tribune242 editorial:
THE pulsating and historic general election in Britain on May 6 has resulted in stalemate - a hung parliament which was last seen in that bastion of democracy more than 35 years ago.
In 1974, the Conservative incumbent prime minister, Edward Heath, was forced to resign after failing to secure a deal with the Liberals. With a slim lead over the Conservatives (also known as Tories), Labour leader Harold Wilson formed a new government. But, without sufficient support in the House of Commons, he had to call another election in October of the same year which he won with a tiny overall majority.
In Britain, proportional representation does not apply. So the political party with the most votes over all other parties is the outright winner under the first-past-the-post system. This avoids horse-trading and deal-making and is considered to produce strong governments with a mandate to take decisive action.
In last Thursday's election the Tories won 306 seats against Labour's 258 but failed to win an overall majority. The Liberal Democrats with 57 seats hold the balance of power together with the other minorities in a legislature of 650. According to latest reports, Labour has put out feelers to the Lib Dems. But an alliance between the two would still leave them without an overall majority and would require other deals with minorities like the Scottish National Party, the Greens and others.
More likely is a Conservative minority government or some sort of coalition between the Tories and the Lib Dems as long as they can reconcile, in the short term, their differences on major issues like the economy - notably, where to apply the necessary spending cuts to tackle the nation's huge debt and deficit - immigration, education, the European Union and (most significantly) electoral and other political reform. The Lib Dems have for long championed the introduction of proportional representation. Their gain at this election of some 23 per cent of the votes but only 8 per cent of the seats has strengthened that case.
Liberal Democrat leader Nick Clegg has already spoken of the moral right of the Conservatives under David Cameron, with the largest share (36 per cent) of the popular vote and 47 more seats than Labour, to lead a new government. But without securing some form of accommodation (coalition or informal power-sharing alliance) with the minority parties he will not have a mandate in the House of Commons to govern.
Until he does so, under constitutional convention the incumbent prime minister, Gordon Brown, remains in power since the business of governance has to be maintained. While political deals are made, the government must continue to function. The money markets, not least, react badly to political instability.
As this fascinating drama of political intrigue and manoeuvre unfolds over the coming days, the controversial issue of proportional representation is likely to take centre stage; particularly if Cameron is forced to make concessions about electoral reform as the price for Clegg's political support.
There are already indications that a new cross-party parliamentary commission may be set the task of studying it and making recommendations. Nonetheless, introduction of proportional representation or some version of it is clearly a long way off. It appears to work in countries as diverse as Germany and New Zealand. But, whatever form it might take in Britain, it would represent a seismic shift in well-established electoral procedures and would probably require a referendum.
With our political system based on the Westminster model, are there lessons to be drawn from the British general election for the Bahamas and its body politic? A hung parliament demands greater cooperation among the political parties. A coalition government will be under greater pressure always to put the national interest first. Could such solidarity be translated in some way to politics in the Bahamas?
In our small country, where the ideological differences between the parties are not great, opposition politicians are nevertheless intent on trying to show their constituents that they are active. So they seem to criticise government policy and actions almost for the sake of doing so.
Certainly, they need to scrutinise what the government does and keep ministers in check. But there is room for less bickering and gratuitous criticism and, instead, for more cooperation in relation to issues which may be controversial but which need to be resolved for the sake of ordinary Bahamians.
Can attitudes in the Bahamas change and government become more inclusive for the benefit of us all? Can our own politicians be less confrontational and work together more effectively for the common good?
As events in London develop, there may indeed be lessons to be learnt by us here at home.
May 10, 2010
tribune242
A political blog about Bahamian politics in The Bahamas, Bahamian Politicans - and the entire Bahamas political lot. Bahamian Blogger Dennis Dames keeps you updated on the political news and views throughout the islands of The Bahamas without fear or favor. Bahamian Politicians and the Bahamian Political Arena: Updates one Post at a time on Bahamas Politics and Bahamas Politicans; and their local, regional and international policies and perspectives.
