Nov 08 - GSD Calls on Government to Come Clean on Credit Finance Company Ltd Loans For Government Arrears
In response to the Government’s latest statement on Credit Finance Company Ltd, a GSD statement has today noted that ‘it is so absurd, that it only needs to be stated to be rejected outright. Credit Finance Co Limited is not a bank nor is it managed at arms length from the Government. The Moneylenders Act creates a licensing regime in respect of money lending where the licensing authority is the Chief Minister himself and Credit Finance Co Limited is not regulated by the FSC or any independent regulator.
'The proposition that a Government can just simply hide from Parliamentary scrutiny the public finances of Gibraltar, behind a Government owned and controlled company, licensed by the Chief Minister himself, is as absurd as it is dangerous.’
They go on to state that the Chief Minister previously claimed that the Government had not provided financial assistance to the owners’ of the Sunborn, however, following the by-election he did admit that Credit Finance Company Ltd provided Sunborn with a loan of over £30 million. The GSD adds that in Parliament, the Government could have easily provided the Leader of the Opposition with details of all payments, loans and investments made by blanking out the names of beneficiaries ‘rather than the stark refusal by Mr Bossano to answer the question’. They insist that the Opposition is entitled to know how taxpayers’ and savers’ money is being spent and invested, allowing them to properly scrutinise the transactions.
Questioning what the Chief Minister is trying to hide, the party claims that despite Mr. Picardo’s insistence that the company has not provided loans to individuals to pay for their income tax or PAYE liabilities to the Government, they state that it is obvious that Credit Finance Company Ltd is providing funding to assist in the repayment of ‘other Government arrears’ including rents, electricity and indirect taxes.
The GSD goes on to say, ‘the public finances of Gibraltar are being distorted because Government income will increase due to the arrears being settled with savers’ and taxpayers’ money, but the original liability to Government is then transferred to Credit Finance Co Ltd, which does not appear in Estimates of revenue and expenditure (but is guaranteed by the taxpayer). Mr. Picardo should also come clean on whether import duty and corporate tax arrears are covered by the generous offer of Credit Finance Co Ltd to help certain individuals and companies with Government liabilities.’
