The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Fiscal Responsibility Council (FRC) is seeking "autonomy" in its financial affairs as it finalises the Memorandum of Understanding (MoU) that will govern its relationship with the government.

Gowon Bowe, who represents the Bahamas Institute of Chartered Accountants (BICA) on the FRC, told Tribune Business: "To be honest with you, it would be inaccurate to say we don't have an MoU with the government. We don't have the signed one. We have a document we have shared between the minister of finance and ourselves, and I think we had an agreement and then there was the COVID element in March.

"I think the principles of it were that all of us on the council were somewhat private sector representatives and used to autonomy in managing our budget and finances, and also being accountable for it, whereas it (the FRC) was created as a body under the Speaker of the House. They are used to going through the treasury and the ministerial approval process.

"So the principal of it was that if there was a budget allocation for specific purposes, we certainly felt it should be provided to us in a manner we would be responsible for, and not having to go back to the Ministry of Finance or the Treasury each time we wanted to cut a cheque or engage."

Mr Bowe added that the MoU and FRC's financial allocation will function "similar to the statutory bodies, because the government would have to treat it as a subvention. I would imagine that in order for them to give us control of our budget it would have to be done in a different way where they effectively fund it on a periodic basis".

He said that while he has been given access to the previous year's budgets, the FRC has not been involved in the preparation of the 2020-2021 effort or received any information regarding the details and specifics underpinning it.

Mr Bowe added: "We have gotten documents that are in the public domain, so it would be inaccurate to say we have not received anything, but what we said was that in order to look at compliance with the legislation, it would really be the basis on which you presented the numbers. Because if you are being critical in both the positive and the negative light, you want to say that you are basing it on all of the details."

K Peter Turnquest, deputy prime minister, told Tribune Business: "We are still in negotiations as to what their compensation issues are going to be and finalising that MOU."

He added that the FRC should be in possession of MoU by July as that is when it is scheduled to receive all documents used to prepare the budget. "We need to have it done before then," Mr Turnquest said, adding that "other arrangements" will be worked out if it is not completed by then or both sides will go back to Parliament and ask for an extension.