Monday, May 10, 2010
Sunday, May 9, 2010
Telecoms 'ripe' for increased taxation says former Chamber of Commerce president Dionisio D'Aguilar
Telecoms 'ripe' for more taxes
By NEIL HARTNELL
Tribune Business Editor:
Telecommunications is an industry "ripe" for increased taxation, a former Chamber of Commerce president yesterday urging the Government to "come up with innovative ways" to raise revenue by increasing fees on industries that paid "negligible taxes", such as banks/trust companies and the numbers business.
Suggesting that the Government impose a 1-2 per cent tax on making/receiving telephone calls, which is effectively a Bahamian national pasttime, Dionisio D'Aguilar said that if the Ingraham administration sought to raise revenues in its 2010-2011 Budget, it needed to look at fee increases that had the "least effect on the average person in the street".
Urging the Government to "come up with innovative ways to raise additional revenues", Mr D'Aguilar, who is also Superwash's president, told Tribune Business: "There are sectors of our economy that pay negligible taxes. Telecoms, that's a ripe one. Everyone pays a tax on their incoming calls. That's a totally undertaxed sector."
Mr D'Aguilar said such telecoms taxes were already levied in many other countries, and said a 1-2 per cent tax on telephone calls was "negligible to the consumer", especially since many Bahamians treated their cellular phones as a luxury.
Adding that he disagreed with fellow businessman Franklyn Wilson, who yesterday told Tribune Business that legalising gaming would result in net outflows from the Public Treasury, as a result of "gambling breeding poverty" and other adverse social consequences, Mr D'Aguilar said taxing the numbers business would raise millions of dollars per year in government revenue.
"Banks tend to be under-taxed compared to other businesses," he added. "It's a heavily under-taxed industry" compared to the income that Bahamian banks and trust companies generated per annum.
Mr D'Aguilar also pointed out that the Government was "not taxing services one bit", even though this was the sector accounting for the largest amount of economic activity in the Bahamas. He suggested, though, that the Ingraham administration was unlikely to do anything about this in the 2010-2011 Budget, and was likely to save it for a more comprehensive introduction of Value Added Tax (VAT).
"All you're looking at are fees, raising revenues from avenues that have the least effect on the average person in the street," Mr D'Aguilar said of the Government's efforts to plug the fiscal deficit and reduce the national debt.
"Look at the whole fee structure. There's a whole host of fees that are charged, but have not been amended, for four million years.
"They have to look at taxes that are easy to collect. Gasoline taxes are easy to collect because they are paid at the border when the fuel comes in. But property taxes are a nightmare to collect. Increasing property taxes could increase revenue, but not the Government's cash flow. And that's what we need to increase.
"The Government will not be able to get increased taxes from its traditional sources. Import duties are already high enough."
While all Bahamian governments were reluctant to cut spending and reduce the size of government, the former Chamber president suggested that the Ingraham administration now had to seize the moment offered by a public mood that was more prepared for austerity measures, and set the public finances back on track.
Arguing that the Government would find it impossible to accommodate the wishes of the likes of the Nassau Institute, which would like to see departments closed down and employees released, Mr D'Aguilar suggested that the administration "tackle" the generous pensions and benefits civil servants/public sector employees enjoyed.
Emphasising that this did not involve changes to basic salaries, the former Chamber president said: "They've got to get their house back in order. We don't want to go the way of the Greeks.
"The Government needs to look at the generous benefits it gives its employees. Salaries are one thing, but those generous and lucrative defined benefit pension plans for public sector workers and civil servants have to be tackled. That whole issue has to be tackled, as it will come home to roost one day."
May 07, 2010
tribune242
By NEIL HARTNELL
Tribune Business Editor:
Telecommunications is an industry "ripe" for increased taxation, a former Chamber of Commerce president yesterday urging the Government to "come up with innovative ways" to raise revenue by increasing fees on industries that paid "negligible taxes", such as banks/trust companies and the numbers business.
