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TURNBULL CABINET TO BE SWORN IN

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Most of the members of Gov. Charles W. Turnbull's cabinet will be sworn in this week.
Cabinet members from the St. Thomas/St. John District will take their oaths of office Tuesday at Government House; this group includes:
– Attorney General Iver Stridiron
– Health Commissioner Wilbur Callender
– Human Services Commissioner Sedonie Halbert
– Housing Parks and Recreation Commissioner Ira Hobson
– Licensing and Consumer Affairs Commissioner Andrew Rutnik
– Education Commissioner Ruby Simmonds
– Finance Commissioner Bernice Turnbull
– Office of Management and Budget Director Ira Mills
– Bureau of Internal Revenue Director Claudette Farrington
– Office of Collective Bargaining Chief Negotiator Karen Andrews
They will be sworn in by Presiding Territorial Court Judge Verne Hodge, at 10 a.m.
"In order for family and friends of St. Croix cabinet officers to attend, I have scheduled swearing-in ceremonies on that island to allow as many St. Croix residents as possible to be accommodated," Turnbull said Monday in a statement.
The St. Croix ceremony will take place in the St. Croix Educational Complex's auditorium, Thursday at 10 a.m.
Territorial Court Judge Maria Cabret will swear-in Property and Procurement Commissioner Marc Biggs, Police Commissioner Franz Christian, Public Works Commissioner Harold Thompson, Department of Planning and Natural Resources Commissioner Dean Plaskett, Commissioner of Agriculture Henry Schuster, and Fire Services Director Pedro Encarnacion.
One cabinet member still awaiting approval from the Legislature is acting Labor Commissioner Sonia Jacobs Dow.
The Tourism commissioner's post also remains open since the Senate rejected Turnbull's original nominee, Clement "Cain" Magras. Assistant Tourism Commissioner Monique Sibilly-Hodge is temporarily filling the post.
The Senate also has not considered the nomination of Frandelle Gerard, Turnbull's candidate for Industrial Development Commissioner executive director.
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$50M TOBACCO SETTLEMENT MAY GO TO UNIONS, HEALTH

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The Virgin Islands' $50 million share of a national tobacco settlement has, in a sense, already been spent. A bill passed last year by the 22nd Legislature, and signed by former Gov. Roy Schneider, splits the territory's proceeds between government employees' retroactive wages and health care.
This, and further terms of the $206 billion settlement reached last year between a coalition of U.S. attorneys general and the tobacco industry, was the subject of a speech given Monday by Assistant Attorney General Alva Swan before the League of Women Voters of the Virgin Islands.
"As matters now stand, the Virgin Islands recovery from tobacco litigation . . . excluding the interest, will be $49,510,102.11," Swan said. "But with interest over the intervening years, the territory will receive far in excess of $50 million."
The $206 million will be paid out to the states and territories over 25 years. Thus, beginning in April 2000, the Virgin Islands' will receive a total of $34 million over 25 years. The territory will receive an additional $15 million over 10 years from a secondary agreement of the settlement.
Overall, the territory should receive about $2.8 million a year.
