Governor of the Central Bank Dr The Most Honourable Kevin Greenidge is facing mounting public criticism over his refusal to disclose how much the BiMPay digital payment app cost to develop.
Cybersecurity specialist Niel Harper and former Democratic Labour Party (DLP) Member of Parliament Donville Inniss led the pushback yesterday, accusing the Governor of arrogance and disputing his claim that the Central Bank does not use public funds.
Writing on LinkedIn, Harper, who is based in Germany, said the suggestion that the public had no right to know the cost amounted to “arrogance at its highest”.
“The Governor of the Central Bank of Barbados refused to answer questions about the costs associated with BiMPay. His claim was that the [Central Bank] is selffinanced and doesn’t use public monies.
This is misleading by all accounts. He also basically stated the public didn’t need to know the costs if they are not paying for it. This is arrogance at its highest,” he stated.
Owned by Barbadians
Harper argued that under the Central Bank Act, the Bank’s capital is “entirely for the account of the Government of Barbados, meaning it is ultimately owned by the people of Barbados . . . . ‘Not using taxpayer money’ does not mean ‘not using public money’,” he wrote.
He noted that after the reserve requirements are met, Central Bank profits are transferred to the Consolidated Fund – the Government’s main treasury account – meaning every dollar spent on BiMPay is a dollar that would otherwise eventually flow back to Government and, by extension, benefit taxpayers.
“When the Bank’s assets fall below its liabilities and capital, the Government is legally required to inject securities to restore the balance sheet, hence taxpayer money is the [Central Bank’s] safety net,” Harper stated.
He added that as a statutory body created by Parliament, the Central Bank’s spending is accountable to the public, and that the International Monetary Fund and international best practice for central banks strongly emphasise transparency and public accountability, not just financial independence.
“The [Central Bank] does not have freedom from public accountability for its expenditure decisions.”
In a separate blog post analysing the benefits of such apps from a Caribbean perspective, Harper said public trust in digital technologies would be central to BiMPay’s success, and that the Bank had not yet made a convincing case to citizens.
“The Central Bank hasn’t built a strong enough case for people to trust this platform and use it as a daily fixture in their lives. They haven’t comprehensively addressed the concerns of citizens around privacy, security, fraud prevention and resilience with regard to BiMPay.
Add to that the recent history of several Government departments being hacked, mistrust is expected.
Most important, they have not answered the burning question from the average man or woman on the street: How does this solution make my life better?”
Asked, from his expertise, what the cost of developing such an app might be, Harper declined to speculate.
“There are lots of variables to consider, and I don’t want to commit to any figures with insufficient knowledge,” he said.
Inniss, a former DLP Cabinet minister, also took the Governor to task, calling his conduct “arrogant” and unbecoming of the office. He charged that Greenidge had become too comfortable in the role and was being dismissive of legitimate questions.
“This response to a question as to what it costs is a mass of arrogance.
It’s not becoming the office of the Governor of the Central Bank.
And maybe Kevin has become so comfortable in the office that he feels he can be dismissive to those who ask honest and simple questions.”
Answerable
Inniss reminded the Governor that he is answerable to the people of Barbados, not to the occupants of the Tom Adams Financial Centre, and that the question from the reporter had deserved a straight answer rather than a flippant dismissal.
“You are answerable to the Minister of Finance, and the Cabinet of Barbados, and by extension to the public of Barbados. So the question asked by the reporter was a good question, and one that is deserving of an answer, to give a figure, not to be flippant and dismissive . . . .
Come on Kevin, who do you think you are? You don’t work for yourself,” Inniss stressed.
He warned that the Governor’s stance risked drawing unnecessary scrutiny to the Bank and its spending, citing what he described as a tremendous increase in expenditure at the Central Bank alongside a reduction in profit over time.
“Don’t tell us about reading the fine print that is embedded in financial reports. The average Barbadian who is out there struggling to make ends meet has no time to delve into the financial details of a Central Bank report. They have simple, honest questions that are deserving of an answer. So my advice to you, young man, come down off your high horse a little bit. Face reality and remember that you don’t work for yourself.”
Inniss also raised questions about the cost of the app’s launch event, which was described as a “pyjama party”.
Despite the sharp criticism, he praised the app itself, calling it a step in the right direction and commending the Central Bank for rolling it out.
“I am a supporter of BiMPay. I think it’s a step in the right direction.
I commend the Central Bank for rolling it out. It’s not perfect, it will have its hiccups, but this does not detract from the fact that the Governor needs to show [a] better [response].”
Several Barbadians also called in to Starcom Network’s radio programme Down To Brass Tacks yesterday to express disappointment in the Governor’s handling of the situation. (MB)