Suggesting that the Government impose a 1-2 per cent tax on making/receiving telephone calls, which is effectively a Bahamian national pasttime, Dionisio D'Aguilar said that if the Ingraham administration sought to raise revenues in its 2010-2011 Budget, it needed to look at fee increases that had the "least effect on the average person in the street".
Urging the Government to "come up with innovative ways to raise additional revenues", Mr D'Aguilar, who is also Superwash's president, told Tribune Business: "There are sectors of our economy that pay negligible taxes. Telecoms, that's a ripe one. Everyone pays a tax on their incoming calls. That's a totally undertaxed sector."
Mr D'Aguilar said such telecoms taxes were already levied in many other countries, and said a 1-2 per cent tax on telephone calls was "negligible to the consumer", especially since many Bahamians treated their cellular phones as a luxury.
Adding that he disagreed with fellow businessman Franklyn Wilson, who yesterday told Tribune Business that legalising gaming would result in net outflows from the Public Treasury, as a result of "gambling breeding poverty" and other adverse social consequences, Mr D'Aguilar said taxing the numbers business would raise millions of dollars per year in government revenue.
"Banks tend to be under-taxed compared to other businesses," he added. "It's a heavily under-taxed industry" compared to the income that Bahamian banks and trust companies generated per annum.
Mr D'Aguilar also pointed out that the Government was "not taxing services one bit", even though this was the sector accounting for the largest amount of economic activity in the Bahamas. He suggested, though, that the Ingraham administration was unlikely to do anything about this in the 2010-2011 Budget, and was likely to save it for a more comprehensive introduction of Value Added Tax (VAT).
"All you're looking at are fees, raising revenues from avenues that have the least effect on the average person in the street," Mr D'Aguilar said of the Government's efforts to plug the fiscal deficit and reduce the national debt.
"Look at the whole fee structure. There's a whole host of fees that are charged, but have not been amended, for four million years.
"They have to look at taxes that are easy to collect. Gasoline taxes are easy to collect because they are paid at the border when the fuel comes in. But property taxes are a nightmare to collect. Increasing property taxes could increase revenue, but not the Government's cash flow. And that's what we need to increase.
"The Government will not be able to get increased taxes from its traditional sources. Import duties are already high enough."
While all Bahamian governments were reluctant to cut spending and reduce the size of government, the former Chamber president suggested that the Ingraham administration now had to seize the moment offered by a public mood that was more prepared for austerity measures, and set the public finances back on track.
Arguing that the Government would find it impossible to accommodate the wishes of the likes of the Nassau Institute, which would like to see departments closed down and employees released, Mr D'Aguilar suggested that the administration "tackle" the generous pensions and benefits civil servants/public sector employees enjoyed.
Emphasising that this did not involve changes to basic salaries, the former Chamber president said: "They've got to get their house back in order. We don't want to go the way of the Greeks.
"The Government needs to look at the generous benefits it gives its employees. Salaries are one thing, but those generous and lucrative defined benefit pension plans for public sector workers and civil servants have to be tackled. That whole issue has to be tackled, as it will come home to roost one day."
May 07, 2010
tribune242
Saturday, May 8, 2010
Sir Stafford Sands image on The Bahamas' $10 banknote... debate rages on
Sir Stafford Sands on $10 debate rages on
tribune242:
THE DEBATE continued earlier this week over the government's decision to return the image of Sir Stafford Sands to the Bahamas' $10 banknote, replacing the image of Queen Elizabeth II.
On ZNS' Issues of the Day radio programme hosted by Krissy Love, callers voiced their support and condemnation of the government's idea as the show engaged in a wider discussion on race relations in the Bahamas.
One caller, identified as Eric said that Sir Stafford should not have been taken off the $10 bill in the first place by the PLP as he did more for the Bahamas in tourism than any other one person.
Another caller said that he did not see why the debate is continuing to be waged as Sir Stafford clearly had done much for the Bahamas.
