Fearful business owners confirm IMF’s report of domestic arrears and point out that only connected companies are being paid by the Treasury
While the preliminary report of the International Monetary Fund puts real
GDP growth at 4.2 percent in 2023, its concern that “the high public debt
burden poses ongoing challenges” is being echoed by local businesses, some of
which fear they will go under.
“Growth in 2024 is expected to accelerate to 5.8 percent, boosted by Antigua’s
hosting of the UN’s Small Island Developing States Conference and co-hosting
of the T20 Cricket World Cup,” the IMF Report notes. But the management of
one large retailer is asking “who, exactly, is experiencing the growth.”
Several well-established business owners tell REAL News, yes, they agree that
some things are happening in the economy. However, they add, those projects
and developments are benefiting only “a small, select group of insiders” who
are close to the seat of power.
“Check who is getting paid,” one manager says. “It’s the same people, the same
outfits, over and over and over again.”
Meanwhile, other companies who have supplied the Government with goods
and services over the years are complaining that the Treasury appears closed
to them.
Employees of the Treasury, themselves, have acknowledged the truth of this.
About two months ago, Cabinet members unilaterally awarded themselves a
14 percent raise in salary, followed one week later by an increase in their duty
allowance.
At that time, some Treasury staff admitted that they were embarrassed, given
the number of contractors who continued to languish for payment of
legitimate invoices.
Some contractors and suppliers were so desperate, the staff recounted, that
they had stopped telephoning the Treasury; they were showing up at the
offices on Fridays, instead, hoping to get even a small cheque to tide their
business over.
Now, however, even the larger companies are beginning to show the strain.
The refusal or inability of the Browne Administration to pay them, they note,
is compounded by customers’ reduced spending power – because of the
spiking rate of inflation and the recent tax increases.
Therefore, if something does not change soon, they fear that some of them will
not be able to survive.
The IMF, meanwhile, is urging the Administration’s timely validation of
domestic arrears. The agency is also advocating for the “development of a
comprehensive arrears-clearance strategy, and close engagement with
creditors and domestic suppliers” as these “will be essential for restoring debt
sustainability.”
As a caveat, the IMF states that the views expressed in the preliminary report
are those of its staff and do not necessarily represent the views of the IMF’s
Executive Board. Based on the preliminary findings of this mission, the staff
will prepare a report that, subject to management approval, will be presented
to the IMF Executive Board for discussion and decision.
Local pundits, meanwhile, point out that evidence of the Browne
Administration’s fiscal incompetence is everywhere, especially in downtown
St. John’s, the business district, where potholed streets, poor drainage, and a
proliferation of shacks and derelict buildings “speak to poverty and
hopelessness.”
“Even the environs of the cruise port are shabby and poorly maintained,” they
say, while asking Tourism Minister Charles “Max” Fernandez and Works
Minister Maria Browne to “explain what they do all day.”
They note, as well, the number of government departments still operating on
reduced hours – but full pay – due to the Administration’s inability to
maintain safety and sanitation standards in its buildings.
Meanwhile, regarding the recent SIDS4 conference, virtually all sectors – apart
from accommodation and transportation – say the event made no significant
contribution to their business or self-employment.
