The Bottom, Saba – Sourced from the Public Entity of Saba, sabagov.nl Bulletin December 2020. The Public Entity Saba did not follow the advice of the Committee for Financial Supervision with regard to the 2021 budget, and with good reason, according to Finance Commissioner Bruce Zagers.
The Island Council approved the skeleton budget on November 12 with a US $1.3 million deficit in contravention of the CFT had not given the draft budget a positive opinion. Following the advice by the CFT would have a detrimental effect on Saba’s liquidity position; essentially reducing the liquidity position to a negative balance by 2023, explained Zagers. In order to arrive at a balanced budget, which is required by law, the CFT advised to remove the loan repayments and to pay these expenses from government’s liquidity. “This advice was given whilst knowing the public entity’s fragile liquidity position,” stated Zagers, who added that the issue of the fragile liquidity position had been highlighted before by the CFT and especially by Ernst and Young in its audit opinion on the 2019-year report.
You can read more about it here Newsletter-Nov_Dec-2020-FINAL.pdf (saba-news.com)