Early in the week, opposition spokesman for Foreign Affairs, Fred Mitchell condemned the FNM's decision to return the image of Sir Stafford to the $10 bill after it has been taken off during the PLP administration.
Although generally recognised as the "principal architect" of the modern Bahamas economy, Mr Mitchell said that if the PLP were to regain the government in 2012, this decision would be one that would be reversed once again.
"I think it's an inappropriate tempting of fate in the face of the earlier dispute, and my position is the same; he should not be on the $10 bill, and that it should be removed if there is an opportunity for the PLP to do so at some future point," the Fox Hill MP said.
However, another caller on Issues of the Day said that if persons have contributed to the building of the nation - post 1973 -- they should be the ones who are considered for being placed on the nation's currency.
"Now as far as it pertains to Sir Stafford and his legacy to the entire Bahamas, his contribution is massive. So if they want to erect a bust of him over at the Treasury Department, the Central Bank, or the Ministry of Tourism, or whatever other areas where he played a significant role; name buildings after him," he said.
Another caller, identified as Pauper said that Bahamians need to mature and understand that while Sir Stafford was not a perfect man, he, like Sir Lynden Pindling, had made a tremendous contribution to the Bahamas and should be honoured as such.
"I think we need to grow up and be politically more mature. I don't know the reason, Krissy, like you said why they took him off the bill. I didn't have a problem when they put him on it. See. Krissy, I understand this to be us celebrating the good about Sir Stafford Sands.
"Sir Stafford Sands wasn't perfect. Sir Lynden wasn't perfect, but he is still on the dollar bill.
"So let's celebrate, grow up and be mature.
"Don't worry about all the bad things that Sir Stafford Sands did, and how the majority of us might be black and some of them was white. Let's think about the good that Sir Stafford do and the good what Sir Lynden do. That is why we put them there," he said.
The well-known caller continued to plead for Bahamians to move away from the black and white issue as the racism "baggage" needs to be dropped so that the populace can be "mentally freed."
May 07, 2010
tribune242
tribune242:
THE DEBATE continued earlier this week over the government's decision to return the image of Sir Stafford Sands to the Bahamas' $10 banknote, replacing the image of Queen Elizabeth II.
On ZNS' Issues of the Day radio programme hosted by Krissy Love, callers voiced their support and condemnation of the government's idea as the show engaged in a wider discussion on race relations in the Bahamas.
One caller, identified as Eric said that Sir Stafford should not have been taken off the $10 bill in the first place by the PLP as he did more for the Bahamas in tourism than any other one person.
Another caller said that he did not see why the debate is continuing to be waged as Sir Stafford clearly had done much for the Bahamas.
Early in the week, opposition spokesman for Foreign Affairs, Fred Mitchell condemned the FNM's decision to return the image of Sir Stafford to the $10 bill after it has been taken off during the PLP administration.
Although generally recognised as the "principal architect" of the modern Bahamas economy, Mr Mitchell said that if the PLP were to regain the government in 2012, this decision would be one that would be reversed once again.
"I think it's an inappropriate tempting of fate in the face of the earlier dispute, and my position is the same; he should not be on the $10 bill, and that it should be removed if there is an opportunity for the PLP to do so at some future point," the Fox Hill MP said.
However, another caller on Issues of the Day said that if persons have contributed to the building of the nation - post 1973 -- they should be the ones who are considered for being placed on the nation's currency.
"Now as far as it pertains to Sir Stafford and his legacy to the entire Bahamas, his contribution is massive. So if they want to erect a bust of him over at the Treasury Department, the Central Bank, or the Ministry of Tourism, or whatever other areas where he played a significant role; name buildings after him," he said.
Another caller, identified as Pauper said that Bahamians need to mature and understand that while Sir Stafford was not a perfect man, he, like Sir Lynden Pindling, had made a tremendous contribution to the Bahamas and should be honoured as such.
"I think we need to grow up and be politically more mature. I don't know the reason, Krissy, like you said why they took him off the bill. I didn't have a problem when they put him on it. See. Krissy, I understand this to be us celebrating the good about Sir Stafford Sands.
