes confined himself to an option-less position? This document upholds the credibility, and guarantees continuity of responsibility in government. In a case such as the airport project the framework ensures that unforeseeable circumstances are substantially mitigated, and accountability is assured. It becomes the responsibility of any incoming government, not to wash their hands, but provide a documented account of the project even though not executed under their watch, but as government they become responsible to the people to provide the information as to what actually transpired, whether through inquiries or a documented account of the financial responsibility. Mr. Hughes apparently feels that the framework leaves him in less control, but in the mind of the British the onus is put directly on government to execute in good order, and be good stewards of the people’s business. Bear in mind that the official term of a government in Anguilla is five years, and not a life time! So what this Government finds offensive might not be a factor in two years. There is really nothing acute about the document more than what it says. It literally locks the government in a business attitude for the responsibility of the country, and anyone seeking office should pay attention, there is no more free ride in the government of Anguilla. Government must act, and execute responsibly, and answer to the people, with the British watching every move. 

The Hon. Edison Baird: "I am standing alone...this time"

Finally some level of oversight will bring our government into real subjection in how they handle the business of the people. Under the FFR, government must give a clear outline how they intend to spend the people’s money, why the project is necessary, and prove that the company doing the project is capable in that field; and then, report clearly with absolute accounting of how the money was spent! And if the guidelines are followed, there would be no need for lengthy and cumbersome investigations into matters of government, it must be brought out in a report that is required as part of the framework, which the British would have oversight. The British remains adamant, and apparently will not concede to any of the logic of the Chief Minister. Whether or not there had been an agreement in principle since 2011 is indicative to the content of the letter to Mr. Hughes of March 6th 2013 when it was expected that by June 2012 the framework would have been implemented. It appears that the British Minister thought that in principle he had a common agreement with Mr. Hughes which he wanted to take to the final stage; it now appears that Mr. Hughes has back peddled on finalizing the agreement.

Chief Minister's "Influential Peddlers" discuss options 

Clearly, Mr. Hughes’s decision not to sign is political and come to bear with pressure from within his political
circles, some who believe that signing this document diminishes our independence, which they believe we already have. The recent consultative session has not brought out any distinct course, what it revealed was that the people are expecting their government to embrace the full responsibility of governing the country, and decisions such as these are precisely why capable people must be elected. Such responsibility should be thrashed out in the executive corridors of government with the appropriate constitutional legal advice and that of the technocrats of government, but hiding under the shadow of technicality appears to be default position by the elected government. The so called technocrats should not carry the political responsibility of this decision; it must be left to the discretion and executive responsibility of those elected by the people. Our government should not be throwing around careless remarks and insinuations of defeat because on the responsibility it should embrace. The onus of effective governance lies fully with the elected government of the people, as such the Framework for Fiscal Responsibility guarantees the people of Anguilla better government.

By: Elliott  J. Harrigan

ANOTHER FIFA SCANDAL

Lto R: His Excellency Governor Harrison - president of the
 AFA Mr Raymond Guishard - Sepp Blatter, FIFA’s president
 - Jack A. Warner  Vice president of FIFA and President of
CONCACAF -  Edison Baird, Minister of Sport - and Chief Minister
 Hubert Hughes at the symbolic ribbon cutting
( Wednesday 29 September 2010)

A MINUSCULE British territory in the Caribbean of just 15,000 people, Anguilla is among the smallest of the 209 members of FIFA, football’s governing body. Its national team is ranked 206th in the world, above only Bhutan, San Marino and the Turks & Caicos Islands; its record since its first match in 1997 is played 28, won two. But that is not for want of nurturing by “the FIFA family”, as Sepp Blatter, FIFA’s president, calls his discredited organisation. 

On top of the annual $250,000 for investment in football that FIFA gives Anguilla, like every other member, in 2003 the local federation received grants of $650,000 to build a training centre in The Valley, the island’s capital. In 2010 Mr Blatter went to Anguilla to inaugurate this. According to FIFA, the centre was to comprise a pitch with a security fence, artificial lighting and a grandstand with offices and changing rooms. Visitors today find a small grandstand with rusty, broken-down fencing, chickens pecking at the weed-strewn, bumpy pitch and offices that are empty and apparently unused, with computer terminals still wrapped in plastic. There is no sign of the dormitories, gym, cafeteria and classrooms supposed to have been built with an extra $500,000 granted in February 2011. 

