St Lucia passed National Economic fund bill last tuesday approved by both houses of parliament. The bill makes the management and governance of CIP fund robust, transparent and accountable with annual reports. The bill further sets out clear application procedures for obtaining loans and investments from the Fund.
The government is now at the final stages of setting up the National Economic Fund, further strengthening the CIP legislation of Saint Lucia.
Saint Lucia National Economic Fund is a special fund established under Section 33 of the Citizenship by Investment Act for the sole purpose of receiving qualifying investments of cash for funding government sponsored projects.
Currently all the funds from citizenship by investment program of St Lucia goes into Consolidated fund.
The Bill will also establish the Saint Lucia National Economic Fund Board which will include:
- The Director of Finance as Chairperson,
- The Budget Director,
- The Chief Economist,
- A representative from Invest Saint Lucia,
- A representative from the Ministry of Commerce,
- A representative from the Attorney General’s Chambers and
- A representative from the private sector.
The Board will also have to submit independent auditor’s reports and annual reports.
The Bill further identifies the Fund as a special fund that will be used to advance loans and provide investment for Government approved capital projects, reduce debt, purchase Government bonds or for monies required for a purpose approved by Cabinet. The Minister of Finance is authorized under the Bill to make an Order that will identify the Government approved capital projects once approval is obtained from Cabinet.
The monies of the Fund will be the qualifying investments of cash that is currently stated under the Act and these monies will be deposited to the credit of the Minister in a financial institution approved by the Minister.
“We know where the funds are going and there will be detailed reports done by independent entities. I believe that we are well on the way in order to make sure that the funds that we are earning from the CIP are going to the best use of the people and the country of Saint Lucia.” said the PM of St Lucia