"The question I am going to anticipate is whether we can shorten the time from 25 years to five years, where that $50 million can have a greater impact. The answer is still no, it can't be done," Swan said. "The payment structure may be a blessing in disguise in that we will not be able to spend all $50 million at one time, as we would if the funds were available to us in a lump sum payment."
Act 6220, however, severely limits what current and future administrations can use the tobacco money for. Under Act 6220, passed by the V.I. Legislature in 1998, 50 percent of the money from any tobacco settlement must be deposited into the Union Arbitration Award and Government Employees Increment Fund — the source used to pay employees' salary increases and retroactive wages.
The other 50 percent goes into the Health Care Revolving Fund.
"And that folks, will exhaust the entire settlement proceeds, and exhaust it to the exclusion of any other worthy cause or program, health care or otherwise," Swan said. "My suggestion is to encourage you to lobby your senators to amend the act to make the distribution of the tobacco settlement fund more equitable.
"By so doing the Legislature may be convinced that there are other pressing issues of concern to all of us. So much so that the act can be amended to pay for health care costs and for programs that will discourage youth smoking. That is the entire basis of the settlement," he said.
Depositing funds into the Health Care Revolving Fund does not guarantee money will be used for health care, Swan said.
"I am aware that many residents would prefer that a portion of the tobacco settlement be earmarked for improving long term health care. On a personal note, so would I and so would Gov. Turnbull," Swan said. "A further problem with the provision of the Act is that, at various times, the Health Care Revolving fund has been used for salaries.
"The prospect therefore is that the entire proceeds from the Virgin Islands' share of the tobacco fund, all $50 million, could conceivably used to pay retroactive wages, as well as current wages, over the 25 year-life of the settlement."
Swan said Attorney General Stridiron is also interested in putting some of the proceeds into a "Rainy Day Fund," that would assist residents in recovering from natural disasters such as hurricanes. The fund was created in the late 80s, but money has never been deposited into it, Swan said.
After the meeting, LWV President Erva Denham said that, while the organization has not formed an official position on the settlement, it supports using the funds to pay for health care costs.
The LWV will most likely begin lobbying senators to amend Act 6220, she said.
"We still need one of two pieces of information. We still need to know if there are any strings attached to the funds," she said.
The territory is receiving a smaller share not only because it has a smaller population but also because it has a lower percentage of smokers than most states, Swan said.
"The average percentage of smokers in the Virgin Islands is 9 percent. The national average is 22 percent of the population," he said. "Much of the recovery was geared to the number of percentage of smokers in the population."
Several states and territories sued the tobacco industry over the cost of treating smokers and nonsmokers for smoking related illnesses.
Under the settlement, the tobacco industry must also fund, at $25 million per year for ten years, a foundation to study and develop programs to reduce youth smoking.
The settlement also restricted the tobacco industry's ability to advertise; they can no longer use billboards, sponsor sporting events, or target teens with promotions such as the now infamous and discontinued Joe Camel.
The territory is not responsible for any more litigation costs, Swan said.

