Pressure mounting on Central Bank Governor

Pressure is said to be mounting on Central Bank Governor Dr DeLisle Worrell to step down, following a recent ultimatum issued by members of the board of the island’s monetary authority.

Barbados TODAY has been reliably informed that Minister of Finance Chris Sinckler has since met on at least two occasions with the Governor, who has apparently been resisting all moves to force him out of office.

Repeated efforts to get an official comment from either the minister of finance or the embattled Governor have been unsuccessful, but informed sources say Sinckler has been told in no uncertain terms that he needs to make a choice between “DeLisle or the board” . However, there are concerns that Government could land itself in legal hot water should any unilateral action be taken against Worrell, whose contract was renewed by Sinckler for a second five-year term in October 2014 after he was initially appointed on November 1, 2009.

Embattled Governor of the Central Bank Dr DeLisle Worrell

Worrell, who was deputy governor during the 1991 economic crisis , has been credited with helping the then Erskine Sandiford-led administration to carve out a strategy to save the country from possible economic collapse when it had just four weeks of import cover.

However, with the country’s foreign reserves said to be at the lowest level in 14 years and the economy on the brink again, Worrell has apparently run afoul of both Sinckler and his fellow members on the Central Bank board who verbally communicated their dissatisfaction in a formal meeting with Sinckler.

During a LIVE television discussion on state-run CBC at the start of the month, the Governor had sought to publicly warn Government that it must stop the recent practice of printing money.

“We cannot continue to have a deficit and we cannot continue to have a wage bill as high as we are, simply because the only way we are able to do that is by the Central Bank providing financing,” he said then, while seeming to deliberately throwing his immediate boss under the proverbial bus.

Minister of Finance Chris Sinckler has been warned by members of the Central Bank board to make a choice.

Worrell was also at pains to point out that approximately $50 million in monthly wages was far too much for Government to afford at this time, given what he knows about what it is raking in terms of taxes and revenues to meet its current costs.

Though not prepared to tell the Minister of Finance ‘no’ for fear of not meeting the monthly commitment to pay public servants,  the Governor further warned that the printing of money was simply “unsustainable”.

“That is why the current account deficit has to be eliminated, not just reduced,” he said during the Bank’s televised economic forum.

With the eyes of the country staring back at him, Worrell was equally adamant that Government must live within its means on an ongoing basis and that it must generally operate as ordinary householders do, in terms of its spending.

Therefore, “if you are earning $2,000 a month, you cannot be spending $2,500 a month,” he suggested to the ruling Democratic Labour Party-led administration.

Those public pronouncements came on the heels of a warning by Worrell late last month that drastic action had to be taken to eliminate the deficit.

In presenting his economic report for 2016, the Governor suggested at the end of January that a “reduction in wages and transfers would assist in eliminating the Government’s deficit on its current account.

“The fact that Government spends more on the current account than it receives in taxes and other current receipts is the reason for the increase in Central Bank lending to Government. There is general agreement that any additional financing by Central Bank should be avoided,” he said.

However, without dismissing the recommendation outright, Sinckler responded at the time saying he was prepared to ignore the Governor somewhat, even as he said cuts would have to come by attrition.

“[Government officials] don’t have to accept every piece of advice that comes out of the Central Bank, but we hear it and respect it for what it is because they are professionals,” Sinckler said as he wrapped up debate on the resolutions to restore the ten per cent that was cut from the salaries of parliamentarians and senior Government officers in 2014.

47 Responses to Pressure mounting on Central Bank Governor

  1. Mark Adamson
    Mark Adamson February 13, 2017 at 2:32 am

    The below post is a reproduction from a Facebook post that was helped done by me some weeks ago.

    “Dr Delisle Worrell must be FIRED from his position as Governor of the Central Bank of Barbados.

    For, et al, it is methodologically and logically improper and unsound for him to have been recommending to the government of Barbados any tightening of fiscal or monetary policy based on some failure of the country to establish the principle of balancing foreign receipts inflows with foreign receipts outflows in the relevant financial accounts of the government of Barbados.