"Sir Stafford Sands wasn't perfect. Sir Lynden wasn't perfect, but he is still on the dollar bill.
"So let's celebrate, grow up and be mature.
"Don't worry about all the bad things that Sir Stafford Sands did, and how the majority of us might be black and some of them was white. Let's think about the good that Sir Stafford do and the good what Sir Lynden do. That is why we put them there," he said.
The well-known caller continued to plead for Bahamians to move away from the black and white issue as the racism "baggage" needs to be dropped so that the populace can be "mentally freed."
May 07, 2010
tribune242
Friday, May 7, 2010
Bahamians Should Be Concern About Lost Opportunities because of the country’s unqualified workforce says Senator Michael Pintard
Bahamians Should Be Concern About Lost Opportunities
BY KENDENO N. KNOWLES:
Bahamians should be concerned about the number of job opportunities being lost because of the country’s unqualified workforce, according to Free National Movement (FNM) Senator Michael Pintard.
He was making his contribution to the Bahamas Technical and Vocational Institute (BTVI) Bill debate in the upper chamber yesterday.
The senator said foreigners are constantly being brought in to take on thousands of local job opportunities – something he says Bahamians should be concerned about.
Mr. Pintard was referring to the 5,000 plus Chinese workers that Baha Mar Resort is planning to bring in for construction on the mega luxury resort property.
"It is with some distress that I heard recently the intention of one of the developments in The Bahamas to import a large number of foreign workers," Mr. Pintard said.
Baha Mar officials recently confirmed that the Chinese workers were being brought into the country in stages to carry out specialty work, which executives claim Bahamian workers are unable to carry out.
"At the time when Atlantis was in its early stages of its development the identical statement was made, which I also heard recently. [That statement by developers of the new resort property] pointed to the fact that there were not enough qualified Bahamians to populate the various positions," Mr. Pintard said.
"If this is the case then all of us have good reason to be concerned because the development pattern of this country is such that we must have seen additional developments such as the one coming on stream."
He questioned why there has not been anything done in order to prepare Bahamians to take advantage of these opportunities.
"I recall quite distinctly drywall courses being offered at BTVI in conjunction with Atlantis to create a cadre of workers in order to take advantage of the opportunity and any other subsequent opportunities," he said.
"Again, it is crucial that we never find ourselves in a similar position in the future. It is my hope that in the execution of what emerges from this bill that we put ourselves in a position where we carefully assess the emerging needs on the horizon in order to prepare our population to be the chief benefactor of these opportunities. BTVI must also continue to deepen its relationship with industry partners locally, nationally and internationally. Luckily this wonderful bill speaks specifically to this issue."
He continued: "It is important for us to train persons to populate all fields in technical and vocational areas, including the fields that others are claiming we do not have the requisite skills."
May 6, 2010
jonesbahamas
BY KENDENO N. KNOWLES:
Bahamians should be concerned about the number of job opportunities being lost because of the country’s unqualified workforce, according to Free National Movement (FNM) Senator Michael Pintard.
He was making his contribution to the Bahamas Technical and Vocational Institute (BTVI) Bill debate in the upper chamber yesterday.
The senator said foreigners are constantly being brought in to take on thousands of local job opportunities – something he says Bahamians should be concerned about.
Mr. Pintard was referring to the 5,000 plus Chinese workers that Baha Mar Resort is planning to bring in for construction on the mega luxury resort property.
"It is with some distress that I heard recently the intention of one of the developments in The Bahamas to import a large number of foreign workers," Mr. Pintard said.
Baha Mar officials recently confirmed that the Chinese workers were being brought into the country in stages to carry out specialty work, which executives claim Bahamian workers are unable to carry out.
"At the time when Atlantis was in its early stages of its development the identical statement was made, which I also heard recently. [That statement by developers of the new resort property] pointed to the fact that there were not enough qualified Bahamians to populate the various positions," Mr. Pintard said.