MARTIN P.R. UPDATE FOR JULY 19

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U.S. VIRGIN ISLANDS UPDATE – JULY 19, 1999
Gulfstream International Airlines Announces Flights in the Territory
Gulfstream International Airlines recently announced its service into the USVI will begin November 1, 1999. Gulfstream, based in Florida and the Bahamas, will expand its service into the territory with a total of 18 daily roundtrip flights from San Juan, PR to St. Thomas and St. Croix. The airline will also offer inter-island travel between St. Thomas and St. Croix and connections to the U.S. mainland. For additional information about Gulfstream International Airlines' service to the USVI, call (800) 525-0280 (domestic) and (800) 231- 0856 (international).
St. Croix Source Online Newspaper Launches in Territory
The St. Croix Source, the USVI's second online general interest newspaper, officially launched its Web site last week. The focus of the new online newspaper is to provide hard news, informed commentary, island features and information to readers in the territory and abroad. The St. Croix Source will feature: commentary and legal opinions; resource data and economic benchmarks; lists of boards and commissions; information on cruiseship visits, watersports and land sports; religious services information; and a calendar of events. Other data and information will be added to the site regularly. The new online publication is an edition of OnePaper.com and the sister publication to the highly successful St. Thomas Source, which was launched six months ago. Both the St. Croix Source and the St. Thomas Source are accessible via the Web site at www.onepaper.com. Direct access to the St. Croix Source Web site is available at the following Internet addresses: www.onepaper.com/stcroixvi or www.stcroixsource.com.
Predator Tank Opens at Coral World
St. Thomas' Coral World officially opened its Predator Tank exhibit last weekend. The opening revealed new lighting for improved viewing and a feeding show where the sharks take food directly from a diver's hand. The Predator Tank features local shark species, plus other large fish such as barracuda, tarpon, moray eels, remoras and jacks. Visitors can now see a daily scheduled feeding with a narrated introduction to sharks and their habits. For more information on the Predator Tank and other Coral World exhibits, call (340) 775-1555, ext. 247.
Winward Passage Hotel, St. Thomas Now a Holiday Inn franchise
After a multi-million dollar renovation and upgrade, the Windward Passage Hotel has joined Bass Hotels & Resorts International as a Holiday Inn franchise. The 151-room hotel, which is conveniently located in the heart of St. Thomas overlooking the picturesque harbor of Charlotte Amalie, will now be known as the Holiday Inn St. Thomas. The new look includes a beautifully redesigned lobby, courtyard bar, restaurant and 3,000-square feet of conference facilities. Guest rooms feature upgraded amenities such as coffee maker, refrigerator, hair dryer, iron and board, cable TV, in-room movies, video games, radio, alarm clock, telephone with voice mail and data port, and in-room safe. Complimentary features include a manager's welcome reception, introductory dive lessons through the Dive and Water Sports shop on the premises, use of the fitness center and daily beach shuttle to Magens Bay. For additional information or reservations, call (340) 774-5200 or visit our Web site at www.holidayinn.st-thomas.com.
Westin Offers Special Package for Couples Getting Remarried Who Have Children
The Westin Resort, St. John has specially designed a new wedding/familymoon package for couples getting remarried who want to share their vows with their children. The "Yours, Mine & Ours" package offers a unique tropical wedding and honeymoon getaway that is ideal for couples getting married for the second time around who also want to put more emphasis on an intimate, less formal wedding ceremony that includes their loved ones in the celebration. The package includes: a wedding ceremony at the resort's Baywind Gazebo; a member of the clergy to perform the ceremony; a tropical bridal bouquet and groom's boutonniere; a bottle of champagne; keepsake toasting goblets; a solo musician; a wedding cake; gazebo flowers; a wedding photographer; a room for the newlyweds and a second room for the kids (limit four to six depending on the room) at 50 percent off the regular room rate; and a complimentary Westin Kids Club night out to allow the newlyweds to enjoy a romantic night alone. Effective now through December 18, 1999, rates start at $2,390 for a three- night/four-day stay and $3,710 for a seven-night/eight-day stay in hillside rooms. In addition, kids age 12 and under eat for free when accompanied by a parent now through September 15, 1999. For reservation or additional information, call (800) 808-5020 or (340) 693-8000.
Wyndham Offers Dive Package
Avid scuba divers will enjoy the dive package available at St. Thomas' Wyndham Sugar Bay Beach Club & Resort. The package includes: an upgrade to deluxe accommodations; a minimum of two, two-tank dives; transfers to the dive boat; breakfast, lunch and dinner daily and all-day snacks; unlimited wine, champagne and premium-brand drinks during bar hours; free day and night tennis, non-motorized sports and beach volleyball; free use of the fitness center and Jacuzzi; and more. Three-, five- and seven-night packages are available starting at $515, $835 and $1,155, respectively, for two adult divers now through December 19, 1999. Night dives are also available with the 7-night dive package, which includes a total of four dives. For more information or reservations, call (800) 927-7100 or (340) 777-7100.
Continental Airlines to Offer Flights to USVI
As announced earlier this week, Continental Airlines will begin service into the USVI on December 16, 1999. The airline will offer daily, non-stop service between Newark/New York City and St. Thomas. Beginning in December, Continental will become the fifth major airline offering service into the territory from the continental United States. For more information, call Continental's corporate communications office at (973) 681-1662, or call Continental's reservations line at (800) 525-0280 (domestic) or (800) 231-0856 (international).

LATEST UPDATE FROM MARTIN P.R.