    As a matter of fact, it is egregious for him and the government to make countrymen and women believe that any political economic and financial agenda of this country could be based on such a principle of balancing foreign receipts inflows and foreign receipts outflows, when it is impossible to non-nonexistent, in the first place, for any country to establish such a principle of balancing foreign receipts inflows with foreign receipts outflows, primarily because foreign receipts inflows are one set of variables totally different and totally mutually exclusive to foreign receipts outflows – another set of variables.

    Hence, it is absurd for any one to make any one else believe that there are points at which such receipts inflows and receipts outflows balance, when the truth is that there is absolutely no relationship between those two sets of variables, and when the forces driving foreign receipts flows inwards and the forces driving foreign receipts flows outwards are moving in two groups of totally different directions.

    Hence, it is impossible to non-existent for any government to bring about any measures that can be used by itself and the relevant others to control those ever very diverging forces to the point of bringing about such balance.

    What is needed to be done from now on, in this country, is for foreign receipts inflows and the circumstances and forces giving rise to them to be treated on their own, and foreign receipts outflows and the circumstances and forces giving rise to them to be treated on their own as well.

    All the aforegoing shows why so-called exchange rate parities involving the Barbados Dollar (metaphor) are totally absurd and preposterous, and shows why economics remains the most vile and discredited of all the social studies disciplines in this world.”

    Reply
    • Sunshine Sunny Shine February 13, 2017 at 1:42 pm

      Are you kubba. What the heck are you trying to say.

      Reply
    • harry turnover February 13, 2017 at 7:13 pm

      Mark Adamson….man you garbling upper three.Why you din seek the help of an interpreter to explain what you said.???

      Reply
  2. Hal Austin February 13, 2017 at 4:11 am

    I am sure that Mark Adamson believes he is making sense, but it is rambling rubbish.
    Dr Worrell is the person with the most to lose reputationally in this awful mess. To be humiliated by someone like Chris Sinckler must be the worst point in his otherwise outstanding career.
    He should have been out when the minister, who would not qualify as a finance minister in any other DLP government, had David Thompson not been on his death bed, declined his professional advice.
    We still need a get out plan, and a rebellious board, a minister who wants to pass the blame, and a dumb prime minister still have not come up with an answer.
    This is nearly nine years after the government has been in power and protests from people such as Prof Frank Alleyne, and advice from the sidelines from other university dons have had very little impact on policy.
    What is the rescue plan? It is not an over-dependence on tourism, government has no industrial development strategy, it has no education and training strategy, it has no job creation plans – it is still lost at sea.

    Reply
    • Sue Donym February 13, 2017 at 7:35 am

      Started right, ended right, @Hal Austin

      Reply
  3. Leroy February 13, 2017 at 4:43 am

    Sinckler playing for time by not proceeding with the necessary cuts, in the meantime bds will be screwed over by these buffoons.
    Dr Worrell will be fired with full 2 yrs pay remaining in his contract, some power headed person will be installed and paid thus costing gov 2 times the salary for one job, which if the blp gets in next election, the position may be terminated and thus creating a situation where 2 persons will be paid CBB pay for one job, thats the mess politicians have made for us while claiming wages and salaries need to be reduced.

    Reply
    • hcalndre February 14, 2017 at 8:20 am

      @Leroy: Claiming wages and salaries to be reduced? while they say that they can`t maintain their upscale life style that they acquired only after they became a politician 10 years ago. The light is flickering for them and they know it, that`s the reason that they were in so much of a rush to get the 10% reinstated.

      Reply
  4. Loretta Griffith February 13, 2017 at 6:01 am

    I continue to wonder what all those persons who have, and are allegedly still raping this country of resources are saying now it is in this awful financial state? They should ALL be hanging their heads in shame.
    My hope is that someone will have the political will to do what is right in the interest of Country and not self. No longer should they be self serving.
    This country need persons who are not willing to compromise their integrity for short or long term gains. We need men and women who will stand up for what is right and just.
    May the good Lord continue to guide and help Barbados!