Raymond Guishard, head of the Anguilla Football Association, failed to respond to questions from The Economist about how the money was spent. A FIFA spokesman said that “construction works have been delayed due to the limited labour force on the island” and insisted that “we constantly monitor” the activities of its member federations.

Yet this monitoring seems particularly cursory in the Caribbean. Guyana’s football association, run by Colin Klass for 22 years, was given $800,000 in grants for a training centre between 2002 and 2006, but has yet to start any building work. The football federation in Montserrat, an even smaller British Caribbean territory than Anguilla, with just 5,800 people, got $788,139 from FIFA in the early 2000s for what it said would be a “complex” with floodlights and fences, but what Google Earth suggests is just a forest clearing.

FIFA's President, Sepp Blatter

Vincent Cassell, who runs Montserrat’s football association, attended a meeting in Trinidad & Tobago in 2011 with Mr Guishard and Mr Klass at which Mohamed bin Hammam, Qatar’s former football supremo, is alleged by FIFA to have offered $40,000 to each of them if they would vote for him to replace Mr Blatter in that year’s FIFA presidential election. These and other allegations resulted in FIFA banning Mr bin Hammam from football for life last year. Six Caribbean officials received much shorter bans; in the case of Messrs Guishard, Klass and Cassell, these ranged up to 26 months, with fines of up to 5,000 Swiss francs ($5,450).

Mr Guishard and Mr Cassell are now back in charge of their local associations. FIFA continues to send comparatively large amounts of money to the Caribbean associations, not all of which seems to be invested in football development. In 2010 and 2011 in Anguilla and Guyana, a combined total of more than $1m was booked as unspecified “bonuses”. Once again, it seems that FIFA has scored an own goal.

By: The Economist 

FRAMEWORK FOR FISCAL RESPONSIBILITY... FOR ANGUILLA.

The following is the text of the draft Framework for Fiscal Responsibility proposed for Anguilla by the British Government. It is understood that the Anguilla Government has made a number of counter-proposals.  

1. The Government of Anguilla is committed to delivering a prosperous and stable future for the people of Anguilla firmly based on the implementation of sound economic and financial principles.

2. This framework for fiscal responsibility (“the Framework”) sets out the key principles by which the Government of Anguilla will deliver this commitment.

3. The Government of Anguilla will continue to be open and transparent in its management of the public finances consistent with the highest standards of governance and democracy. The principles of the Framework will therefore be encapsulated in a new public financial management law in Anguilla which will also specify the detailed requirements necessary to deliver the principles in practice. Subject to the agreement of the House of Assembly, this new law will enter into force by [1 June 2012].

4. The Government of Anguilla and the United Kingdom Government reaffirm their commitment to work in partnership and to respect the rights and responsibilities specified in the Framework and the new public financial management law.

POLICY PRINCIPLES

5. The Government of Anguilla is committed to the following principles:

a. Effective medium-term planning, to ensure that the full impact of fiscal decisions is understood;

b. Putting value for money considerations at the heart of the decision making process;

c. Effective management of risk; and

d. Delivering improved accountability in all public sector operations.

IMPROVING MEDIUM TERM PLANNING

Medium term fiscal plan

6. The Government of Anguilla will assess the impact of all proposals and decisions on expenditure, revenues, and borrowing in the context of a medium term fiscal plan (MTFP) covering a period of at least three fiscal years.

7. The MTFP will include, as a minimum, the information defined in paragraph 15 of Annex A.

Transparency

8. The MTFP will be updated and published annually. The budget that is presented for the forth coming fiscal year will be consistent with the MTFP.

Measurement

9. The collection of accurate internal and external economic, business and social data is fundamental to effective medium term fiscal planning.

10. The Government of Anguilla will assess any gaps in information that is required and take steps to improve inputs to the MTFP, including by:

a. improving the quality of statistical data gathered to measure accurately economic variables including economic growth, inflation, and employment; and

b. ensuring that the Government of Anguilla receives information about in-year developments in expenditure, performance against objectives and developing risks (whether or not quantifiable) from government departments and other bodies in receipt of public funds.

DELIVERING VALUE FOR MONEY

11. The Government of Anguilla recognises that achieving value for money is central to the appropriate use of public funds. Central government and other public sector bodies will therefore ensure that effective processes are in place to provide confidence and ensure suitability, effectiveness, prudence, quality, good value and avoidance of error and other waste. The Government of Anguilla will remain focused on developing expertise and improving processes to ensure that value for money is consistently delivered.

