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Cost of FINSAC enquiry could reach almost $140M
Wednesday, 03 February 2010
ImageThere are indications that the Commission of Enquiry into the operations at the Financial Sector Adjustment Company (FINSAC) during the 1990s financial sector meltdown could end up costing taxpayers
more than the $80 million budgeted for.
The Expenditure Documents of the FINSAC Commission obtained under the Access to Information Act show that up to the end of December, some $23 million had already been paid out for the Commission.
But the devil seems to be in the details.
That is because the Commission which started on September 22, only sat for 12 days last year which means an average of almost $2 million was paid out for each day the Commission sat.
Given that the Commission sits on average three days per week, those 12 days could then be counted as a month for the sitting.
If costs remain at current levels, taxpayers could be called on to pay way in excess of the $80 million set aside in the 2009/2010 budget for the Enquiry as the documents show that the Commission is to sit for six months or about 70 days at three days a week.
This means that the FINSAC Enquiry could end up costing closer to $140 million, a full 75% more than the budgeted $80 million.
The sittings were expected to have progressed further than they have to date based on the fact that some $60 million was voted on to meet expenses by the end of December which is almost three times the amount of money paid out.
Commission Chairman Retired Justice Boyd Carey indicated at Tuesday's sitting that a new budget was indeed being crafted
Wednesday, 03 February 2010
ImageThere are indications that the Commission of Enquiry into the operations at the Financial Sector Adjustment Company (FINSAC) during the 1990s financial sector meltdown could end up costing taxpayers
more than the $80 million budgeted for.
The Expenditure Documents of the FINSAC Commission obtained under the Access to Information Act show that up to the end of December, some $23 million had already been paid out for the Commission.
But the devil seems to be in the details.
That is because the Commission which started on September 22, only sat for 12 days last year which means an average of almost $2 million was paid out for each day the Commission sat.
Given that the Commission sits on average three days per week, those 12 days could then be counted as a month for the sitting.
If costs remain at current levels, taxpayers could be called on to pay way in excess of the $80 million set aside in the 2009/2010 budget for the Enquiry as the documents show that the Commission is to sit for six months or about 70 days at three days a week.
This means that the FINSAC Enquiry could end up costing closer to $140 million, a full 75% more than the budgeted $80 million.
The sittings were expected to have progressed further than they have to date based on the fact that some $60 million was voted on to meet expenses by the end of December which is almost three times the amount of money paid out.
Commission Chairman Retired Justice Boyd Carey indicated at Tuesday's sitting that a new budget was indeed being crafted
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