NASSAU, BAHAMAS —The Opposition is once again accusing the Davis administration of breaching the law over its decision to use up to $232.8 million worth of International Monetary Fund (IMF) Special Drawing Rights (SDRs) being held by the Central Bank.
Opposition leader Michael Pintard raised issues over the purpose of the funds and the process by which the money has been accessed.
At a press conference yesterday, Pintard said that matter was consistent with a pattern displayed by the Davis administration of seeking to “clean up” its mistakes after being caught, pointing to the Bermuda trip controversy as another such instance.
The government has defended its decision regarding the use of the IMF Special Drawing Rights, while confirming that the law will be changed retroactively to facilitate the borrowing. The Ministry of Finance noted that the SDR transaction would effectively provide low-cost foreign currency financing.
“The question is what has happened over the last couple of months since they have released their borrowing plan? What has arisen so suddenly that they needed to draw down on this advance that they couldn’t come to Parliament, in September, October, November or December to mention it?” Pintard queried, noting that the issues raise “red flags”.
He said: “Their purposes are unclear as to the use of the resources. The issue is not whether you will get preferential rates but whether you are permitted to do so by law and we know there is an emphatic no to that question.
“We find that their answers haven’t ended the concerns but heightened them. The government breached the law and must now go to Parliament to amend the law to give them the right to do what they have already done.” Pintard asserted that the government should return the funds to the Central Bank and release the details of its Memorandum of Understanding with the regulator.”
