For months the question has loomed, sparking debate in the Virgin Islands and even bringing United Kingdom officials into the fray, but today in the House of Assembly, the matter was quietly put to bed: the Biwater contract does not represent a contingent liability for the VI government.
The answer came in the form of a four-page report, an International Financial Reporting Standards Opinion, written by the accounting firm Baker Tilly (BVI) Limited. Premier Ralph O’Neal laid the report, dated Aug. 18, on the table without comment this morning.
According to the report, the firm was engaged on Aug. 10 to advise the government whether its contract with Biwater exposes the government to a contingent liability and how to account for any such liability.
“Based on the findings,” the report states, “There are no contingent liabilities arising from the contract which would require provision or disclosure within the government’s budget, financial statements and accounts for the 2011 financial year.”
See the Sept. 1, 2011 edition for full coverage.