Central Government ‘raids’ statutory corporations once again, depriving vendors of expected month-end payments

The Browne Administration is being accused of “raping – not raiding” – the
statutory bodies once again, leaving service providers unpaid in the process.
Reliable sources tell REAL News that vendors who expected to receive
cheques from the government corporations, including the Antigua Public
Utilities Authority (APUA) on Friday, June 28, were advised that payment
could not be made that day after all.

They believe the Administration needed all the funds it could scrape together
to make good on a payment that was due – quite likely to the Government of
China.

In December 2023, other sources had reported that a number of government
corporations, similarly, had been stripped of funds in order to meet a payment
that was due on the port-expansion loan.

Prior to that action, Finance Minister Gaston Browne had admitted, in
Parliament, that the Port Authority was unable to meet even the interest on
the loan; and so Central Government had assumed the responsibility.
Browne has since disclosed that the Chinese loans – for the seaport and the
new airport terminal – were renegotiated, as the Government had failed to

make payments several times, and he boasted that the new terms are more
favourable than the last.

It is suspected that this renegotiation took place during a ministerial
delegation’s visit to China in January – a previously unannounced trip that
some observers believe was actually “a summons” by President Xi Jinping.
In the meantime, persons close to the Administration are reporting that the
Port’s operating expenses have gotten higher, as the fees for the years-long
dredging exercise reportedly have been increased.

One heavy-duty equipment operator says he is not surprised, noting that the
dredging of the St. John’s Harbour has been “nothing but a cash cow ever
since.”

Accordingly, he says it is impossible for the Port to meet all its obligations,
given the hefty cost of dredging in salt water.

Browne has claimed that the Port is cash strapped because of the size of its
staff; but the operator says he disagrees. Rather, he says, it is the burden of
expenses associated with the dredging exercise – in both service fees and,
reportedly, replacement parts.

And, yet, he says, “all they’re doing is moving water around; nothing else.”
This was also the criticism leveled just two weeks ago when a cargo vessel
carrying vehicles ran aground in the harbour.

Meanwhile, pundits admit that Antigua and Barbuda’s debt situation is of
great concern to them – and should be to all taxpayers.

Looking at the Browne Administration’s trading on the regional securities
market, alone, one economist says “the level of short-term borrowing is
insane. But that is what’s expected when you have projected $1.8 billion in
spending but only $1.2 billion in revenue.

“The best first quarter ever for cruise and stay-over tourism has not put a dent
in the borrowing,” he observes, adding that “the schedule [of Treasury Bills] is
to borrow from Peter to pay Paul.”