The Cabinet of Antigua and Barbuda has approved a policy requiring all Statutory Corporations and government-owned companies to remit a minimum of 50% dividend of their profits or surpluses to the consolidated fund.
The decision, which comes into effect on January 1, 2024, seeks to ensure a steady influx of funds into the national treasury.
The policy, outlined as part of the broader fiscal strategy, is expected to enhance the government’s financial capacity to meet various obligations, including funding social welfare programs and maintaining the nation’s health infrastructure.
By channeling a substantial portion of the profits from these entities to the consolidated fund, the government aims to optimize the utilization of resources for the greater benefit of the public.
However, this directive has sparked criticism from the United Progressive Party (UPP), particularly its leader, Hon. Jamale Pringle.
In a strong-worded response, the opposition party labeled the Gaston Browne-led government’s move as a failure and raised concerns about the potential impact on essential services such as medical benefits and social security.
“The failed Gaston Browne-lead Government has mandated that at least 50% of all profits or surpluses from all Statutory Corporations and Government Owned Companies must be remitted to the Consolidated Fund, effective January 1, 2024,” stated the UPP in a press release.
The opposition party emphasized that funds allocated for medical benefits and social security are crucial components of the people’s money, designated for specific purposes related to social welfare and healthcare.
The UPP accused the government of lacking transparency, pointing to undisclosed financial reports from various statutory bodies, which have not been presented in Parliament.
Questions about the overall economic state of the government were raised by the UPP, questioning the necessity of such a mandate given recent tax increases and the implementation of new taxes.
“Aren’t Gaston Browne’s onslaught of tax increases and new taxes enough to prop up Government’s finances? What is the true financial state of the Government?” the UPP queried in its statement.
In response to these concerns, Hon. Jamale Pringle has demanded accountability and called for the submission of all audited accounts and management letters to the Public Accounts Committee.
The opposition leader has scheduled a gathering at The People’s Parliament on Thursday, January 18, at Freedom Hall, where issues related to governance, financial transparency, and economic policies will be addressed.
The event will also be streamed live on the MYUPP Facebook page, inviting citizens to engage in the discussion and seek clarity on these matters.
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To me this makes sense since these statutory bodies are owned by the Government and we the people of Antigua and Barbuda. So that is setting the standard for performance, accountability and profitability. If they are non-performing then something is wrong. A significant amount of resources was put into solving our water problems and it remains unsolved. Apart from that the more profitable the statutory bodies are, the more funds that are available for the administration to get things done. Everything doesn’t have to turn into a political football. Some of us are playing chess and others are playing checkers. I read somewhere where wari is the origin of chess.
@Sharon Lycorish
I am assuming that you are not Antiguan or you don’t live here.
SHUT UP- this makes no sense as all other administrations ran the government without putting their ‘hands’ in the consolidated fund. Proves that the country under Gaston is broke and running on reef. They just increased taxes and now they want to ‘withdraw’ the funds out of the statutory bodies needed for social services. These bodies will eventually become broke and not be able to for example patients with ‘Overseas Treatment’ , not forgetting the inability to pay Social Security.
Gaston and the ABLP does nothing unless it helps them both politically and financially (enrichment scheme).
GASTON HAS TO GO. HE IS DESTROYING ANTIGUA. HE DOES NOT CARE. AT TIMES I GET THE IMPRESSION HE WANTS TO DESTROY US AS THOUGH HE IS MAD -WHICH HE REALLY IS.
“Other administrations run the country without putting their hands in the consolidated funds”. So where exactly were they putting their hands? Or maybe that is the reason they went to IMF.
Speaking of people with no ideas, the UPP introduced personal income tax and sales aka ABST, had the benefit of the Venezuelan initiative and still had to go to IMF. And still could not provide adequate social services – roads were worst, water supply was worst, killed off INET, murder rate was higher ( about 20 in one year), totally made a mess of primary- secondary school system in Antigua, was passed in tourism by St.Kitts and St. Lucia, destroyed the one green space in St. John’s for a Carn park, pop corn side walk and fencing bush and whore house. So what is Pringle going to do if he gets to be PM? 🏃♂️ to I’ M F again. Dunce people endorse dunce people.