"If this is the case then all of us have good reason to be concerned because the development pattern of this country is such that we must have seen additional developments such as the one coming on stream."
He questioned why there has not been anything done in order to prepare Bahamians to take advantage of these opportunities.
"I recall quite distinctly drywall courses being offered at BTVI in conjunction with Atlantis to create a cadre of workers in order to take advantage of the opportunity and any other subsequent opportunities," he said.
"Again, it is crucial that we never find ourselves in a similar position in the future. It is my hope that in the execution of what emerges from this bill that we put ourselves in a position where we carefully assess the emerging needs on the horizon in order to prepare our population to be the chief benefactor of these opportunities. BTVI must also continue to deepen its relationship with industry partners locally, nationally and internationally. Luckily this wonderful bill speaks specifically to this issue."
He continued: "It is important for us to train persons to populate all fields in technical and vocational areas, including the fields that others are claiming we do not have the requisite skills."
May 6, 2010
jonesbahamas
Thursday, May 6, 2010
Confidential report: water plant would have made $4m loss with Bahamian group BK Water
Confidential report: water plant would have made $4m loss with Bahamian group
By NEIL HARTNELL
Tribune Business Editor:
A CONFIDENTIAL review conducted for former Prime Minister Perry Christie on the "faulty and chaotic" bidding process for the Arawak Cay reverse osmosis plant found that there would have been "a loss of $4-$5 million" during the plant's life had the Water & Sewerage Corporation gone with a Bahamian investor group's bid.
The January 25, 2006, review carried out for Mr Christie by financial advisor Deepak Bhatnagar described the "introduction" of BK Water - a group headed by current PLP Senator Jerome Fitzgerald and Mark Finlayson - into the bidding process, and the issuance of a conditional acceptance of its offer, as "not in order", citing numerous reasons.
The report detailed how then-Water & Sewerage Corporation general manager, Abraham Butler, on November 8, 2005, made a recommendation that BK Water be awarded the Arawak Cay contract following a November 4, 2005, meeting with "the Hon. Minister of Works" who, at the time, was Bradley Roberts.
Mr Bhatnagar's report indicates that the November 4, 2005, meeting was designed to see how any obstacles preventing the award of the contract to BK Water - whose members are well-known PLP members and supporters - could be overcome.
"The (November 4) meeting 'authorised' a second review to permit administrators and the accountants of Water & Sewerage to evaluate differences or variations that 'prevents the execution of a contract between Water & Sewerage Corporation and BK/Veolia'," Mr Bhatnagar's report said.
Following these goings on, Mr Butler on November 11, 2005, sent a letter informing BK Water that it had won the Arawak Cay contract subject to Cabinet approval. Such approval was not forthcoming.
Mr Bhatnagar's report appears to contradict assertions by Mr Roberts that he had no involvement with the Arawak Cay reverse osmosis plant contract, referring to "discussions held on price, technical and legal issues" involving the Veolia/BK Water bid that were followed "by a meeting between Water & Sewerage, Veolia and the Minister of Works on October 7, 2005."
As a result: "Minister (Mr Roberts) instructed both parties to resume discussions and resolve by October 14, 2005, inclusive of a revised pricing policy by Veolia." BK Water was Veolia's Bahamian partner.
And Mr Bhatnagar's report refers to "further discussions held between Veolia, Minister and chairman in Barbados" at a conference, with a revised proposal received from Veolia/BK Water on October 19, 2005.
The report seems at odds with Mr Roberts' claims that allegations linking him to negotiations with Veolia/BK Water over the Arawak Cay plant were "utter BS".
"In general, it appears that the procedure followed in consideration of the bids by the Board and management of Water & Sewerage for the Arawak plant is faulty and chaotic, and I have detailed my findings based on my examination of the Board Minutes, which indicates that there is no proper record of consideration of the bids and/or approval of the bids right up to the issuance of the conditional letter of acceptance to BK Water," Mr Bhatnagar told the then-Prime Minister.