    Reply
  5. Patrina Drakes
    Patrina Drakes February 13, 2017 at 6:16 am

    If MOF calling for him to go now that he brought to light the nonsense that he was doing on the MOF orders then MOF should go to. Or is it because CBG said that the bank needs to stop printing money and makes cuts to public sector that is too big for a country this size and is one of the causes of the money printing i.e. the revenue collected from taxes is not enough to cover salaries so the CBB prints money to cover the shortfall.

    Reply
  6. Don Keyote February 13, 2017 at 6:51 am

    On the contrary, Hal, it looks to me that Mark Adamson’s erudite explanation of the “principle of balancing foreign receipts inflows and foreign receipts outflows” eminently qualifies him for the position of Parliamentary Secretary in the Ministry of Finance, alongside “physical deficit”. He would fit right in. Matter of fact, why don’t we appoint him Minister. He can’t possibly do a worse job than the incumbent.

    Anyhow, come February or March next year, the people will do all the necessary firing. Don’t know what will be left of Barbados by then, though. Thank heavens, the good Lord has been guiding and helping us for the last nine years!!

    Reply
    • Sue Donym February 13, 2017 at 7:30 am

      Hilarious response, @Don Keyote. Love it.

      Reply
  7. Tony Webster February 13, 2017 at 6:52 am

    FOUR-way Bajan standoff:
    Sinckler; Worrell; Board; and Sheriff Foon (who doan have a gun…but a bell). What makes this fit for Guinness book thing, is that no-one will fire first; all will die; no-one goes to heaven; and all of us will happily forget about this …and repeat the performance using different actors.

    Reply
    • Sue Donym February 13, 2017 at 7:28 am

      @Tony Webster, yuh shotting!

      Reply
  8. freeagent February 13, 2017 at 7:02 am

    The Governor of the Central Bank is right to defend his integrity and do what is right despite what anyone else thinks. Boards are the puppets of government so they have to do what they are advised to do. The government can merge some of its departments to minimise expenses.
    Barbadians should lend their support to the governor in this matter.

    Reply
  9. John C Chapman February 13, 2017 at 7:02 am

    Remember Owen fire the central bank governor and put DR WIlliams in his stead. And we had question her reporting

    Reply
  10. Randy Hartman
    Randy Hartman February 13, 2017 at 7:03 am

    Just Keep printing..

    Reply
  11. Angus Benn
    Angus Benn February 13, 2017 at 7:10 am

    He soon resign ,he has not choice.That is the best thing for him to do. The ship almost sink.

    Reply
  12. Sue Donym February 13, 2017 at 7:14 am

    It might be impossible to balance finance minister inflows with central bank governor outflows, but if a recent court injunction is anything to go by (Justice Worrell has restrained DEM from firing Dr Worrell), the creature of the minister will outlive DEM all. Interesting days ahead.

    Reply
  13. Jennifer February 13, 2017 at 7:14 am

    @Hal- hahahahah. You hit it on the button. All this long winded statement by Mark is to say that Mr Worrell does not know about balancing and separating of receipts. HE TOLD THEM. If the government is spending money on NON PRODUCTIVE entities, cooning and propping up their enemies who intend to squeeze the $hit out of them, what do you expect. At the end of the day this lot of hog wash boils down to an identification of Chris Sinckler’s incompetence as a minister too. And is actually the same problem we had at the start – hands being tied with not much to do but privatization into the same hands of the same master. With the vultures waiting patiently. What the government needs to do is to stop skimming the grease off the cold lamb soup and put systems in place to start squeezing balls like their’s is being squeezed. The bank and minister should be working hand in hand. This is like having an ATM card, withdrawing and spending not looking as what you have in the account. Funny the governor is saying a reduction in salaries and dem adding on to their’s. Share incompetence. And as for the Governor I staying put too. Now where does this leave the masses, in the barrel, clambering to get what is due to them with more cuts. And give Mark with all his big words and education ADVISOR JOB to the Governor.

