Basseterre, St. Kitts, December 4, 2024 (PMO) —Prime Minister Hon. Dr. Terrance Drew has again laid bare the staggering mismanagement of funds at the Development Bank of St. Kitts and Nevis during an in-depth discussion on Freedom FM’s Issues. The Prime Minister revealed that the bank had accumulated over $300 million in debt, with external audits deliberately suspended from 2018 to 2019, creating an opaque environment where mismanagement could thrive unchecked.
“This was a deliberate attempt to hide the truth from the people,” stated Dr. Drew.
He continued, “The suspension of audits allowed hundreds of millions of dollars to be mismanaged, jeopardizing the financial stability of the bank and, by extension, the nation. This negligence is an egregious breach of trust and accountability, and my administration is taking decisive action to ensure such malpractice is never repeated.”
The Prime Minister went on to detail how the absence of external audits between 2018 and 2019 enabled poor governance practices to persist, including questionable loans and unchecked financial decisions. He likened the mismanagement to a “Ponzi scheme,” where the true state of the bank’s financial health was hidden behind a façade of stability.
“Under the leadership of the previous administration, with the then Prime Minister acting as Minister of Finance and his brother serving as CEO of the Development Bank, a deliberate decision was made to suspend audits. This created an environment ripe for abuse, where hundreds of millions of dollars were recklessly mismanaged.”
Prime Minister Drew highlighted that the bank’s hidden debt of $300 million was only uncovered after his administration commissioned forensic audits. These audits also revealed that the Development Bank held loans totaling approximately $120 million from Social Security, an arrangement that was neither disclosed to the public nor adequately monitored.
“We could not allow the mismanagement of the past to jeopardize the livelihoods of our people. Our first priority has been to protect the integrity of Social Security and ensure that no citizen has to worry about whether their pension or benefits will be paid.”
The Prime Minister emphasized that his administration is determined to bring transparency and accountability to the Development Bank and all government-linked financial institutions. A forensic audit has been completed, and regular external audits have resumed. These audits are expected to be tabled in Parliament in the first quarter of 2025.
“To hide the state of the Development Bank from the people of St. Kitts and Nevis was an act of gross negligence. We are committed to uncovering the full extent of this mismanagement and holding those responsible accountable. Legal claims have been filed, and the case is already in progress.”
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