Projects

12. There are four key stages that will be undertaken by the Government of Anguilla in the planning, development and execution of a project:

a. appraisal and business case;

b. tendering and procurement;

c. contract management; and

d. evaluation.

Appraisal and business case 

13. The Government of Anguilla will ensure that all projects, whether funded from recurrent surpluses, conventional borrowing or novel financing transactions, are suitably appraised before the procurement stage to ensure value for money and that a robust cost-benefit analysis has been carried out.

14. For projects with a lifetime value above EC$15m or for those where the use of PPPs or any other form of novel financing is being considered, the Government of Anguilla will commission independent accounting, legal, financial, economic, environmental, and other technical advice as appropriate to ensure robust investment appraisals are produced.

15. For all projects, the business case which results from the appraisal process should: demonstrate the economic need for the project; include a fully argued and costed risk and impact assessment; and specify the benefits the project is designed to deliver to ensure that an informed decision can be made on whether or not to proceed to the procurement stage.

16. All proposed capital projects with an expected lifetime value of EC$15 million or more will be incorporated in the published MTFP, and appraisals will be published for public consultation prior to procurement.

Procurement

17. Procurement processes will be open, transparent and competitive. The Government of Anguilla will adhere to agreed statutory tender processes. For projects with a lifetime value above EC$15m and where any other form of novel financing is used, the Government of Anguilla will commission independent accounting, legal, financial, economic, environmental, and other technical advice to ensure value for money.

Contract management

18. The Government of Anguilla will retain sufficient expert advice, whether internal or external, to ensure that it is an “intelligent customer” of services or other arrangements agreed with private sector suppliers.

Delivery

19. The Government of Anguilla will put together sufficiently competent teams to manage all projects and ensure receipt of high quality services and products as agreed at the procurement stage.

Evaluation

20. For projects with an expected lifetime value of more than EC$15 million, the Government of Anguilla will undertake an evaluation of project performance within 6 months of project completion. This evaluation will be made publicly available within 9 months of project completion.

Processes

21. The Government of Anguilla will establish and maintain robust processes to:

a. measure the performance of government departments and other bodies in receipt of public funds;

b. allocate expense budgets, profile expenses and monitor actual results against profile budget in a timely manner;

c. determine revenue targets, profile receipts and monitor actual results against budget on a timely basis;

d. track and quantify developing risks to determine the value of actual and contingent liabilities to assess calls on current expenditure budgets and, in exceptional cases, the reserve;

e. report total public sector debt, profile debt repayments and determine debt service costs;

f. forecast cash needs on a monthly basis; and

g. undertake timely internal and external audits and act on the findings.

PUBLIC PRIVATE PARTNERSHIPS AND NOVEL FINANCING ARRANGEMENTS

22. The option to enter into Public Private Partnerships (PPPs) and any other form of novel financing within the limits set out in the Framework will not be exercised by either the Government of Anguilla or its Statutory Authorities, Government Companies or other organisations within the public sector until:

a. the Government of Anguilla has been in compliance with the Framework for two consecutive fiscal years; and

b. the Government of Anguilla and the United Kingdom Government agree that the capacity to contract and manage such arrangements is in place.

23. All mention of PPP and other novel financing transactions in this framework will be subject to these conditions.

24. The processes for ensuring that projects deliver value for money will also be applied for projects involving PPPs or any other form of novel financing, and will follow any additional processes required for projects with a lifetime value above EC$15m where these are different to the standard process.

25. In addition, for projects where the use of PPPs or any other form of novel financing is being considered, the Government of Anguilla will commission independent accounting, legal, financial, economic, environmental, and other technical advice as appropriate to ensure robust investment appraisals are produced.

26. PPPs or any other form of novel financing will only be considered where:

a. there is a sound appraisal underpinning the proposed project before financing means have been determined;

b. a financial appraisal demonstrates improved value for money against a conventionally financed alternative;

c. the long term affordability case has been assessed by the Government of Anguilla in the context of the MTFP; and

d. the correct accounting treatment in the public accounts has been utilised and agreed upon by an independent qualified accountant.

27. PPPs or any other form of novel financing will not be considered by the Government of Anguilla for:

a. projects with a lifetime value of less than EC$80m and therefore too small to justify the transaction costs; or

b. projects where the fast pace of change in the sector makes it difficult to define effectively the outputs it requires in a long term contract (such as Information Communication Technology projects).

MANAGING RISKS

Contingent and actual liabilities

28. The Government of Anguilla is committed to managing risks and ensuring that contingent and actual liabilities which accrue are consistent with sustainable public finances.