    Reply
  14. Jennifer February 13, 2017 at 7:32 am

    @Hal- hahahahah. You hit it on the button. All this long winded statement by Mark is to say – that Mr Worrell does not know about balancing and separating of receipts. He TOLD THEM. This is like having a dollar and spending 10 out of it. If the government is spending money on CERTAIN entities and not what is money making money what do you expect. At the end of the day this lot of hog wash boils down to an identification of Chris Sinckler’s incompetence as a minister too. And is actually the same problem we had at the start – hands being tied with not much to do but privatization into the same hands of the same master. With the vultures waiting patiently. As the government continues to skim the grease off the cold lamb soup and not put systems in place to start squeezing like they are being squeezed. The bank and Minister should be working hand in hand. This is like having an ATM card, withdrawing and spending not looking at what you have in the account. Funny the governor is saying a reduction in salaries and dem adding on to their’s. Share incompetence. And as for the Governor I staying put too. And give Mark the job of ADVISOR to the govenor.

    Reply
  15. Rusty Ralph
    Rusty Ralph February 13, 2017 at 7:39 am

    Dr Worrell is without doubt the finest Central Bank governor this country has seen. Academically and intellectually very sound. Highly respected around the globe. During the chaos of the global economic meltdown whilst some economists were screaming ‘ya got $3B in reserves, spend some and stimulate the economy’, Dr Worrell wisely cautioned, ‘ya don’t drink all ya rum when ya don’t know where de next one coming from’. Thus, he was able to hold the thing together for a very long eight years.
    The failure has been the government dragged its feet on chopping the expenditure that’s slowly sinking the ship. I have no doubt Dr Worrell would’ve advised them on the chops to make. Eight years later they’re still looking into combining and/or privatizing statutory bodies. THAT is a dereliction of duty on the part of the DLP.

    Reply
    • Leroy February 13, 2017 at 8:47 am

      You sir are correct.

      I think is best Mr. Stuart and Mr. Sinckler should do the unpopular thing and proceed with the cuts to wages and salaries and unload some statuary corporations with immediate effect.

      In layman terms,
      There comes a time when ya cant keep filling a rotten tooth,,bite the bullet and get it extracted.

      Reply
  16. Angus Benn
    Angus Benn February 13, 2017 at 7:47 am

    Governor talking but the students ain’t listening.

    Reply
  17. sam clarke February 13, 2017 at 7:59 am

    In addition to the Economic Sorcerer stepping down, so too should Sinckler and this entire administration. For too long this Economic Sorcerer has sold this administration, its somnambulist Prime Minister and incompetent finance Minister economic snake oil.
    They have all been taking this medication that he has prescribed, refusing to heed the numerous opinions submitted by noted local, regional and internal economist. To make things worst, the Economic Sorcerer tried to sell the same snake oil to the Bajan diaspora. But they were wise in doing their due diligence and research of his snake oil junk bonds.

    One even asked him,” if you are so sold on this paper that you are selling, do you have any in your personal financial portfolio?”; his answer too, is on the way just like xmas.

    MR. ECONOMIC SORCERER, DO YOU NOT HAVE ANY SHAME?

    Reply
  18. Harry February 13, 2017 at 8:22 am

    @ Free agent surely you jest…….. he & Sinckler should both be fired for putting this Island in it’s present position. Hal you must do like i do and miss anything written by Adamson and on another post Violet C Beckles as most of what they write is understood only by them.

    Reply
  19. Katrina Busby
    Katrina Busby February 13, 2017 at 8:24 am

    Carl Busby

    Reply
  20. Philip Corbin February 13, 2017 at 8:27 am

    Wow……reading the foolishness written by one Mark Adamsom is an interesting as reading a telephone directory. What absolute nonsense ! Why attempt to comment on a subject if you have absolutely no idea about it ?

    Reply
  21. Natalie Murray
    Natalie Murray February 13, 2017 at 9:21 am

    You aided and abetted a government to go down the wrong road…you are now the sacrificial lamb.
    I am happy that you got the “gust” to stand up to a government that rule by tyranny.

