V.I. Government Grapples With $2.2 Million Bounced Check Problem
In a revelation that startled legislators, the Department of Finance disclosed that it has amassed a total of $2.2 million in bounced checks, creating a massive cash flow problem for the department, and the government of the Virgin Islands. Finance officials made the shocking disclosure during their scheduled appearance before the Senate Committee on Budget, Finance and Appropriations on Tuesday.
2024-06-20 12:35:23 - VI News Staff
Of that $2.2 million, $1.7 million were from checks paid to the Bureau of Internal Revenue, and subsequently to the Department of Finance. Invalid checks made out to the Office of the Lieutenant Governor and the Department of Planning and Natural Resources–all identified as high revenue drivers for the GVI–are also contributing to the financial strain.
“We cannot have $2.2 million in bounced checks on the street,” Senator Donna Frett-Gregory said. Despite admitting that this is not a new issue, the committee chair professed bewilderment at the situation.. “How did that get to be okay?” she asked.
The Department of Finance has seemingly had minimal success in encouraging various agencies to use TeleCheck, a check acceptance company that promises to guide merchants on “whether to accept check transactions by analyzing information about check transactions that previously have been sent through its system.” For Ms. Frett-Gregory, encouraging words are not enough. Instead, decisive action is needed. “We got to figure how to mitigate… to ensure that every dime that is ours, we get it.”