Minister of Transport Nigel Stephenson says a central pillar of his ministry’s overhaul is restoring the government’s reputation as a reliable “paymaster.”
The Minister identified a critical “pain point” for the private sector stating that the previous administration’s practice of demanding VAT payments upfront through the Inland Revenue Department while simultaneously delaying payments to contractors was “bad management” that led to project delays and ballooning debts, exemplified by the South Leeward (Mandela) Highway.
Due to tardy payments to consultants, a $600,000 debt skyrocketed to $1.6 million—a cost the new administration must now negotiate to protect the public purse.
The Minister on Thursday read ‘the riot act’ to underperforming contractors. While the Ministry pledges to meet its financial obligations in a reasonable timeframe, it demands objective performance in return.
“The era of awarding contracts based on “loyalty” is over; future allocations will be based strictly on efficiency and the ability to complete works within stipulated timeframes”.
To prevent “leakage” and “wastage,” the Minister is assuming a rigorous supervisory role across all functional divisions. This oversight is vital for the Electrical Inspectorate, which is currently spearheading the post-Hurricane Beryl recovery in the Southern Grenadines. The Inspectorate is mandated to ensure that every reconstructed home meets safety standards before electricity is restored.
The Ministry is also cleaning the books of “recurring decimal” projects—phantom items that appeared in the budget for 10 to 15 years without completion.
Removing these items ends the era of “political theater” where projects were listed solely to influence voters.
“This realistic budgeting is contrasted with previous “election projects,” such as the Chateaubelair administrative center, which was demolished following a disingenuous $10 budget allocation”, Stephenson said.