    Reply
  22. Transparency & Accountability February 13, 2017 at 9:34 am

    Shooting the messenger of unpleasant facts reflects badly on the shooters… there is no value in ignoring the mess this administration has created with their secret deals, ignoring of our Auditor General, broken promise of integrity legislation, bypassing tendering laws with tricky PPP deals that use our money but are not fit for public scrutiny!
    It is time for us to choose people of different mettle to be honest, humble administrators and real leaders.

    Reply
  23. Arthur Collymore
    Arthur Collymore February 13, 2017 at 9:45 am

    The price to pay for standing up to an admin that continues to ignore every bit of sound advise given over the last 9 years. Now that you are no longer prepared to remain quiet while your advice is ignored prepare for the backlash from this wicked, vindictive govt.

    Reply
    • Gearbox1964 February 13, 2017 at 4:23 pm

      And the vindictiveness is so blatant and obvious…no shame whatsoever. These are the kinds of people that run our affairs as a nation. Sad and sickening.

      Reply
  24. Ossie Moore February 13, 2017 at 11:09 am

    Look!Bajan fellows out and across the seas want to know if the Ministry O’ Finance and the Central Bank move to a new address and that is Russia Gully,St.Thomas?

    Reply
  25. Thomas True February 13, 2017 at 11:25 am

    Look, a Central Bank Governor has to strike a note to confidence in relation to the economy because confidence is a key element in financial matters. Financing the deficit on a limited scale is also acceptable where a country has its own Central Bank. When the accountant general calls the Governor because he does not have the money to pay public servants and service debt what should the Governor do? Say no? And let chaos result? Who says the Governor’s private policy advice is not being ignored? What should he do? Say so publicly? His must be a heavy burden to bear. Seems to me that the Minister is now looking for a scape goat. I hope right thinking people who love Barbados will stand up and be heard on every important issue confronting us

    Reply
  26. Thomas True February 13, 2017 at 11:28 am

    I also think Dr. Worrell was wrongly accused of supporting the Government in a political sense when in fact he was supporting Barbados and encouraging a “can do” attitude and a belief that we could best rescue ourselves. History will be kind to him like Sir. Lloyd Sandiford. Can’t say the same for Sinckler. Free education was wasted on him

    Reply
  27. Greengiant February 13, 2017 at 11:40 am

    While so many of you have made very credible points on which I fully agree. It’s time you all realize that the DLP government plans to take this huge deficit into the election thereby leaving their rival BLP to manage the deficit and clear dept. This because the BLP had done the same thing when they left office. The belief is that because the BLP has never managed deficits, and have no record of managing an economy in crisis they will do three things to bring money into the country.
    1. Sell off state enterprises
    2. Implement a wage freeze for five years at least with the promise
    of single digit unemployment figures.
    3. Agree an IMF program with the fund in exchange for foreign
    Exchange.
    They might also increase bus fares to finance the transport board’s free bus rides or scrap the policy while financing education, health, and housing with IMF funding. Housing will produce financial returns and the UWI will generate much foreign exchange with their programs.

    While such policies can work I would like to see these implemented and managed under a totally new party. The current two have a herculean task of convincing me. I’m just tired of battling the same economic ailment every 20 – 30 years. The developmental system must change, spending power of the masses can only occur with real opportunity for business empowerment of the small business sectors, merges of small producers at the purchasing and production levels that will create efficiency with competitive pricing to compete in the export market. This will increase jobs and foreign exchange earnings for manufacturing. Small producers who continue to self produce are simply increasing their own product cost, and making it more difficult to sell. Our local market is way too small to support our manufacturing sector. Why can’t the lawyers see these things and upgrade legislation accordingly?

    Reply
  28. Gearbox1964 February 13, 2017 at 1:24 pm

    Seems like Delisle Worrell finally found his conscience and sense of responsibility to the people of this country, and is now standing up to that demon Stinkliar.