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U.S. VIRGIN ISLANDS UPDATE – JULY 19, 1999
Gulfstream International Airlines Announces Flights in the Territory
Gulfstream International Airlines recently announced its service into the USVI will begin November 1, 1999. Gulfstream, based in Florida and the Bahamas, will expand its service into the territory with a total of 18 daily roundtrip flights from San Juan, PR to St. Thomas and St. Croix. The airline will also offer inter-island travel between St. Thomas and St. Croix and connections to the U.S. mainland. For additional information about Gulfstream International Airlines' service to the USVI, call (800) 525-0280 (domestic) and (800) 231- 0856 (international).
St. Croix Source Online Newspaper Launches in Territory
The St. Croix Source, the USVI's second online general interest newspaper, officially launched its Web site last week. The focus of the new online newspaper is to provide hard news, informed commentary, island features and information to readers in the territory and abroad. The St. Croix Source will feature: commentary and legal opinions; resource data and economic benchmarks; lists of boards and commissions; information on cruiseship visits, watersports and land sports; religious services information; and a calendar of events. Other data and information will be added to the site regularly. The new online publication is an edition of OnePaper.com and the sister publication to the highly successful St. Thomas Source, which was launched six months ago. Both the St. Croix Source and the St. Thomas Source are accessible via the Web site at www.onepaper.com. Direct access to the St. Croix Source Web site is available at the following Internet addresses: www.onepaper.com/stcroixvi or www.stcroixsource.com.
Predator Tank Opens at Coral World
St. Thomas' Coral World officially opened its Predator Tank exhibit last weekend. The opening revealed new lighting for improved viewing and a feeding show where the sharks take food directly from a diver's hand. The Predator Tank features local shark species, plus other large fish such as barracuda, tarpon, moray eels, remoras and jacks. Visitors can now see a daily scheduled feeding with a narrated introduction to sharks and their habits. For more information on the Predator Tank and other Coral World exhibits, call (340) 775-1555, ext. 247.
Winward Passage Hotel, St. Thomas Now a Holiday Inn franchise
After a multi-million dollar renovation and upgrade, the Windward Passage Hotel has joined Bass Hotels & Resorts International as a Holiday Inn franchise. The 151-room hotel, which is conveniently located in the heart of St. Thomas overlooking the picturesque harbor of Charlotte Amalie, will now be known as the Holiday Inn St. Thomas. The new look includes a beautifully redesigned lobby, courtyard bar, restaurant and 3,000-square feet of conference facilities. Guest rooms feature upgraded amenities such as coffee maker, refrigerator, hair dryer, iron and board, cable TV, in-room movies, video games, radio, alarm clock, telephone with voice mail and data port, and in-room safe. Complimentary features include a manager's welcome reception, introductory dive lessons through the Dive and Water Sports shop on the premises, use of the fitness center and daily beach shuttle to Magens Bay. For additional information or reservations, call (340) 774-5200 or visit our Web site at www.holidayinn.st-thomas.com.
Westin Offers Special Package for Couples Getting Remarried Who Have Children
The Westin Resort, St. John has specially designed a new wedding/familymoon package for couples getting remarried who want to share their vows with their children. The "Yours, Mine & Ours" package offers a unique tropical wedding and honeymoon getaway that is ideal for couples getting married for the second time around who also want to put more emphasis on an intimate, less formal wedding ceremony that includes their loved ones in the celebration. The package includes: a wedding ceremony at the resort's Baywind Gazebo; a member of the clergy to perform the ceremony; a tropical bridal bouquet and groom's boutonniere; a bottle of champagne; keepsake toasting goblets; a solo musician; a wedding cake; gazebo flowers; a wedding photographer; a room for the newlyweds and a second room for the kids (limit four to six depending on the room) at 50 percent off the regular room rate; and a complimentary Westin Kids Club night out to allow the newlyweds to enjoy a romantic night alone. Effective now through December 18, 1999, rates start at $2,390 for a three- night/four-day stay and $3,710 for a seven-night/eight-day stay in hillside rooms. In addition, kids age 12 and under eat for free when accompanied by a parent now through September 15, 1999. For reservation or additional information, call (800) 808-5020 or (340) 693-8000.
Wyndham Offers Dive Package
Avid scuba divers will enjoy the dive package available at St. Thomas' Wyndham Sugar Bay Beach Club & Resort. The package includes: an upgrade to deluxe accommodations; a minimum of two, two-tank dives; transfers to the dive boat; breakfast, lunch and dinner daily and all-day snacks; unlimited wine, champagne and premium-brand drinks during bar hours; free day and night tennis, non-motorized sports and beach volleyball; free use of the fitness center and Jacuzzi; and more. Three-, five- and seven-night packages are available starting at $515, $835 and $1,155, respectively, for two adult divers now through December 19, 1999. Night dives are also available with the 7-night dive package, which includes a total of four dives. For more information or reservations, call (800) 927-7100 or (340) 777-7100.
Continental Airlines to Offer Flights to USVI
As announced earlier this week, Continental Airlines will begin service into the USVI on December 16, 1999. The airline will offer daily, non-stop service between Newark/New York City and St. Thomas. Beginning in December, Continental will become the fifth major airline offering service into the territory from the continental United States. For more information, call Continental's corporate communications office at (973) 681-1662, or call Continental's reservations line at (800) 525-0280 (domestic) or (800) 231-0856 (international).

