Basseterre, St. Kitts, December 4, 2024 (PMO) — In a bold move to strengthen financial transparency and accountability, Prime Minister Hon. Dr. Terrance Drew has announced plans to introduce two significant resolutions in Parliament. These resolutions are designed to safeguard the financial integrity of the Development Bank of St. Kitts and Nevis and the Social Security system, ensuring that the mismanagement of the past is never repeated.
“The first resolution will mandate that any decision to suspend external audits at the Development Bank must be brought before Parliament, and the second will require full parliamentary approval for any borrowing from Social Security. These measures are critical to protecting the interests of our people and maintaining public confidence in our financial institutions,” said the Prime Minister.
These announcements come in the wake of revelations about significant financial mismanagement at the Development Bank, including the suspension of external audits from 2018 to 2019. This lack of oversight allowed over $300 million in debt to accrue, largely hidden from public scrutiny.
“The absence of external audits created a veil of secrecy under which hundreds of millions of dollars were mismanaged. This negligence not only weakened the Development Bank but also threatened the financial stability of the Social Security system, which held significant loans with the bank.”
Dr. Drew emphasized that the proposed resolutions are designed to prevent such situations in the future by requiring transparency and parliamentary oversight for key financial decisions.
The first resolution will ensure that the Development Bank is subject to regular and transparent audits, with any decision to suspend such audits requiring parliamentary approval. “Had this resolution been in place, the people of St. Kitts and Nevis would not have been left in the dark about the true state of the Development Bank’s finances. This measure will make it impossible for future administrations to operate in secrecy and mismanage public funds without accountability.”
The second resolution will require full parliamentary approval for any future borrowing from the Social Security system. This measure aims to protect the pensions and benefits of citizens by ensuring that Social Security funds are not misused. “Social Security is a cornerstone of our nation’s financial security. Any decision to borrow from it must be made in the light of day, with full transparency and accountability. This resolution ensures that the public’s money is safeguarded and that no decisions are made without their representatives being fully informed.”
Dr. Drew highlighted the risks posed by the mismanagement of Development Bank loans to Social Security, which accounted for 7% to 10% of Social Security’s total assets. “The previous administration’s reckless handling of these funds put the entire Social Security system at risk, threatening the pensions and benefits of thousands of our citizens,” he said.
The proposed resolutions are part of efforts by the Drew administration to uphold the principles of good governance and rebuild public trust in the nation’s financial institutions.
The Prime Minister has already taken steps to restore transparency, including commissioning forensic audits of the Development Bank and resuming regular external audits.
“Our government is committed to transparency and accountability. These resolutions are not just about addressing the failures of the past—they are about creating a framework for better governance in the future.”