This defense arose from the recent revelation that, during their term in office, loan funds were not directed into the Consolidated Fund as required by the Finance Act. Tourism Minister Hon. Dr. Ernest Hilaire clarifies that there is a distinct statutory account designated for CIP funds.

“Donations must go to the National Economic Fund. All the monies that are earned from the “donation option” go to the National Economic Fund. The Bonds go to the Ministry of Finance because these are Government Saving Bonds and there’s legislation that accounts for that,” the Minister responsible for the CIP explained.

The National Economic Fund was established by the Parliament in 2019 by then Prime Minister Allen Chastanet. The Fund was devised to provide investment capital for government-approved capital projects. Monies from the Fund are also used to reduce government debt, purchase government Bonds, and for other expenditures.

“There are also some fees that are charged - administrative fees, due diligence fees, et cetera. At the end of the year, there’s a statement of all fees and the Ministry of Finance directs how the excess fees are used. That’s what happened with the last administration and it happens with this administration,” Hilaire added, stressing that this present administration is following all procedures. He revealed that the Programme is entering a new phase of its operations. “We are about to enter a new phase of CIP with the resources we have been able to save. We’ll now go into specific projects, and I’ll leave it to the Prime Minister to, at the right time when he’s prepared, to announce the national infrastructural projects,” the Deputy Prime Minister added.

These questions were raised by the UWP after public scrutiny of their past financial decisions. The government has launched an inquiry into the Chastanet Administration’s decision to reroute loan funds to the Panamanian bank account of a private contractor and not the Consolidated Fund as mandated by the Finance [Administration] Act.