29. The Government of Anguilla will make contingent and actual liabilities, including (but not limited to) pensions and healthcare schemes, subject to actuarial assessments at least every three years. Actuarial assessments will be published within three months of receipt. The Government will publish its proposals to address the results of the assessments no later than the budget following the receipt of the actuarial assessment.

30. The Government of Anguilla will set out in the MTFP their strategy for managing contingent and actual liabilities and report on progress in delivering the strategy.

Capital expenditure

31. A capital investment fund will be established to fund capital expenditure which would not yield sufficient revenues to fund debt service costs. Contributions will be made to the fund from revenues received by the Government of Anguilla in accordance with the rates specified in the MTFP.

32. The total cost of all projects which propose to make use of the capital investment fund must not exceed the amount available in the capital investment fund; the House of Assembly must give its approval before the capital investment fund is accessed.

Debt

33. Where capital expenditure will yield sufficient revenues to fund debt service costs and the Government of Anguilla proposes to use debt finance to fund the expenditure, preference will be given to borrowing from concessional lenders which should ensure that the lender’s expertise is brought to projects.

34. To ensure that the level of debt is affordable and consistent with the delivery of macroeconomic and fiscal sustainability and financial stability in the short, medium and long term, the Government of Anguilla will:

a. comply with the borrowing limits defined in Annex A by no later than the dates specified in Annex D;

b. comply with the transitional ratios established in Annex D by the timeframes specified;

c. remain in compliance with the borrowing limits subsequent to the dates specified in Annex D or such earlier date by which compliance is achieved; and

d. put in place arrangements to repay loan principal.

35. The repayment of principal will be achieved either through:

a. agreeing a fully amortized structure with the lending institution; or

b. establishing a dedicated sinking fund with a binding contribution schedule capable of offsetting the outstanding principal repayment on maturity of the debt.

ACCOUNTABILITY

36. The Government of Anguilla is committed to delivering improved accountability mechanisms through the transparency delivered by the Framework and subsequently a new public financial management law and by ensuring that public accounts are:

a. prepared on a timely basis in line with International Public Sector Accounting Standards (IPSAS); and

b. subject to an annual external audit the results of which will be subject to the Public Accounts Committee’s scrutiny and publications.

PARTNERSHIP WITH THE UK

37. In support of the commitments to deliver fiscal responsibility made by the Government of Anguilla, the United Kingdom Government will:

a. undertake an annual assessment of the economy of Anguilla, including the state of the public finances;

b. provide technical assistance by monitoring compliance with the Framework;

c. provide support in identifying sources of expertise at the request of the Government of Anguilla;

d. consider requests for technical support made by the Government of Anguilla where any such requests are accompanied by a business case and specific terms of reference.

Exchange of information

38. The Government of Anguilla will submit the information specified in Annex C to the person(s) from time to time specified by the United Kingdom Government.

39. The Government of Anguilla will supply the United Kingdom Government with such other information it may request, including further information on:

a. any aspect of the MTFP, including specific capital investment projects and proposed borrowing; and

b. the draft budget.

40. All information will be submitted by the Government of Anguilla within the timescales specified in Annex C unless, in exceptional circumstances, different timescales are agreed in advance in writing by the Government of Anguilla and the United Kingdom Government.

Consideration of representations

41. The Government of Anguilla will consider fully any representations made by the Secretary of State on the information provided.

42. The Government of Anguilla will not proceed with any project on which the Secretary of State has made representations until fifteen working days after a full written response has been received by the Secretary of State to those representations.

Approvals Process

43. Where the Government of Anguilla is not in compliance with the Framework, the Government of Anguilla will present, for the approval of the Secretary of State, a plan that is consistent with the MTFP to remedy the breach. The maximum period which may be permitted to rectify a breach is three fiscal years from the point at which the breach occurred or, in exceptional circumstances, such other period that may be agreed in writing between the Government of Anguilla and the Secretary of State.

44. In the event of any non-compliance by the Government of Anguilla in respect of the Framework and until the breach has been rectified the Government of Anguilla will obtain, on an annual basis, written approval from the Secretary of State before:

a. the MTFP is finalised;

b. any public borrowing or any refinancing of public borrowing is undertaken;

c. proceeding with any project with a lifetime value of more than EC$15 million;

d. using public assets as collateral as part of any arrangement with a party external to Government of Anguilla;

e. the hypothecation of any revenue stream; or

f. the divestment of public assets.