MARTIN P.R. UPDATE FOR JULY 19

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U.S. VIRGIN ISLANDS UPDATE – JULY 19, 1999
Gulfstream International Airlines Announces Flights in the Territory
Gulfstream International Airlines recently announced its service into the USVI will begin November 1, 1999. Gulfstream, based in Florida and the Bahamas, will expand its service into the territory with a total of 18 daily roundtrip flights from San Juan, PR to St. Thomas and St. Croix. The airline will also offer inter-island travel between St. Thomas and St. Croix and connections to the U.S. mainland. For additional information about Gulfstream International Airlines' service to the USVI, call (800) 525-0280 (domestic) and (800) 231- 0856 (international).
St. Croix Source Online Newspaper Launches in Territory
The St. Croix Source, the USVI's second online general interest newspaper, officially launched its Web site last week. The focus of the new online newspaper is to provide hard news, informed commentary, island features and information to readers in the territory and abroad. The St. Croix Source will feature: commentary and legal opinions; resource data and economic benchmarks; lists of boards and commissions; information on cruiseship visits, watersports and land sports; religious services information; and a calendar of events. Other data and information will be added to the site regularly. The new online publication is an edition of OnePaper.com and the sister publication to the highly successful St. Thomas Source, which was launched six months ago. Both the St. Croix Source and the St. Thomas Source are accessible via the Web site at www.onepaper.com. Direct access to the St. Croix Source Web site is available at the following Internet addresses: www.onepaper.com/stcroixvi or www.stcroixsource.com.
Predator Tank Opens at Coral World
St. Thomas' Coral World officially opened its Predator Tank exhibit last weekend. The opening revealed new lighting for improved viewing and a feeding show where the sharks take food directly from a diver's hand. The Predator Tank features local shark species, plus other large fish such as barracuda, tarpon, moray eels, remoras and jacks. Visitors can now see a daily scheduled feeding with a narrated introduction to sharks and their habits. For more information on the Predator Tank and other Coral World exhibits, call (340) 775-1555, ext. 247.
Winward Passage Hotel, St. Thomas Now a Holiday Inn franchise
After a multi-million dollar renovation and upgrade, the Windward Passage Hotel has joined Bass Hotels & Resorts International as a Holiday Inn franchise. The 151-room hotel, which is conveniently located in the heart of St. Thomas overlooking the picturesque harbor of Charlotte Amalie, will now be known as the Holiday Inn St. Thomas. The new look includes a beautifully redesigned lobby, courtyard bar, restaurant and 3,000-square feet of conference facilities. Guest rooms feature upgraded amenities such as coffee maker, refrigerator, hair dryer, iron and board, cable TV, in-room movies, video games, radio, alarm clock, telephone with voice mail and data port, and in-room safe. Complimentary features include a manager's welcome reception, introductory dive lessons through the Dive and Water Sports shop on the premises, use of the fitness center and daily beach shuttle to Magens Bay. For additional information or reservations, call (340) 774-5200 or visit our Web site at www.holidayinn.st-thomas.com.
Westin Offers Special Package for Couples Getting Remarried Who Have Children
The Westin Resort, St. John has specially designed a new wedding/familymoon package for couples getting remarried who want to share their vows with their children. The "Yours, Mine & Ours" package offers a unique tropical wedding and honeymoon getaway that is ideal for couples getting married for the second time around who also want to put more emphasis on an intimate, less formal wedding ceremony that includes their loved ones in the celebration. The package includes: a wedding ceremony at the resort's Baywind Gazebo; a member of the clergy to perform the ceremony; a tropical bridal bouquet and groom's boutonniere; a bottle of champagne; keepsake toasting goblets; a solo musician; a wedding cake; gazebo flowers; a wedding photographer; a room for the newlyweds and a second room for the kids (limit four to six depending on the room) at 50 percent off the regular room rate; and a complimentary Westin Kids Club night out to allow the newlyweds to enjoy a romantic night alone. Effective now through December 18, 1999, rates start at $2,390 for a three- night/four-day stay and $3,710 for a seven-night/eight-day stay in hillside rooms. In addition, kids age 12 and under eat for free when accompanied by a parent now through September 15, 1999. For reservation or additional information, call (800) 808-5020 or (340) 693-8000.
Wyndham Offers Dive Package
Avid scuba divers will enjoy the dive package available at St. Thomas' Wyndham Sugar Bay Beach Club & Resort. The package includes: an upgrade to deluxe accommodations; a minimum of two, two-tank dives; transfers to the dive boat; breakfast, lunch and dinner daily and all-day snacks; unlimited wine, champagne and premium-brand drinks during bar hours; free day and night tennis, non-motorized sports and beach volleyball; free use of the fitness center and Jacuzzi; and more. Three-, five- and seven-night packages are available starting at $515, $835 and $1,155, respectively, for two adult divers now through December 19, 1999. Night dives are also available with the 7-night dive package, which includes a total of four dives. For more information or reservations, call (800) 927-7100 or (340) 777-7100.
Continental Airlines to Offer Flights to USVI
As announced earlier this week, Continental Airlines will begin service into the USVI on December 16, 1999. The airline will offer daily, non-stop service between Newark/New York City and St. Thomas. Beginning in December, Continental will become the fifth major airline offering service into the territory from the continental United States. For more information, call Continental's corporate communications office at (973) 681-1662, or call Continental's reservations line at (800) 525-0280 (domestic) or (800) 231-0856 (international).