@ Aloenso
You are probably looking into the mirror and reading the operations of Antigua under the ABLP, just like Donald Trump who likes to project himself on others. Lets analyse your crap!!!Your PARTY shortly after coming to power in 2014 borrowed much more money from commercial banks at 12%, than the monies borrowed from the IMF @ 1%. You minions just swallow everything Gaston tells y’all. You cannot think nor read for yourselves: PITY.
UPP introduced PIT, which only high earners were paying AND not poor people, ABST was NOT introduced by UPP but implemented by them after an OECS decision by all the countries to introduced the tax which Lester Bird sanctioned. Again you don’t read but swallow…..as Kublai said ‘if Gaston give you all shit to eat, you just eat it’
UPP had to go to IMF to correct the imbalance and massive debt build up by the ABLP after 28 years OF CORRUPTION, and then once they corrected the balance, then came ABLP and GASTON in 2014 and ”BORROWED US OUT OF DEBT”, what a crazy man.
You talking about the state of roads, the stinking state of the city, with uncollected garbage, all the pot holes in the country that even your DOG admitted to, but now even you trying to defend????
Talking about crime? I AM CONVINCED YOU ARE EITHER CRAZY OR HAVE BEEN SLEEPING FROM 2014 to now. This country is dead BROKE..they cannot even pay their suppliers. Couldnt even pay a stimulus to the populace during COVID, like all other countries in the world, EXCEPT ANTIGUA. That was a disgrace after claiming Antigua is an economic ‘POOR’ house.
UPP never incurred one cent for the car park- again you are totally misinformed!!!! It was a BOOT operation where the builder became bankrupt.
Are you aware that the ABLP left an unfinished hospital that the UPP constructed/finished?
Even small St Kitts have paid every citizen $1,000.00 Christmas bonus, but Antigua is so dam broke, not even a penny!!!
AGAIN I AM CONVINCED YOU AND GASTON HAVE CRAZY BLOOD RUNNING THROUGH YOUR VEINS OR OTHERWISE RELATED.
btw the fencing man is now in your camp, the turn-coat which proves only corrupt individuals support the ABLP.
GO WAY ALOENSO
Is a utopía,not even mandrake the magician can’t stop unruly goverments take and spend into unnecessary stuff.
Their friends are happy now
These statutory corporations were set up for specific purposes. When you withdraw the surpluses, what will these corporations use to fund their future liabilities. The problem with social security not being able to pay pensioners. Patients can’t get their benefits from medical benefits. State Insurance taking months and months to settle claims.
Namco collects a lot of government money but the public has never been told the amounts collected and how the funds are spent, except that the board is made up of government ministers. No public audited financial statements.
Obviously, this government is incompetent and maybe even more, and are not using the resources of the state for the betterment of Antigua.
Think about it – Do some research about dividend policies. Come back and discuss when you are better informed
“Healthy
A range of 35% to 55% is considered healthy and appropriate from a dividend investor’s point of view. A company that is likely to distribute roughly half of its earnings as dividends means that the company is well established and a leader in its industry. It’s also reinvesting half of its earnings for growth, which is welcome.” see https://www.dividend.com/dividend-education/what-is-an-ideal-payout-ratio/
@ tenman
We are not talking about companies here boy which are established to create wealth for shareholders, we are talking about statutory bodies/corporations which were established by law to provide services. If you begin taking out over 50% of the retained profits that will destroy the entity and probably bankrupt it, just as for example in the case currently of one of the said entities Social Security which can ill-afford to pay beneficiaries pensions and benefits.
You guys have gone and re going waco!!
The ABLP is a failed experiment, they are confused and have a mad man at their head. THANK GOD WE DON’T HAVE NUCLEAR WEAPONS WITH HIM BEING IN CHARGE OR ELSE HE WOULD ELIMINATE US FROM THE FACE OF THE EARTH.
