Fellow Anguillians, as you will recall, upon entering office in July 2020 I informed you of the poor financial situation this administration inherited. The economic impact of the Covid-19 pandemic also exposed the poor fiscal situation facing some of the Statutory Bodies with issues such as lack of transparent reporting of financial activities, over-exposure to contingent liability risk associated with contractual commitments, and inadequate liquidity or reserves. Some of the Statutory Bodies had entered into expensive contracts and obligations that they could not afford.
The Ministry of Finance completed a review of the contingent liabilities of these Statutory Bodies last year and our initial concerns were confirmed. As you know, we had to make very difficult decisions to approve increases in fees to some of the services provided by some of these Statutory Bodies to enable them to survive during this difficult period and be viable long-term. The magnitude of the problems that were inherited by my administration was, and is, cause for concern.
After the review was completed, my Administration took immediate corrective action to improve accountability and oversight of the Statutory Bodies. Measures such as producing and publishing quarterly reports and ensuring that budgets are presented and approved by EXCO have already been implemented. Additionally, legislation was drafted to amend the Public Procurement and Contract Administration Act to govern the manner in which Statutory Bodies procure goods and services.
Also, in an effort to address the serious issues uncovered, my Administration requested that the UK Government provide the necessary funding to enable an independent audit of the contracting and governance arrangements of these Statutory Bodies. The UK Government agreed to our request.
In September 2020, the Government’s appointed Chief Auditor, the Welsh Audit Office, was asked to conduct a review of the procurement and contract management process within the Statutory Bodies to ascertain if expected governance processes, checks, and balances had been adopted by the Boards when conducting business. The Welsh Audit Office prepared the scope and agreed to conduct this work in accordance with the Financial Administration and Audit Act. However, the work was deferred multiple times due to Covid-19 movement restrictions in Wales.
In May 2021, the Welsh Audit Office indicated that due to continued uncertainties regarding travel and movement that they could not conduct the work themselves. After completion of a tender process, Axiom International Ltd has been contracted to complete this review, which is about to commence.
The review will include a selection of contracts across Statutory Bodies to examine if they followed effective procurement practices, governance and approval processes; if due consideration had been given to value for money; assess the overall level of fiduciary risk including the risk of corruption; and whether companies selected were appropriately qualified and experienced to deliver the services.
We look forward to the completion of the exercise, which will help inform additional actions we can take to further strengthen the viability of these Statutory Bodies.
This administration will continue to live up to our promises that we will put the necessary checks and balances in place to make Boards accountable and to stop historic poor practices that have resulted in the fiscal misfortune and social degradation of our beloved country.
My administration will continue to demonstrate transparency, accountability and good governance.
May God bless you and may God continue to bless Anguilla.
Thank you.
Ellis Lorenzo Webster, MD
Premier, Minister of Finance and Health