CORAL WORLD TO HOST HOSPITALITY EMPLOYEES

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Coral World, St. Thomas' Marine Park and Underwater Observatory, is hosting an appreciation weekend for all hotel workers and people working in the hospitality industry.
On July 24 and 25 free admission will be extended to all workers with proper ID, which includes hotel ID, name badges or pay stubs.
Family members of hospitality workers will receive the summer locals discount.
Coral World recently opened the predator's tank in the observatory.
Other exhibits include: the Caribbean reef encounter, the marine gardens, the mangrove lagoon and much more.
For a complete preview of Coral World click here.

CORAL WORLD TO HOST HOSPITALITY EMPLOYEES

0

Coral World, St. Thomas' Marine Park and Underwater Observatory, is hosting an appreciation weekend for all hotel workers and people working in the hospitality industry.
On July 24 and 25 free admission will be extended to all workers with proper ID, which includes hotel ID, name badges or pay stubs.
Family members of hospitality workers will receive the summer locals discount.
Coral World recently opened the predator's tank in the observatory.
Other exhibits include: the Caribbean reef encounter, the marine gardens, the mangrove lagoon and much more.
For a complete preview of Coral World click here.

WAPA HOLDS OFF ROTATION

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The V.I. Water and Power Authority will not rotate St. Croix feeders Monday and Tuesday as previously announced.
WAPA instead has rescheduled permanent repairs to the Richmond Power Plant for this coming weekend, July 24 – July 26.
WAPA's problems began just after 5 p.m. Sunday, July 11 when an electrical short developed on high voltage cables at the Richmond substation and tripped the operating generators and desalinization units.
The mishap forced the St. Croix into an island-wide outage followed by the feeder rotation.

MAN, 41, DROWNS IN SWIMMING POOL

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William Hudson-Grimmett, age 41, of 14 Estate Mafolie was found drowned in his swimming pool at about 8:14 p.m. Sunday.
Grimmett, who went by the name of William Hudson according to Police Chief Jose Garcia, was discovered by an exterminator who services the property.
Garcia said the police did not suspect foul play, but would nevertheless complete a full investigation of the incident.
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FLAWS FOUND IN ECONOMIC DEVELOPMENT, TAX COLLECTION

