Seven public bodies to be put on arrears leash
... Gov’t targets cuts in number under IMF deal
FIVE PUBLIC bodies have been identified for closure while Government, in three months, is to have a timeline for a further reduction in the number of these entities (181) – an effort the International Monetary Fund (IMF) says is needed to minimise fiscal risks to Jamaica.
In new structural benchmarks under the current deal with the IMF, the Andrew Holness administration has committed to the closure of the five entities and the “reintegration” of the Office of the Children’s Registry into the Child Development Agency by October this year. A document with time lines for the reintegration of “eligible public bodies” in central government is also to be submitted to Cabinet by July.
The entities identified for closure are the Board of Supervision, Road Maintenance Fund, Kingston Waterfront Hotel Company Limited, Montego Bay Shopping Centre Limited and the Portmore Commercial Development Company, according to the Government’s Memorandum of Economic and Financial Policies which was released by the IMF on April 18.
FIRST REVIEW PASSED
The document, along with the fund’s country report, were released after the IMF executive board April 18, said Jamaica passed the first review under the Stand-By Agreement that was approved in November 2016.
The developments come as the Government faces criticisms from local interests group over its decision to redirect revenues from three state bodies including the Tourism Enhancement Fund into the Consolidated Fund – the Government’s main account.
In June, as part of a structural benchmark, the Government is expected to submit to Parliament the legislative changes to effect the changes, which will also affect the Jamaica Civil Aviation Authority and the Culture, Health, Arts, Sports and Education (CHASE) Fund.
Prime Minister Andrew Holness and his Finance Minister Audley Shaw started the public debate last month, arguing that the change will help the Government’s fulfil its priorities while improving oversight of state entities.
Based on the documents, it appears that the stance was bolstered by what the administration in its March Letter of Intent to the IMF said was a “small breach” of performance criteria, that required the non-accumulation of external debt payments arrears, committed by the Clarendon Alumina Production (CAP).