BASSETERRE, St. Kitts – November 15, 2024 (PMO) – A forensic audit of the Development Bank of St. Kitts and Nevis has exposed severe financial mismanagement, including a staggering debt exceeding $300 million and the absence of audited accounts under the previous administration. These revelations have prompted serious concerns about the bank’s governance and its financial practices, sparking widespread calls for accountability and reform.
Speaking on Freedom FM’s Issues program on November 14, Prime Minister Hon. Dr. Terrance Drew stressed the critical need for transparency and accountability in public financial institutions. “Where is the money? The chips will fall where they may, and we will recover what belongs to the people of this country,” declared Dr. Drew, underscoring his administration’s unwavering commitment to restoring public trust and financial integrity in the Development Bank.
Among the audit’s most alarming findings was the significant debt owed by the Development Bank to various entities, including over $100 million to the Social Security Board. The Prime Minister revealed that the Social Security Board had not received regular payments from the bank since January 2022, and the government was forced to intervene to prevent the system’s destabilization. He noted that the last payment made by the Development Bank to Social Security prior to the intervention was a mere $200,000—far below the required $600,000 monthly obligation. This failure to service its debt not only jeopardized the financial health of Social Security but also threatened the stability of the wider financial ecosystem.
The audit further uncovered that during the previous administration, the Development Bank had ceased conducting external audits, effectively concealing its financial irregularities. This lack of oversight allowed questionable transactions to go unchecked, with millions of dollars unaccounted for. These actions placed the bank—and by extension, the country’s financial stability—on precarious ground.
Prime Minister Drew detailed his government’s decisive steps to address these issues. A new management team has been installed at the Development Bank with a clear mandate to implement robust financial controls and governance measures. This includes the introduction of stricter financial policies and operational transparency to prevent further mismanagement.
Prime Minister Drew also revealed that legal avenues are being actively pursued to recover funds and hold those responsible for the discrepancies accountable.