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At a time when economic recovery is the top issue in the territory, past federal audits have found cases where the government has failed small businesses and agriculture while squandering over $15 million by not collecting delinquent taxes and fees.
These problems, and the financial mismanagement identified in more than two dozen other audits that the V.I. government has either neglected or only partially recognized, are viewed by many as key contributors to the fiscal crisis now dragging the central treasury towards bankruptcy.
A 1995 audit of the Small Business Development Organization, which remains ignored by the government since its release in 1997, found serious deficiencies in loans made by the agency. The audit found SBDA had a delinquency rate of 70 percent on loans totaling $6.1 million, some of which date back to 1971.
The SBDA provides low interest loans, managerial and technical assistance for small businesses.
"We found that the agency did not always adequately verify and analyze data in loan application packages to determine the applicants' credit worthiness, financial stability, and ability to repay the loans (and) did not always secure adequate collateral to protect the government's interest," Inspector General Wilma Lewis wrote in the 1995 audit.
The SBDA also did not maintain up-to-date records of outstanding loans or report defaults to collection agencies, the audit found.
The audit recommended SBDA follow provisions in the V.I. code that specify eligibility requirements for loan programs, the review of applications, and the types of collateral that can be accepted. The audit also urged SBDA to adhere to the code in its collection practices, such as sending letters to delinquent borrowers and referring cases to a collection agency within 180 days. In his response to the audit, Gov. Roy Schneider concurred with the recommendations made, saying the SBDA would be directed to establish the new policies; the inspector general, however, considered the procedures unimplemented.
In a 1997 audit of the now defunct Department of Economic Development and Agriculture, auditors found a series of leasing and fee collections problems with government owned agricultural lands.
"We found the Division of Agriculture did not ensure that farmers were issued and complied with the terms and conditions of, formal rental agreements for the use of government- owned land . . . (or) collect all revenues due the government for the rental of land and equipment, the resale of agricultural products and veterinary services," Lewis wrote in the audit, to which the Schneider administration did not respond.
As of September 1994, the audit found, of 125 farmers authorized to use government-owned land, 51 had formal lease agreements, 64 had land use permits and 10 had only verbal authorization. The absence of formal leases made it difficult for the government to hold landholders accountable for complying with land use and permit requirements.
In some cases, consequently, agricultural lands were being used for purposes other than farming; a few farmers had even built residences on their land. Delinquent farmers also owed about $6,500 in rental fees.
The audit found the Department of Agriculture did not know if 62 acres of land in St. Croix were being utilized or were vacant.
The audit recommended the Department of Agriculture keep better records, reevaluate its fees, comply with the V.I. code's cash collection procedures, and establish policies to ensure land is being used for agricultural purposes only and that farmers are adhering to their leases.
"Based on our reevaluation of the findings and recommendations, we believe that, although some of the specific examples cited in the findings may now be dated, the recommendations presented in this report are still valid," Lewis wrote. "The recommendations, if implemented, should result in long-term improvements in the operations of the Department of Agriculture."
Other audits have found several glaring instances where various government departments did not collect all the fees and taxes owed to them.
A 1999 audit revealed the government is owed $15.4 million in delinquent property taxes and that taxpayers received $300,000 more in farmland, nonprofit and industrial exemptions than they were entitled to.
"The Department of Finance did not maintain accounts receivable records for delinquent real property tax bills and did not effectively enforce the collection of delinquent taxes," Inspector General Robert Williams wrote in that audit.
The audit recommended the government develop a comprehensive real property tax administration system to maintain accurate records, establish more detailed exemption eligibility requirements, better staff the Tax Assessor's Office and fill vacancies on the Board of Tax Review.
As of April, the Inspector General's Office had not received a response to the property tax audit.
A 1997 audit of Department of Planning and Natural Resources' building fees found correct fees were not always assessed, architectural plans were not always reviewed, and $155,069 in potential fees were lost because the agency was not aware of all construction projects.
"The Division (of Permits) did not adequately enforce building code requirements and document actions taken with regard to building deficiencies," Lewis wrote in the audit. "As a result, building deficiencies were not corrected, violators were not penalized for building code violations, and the public was potentially at risk because of construction that was not in compliance with building codes."
Auditors also found many contractors were frequently performing work not covered by their permit. The failure to assess correct permit fees cost DPNR $11,623 in fees.
Building deficiencies construction without permits went unchallenged because of inspection weaknesses. Auditors found inspectors did not always keep records of site visits or perform assigned inspections.
"The enforcement weaknesses occurred because the Division did not have formal policies and procedures in place for its enforcement efforts, and supervisors did not provide adequate oversight of the inspectors' work efforts," the audit said.
The audit recommended DPNR develop formal written procedures for permit application, approval, fee assessment and site inspection, and better inform of the public about permit requirements.
The Inspector General considered a majority of the audit's recommendations, including those listed above, unimplemented.
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