Thorne presses govt to explain billions in loans

Leader of the Opposition Ralph Thorne kept up scrutiny over the government’s borrowing, demanding clear answers in Parliament on Tuesday about how billions of dollars in international loans — over $1 billion within ten months so far this year — have been managed and accounted for.

The Christ Church South MP raised the issue in the House of Assembly on Tuesday as he debated the Development Bank of Latin America and the Caribbean Bill, which seeks to ratify Barbados’ ascension to full membership in the regional development bank.

While declaring his support for the bill, Thorne expressed concern that the government had signalled its intention to seek financing for projects in education, health, water, and roads through its expanded access to more than US $18 billion ($36 billion) in CAF resources.

Accusing the Mia Mottley administration of embarking on a “borrowing spree” since taking office in 2018, the Opposition Leader questioned the government’s record and transparency in managing international loans.

He said: “Is it on record that this government has borrowed in excess of $1 billion this year? … What has happened to the large sums of money that have been borrowed this year alone? I know the record is there that supports the assertion that over $120 million were borrowed to construct a hospital in St Lucy. The public now knows … that what ought to have been the hospital in St Lucy is now a hostel accommodating foreign labour in Barbados.”

Thorne continued: “This government needs to be reminded, and not only this government, but the people of this country need to be reminded of the misdeeds of this government. And we will continue to ask questions about the KOMI (Kensington Oval Management Inc) loan, $25 million that was borrowed from a bank. We’ve talked about that bank here often enough. I’m not going to mention the name today, but what has happened to that money?”

The Opposition Leader charged that there has been “no proper accounting” for the substantial sums borrowed by the administration, accusing it of going on a “borrowing rampage.”

“Is it not intended that when you borrow money, it should result in growth? Is it not intended that when you borrow money, that you should invest that money in the economy and grow the economy? And not only grow the economy but grow the economy for the benefit of Barbadians. Now, we hear the macroeconomic analyses and reports as to a growing economy,” Thorne said.

“Let us introduce Barbadians to aspects of this [economy] … that the government says it is growing. … We have argued before and we will continue to argue that much of what is reported as growth is really inflation, that the growth figures are distorted by inflation and not by production.”
(IMC)