45. For the avoidance of doubt, any failure to comply with the borrowing limits or forecast failure to comply within the lifetime of the MTFP will be deemed a failure to comply with the Framework.

46. In exceptional cases, the Government of Anguilla may request the Secretary of State’s approval to make in-year changes to the approach set out in the MTFP. In such cases, the Government of Anguilla will supply the Secretary of State with:

a. a written request to make the changes, to be received no later than two months before such changes are considered to be required by the Government of Anguilla unless a shorter period is agreed in writing by the Government of Anguilla and the United Kingdom Government;

b. a compelling evidence based business case to support the request for approval; and

c. a revised MTFP, which sets out the measures the Government of Anguilla intends to take to return to the course set previously. If approval is granted, the Government of Anguilla will publish the revised MTFP.

"Baxter here Chief... ahhh... ammm... what it really meant

to say is that you either make yourself accountable or you

will be made accountable by your circumstances Chief."

Signed: ………………………………………………… Date: …………………

Chief Minister, Anguilla

Signed: ………………………………………………… Date: …………………

Governor, Anguilla

Signed: ………………………………………………… Date: …………………

Minister for Overseas Territories, Foreign and Commonwealth Office

ANGUILLA – A MADHOUSE OF LOOPHOLE CRIMINALS AND SMART-ASSES.

Anguilla… when did it come to this? Where do we begin to look for answers about our deep-rooted psychological problems? It never been this way, though this way for quite some time I’m often told - Rape, Molestation and/or Statutory Rape, Incest, Burglaries, Theft, Violence, Murders… mostly unsolved. Gangs on revenge with a shoot to kill policy, and a clueless Police force led by a highly United Kingdom trained intelligent officer as governor, targeting soft crimes like possession of self consume Marijuana - senselessly criminalizing our decent citizens… we are a madhouse. 

So…. Where do we begin to look for answers? In our failed Revolution? Our Church? Our leaders? Our Judicial system? Vigilante Justice? Who are our mentors? 

Think about it. Only mad people commit these senseless crimes. And only mad leadership would want to censor such menace about our beloved society, get up the next day and go about their daily lives and pretend as if nothing happened. Only mad people can endure such economic-terrorism by their government as hundreds lose possessions, and not to do anything about it, because they (government) think the mad people who live on Anguilla don’t deserve to live.

Only on Anguilla, a place of antiquated or nonexistence laws like on DUI, as mad careless motorist mows down innocent bystanders. Only mad people break every single law in existence, and when you call them out, they tell you ‘guh kiss yu madda scunt’. 

Only mad people condone such secrets on crime and no one gets up and says, ‘this is madness!’ Only mad people support independence to modern day slavery. It must be madness to be in support of Anguilla’s independence today and not link it to incompetence. We must be mad if we elected incompetence and expected to be rewarded with success. Only a mad people judge right and wrong based on mad political affiliation. 

A religious nation enveloping most clergy per capita, a clergy that preaches more than they practice, covering up major sexual and psychosocial transgressions, silent on crime and political corruption… must be madness. Lawsuits and threats of lawsuits intended to silence discussion… are pure madness. A justice system producing only criminals, none rehabilitated, and where money is a sure way to avoid conviction… must be madness. A people believing that it can rape both financially and sexually unfettered and mute actualities… must be madness. 

Supporting our politicians who are pretentious, molesters, rapist, liars, thieves, and even tax cheats… must be madness. Violent, ignorant, and savage, in the way we treat each other and our environment - our disposal of garbage, chemicals and other waste products are alarming yet we delude ourselves into believing that everything is “nice mon,”… we must be mad. An electric company that puts hundreds of homes into the Dark Age every month because its rates are unaffordable… must be madness. 

A nation of Leaders who are not held accountable for their actions, misconduct, and the consequences of their leadership failures is undemocratic… and pure madness! 

Despite all of this madness, hope lies in our youths, but sadly they direct their vehemence in the wrong directions... which must be centered on eradicating madness and its perpetrators. We must feel proud about our athletes, and those who are excelling academically or musically. It’s hard not to feel good about our young entrepreneurs. It’s hard not to feel optimistic about the self-starters, the all-nighters, the heavy-lifters, the hard-working nurses and doctors, and our civil servants that took pay cuts to keep everybody employed. On Anguilla such dedication and patriotism requires a level of optimism, that only a mad smart-ass can possess. 

Anguilla a nation of mad smart-asses that can accomplish a lot if it recognise the facts, accept the truth about itself and elect leaders with vision - not Hubertism!