Central government owes NRA $2.5M

The Cayman Islands government owes the National Roads Authority some $2.5 million for projects the authority has executed, including $1.2 million due from the Ministry of District Administration, Works, Lands and Agriculture and $1.3 million from the Road Fund, according to documents provided by the authority in response to a Freedom of Information request. 

Of the $2.5 million, nearly $240,000 has been due for more than four months and falls under the past fiscal year, which ended 30 June, 2011. The authority has been told the government does not have the resources to pay the $240,000 for those projects. 

“The ministry has indicated that the appropriations for these two items were exhausted in fiscal 2010/11 and thus there are no funds to pay the amounts due,” according to the authority’s response. “The NRA believes these amounts are rightfully owed and that an appropriation should be made to pay the amounts.” 

The ministry did not respond to a request for comment by press time. 

Payments owed 

As of 15 December, 2011, the ministry owed the authority nearly $410,000 for “Cayman Brac Paving” – of which nearly $220,000 had been owed for more than 120 days. The ministry also owed the roads authority more than $470,000 for “Grand Cayman Road Maintenance”; $190,000 for “Grand Cayman District Roads Programme”; and $120,000 for “Grand Cayman Street Lighting”. Those three payments had been due for 61 to 90 days. 

From the Road Fund, nearly $640,000 was for “Grand Cayman Road Maintenance”; $350,000 was for “Grand Cayman District Roads Programme”; and $270,000 for “Grand Cayman Street Lighting” – of which nearly $19,000 had been owed for more than 120 days. 

According to the authority, except for the amounts owed for more than 120 days, the amounts due from the ministry are being paid from the current fiscal year’s appropriations, and the amounts due from the Road Fund are being paid from this fiscal year’s emergency appropriations. 

In addition to money owed from the ministry and Road Fund, eight other customers owed the authority a combined $69,000. That includes $25,000 from the Department of Tourism; $4,000 from Her Majesty’s Prison Service; $3,000 from the Water Authority; $900 from the Department of Environment and less than $400 from the Public Works Department. The Cayman Islands Civil Service Association Co-operative Credit Union owed the authority $34,000. 

NRA funding 

According to the government’s ownership agreement with the authority for the 2011/12 fiscal year, the authority expected revenues of $5.6 million from Cabinet and $8.1 million from statutory authorities and third parties. The authority was owed $2.5 million as of 1 July, 2011, and expected to be owed $3.2 million by 30 June, 2012. The authority owed $2.6 million to creditors as of 1 July, 2011, and expected to owe $1.9 million by 30 June, 2012. 

According to the government’s budget plan and estimates for the current fiscal year, the ministry expected to provide some $4.9 million to the authority and for road-related projects. That includes $3 million for “Miscellaneous Road Surface Upgrades” and $1 million for “Cayman Brac and Little Cayman Roads”. 

The government-created Road Fund is intended to finance the authority. It comprises 20 per cent of gasoline duty, 16.67 per cent of diesel fuel (excluding fuel used by Caribbean Utilities Company), 100 per cent of infrastructure fund fees, and 80 per cent of motor vehicle registration fees. 

According to the 2011/12 budget plan and estimates, the Road Fund had zero dollars in it as of 1 July, 2011, was expected to receive no transfers and was expected to have a closing balance of zero dollars in 30 June, 2012. 

The Infrastructure Development Fund, meanwhile, had an opening balance of $2.23 million as of 1 July, 2011, was expected to transfer $7,000 in interest to General Revenue and transfer zero dollars to the Road Fund.