    Reply
  29. Andrew Simpson February 13, 2017 at 1:47 pm

    ENERGY is the lifeblood of any society (food and water is energy for the human body) so plant food crops, whether permaculture, waterponic or plain agriculture with livestock component. Implement rainwater harvesting, grey water use and photovoltaic electricity systems for critical needs. Make preparations for an economic storm which will likely be caused by the lack of adequate foreign exchange to import all the things we have become accustomed due to an unrealistically high perception of the value of our currency. Join a church group and encourage others also to be discipled.
    Be prepared to support a new system of governance which draws on the talents of qualified professionals in conjunction with an ongoing direct participatory democracy on a modern digital platform. Changes in the constitution that promote more effective, efficient and businesslike management of the major economic sectors, with each public and statutory corporation operating in a free and fair, competitive market based economy, with prices set to adequately cover costs are urgently needed. Individual responsibility and self reliance must be cultivated.

    Reply
  30. jrsmith February 13, 2017 at 3:09 pm

    lots said by many people is very educational and makes sense , but at the end of the day , The governor’s behaviour isn’t different to that of our rubbish untrustworthy politicians……..
    People all wouldn’t it be a fantastic thing the government go taking with them the Governor..
    I wouldn’t say anything bad against the governor, the decent chap had it all on his shoulders so we must forgive him , as we should realize anyone close to politicians in barbados ends up getting the s.,.,,,.,. ty end……

    Reply
    • Gearbox1964 February 13, 2017 at 4:14 pm

      Man JRSmith, the governor been deceiving the people of Barbados on behalf of the gov’t for years…so even though I applaud him for finally breaking out of the clutches of Stinkliar, he still gotta tek he share of licks. Yuh don’t set free a criminal just because he confess and express remorse…yuh might give ‘im a shorter sentence dah is all. LOL

      Reply
  31. Ryan Giggs February 13, 2017 at 3:31 pm

    If the Governor’s performance and management was so bad why renew his contract? It is an indictment on the Minister of Finance, plain and simple. Now that the Governor is not toeing the line like he would want him to ALL OF A SUDDEN his position has become untenable. It is FOOLISHNESS and UNPRODUCTIVE and not helping Barbados at this point in time. Just a sideshow. Will the Champion of Productivity please stand up???

    Reply
  32. Gearbox1964 February 13, 2017 at 4:37 pm

    It’s important to maintain your integrity at all times and not sell your soul for 20 pieces of silver. That’s why I could never be politician unless I am the leader…cause I aint stifling my conscience, or being part and parcel of any trickery or under-handed dealings. Not even in any other type of job where I am employed. Years ago I was penalized by an employer for refusing to follow his instructions to mislead a client in order to avoid an embarrassing situation which was clearly our fault.

    Reply
  33. Hal Austin February 13, 2017 at 5:31 pm

    We talk about removing Dr Worrell from the central bank, but we must also get rid of the board. Let us make a fresh start. Appoint people regardless of party affiliation, based on integrity and merit.

    Reply
  34. Mikey February 13, 2017 at 7:07 pm

    @Hal Austin,,, Stop pontificating and come up with a plan to move your brith-place forward !!!
    What are your ideas and plans ???
    A little Award does not make a difference especially if it is “thrusted” and not “achieved”!!!

    Reply
  35. Ziggy Blessed
    Ziggy Blessed February 13, 2017 at 7:15 pm

    fall guy after all the LIES

    Reply
  36. errol coward February 13, 2017 at 7:43 pm

    I will like to say that the first thing the Barbados government has to do is to see that all taxes are collected and not rote off as it seem to be the practice, that would go a long way to sort things out.

    Reply
  37. Hal Austin February 13, 2017 at 7:58 pm

    Mikey,

    You have a problem, apart from selective reading. I have made a number of suggestions in this very forum. I don’t like repeating myself.
    But for a start, get rid of Sinckler and Stuart. I am lost as to what you mean by little Award. Spell it out.

    Reply
  38. Milli Watt February 13, 2017 at 8:19 pm

    ahhhhh…. the fresh smell of scape goat. I’ll have my share boiled close in a lentil soup, with dumplings, yam, sweet potato and pumpkin.

    Reply

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