Premier Dr. Orlando Smith blasted the previous government’s handling of the territory’s finances Tuesday, accusing former Premier Ralph O’Neal of leaving the new administration with a $51 million deficit, a “grim” financial situation that Dr. Smith said is “far worse than anticipated.”
The premier claimed that an initial review of the territory’s finances found that government has “slightly over” $40 million in cash on hand to meet that deficit. That situation is a breach of the borrowing guidelines, the agreement between the Virgin Islands and the United Kingdom government that dictates the territory’s debt levels, Dr. Smith said.
“We have many challenges ahead because the reality is that my government has found hardly any financial resources and a high stack of financial commitments and bills waiting to be paid,” he said.
In the speech, he pledged that government will “honour the debts legally incurred by the previous administration” but said that officials will complete a more in-depth review of the territory’s financial position in the future.
Contacted Wednesday, Mr. O’Neal, the recently appointed opposition leader, said that he hadn’t heard or read Dr. Smith’s speech and declined to discuss in detail the allegations of fiscal mismanagement.
“He did the same thing last time [upon being elected in 2003]. When they got in they were very critical then, so it doesn’t surprise me that they are doing the same thing now,” Mr. O’Neal said. “He has his side and I have mine.”
See the Dec. 8, 2011 edition for full coverage.