ST. JOHN’S, Antigua, Monday June 20, 2011 – Finance Minister Harold Lovell’s announcement that he has ordered the island’s Financial Services Regulatory Commission (FSRC) to carry out its own investigations following a European publication’s claim that Antigua is the worst Caribbean country to put money in, is not sitting well with the opposition Antigua Labour Party (ALP).
The unflattering finding was published last week by Euromoney magazine which assessed 186 countries, using political, economic, structural, debt and credit rating risk indicators. While Antigua & Barbuda got a score of 9.3, the top placed Caribbean country, Bermuda, scored 68.21.
Lovell said he expected to get a report from the FSRC this week on the matter, but said he suspected the poor rating had to do with the offshore banking sector and was based on the collapse of the Allen Stanford empire in 2009.
But Opposition Leader Lester Bird has objected to the FSRC conducting the probe, saying that it would be a conflict of interest and suggesting that there needs to be a bi-partisan approach to repairing damage to the country’s reputation.
“Any sensible government – more concerned with the country’s interest than its own party political survival – would have looked for a bi-partisan, fully national solution to this crisis…Instead, the minister of finance told the country that he has asked the financial sector regulatory authority which he controls as minister to conduct an inquiry and give him a report,” he said in his weekly broadcast yesterday.
“Now, what report does the minister expect to get, but one that says Euromoney is wrong and that all is well? And, having got such a report, not from an independent body in this particular case, but from one that has a vested interest in the matter, what will he do with the report? It will change nothing, and our financial services sector will continue to suffer in the international community, affecting jobs and revenues. Furthermore, what will a report from the local FSRC change in relation to the worldwide Euromoney statement?”
Bird suggested that what is required is an international programme in the main money markets to shore up the country’s financial services industry.
“Such a programme should be parliamentary-based, bi-partisan and should include the banking sector in a meaningful way…I call upon the Prime Minister and the Minister of Finance to establish with the authority of Parliament, a committee made up of Labour Party and UPP (United Progressive Party) officials, to deal with this matter internationally,” he said.
The Opposition Leader further suggested that the committee be allowed to co-opt to its membership, as ex-officio members, representatives of the banking community who would be able to give expert and professional advice.
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