The Government of Anguilla has again tightened its grip on the functioning of the island’s thirteen statutory bodies by including them in the strict public procurement system. But the Leader of the Opposition, Mrs. Cora Richardson-Hodge, objected to the Anguilla Electricity Company (ANGLEC) being among them. She and her other colleagues were, however, out-voted by the Government’s side of the House of Assembly.
The Government’s inclusion of the Statutory Bodies was facilitated by the passage of the Public Procurement and Contract Administration (Amendment) Act, 2021, on Tuesday, August 31.
In introducing the legislation, Premier and Minister of Finance, Dr. Ellis Lorenzo Webster, said in part: “Madam Speaker, this amendment to the Public Procurement and Contract Administration (Amendment) Act, is to ensure that there is accountability and good governance. The current Act applies to Government and Government offices and this amendment will extend to the Statutory Bodies.
“This is to ensure that there is prudent use of the public purse. We know that at this time there is a review being performed by Axiom International Limited to assess contracting practices of select Statutory Bodies. And this is all in keeping with making sure that the Statutory Bodies are held to the same strict standards of procurement as Government.”
(Axiom International is a British company operating globally. It delivers sustainable solutions in some of the world’s most challenging areas, in the fields of strategic capacity building programmes, institutional and public sector reform, and national security development, among other services. Two of its representatives are now in Anguilla looking at the Statutory Bodies according to Premier Dr. Webster).
Speaking on the procurement legislation in the House of Assembly, during Tuesday’s meeting, Premier Webster continued: “At this time, Madam Speaker, I would like to list the Statutory Bodies that this would apply to: the Anguilla Air and Sea Ports Authority; the Anguilla Community College; Anguilla Development Board; Anguilla Electricity Company Limited; Anguilla Financial Services Commission; Anguilla National Trust; the Anguilla Social Security Board; Anguilla Tourist Board; the Health Authority of Anguilla; Public Service Pension Fund; Public Utilities Commission; the Water Corporation of Anguilla; and Select Anguilla.
“This amendment, Madam Speaker, will define micro procurement; small procurement; and large procurement. Micro procurement will be anything like four thousand dollars and under; small procurement will extend from four thousand to fifty-four thousand dollars; and large procurement more than fifty-four thousand dollars. This will also allow electronic bidding and the level of accountability increases as the amount increases.”
The Premier added: “I am asking the members to allow this amendment to pass so that procurement can start on the first of October 2021 to apply to the Statutory Bodies as it does to the Government of Anguilla, Ministries and Departments.”
Leader of the Opposition, Mrs. Cora Richardson-Hodge, Immediately challenged the Premier on one specific matter at the start of the debate. “Madam Speaker, I rise to raise some concerns that I have,” she stated. “It appears that the primary focus of the amendment is to include thirteen additional entities as identified by the Member for Island Harbour [Premier Webster]. However, the Anguilla Electricity Company Limited is not a Statutory Body and may be the Member of Island Harbour may have spoken in error because ANGLEC is a private entity.
“It is a private company formed under the Anguilla Companies Act. It has shareholders of which the Government of Anguilla is a primary shareholder – but is not the sole shareholder; and there are a number of minority shareholders. And so, Madam Speaker, under the Companies Act, ANGLEC, as a private company, will have certain obligations and responsibilities under the Act as well as under the by-laws and the various corporate documents.
“As a private entity, it enjoys a certain degree of flexibility within the confines of the law. Its primary job is to provide public utility service to the people of Anguilla but, ultimately, it is to generate revenue and to create a profit for its shareholders. In that sense, Madam Speaker, ANGLEC stands on a different footing than all of the other Statutory Bodies as they are not ultimately accountable to shareholders, pursuant to the Companies Act.”
The Opposition Leader, who is an Attorney-at-Law, added: “Madam Speaker, the concern that I have is that the public procurement is now being extended to an entirely private company where the Government of Anguilla is a shareholder – but it is not a Statutory Body…
“It is my view that the Government is in error in including the Anguilla Electricity Company under this Act. I understand the concerns, the rationale, and why there may be a need – but it may be worth looking at the way in which directors are appointed if there is an issue that arises in ANGLEC – as an Electricity Company.
“But, more importantly, Madam Speaker, it may seem to me that, as a private company, with its own by-laws and responsibilities, arising out of the Companies Act, it would be better for a special procurement rule to be prepared for ANGLEC as a private entity. It may be identical to the public procurement but it is particular in relation to ANGLEC. The reason for that, Madam Speaker, is that as a private company, ANGLEC ought to enjoy a certain degree of autonomy and flexibility in the way in which it conducts its business for the ultimate accountability and responsibility to its shareholders.”
The arguments, in support of the legislation, were mainly expounded by the Minister of Infrastructure, with responsibility for ANGLEC and other Statutory Bodies, Mr. Haydn Hughes; Parliamentary Secretary, Mrs. Quincia Gumbs-Marie; Ministers Mr. Kenneth Hodge, Home Affairs; and Mr. Kyle Hodge, Economic Development; and, of course, Premier Webster. They argued, among other matters, that the inclusion of all the Statutory Bodies, in the amending legislation, was to ensure transparency and accountability in their operations.
Concluding the debate, Premier Webster said: “As the Minister [for Infrastructure, Mr. Haydn Hughes], so eloquently put it, ANGLEC is predominantly owned by the public – the Government and people of Anguilla.
“The Government of Anguilla is responsible for 40% of the shares; the Anguilla Social Security Board, which is a Statutory Body of the Government of Anguilla, owns 16%; and the National Commercial Bank of Anguilla, which is owned by the people of Anguilla, and is managed by the Government, owns 23% of the shares. That is 12% of the shares that came from the legacy bank, NBA, and 11% from CCB.”
He continued: “What this Procurement Amendment Act allows is basically that no special preferences are going to be given to families and friends…Public officers’ family would include spouse or co-habitant; children of the spouse or co-habitant; parents; brothers; sisters – including half-brothers and half-sisters; also public officers having certain financial interests and described as directors, officers and employees of an entity; a partner in an entity; shareholder, trustee; part of a joint venture; creditor or debtor of an entity.”
Following the Premier’s closing comments, and the examination of the legislation, during Committee Stage, the Public Procurement Administration and Contract (Amendment) Bill was passed by the Government’s majority of members in the House of Assembly.
