00:00A government-guaranteed loan to the tune of $100 million for the Rural Development Company is now the subject of
00:07question.
00:08At a joint select committee, it was revealed that the First Citizens Bank loan was approved in 2019 by the
00:16Ministry of Finance.
00:17Asked to account for the loan, acting Permanent Secretary in the Ministry of Rural Development and Local Government,
00:23Peter Mitchell, says it has long been used up, with 70% of approved projects from that time completed.
00:31When was the first dollar spent? Approximate date.
00:38That seven-year loan was exhausted. I don't have the specific time after the November 11th approval when we start
00:49drawdown.
00:49The JSC has asked the RDC and or the Finance Ministry to provide the information in writing.
00:56But Roberts' question stems from the RDC's submission.
01:00You've written here because you said November 11th, 2019, that it was approved from the Ministry of Finance
01:08and further ratified in Cabinet Minute No. 1976 of November 25th, 2021.
01:17The legal process is for Cabinet to first approve the loan before the Finance Ministry acts on it,
01:24unless it is approved by the Prime Minister, which Cabinet approval can then be sought subsequently.
01:31Therefore, if any dollar was spent before July 29, 2021, it would have been illegal and illegitimate.
01:42The entities have also been asked to state clearly if the Finance Minister was the acting Prime Minister at a
01:49time of the approval.
01:50Meanwhile, on another issue of funding, a $200 million loan from the Guardian Group Trust was taken out
01:57on February 13th of 2025 for the RDC to undertake over 100 approved projects.
02:04When the UNC came into power after the April 28th, 2025 general election, a number of loans from state companies
02:12was impacted.
02:13The Ministry of Finance ordered that the monies be returned to the suspense account of the Treasury.
02:19The RDC was one of the companies in this category in relation to that loan.
02:24$158 million was still in the, what do you call, in the bank.
02:28Yes.
02:28Yes, right.
02:29That was repurposed to, on the directive of the Minister of Finance.
02:33As for the reason behind the repurposing.
02:36I don't have the specifics of what it was used for, but in general terms, was assist with, you know,
02:40cash flow and that sort.
02:42To assist in low cash flow that was faced by the government at that point in time.
02:46Well, I cannot say low cash flow.
02:49Low cash flow, is it?
02:50Yeah, but I cannot say that.
02:51Cash flow challenges?
02:54I will leave it as, that I don't have the specifics, but it was used as a sort of liquidity.
03:01So, when the new board came in, it found a balance of around $2 to $3 million, which the RDC
03:07says it is using to pay salaries.
03:10However, the company's expenditure for the year runs into over $5 million, presenting a shortfall.
03:16Apart from that, the RDC says it is $14 million in debt at present, owing to contractors.
03:24No new projects have been launched for this fiscal year.
03:28The RDC says it has reached out to the finance ministry, seeking assistance to resolve these financial issues and is
03:36awaiting response.
03:38Alicia Boucher, TV6 News.
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