Shocked- stop chatting nonsense:
“A statutory corporation is a government entity created as a statutory body by statute. Their precise nature varies by jurisdiction, but they are corporations owned by a government or controlled by national or sub-national government to the (in some cases minimal) extent provided for in the creating legislation.
”
Guy for you to think that State insurance,transport board, GAMBLING AUTHORITY were not created as a means of garnering revenue for government, shows you are an idiot. In the very acts for these bodies, its also made clear that their profits, after allocating for funds needed to keep them going{essential retained earnings), belong to central government.
Here you go from the Transport board act:
“10(2) The Board shall, after consultation with the Minister, pay
such portion of its profits as the Board may determine to the
Treasury for the account of &e Consolidated Fund.”
What an ‘ECONOMIC POOR HOUSE’- not under VC Bird, George Walter, Lester nor Baldwin has Antigua been in such a perilous state.
This country has gone to the DOGS under Gaston Brown, He has destroyed Antigua. He has no financial management competence. These people have raped the country of all its resources and now they are beginning to dip their hands in public funds needed for health and social needs.
HOW MUCH MORE CAN WE TAKE ANTIGUA PEOPLE.
DIS MAN GASTON AND THE ABLP WICKED AND NOT ONE OF THE CABINET MEMBERS CAN STAND UP TO GASTON AND SAY ‘NO MORE’- except Robin!
@Sharon Lycorish, of course you would agree. Duh!This is as stupid as it gets.
What the half a billion dollars ALP ripped off from SS is not enough? This clueless, economic dunce must continue to rob these statuary boards?
Whatever monies they collect be it excess or not, is to repair, maintain and operate the respective schemes, not for the government to dump into the black hole NAMCO.
How many people does SS owe? How many people are waiting for years for what is rightfully theirs and this lunatic wants to extort money from them too?
How much more will we take from this clown? But hey! We were warned about re-electing this man. The only regret I have is that I have to suffer along with you who sold your soul for pittance and have caused this nightmare.
An independent Audit was called for, where is it?
It will certainly prove what some of us have been saying for a while, that this administration is broke and have gravely missused the peoples money.
What a damn shame a tell you.
All the supposed millions the govt took in last year, yet there’s nothing to show for it. $400K wasted on royal palm trees along FHR plus thousands more to relocate the high tension wires below ground. That should have been done in the 1st place. Which company is getting paid again to redo the electrical wires. Gasston thinks we are his workers and his subjects. The govt works for the people. Creative self enrichment is all Gasston has done since he came into power.
The ignorant people who voted him in are responsible for the dire situation our nation is in. How much more do you want Gasston to sink our country in the mud? Let the ass kissers keep on kissing his ass but the majority of citizens here need to hold every govt member responsible for the well being of our country. If we don’t, our country will become like Haiti.
Gasston is desperate to grab every dollar he can while in office. People rise up and do what needs to be done. This country is depending on you.
Ready to be transferred to Cayman private accounts.
For those who think stat corps were created to hold onto all earnings and place them in banks like ABI, which government had to them save the funds using tax payers moneys, note:
State insurance act 2007 (upp was in office)
183. Appropriation of profits towards surplus
(1) A company incorporated in Antigua and Barbuda shall at the end of each year appropriate
towards surplus at least twenty-five per centum of its profits for that year until the surplus of the
company equates with or exceeds the liability of the company in respect of outstanding unexpired
policies required to be included in the annual statement in accordance with section 178.
(2) In this section “surplus” means the excess of assets over all the liabilities of the company,
including its liability in respect of outstanding unexpired policies required to be included in the
annual statement in accordance with section 178.
transport board act
10 (2) The Board shall, after consultation with the Minister, pay
such portion of its profits as the Board may determine to the
Treasury for the account of &e Consolidated Fund.
