The Petrocaribe funds are set aside for development and infrastructure programs - by now that has been drummed into the collective conscious. But what happens when the government starts using Petrocaribe funds to meet payroll? That's what this document shows it did in March 2014 and 2015 - twenty million dollars each time. The document was exposed on KREM's Wake Up Belize morning show today - and it is a transaction report for government's general operating account. Indeed it shows that in March 2014, twenty million dollars was transferred from the Petrocaribe funds to meet mid-month salary commitments. That same thing happened in March 2015.
Now, government has strictly stated that it will not, cannot use Petrocaribe funds to meet recurrent expenses such as salaries. So how then did this happen? That's what we asked the Financial Secretary today. Via telephone from Belmopan, Joe Waight told us that it's all a misunderstanding of how government finances work - specifically the consolidated operating account, which is used to cover all government payouts:
Joseph Waight, GOB's Financial Secretary
"From that account everything is paid for the government, that is, everything being wages and salaries, operating costs, debt servicing and also including Capital Two programs including the Petrocaribe funding. So the way we operate the account is this: we make the payments from our operating account regularly in response to what they call invoices raised in the system, invoices being from the suppliers or invoices being from the contractors and then in the case of Petrocaribe from time to time, we reimburse ourselves by drawing money down in block. Now in the case of this statement what happens was this: we reimbursed ourselves because we had forward looking, going forward, we had salaries and we had debt service coming up in March. So what we did really was this: we drew some money, replenished for money spent already. So while it may on the surface says it's going for salaries and wages, that in fact is true, we're making payments from the operating account to meet salaries and wages going forward, but in fact what was happening we were reimbursing ourselves for money already spent. It's not unknown in business I understand that you have an operating account, and you, you have to kind of keep it juggling, noh? You juggle the money as it comes in but at the end of the day you square it off ah? I admit that this statement does look a little awkward but if you take a deep dive into the numbers you'll find that they're all there, and we report it to the house. It will show that we've only spent Petrocaribe money for Petrocaribe projects and we have not spent any for salaries and wages."
Government sent out a 650 word press release today saying, quote,
"all PetroCaribe transfers into the consolidated operating account are only to put back what has been taken from that account and spent on the PetroCaribe contracts. Since the principal spending from consolidated operating account is on salaries and debt service, it is natural that what the PetroCaribe account repays into the consolidated operating account would be used for such salary and debt servicing spending."
Of course, the opposition isn't buying the explanation. The party has taken a hardline against all things Petrocaribe - and Deputy Leader Julius Espat says that this only confirms their misgivings:..
Hon. Julius Espat - PUP Cayo South
"It just confirms what we have been saying: lack of accountability and lack of honesty and integrity with how our monies are being spent. In the corporate world, juggling is utilized for failed organizations and that's where we are. It is precisely what they are doing. They are juggling because they don't have a vision on how to drive this economy. I said it in the House of Representatives; they have become addicts to a drug and the drug is Petrocaribe and they don't know anything else. Everything can't be Petrocaribe. You are addicted to this drug and that is the problem. So, yes, they are juggling and it is a failed state."
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