July 28, 2008 — Virgin Islands Inspector General Steven van Beverhoudt defended the $2 million recommended budget for the Office of the Inspector General in budget hearings Monday.
The inspector general's office conducts audits, investigations and inspections of programs and operations of the V.I. Government. Approximately $1.8 million of the recommended budget is for personnel services and fringe benefits and the remaining $200,000 is for operating costs.
Beverhoudt asked the Legislature to consider an additional $200,000 to repair and renovate the offices of the Office of Inspector General.
Beverhoudt highlighted audits of the St. Croix Horse Racing Commission, Roy Lester Schneider Regional Medical Center and the Homestead and Home Loan Program as examples of his office's value.
"Audits of the Homestead and Home Loan Program administered by the Department of Housing Parks and Recreation showed a worthwhile program being poorly administered and managed," he said. "As a result, delinquencies exceeded $600,000 and questionable loans were granted. As part of the corrective action (deJongh) transferred the program to the Virgin Islands Housing Finance Authority."
The Schneider Hospital audit is complete and will be released sometime in the next week or so, Beverhoudt said.
"We give it to the department and give it two weeks to respond," he said. Until then, he will not go into the details of the audit.
Asked if his office needed more resources, he said he could always use more, but his resources were adequate.
"How many people would be ideal to get the job done?" Sen. Terrence "Positive" Nelson asked.
"Ideally I think the office should have 35 to 40 people overall throughout the territory," Beverhoudt said. "Right now we have 23 budgeted. But I don't think it would be realistic to double the size in one year."
West Indian Company (WICO) President and CEO Edward Thomas appeared last before the committee — not to defend a budget, because it does not take any government funding, but to report on its budget and activities.
Formerly a Danish corporation, WICO was purchased by the V.I. Government in 1993. It owns and operates the main cruise ship port in St. Thomas at Havensight. It also owns the historic mansion used as a residence by past governors located in Estate Catherineberg.
WICO's main function is as a shipping agent, contracting to service cruise ships coming to St. Thomas.
Thomas said the cruise business is going well "in spite of the stagflation on the mainland."
"In 1993, passenger arrivals had just approached the one million mark," Thomas said "At the end of 2008, weather permitting, we should achieve two million passengers in the district of St. Thomas and St. John."
St. Thomas was the most popular cruise destination in the Eastern Caribbean with 1.9 million cruise visitors in 2007, he said. St. Maarten was second with 1.4 million and Barbados a distant third with 720,000.
Though WICO does not handle St. Croix traffic, Thomas was upbeat about the big island's prospects, saying cruise ships were beginning to return.
"With the light shining at the end of the tunnel, I think now is the time for people to invest and take a chance," he said.
WICO has $18 million in debt remaining from the government's initial purchase, according to Thomas. It pays a certain sum, set by the Senate, into the general fund each year. That amount varies from year to year. In 2007, WICO generated $700,000 for the general fund.
Present were Sens. Terrence "Positive" Nelson, Carlton "Ital" Dowe, Neville James, Ronald Russell, Liston Davis and Juan Figueroa-Serville. No votes were taken.
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