Coye: system sound but needs enforcement
And while in Belmopan the Senate was deciding on its future course of action, in Belize City members of the media were treated to the first public thoughts of a member of the group of seven ministers who resigned and then came back to Cabinet. Following a morning off-the-record group chat, Minister of Works Joe Coye, also a Minister of State for Finance, sat down with News 5’s Stewart Krohn. For Coye, the system is basically a good one, but those who’ve operated it over the last two decades have failed to use its checks and balances properly. Following last month’s shake-up, Coye says, things are changing for the better.
Jose Coye, Minister of Works
“I would say that we have certainly embarked on a new course. The things that were asked for in terms of the changes to be made, I am convinced today that we have put in place mechanisms to bring about those changes. And in essence what we were in fact asking for, which I think we are on the road to now, is to bring about fiscal sustainability within the public sector. I think we need to address it first in the context of what I would call the budget cycle and we need to begin to look more on the fiscal process. One, in terms of the affordability; we cannot be spending more than we can afford. So we need to begin to look at reducing the fiscal deficit. We need to address the debt. If we are to reduce the debt, obviously we will need to reduce the fiscal deficit.”
Stewart Krohn
“You are talking higher taxes and lower expenditure?”
Jose Coye
“No, not necessarily it is not about higher taxes. It’s simply about reducing the deficit, which means that indeed we can strengthen the revenue machinery not to increase taxes, but to increase the collection of taxes. We can reduce expenditures not in the sense of cutting back on services, but cutting out ways to be specific. It’s to become more efficient; to become more economical and more effective in use of resources.”
Stewart Krohn
“Is it our imagination or do you perceive the same thing? Why doesn’t Government just come clean and tell us what is going on?”
Jose Coye
“I think that it’s not now a question of coming clean. I think that has been done in the sense that we have been looking at the Social Security. The finance committee and I should mention that one of the changes that we did make when we had the reshuffling and we put in place the new mechanism. We do have a public finance committee, which is supported by a technical team within the government. And one of the things that we are doing is really to examine first not just the statuary boards: the Social Security, the DFC but also the central government. That is what we need to do and that is what we are in the process of doing. We need to come forward with the true financial data so that then we can put together the picture and we can design then a financial plan to take us forward.”
Stewart Krohn
“Minister can you tell the Belizean public right now why is that the Social Security Board agreed to guarantee a multi-million dollar securitization scheme? How did that happen? Why and how did that happen?”
Jose Coye
“I cannot say exactly how it happened and I cannot say exactly why it happened, but I can say that if the Board felt in their judgement that it was advisable to finance such a venture in terms of the telecommunication industry and they went out to do that. I believe that would have some merits to it, but what we must ensure when we are doing those kinds of things that we adhere to some of those credential rules that are extremely important. The very credit worthiness; the very backing of those guarantees. Those are things that are important when you are going to guarantee. So to me while we can perhaps debate over the merits of the project that were to be funded or for which funds were to be guaranteed, I think what is more important is not whether they should have gone that way or not is that when they had decided to go that way obviously they should have ensured that the proper rules were in place.”
Stewart Krohn
“Obviously they didn’t ensure that and you are not the least concern to know that?”
Jose Coye
“Of course, we are extremely concerned and I could not say that we are never the least bit concerned. We are concerned because whatever you do in terms of lending or giving guarantees whether it is the Social Security, whether it is the DFC, whether it is the Government spending it has to be done within sound management. Any Government must be concerned; any politician must be concerned when there is a laxity of such rule.”
Stewart Krohn
“Mr. Coye, the Prime Minister and Minister of Finance, Mr. Said Musa is part of the problem or part of the solution?”
Jose Coye
“We could be all part of a problem, but we can also be part of that solution. I don’t believe that if we fall down once that we should stay down. I think that we should get up. If we are not strong headed and if we are not self-righteous, which we ought not to be. We can learn from our mistakes, we can move forward and we can restore the fiscal sustainability to this government.”
