To the Ministry of Finance

Mr. Anthony Isaac
Director of Finance and Permanent Secretary
Ministry of Finance

Dear Sir,

In the issue of the Star Newspaper dated February 02, 2008, the Prime Minister’s Office published a paid advertisement headed, “Allegations by the Leader of the Opposition”. The statements appeared as a front page story in the Voice Newspaper of the same date.

The Prime Minister, disclosed inter alia, that,

“On the subject of the rental of a residence, the Prime Minister discussed this matter extensively with the Secretary to the Cabinet and the Director of Finance, before accepting the recommendation contained in the report of the Salaries Review Commission”.

The Constitution of Saint Lucia entrusts you with the responsibility to supervise the financial administration of the Ministry of Finance. Your powers have been further clarified and amplified in the Finance Act, Chapter 15.01. You will, I hope, agree that if unlawful behavior has been drawn to your attention, it is your duty and responsibility as chief accounting officer, to take corrective action. If you fail to do so, then you may become liable for misfeasance in public office.

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Mr. Anthony Isaac
Director of Finance and Permanent Secretary
Ministry of Finance

There is an even greater onus on you in this particular case. The clear implication of the Prime Minister’s statement, quoted above, is that you authorized or approved the payment of a Housing Allowance to him.

Over the past few days, I have drawn to the attention of the public, that the payment of a Housing Allowance by the Government of Saint Lucia to the Prime Minister and Minister of Finance, Honourable Stephenson King, is unlawful.

Section 14 of the Salaries Review Commission Act, Chapter 1.15, clearly says that it is for the Commission to determine the salaries and conditions of work of all Ministers and members of Parliament. The Prime Minister has no authority to substitute one set of conditions of work for another, purely for his own convenience. Moreover, the Report of the Salaries Review Commission makes it absolutely clear that a residence will be rented for use as an Official Residence (albeit temporarily) for the Prime Minister, in one of two circumstances:

1. Firstly, if the Government opts to construct a new residence; or

2. Secondly, if the Government buys an existing property and seeks to refurbish it to convert it into an Official Residence.

As you are aware, on November 01, 2007, the Government took no such decision to disestablish the current Official Residence. Thus, the recommendation of the Commission in Paragraph 4.18 of the First Supplement to First Interim Report remains applicable. That recommendation clearly says that no Housing Allowance is to be paid to the Prime Minister while the current Official Residence is utilized.

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Mr. Anthony Isaac
Director of Finance and Permanent Secretary
Ministry of Finance

In the circumstances, I write to urge you to perform your duties in accordance with the law by immediately directing that:

1. Future payments of a Housing Allowance to Honourable Stephenson King cease; and that

2. Honourable Stephenson King repays the Treasury in full, the Housing Allowance paid on his behalf from November, 2007.

I take it that a period of six weeks is reasonable to allow you to take appropriate action.

Yours sincerely,

………………….
Dr. Kenny D. Anthony
LEADER OF THE OPPOSITION

cc Mr. Agosto Degazon, Accountant General
Director of Audit
All Media Houses