January 30, 2013 at 5:54 p.m.

Who would give away $12,000, no questions asked?

YOU already have — to a government determined not to say where the money went

By Jonathan Dyer- | Comments: 0 | Leave a comment

I would like you to write a cheque for $12,000 and send it to me, no questions asked. In return I give you my assurance that it will be put to a good purpose. I can't tell you what I end up doing with it, nor will I be giving any refunds. What, no takers? Why not? You've done it before and didn't object.

It's been suggested the row between the Auditor General and the government stems from the Auditor's report, which flagged $800 million dollars of taxpayer money as unaccounted for and consequently is as untraceable as cash stuffed into someone's pocket. For perspective, think of it as over $12,000 for every man, woman and child on the island. The perception is that, rather than admit to and address the problem, the Auditor found, David Burch, with the blessing of collective responsibility, shut him down and sidelined him before he could cause more problems. Government money is not Alex's money; it's not Paula's, it's not David's. It's the peoples' money. It's the taxes and fees that you, I, local businesses and external entities provide to the government to fund services and facilities which benefit Bermuda. The budget tells us where it's supposed to go; the Auditor re-assures us that's where it went — spent at least in the spirit of the needs and interests of the taxpayers and citizens of the country.

Only this time he can't — the accounts are $800 million in arrears (and counting) and the only guy watching our backs has been roughed up, gagged and stuffed in a trunk.

Suspicions

Without auditable accounts we are left, at best, hoping our taxes have been used appropriately and that government is merely incompetent. At worst we are left with the uncomfortable suspicion that some of it may have been wasted, lost or even stolen and that there is a conscious effort to hide the evidence.

Bermudians are quick to brag to foreigners that we do not have income tax. The laundry list of penny pinching on your pay stub aside, there is no process where private individuals sit down and cut a cheque to Uncle 'P' for 30 per cent of their hard earned income ($12,000 is roughly a third of the average personal income). Bermuda's taxation is far more subtle and insidious, it comes out at the port of entry, it's camouflaged as licensing fees. It's only apparent to the historic insiders, home and landowners and merchants, who see it directly as Land Tax, Employment Tax and Customs Duty. The rest of us have only the vaguest sense that we are paying taxes and a consequently vague expectation of the efficient and appropriate use of our money. You can see the appeal of a stealthy tax system to a dismissive and inefficient government because it lowers the expectations of the heaving masses paying the bills. If you knew how much of your money was being spent, you might actually pay attention to where it goes. If there was only one good reason for a direct tax system (and there are many) it would be to connect the dots for the taxpayers and stir them to demand the efficient and responsible use of our money. In the absence of direct visibility up front we had an Auditor General to watch our collective backs and now we don't even have that.

On average, a third of your hard earned money is spent by government every year. It's being spent regardless of, and in many cases, despite your needs. If government cannot tell you where it's been spent it's because the managers you elect and employ to administer it don't respect you enough to keep records and tell you what they did with it. That is why an attack on the Auditor General is an attack on all of us who work for a living and have far more immediate uses for $12,000, or $800 million for that matter. Surely a government that cannot account for the taxes that have been paid to it has lost any legitimacy in demanding more? Surely the enlightened voters of our mature democracy have an opinion on this? Why are we not circling the House on the hill demanding answers and a speedy resolution? David Burch was called to a private meeting with 'P' over this issue and he emerged unscathed. There was no public reprimand, no apology and no promise of a speedy resolution. It would appear collective responsibility supports silencing of the Auditor and has no problem with the lapsed accounts. In a mature democracy this sort of abuse would bring down the government but we let it slide. Not surprisingly, the primary benefits this government foresees in independence would be the ability to appoint their own Governor, Chief Justice and Auditor General. They tried and failed with the Chief Justice, have virtually succeeded in eliminating the Auditor and the Colonel has the Governor in his sights.

It would appear they are not waiting for independence to remove accountability and oversight. Of course if you don't agree with me, you can always mail me that cheque.[[In-content Ad]]

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