Caribbean Review: Questions Grow Over How BVI Are Expanding Roadworks After Public Fund Losses

Cory bjork

Introduction

Several construction projects across the British Virgin Islands (BVI) are underway, aiming to improve locals' experience but also to accommodate and potentially boost the tourism of the island. These projects have thousands of dollars invested into ensuring long-term resilience for the terrain. However, public voices have complained that these projects have been in effect since January and there is no outcome in sight, except consistent government investments. Furthermore, an ongoing public case regarding a misuse of public funds, also with no resolution in sight, could affect such projects that support the public's interest. 

Current Projects Timelines 

The BVI government is working to restore the nine mile road between the Road Town Ferry Terminal and the West End Ferry Terminal. This project alone costs $14 million, marking it the biggest reconstruction project in the country's history. An additional $1.5 million dollars were allocated to work specifically on Sea Cows Bay Road (which are all on the same route) . When construction started, plans stated that this was meant to be a short-term project to simply reconstruct the road by re-surfacing it. This plan was later determined  unsuitable for the desired outcome of long-term resilience; therefore, it was decided to completely reconstruct the road and sidewalk to ensure that the road surface would be resilient in the long term against the changes in climate. Tortola Paving Company Limited is being paid $14 million for the work across the entire nine mile road, while E&K Trucking & Construction Services is receiving the $1.5 million to work on the Cows Bay Road. On the 6th of May a government  press release did not contain details on the contractor directly responsible for the work, and the projects were already estimated as over budget, despite having a $100 million dollar loan from the CIBC Caribbean Bank.

The primary focus points of these works are to remove material, and to install a compact  well-engineered subbase that will reinforce the surface, all whilst reinstalling water mains and service connections. The ideal outcome is, with upgraded underground facilities to reduce leaks to the road, ensuring resilience against the changing climate. 

Further disruption is to be expected, with road parking closed in multiple areas, and traffic to increase significantly in areas around the construction. There will be efforts to encourage businesses to stay open and to ensure access to driveways. Furthermore, within a press release it has been determined whilst the works are ongoing the top priority is going to be maintaining safety for everyone within the area. 

Mismanagement Of Public FundsThat Could Pose Issue To Current Projects 

With these road construction projects already deemed over budget, there is also an investigation into Governor Daniel Pruce’s accountant general, Arnaold Ainsley, after a mismanagement of public funds. 

Last month, $5 million was deposited into the Bank of Asia from BVI public funds, authorized by the accountant general, just before the bank was liquidated last year. Premier Natalio “Sowande” Wheatley stated that Ainsley was responsible for the deposit, which Wheatley then said was not in compliance completely with legislation. 

During a press conference on May 7th, the premier said his claims were made on an internal audit department report that had been made regarding the mismanagement of public funds. Seemingly avoiding any further public comments, the premier declared that there had been no further requests for him to look  further into the matter. Governor Pruce confirmed that the matter was still under consideration, spearheaded by the auditor general; Pruce then said he could not further discuss the issue until a complete report was published, with no timeline provided on this report. It is then the general auditor’s duty to discuss the report with the Premier; however, none of  individuals involved have not stated whether they advised Mr. Ainsley to make the deposit. 

Long Term Issues From Financial Mismanagement

Long-term mismanagement of public funds whilst coordinating huge infrastructure projects creates significant potential for harmful impacts on locals economically, socially and politically. 

A significant amount of money is being funneled into the nine mile reconstruction between the Road Town Ferry Terminal and West End Ferry Terminal, as well as the work on Sea Cows Bay Road. An over budget project, with no clear financial strategy, poses threats: if something goes wrong, or doesn’t proceed as predicted, more money would be allocated into the projects away from other necessary endeavors. 

More money could be sourced from raising taxes to prevent further losses, as this has been declared the largest reconstruction project in the history of the British Virgin Islands. Regardless of the source, public funds that could be used for healthcare services, education and housing could face cuts if current spending continues. Given that the island is already in debt with the CIBC loan, public debt is also at risk to increase. 

Ultimately, in the last couple of months, the BVI’s financial situation has taken some hits. There is a genuine risk that a cycle will be created: projects are launched, budgets are set to expand, public debts rise, maintenance falls behind due to unclear budgets,and new repairs are scheduled. With government communication not providing further clarity, distrust may rise between the locals and their government; the community will have to endure the consequences of mismanaged funds and longer delays to projects impacting daily life. Even if the audit report clarifies the actions of the previous accountant, it still has not been declared how the loss of $5 million will impact the public nor the increasing budget of the nine mile reconstruction.