Jamaica Gleaner
Published: Sunday | August 9, 2009
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Finance ministry shake-up - Hughes in, Crooks out

Crooks (left) and Hughes.

Arthur Hall, Senior Staff Reporter

The Audley Shaw-led finance ministry will soon have its fourth financial secretary in just over five years.

Since Friday, reports have circulated that Financial Secretary Sharon Crooks is to be replaced by head of the Planning Institute of Jamaica (PIOJ), Dr Wesley Hughes.

The Bruce Golding administration is yet to confirm or deny the reports.

Crooks, a career civil servant who was appointed financial secretary in October 2008, is expected to be shifted to another ministry to serve as permanent secretary, while Hughes will add experience and know-how to the finance ministry.

The Sunday Gleaner understands that Hughes was offered the job last week by Prime Minister Bruce Golding in a meeting which was not attended by Shaw.

Sources indicate that Hughes is willing to take on the job but has requested time to have discussions with Shaw before giving the prime minister an answer.

Almost violent rejection

It is further understood that Hughes was selected after the prime minister met stiff, almost violent, rejection of his first choice to replace Crooks.

According to Sunday Gleaner sources, the prime minister had initially selected the head of a major state agency for the job, but this choice was rejected by private-sector leaders who baulked at the selection, claiming that the person did not have sufficient experience.

"Not even assurances from the prime minister that senior technical officers would be added to the ministry was enough to get the private-sector leaders to accept that appointment," the sources said.

Both Golding and Shaw have made it clear that they want to strengthen the technical team at the finance ministry and a multi-national agency has reportedly given a commitment to lend two or three persons to Jamaica to provide some immediate support.

Crooks and her team have been under pressure since April for what government officials described as the "shambolic handling" of the Budget process.

Shaw was put on the spot after he announced revenue measures, which seemed not well-thought out.

In fact, after using his Budget presentation to announce the introduction of general consumption tax on several items it was days later before the finance ministry could provide a list of those items to be taxed.

Pressure on Crooks

To add insult to injury, Shaw had to backtrack on items, such as books, which he had initially announced would be taxed.

The pressure on Crooks and the technical team increased last month when the finance ministry had to delay the introduction of another revenue measure, a tax on rent allowances, because all the 'I's had not been dotted nor had the 'T's been crossed.

But even as those concerns were being raised, Crooks was part of Jamaica's team, which negotiated with the International Monetary Fund (IMF) and up to last week, was involved in the preparation of the letter of intent, which will outline terms under which Jamaica wants to enter a standby arrangement with the fund.

Her departure from the finance ministry will mean that two key members of that negotiating team, former Minister Don Wehby being the other, will be absent as Jamaica attempts to complete the arrangements to return to a borrowing relationship with the IMF.

Some stability

But Hughes will ensure some stability to the process, as he was part of the negotiating team and would have been involved in talks with the IMF in the past when he served as a deputy director at the Bank of Jamaica, or during his tenure as head of the PIOJ.

Crooks was appointed financial secretary to replace Colin Bullock who served for approximately two years after the retirement of Shirley Tyndall.

Before that, Crooks had been named interim head of the Financial Investigations Division.

In a media interview after being appointed, Crooks stated that, her intention was to reposition the Ministry of Finance and the Public Service.

"This means that we are going to have to focus not only on the objectives of achieving sustainable growth, but we are going to have to do it while ensuring that we have a satisfied clientele. I intend to do this through the very people who are within the Ministry of Finance and the Public Service," Crooks said in that interview with the Jamaica Information Service.

Economic climate

Commenting on the major challenges facing the country at this time, Crooks pointed to the economic climate, both with respect to the global financial crises and the impact on all economies, including Jamaica's.

"It has caused us to have to be more disciplined and creative, which is not necessarily a bad thing. It means then that we have to be creative, not only in terms of raising revenue, but we have to exercise fiscal discipline and focus on the matter of expenditure, and how we itemise our priorities."

The Sunday Gleaner's efforts to reach Crooks on her reported departure were unsuccessful.

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