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Charlotte Amalie
Thursday, March 28, 2024
HomeNewsArchivesMillions Owed V.I. from Delinquent Loans

Millions Owed V.I. from Delinquent Loans

The head of the Virgin Islands Economic Development Authority told senators Friday that they are owed millions in delinquent loan payments.

Authority CEO Percival Clouden told members of the Committee on Appropriations and Budget that his organization is just starting to collect the $7.8 million owed from loans dating back to the 1970s.

“Apparently, there had not been a drive to collect in the past,” he told Sen. Sammuel Sanes.

“There’s your increase right there,” Sanes told Clouden, referring to the $5 million allocation the department is requesting for fiscal year 2011. The money represents a five percent increase over last year’s request.

Clouden told senators that he was aggressively searching out the money owed. He said the authority has begun working with a collections agency for the St. Thomas/St. John district. They are also close to working out an agreement for an agency in St. Croix and have actively been taking loan defaulters to court.

In the meantime, Clouden said, the authority has been working hard to attract businesses to the territory. He said that over the past six months, the territory has seen heightened interest from businesses looking to make the Virgin Islands their home.

“We are depending on you and your organization to do the necessary things to expand this economy,” Sen. Louis Patrick Hill told him.

Senators also heard from V.I. Emergency Management Agency and V.I. Fire Services.

VITEMA head Mark Walters told lawmakers that his agency owes $175,000 to off-island companies with which the department does business. Money allocated to the department by the local government has already helped them repay $125,000 owed to local vendors.

Walters also said they would need about $400,000 to begin work on VITEMA’s offices in St. Croix, which he said are plagued with mold.

He also took time in front of senators to boost the agency’s new VI-Alert system, which allows anyone who signs up to access real-time updates in times of emergency. Walters said he also hoped to soon begin work on a territory-wide siren warning system.

VITEMA is requesting a budget of $12.7 million for next year – with 5.3 million coming from the general fund and $7.3 from federal grants.

Victor Browne appeared on behalf of V.I. Fire Services to tell senators that the agency is in desperate need of funds to beef up its Haz-mat (Hazardous materials) response. Browne said that firefighters in St. Croix responded to two incidents last year. “It will only take one loss for the issue of Haz-Mat…to be taken seriously,” he told lawmakers in a written statement.

The government is requesting a budget of $19.5 million for the fire service, which is $2.2 million less than they received last year.

In attendance for today’s hearings were Sens. Hill, Terrence “Positive” Nelson, Nereida “Nellie” Rivera-O’Reilly, Sanes and Patrick Simeon Sprauve.

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