FSRC 2013 acr (upp was in office)
7. Allocation of surplus
(1) The net surplus of the Commission for each financial year shall be calculated in accordance with
section 6 and 10% of any net surplus shall be transferred to the Consolidated Fund unless otherwise
agreed by the Minister.
MBS act 2010 Note (26 1c,d, 27) UPP was in office
26. Applications of Revenue
(1) The revenue of the Scheme for any financial year shall be applied in defraying the following
commitments—
(a) the payment of benefits;
(b) the salaries, fees, stipends, remuneration and gratuities of the officers, and employees,
and technical and other advisers, of the Board including payments for the maintenance
of the Pension Scheme established under section 22;
(c) programmes and activities geared to promote and maintain good health; and
(d) any other expenditure authorised by the Board and properly chargeable to the revenue
account;
(2) The commitments described at (a), (c) and (d) shall be subject to actuarial recommendation in
accordance with section 60.
(3) The Minister, on the advice of the Board, may make Regulations for the apportionment and
allocation of contributions in respect of the various commitments of the Board.
27. Authorised Investments
(1) Money standing to the credit of the Scheme, not immediately required to be expended in the
meeting of any obligations or commitments shall be invested from time to time in the proportions that
the Board may recommend to the Cabinet, having regard to the contingencies in relation to which
benefits are provided under section 49, in the securities set out in the First Schedule.
(2) Investments made under this Act are subject to the approval of the Cabinet.
(3) The Minister of Finance may from time to time by Order amend the First Schedul…
@tenman
Shouldn’t the boards decide how much of the profits to remit to the government as dividends? Since when shareholders can dictate what amount of dividends they should receive? All you quoted, haven’t shown that this percentage of revenue was going to the government under UPP.
Gaston dictates 50% this year, what happens next year 100%? I am not aware that social security has money as all the surplus for future claims were sucked out by the labour government years ago.
Does the government own any shares in the statuary corporations? How much did they invest?
Tell me that with all the record revenue from the port, the record borrowings, and money from the CIP, where is all the money going? Hospital does not even have an operating air conditioning system. Most of the government buildings are deemed unoccupiable
This government is making sure it cleans out the funds from wherever possible so when they loose power, the new government and these statuary corporations will be broke.
By the way, we are hearing that a lot of the managers of statutory corporations are being moved. Is this to make room for flunkies or compliant robots?
Don’t tell me the government needs funding for their housing projects. One of the best ways to steal money, according to a previous minister. Them me say, prove that we steal money from the treasury.
@ tenman
So what is the purpose of NAMCO since your party previously said it was mandated to hold all the shareholdings of government and to remit dividends to the Consolidated fund? Why then is a ‘middle man’ needed when these could be transferred from the various entities directly to Central government? This does not make any sense whatsoever. Why circumvent this with NAMCO. There is too many shady dealings going on here through self-enrichment schemes.
@senseless because Namco does not get profits from stat corps but companies that government holds shares in eg SIC (You may recall under UPP it was made into a private corp since they plan to sell it, wioc etc. Namco is a holding company. The shares governments holds are vested in it. It is able to invest in other private companies. Look at Singapore’s Temasek Holdings to understand the model. One important difference is it Allows government to partner with private sector entities.
Anything else?
Look at Singapore, a paradise. And so developed and clean. Don’t even mention their name.
Antigua and many of its people are really amazing when it comes to being abused.
The more strong armed methods used on them by an unaccountable administration, the deeper into sleep they seem to fall.
But according to two African proverbs: No matter how tall a tree grows, it’s leaves will always fall to the ground.
And, finally, no matter how far you urinate, the last drop always falls at your feet.
Sadly @ Joyrose, Antigua has too many people with the mindset of @ tenman, who will not hold the ABLP or Prime Minister Gaston Browne to account.
To them transparency and accountability is a definite no no, and when the government is found to be wanting on crime, the economy and blatant cronyism within the rank and file, their silence (followed by a disappearing act) is telling.
Antiguans are going to have a long hard 3-4 years, but the ‘offshoots’ of change has begun.
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