Corruption Costing Barbadians an Estimated Half a Billion Per Year.
Corruption costing Barbadians an estimated 1/2 a Billion per year.
“More than any other Caribbean society, with the possible exception of Cuba, Barbados has arrived at a place where its uniqueness represents a model of governance, political economy, way of life, and social order which invites emulation elsewhere in the Caribbean and further afield, albeit with appropriate amendments. Barbados’ high quality of governance and level of human development have been a marvel to objective observers, including reputable international agencies. “- Dr. Ralph E. Gonsalves
Corruption hurting Barbadian’s prosperity.
Barbados over the years has achieved international recognition and praise for its many accomplishments notwithstanding its small size. However, Barbadians must remain ever vigilant against practices like corruption which threaten to dismantle this progress. In light of the island’s continued economic difficulties, corruption can further undermine social and economic prosperity in Barbados. According to the OECD, the cost of corruption to developing countries like Barbados is approximately 5% of GDP; roughly 1/2 a Billion BBD per annum. With historically high taxation and the challenges government faces in adequately supporting social assistance and developmental programs, the loss of 1/2 a Billion BBD through corruption is a price tag Barbadians could least afford.
Contextualizing what 1/2 a Billion BBD could get Barbadians per annum.
| Initiative | Cost |
| Reinstate the non-payment of tuition fees for UWI students | 42 Million BBD |
| Reduce VAT from 17.5% – 15% | 124 Million BBD |
| Reinstate Tax Free Allowances | 25 Million BBD |
| Reinstate cuts made to QEH | 35 Million BBD |
| 10% increase in public sector wages | 80 Million BBD |
| Reduce government’s NIS Debt by 75 % | 200 Million BBD |
Corruption more common than Barbadians think
Barbadians would fail to reap these potential benefits if they fail to appreciate the potential impact of corruption in Barbados. Since average Barbadians are not a part of high level business and political dealings, many are unaware of the extent of political corruption and how it might present itself. An important undertaking therefore, is to ensure average Barbadians know what corrupt political dealings might look like.
How corrupt officials exploit tax-payers
Government ministries and departments often require goods and services from private companies through procurement, better known as tendering. It is during this tendering procedure where the integrity, fairness and transparency of the process would likely be compromised by corruption to favor a particular tenderer. During the procurement process, contracts above 200,000 BBD ought to be put out to tender and bids must be considered by a Tenders committee. It is at various stages of this process, where for instance, a corrupt businessperson and minister could conspire. To gain access to these millions, this business person could bribe or attempt to bribe a minister with the aim of soliciting political interference by exploiting that minister’s discretionary powers since contracts can be authorized directly by the Cabinet. This interference would then allow this corrupt contractor to by-pass department boards, regulatory planning offices, environmental impact assessments and even the Tenders Committee, while the minister could benefit to the tune of hundreds of thousands in some instances form their political interference.
More tax-payer’s money extorted
The system could be further abused if the corrupt business person bought additional political influence to have higher unforeseen or varying cost approved above the amount estimated without adequate justification; rrupt business person art of potentially pocketing millions.
Buying off political party officials
A corrupt entity could also create unethical networks through “buying off” political parties, through lawful but undeclared political campaign financing. In these instances, large and undisclosed sums of money would be poured into a political party with the expectation that their investment will mature through valuable tax-payer funded contracts. This type of collusion often becomes apparent when government contracts spanning multiple projects, favor one or two firms and capable alternatives exist and there is criticism for a failure to spread the wealth.
Fighting corruption for strong national development
If corrupt private and public officials engage in unethical profiteering of government, it poses a serious threat to the well-being of Barbadians. Unnecessary and expensive tax-payer funded projects, with inadequate justification for cost increases and failure to proceed through the correct regulatory guidelines can cost Barbadians billions, jeopardizing our national development. It is incumbent upon Barbados therefore, to ask themselves what future do they wish to see for Barbados? A Barbados where Dr. Gonsalves’ statement remains true, or a Barbados where such a statement is reflective of a time long gone by.