Minister of State for Finance Michael Halkitis.
By SANCHESKA DORSETT
Tribune Staff Reporter
sdorsett@tribunemedia.net
MINISTER of State for Finance Michael Halkitis yesterday denied that he was being “disingenuous” when he stated, during a speech at the Progressive Liberal Party’s (PLP) national convention last week, that millions of dollars generated from Value Added Tax (VAT) was being spent on projects for which the government already borrowed money.
While appearing as a guest on ‘The Revolution’ with host Juan McCartney, Mr Halkitis maintained that VAT money is being used to pay down the national debt as well as defray other government expenses.
He also insisted that there can “never be a true” account of what the VAT money is spent on, because the money “goes into the consolidated fund with all other government revenue”.
Last Tuesday, while addressing PLP supporters on the first night of the convention, Mr Halkitis suggested that the revenue collected from VAT was spent on various state initiatives under the Christie administration.
He said the government spent “millions of dollars” on roads, facilitated a new fleet of aircraft at a cost of $100 million, invested in a new fleet for the Royal Bahamas Defence Force at a cost of $232 million and several million was spent to fund repairs after both Hurricane Matthew and Joaquin. “That’s where the VAT money gone,” he said repeatedly.
However, yesterday Mr Halkitis admitted that VAT money was not actually spent on those projects but rather he said the money would be used to “service those loans”.
“Theoretically for every $100 in the consolidated fund, $30 of that is VAT money but we do not have anything specific to say ‘this is what the VAT money is spent on’ or ‘we are using the VAT money for this.’ All government revenue goes into the consolidated fund and that money is spent where needed,” Mr Halkitis said.
“I was not being disingenuous. Yes, we borrowed the money for the new Bahamasair fleet but we negotiated that loan and had to advance $44 million to Bahamasair before the loan came through and until the loan is paid off we will be using VAT money on that.
“I think I was very clear: loans are being serviced from the VAT money. The loan has to be repaid and it will be repaid through VAT money. My intention was not to mislead anyone; it was to say to the people when we implemented VAT it would put us in a position to better service the country. The system we had was inadequate and because we added VAT, we can now provide. I had 10 minutes speaking to a convention, I could not explain it fully but the intention of VAT was to better provide services and I said here are some of the things we are now able to do.”
Last week, Mr Halkitis also said money from VAT is being spent on building new schools. When pressed on the accuracy of this, he said yesterday: “We are building new schools, we are currently building in West End Grand Bahama, Lowe Sound and San Salvador Primary. Those are the three new ones that come to mind immediately. They started work at A F Adderley so we have to spend about $12 million to build a new classroom block in A F Adderley but we have to gradually replace the whole school. So the government spent money to start construction (on) new schools and, if they have not started the construction, they started clearing and ground-breaking.”
Nearly $1 billion has been collected since the implementation of VAT in January 2015.
Comments
TalRussell 7 years, 10 months ago
Comrades! Except for being invited to inject details on his or her own activities and upcoming Royal visits, the Governor General's Speech from the Throne is always written by the government of the day.
Little did we know that it wasn't right up until the night of the PLP's convention that the prime minister's office must have also written and handed the speech for Michael Halkitis Minister of State for Finance to delver - cause obviously it was the first time Halkitis had seen where the $1 Billion in VAT went?
http://tribune242.com/users/photos/2017…
thephoenix562 7 years, 10 months ago
He was not being “disingenuous” he was outright lying and he knows it.
Well_mudda_take_sic 7 years, 10 months ago
Halkitis' role in the BoB debacle, as Crooked Christie's number one gopher in the Ministry of Finance, says it all when it comes to his lack of character and integrity!
John 7 years, 10 months ago
The man told outright lies. His position in government exposed information to him that made him aware that he was telling lies at the PLP convention about the VAT. He had the opportunity to recant. But he chose instead to go on national radio and and defend his statements. He continued with his lies. This shows that he has no remorse and his intention was to be disingenuous, to mislead and to decieive the Bahamian public with his lies. He has therefore earned the title of Lying Halkitis, at least for the rest of this silly season.
John 7 years, 10 months ago
So if we lie to the government it's a felony. But if they lie to us, it's politics.
sheeprunner12 7 years, 10 months ago
Excellent point!!!!!!!!
John 7 years, 10 months ago
***Why is honesty in politics like oxygen?
The higher you go, the scarcer it gets.
. Why did the politician cross the road?
To get to the other bribe! Those who are too smart to engage in politics are punished by being governed by those who are dumber. Plato, ancient Greek Philosopher.
. 'You can fool all of the people all of the time if the advertising is right and the budget is big enough.' Joseph Levine . A lie can travel halfway around the world while the truth is putting on its shoes. Mark Twain . Diplomacy is the art of saying 'Nice doggie' until you can find a rock. Will Rogers
Politician in the Swim
What happens if a politician drowns in a river? That is pollution.
What happens if all of them drown? That is solution!!!
OMG 7 years, 10 months ago
Has it ever entered their tiny minds that however hard you want something that the time has come to stop many projects, reduce the size of a bloated civil service and make departments accountable for losses. Watch out VAT will go up once the PLP gets back in. The Bahamas is fast pricing itself out of the holiday market.
ThisIsOurs 7 years, 10 months ago
Exactly. Just telling us I spent it on this and that is not the same as telling us we were responsible with your money. What they're doing is being irresponsible and trying to hide it.
The next question Candia needs to ask is what does carnival will be "privately funded" mean? There's local marketing, international marketing, a music competition, carnival launch, concert and a road parade in Freeport and Nassau. Will "carnival will be privately funded" mean all of these be privately funded? If not what is the ratio of spend on each element?
John 7 years, 10 months ago
Instead of giving a politician the keys to the city, it might be better to change the locks. Doug Larson (English middle-distance runner who won gold medals at the 1924 Olympic Games in Paris 1902-1981)
John 7 years, 10 months ago
"Education: that which reveals to the wise, and conceals from the stupid, the vast limits of their knowledge." –Mark Twain
"George Washington, as a boy, was ignorant of the commonest accomplishments of youth. He could not even lie." –Mark Twain
"I have a higher and grander standard of principle than George Washington. He could not lie; I can, but I won't." –Mark Twain
"Honesty is the best policy - when there is money in it." –Mark Twain "A lot has been said about politics; some of it complimentary, but most of it accurate" - Eric Idle
Zakary 7 years, 10 months ago
Wonder if they somehow bailed out Baha Mar? Any news on the sealed court documents? Hmm... a lot of things just don’t add up.
screwedbahamian 7 years, 10 months ago
Candia Dames is to be commended for representing the voice of the Bahamian people in getting answers from the current government members on issues affecting everyday life in the Bahamas ( normally performed by the political opposition) . I was a proud Bahamian listening to her on the radio show as she very professionally and respectfully questioned and exposed the untruths spoken by the Minister. Listening to the show here in South Florida one could feel the heat being generated and the voice crackling in the answers. Keep up the great work Ms Dames, we need a lot more media professionals like you who see the truth and accountability from the government irregardless of the political party.
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