"A similar faulty procedure was followed in the Blue Hills reverse osmosis plant project, whereby at one stage Biwater was agreed to be issued a letter of acceptance. This has resulted in Water & Sewerage having to face litigation from Biwater in the form of an injunction."
Outlining the confused bidding process for the contract to build and operate the Arawak Cay reverse osmosis plant, which would sell water to the Water & Sewerage Corporation, Mr Bhatnagar's report details how the original process was annulled on June 22, 2005, by the Corporation's Board. Instructions were then issued to negotiate with Veolia.
No mention was made of BK Water at this point, reflecting the Board's desire to deal with Veolia instead. It wanted to develop a strategic partnership with "a viable organisation", and Mr Bhatnagar said: "This surely meant the Board was to create a strategic partnership with Veolia and not BK.
"The latter was formed only for the purpose of the Arawak Cay reverse osmosis plant, and does not have any track record either in the Bahamas or internationally. As per letter from Higgs & Johnson, BK Water is controlled by Messrs Jerome Fitzgerald, Mark Finlayson, Prince Wallace and Judson Wilmott."
Handing the contract to BK did not meet the "strategic partnership with a viable international organisation" condition, Mr Bhatnagar wrote, because Veolia would not be involved in the Arawak Cay plant's operations. Nor was there a true joint venture partnership between BK Water and Veolia, but a contractor/sub-contractor relationship.
"The Board ought to have pursued negotiations with Veolia," Mr Bhatnagar concluded.
"But the process got polluted with the emergence of BK Water and Board's entertaining to deal with BK Water rather than Veolia.
"The focus of forming a 'strategic partnership with an international company' was altogether lost."
May 06, 2010
tribune242
By NEIL HARTNELL
Tribune Business Editor:
A CONFIDENTIAL review conducted for former Prime Minister Perry Christie on the "faulty and chaotic" bidding process for the Arawak Cay reverse osmosis plant found that there would have been "a loss of $4-$5 million" during the plant's life had the Water & Sewerage Corporation gone with a Bahamian investor group's bid.
The January 25, 2006, review carried out for Mr Christie by financial advisor Deepak Bhatnagar described the "introduction" of BK Water - a group headed by current PLP Senator Jerome Fitzgerald and Mark Finlayson - into the bidding process, and the issuance of a conditional acceptance of its offer, as "not in order", citing numerous reasons.
The report detailed how then-Water & Sewerage Corporation general manager, Abraham Butler, on November 8, 2005, made a recommendation that BK Water be awarded the Arawak Cay contract following a November 4, 2005, meeting with "the Hon. Minister of Works" who, at the time, was Bradley Roberts.
Mr Bhatnagar's report indicates that the November 4, 2005, meeting was designed to see how any obstacles preventing the award of the contract to BK Water - whose members are well-known PLP members and supporters - could be overcome.
"The (November 4) meeting 'authorised' a second review to permit administrators and the accountants of Water & Sewerage to evaluate differences or variations that 'prevents the execution of a contract between Water & Sewerage Corporation and BK/Veolia'," Mr Bhatnagar's report said.
Following these goings on, Mr Butler on November 11, 2005, sent a letter informing BK Water that it had won the Arawak Cay contract subject to Cabinet approval. Such approval was not forthcoming.
Mr Bhatnagar's report appears to contradict assertions by Mr Roberts that he had no involvement with the Arawak Cay reverse osmosis plant contract, referring to "discussions held on price, technical and legal issues" involving the Veolia/BK Water bid that were followed "by a meeting between Water & Sewerage, Veolia and the Minister of Works on October 7, 2005."
As a result: "Minister (Mr Roberts) instructed both parties to resume discussions and resolve by October 14, 2005, inclusive of a revised pricing policy by Veolia." BK Water was Veolia's Bahamian partner.
And Mr Bhatnagar's report refers to "further discussions held between Veolia, Minister and chairman in Barbados" at a conference, with a revised proposal received from Veolia/BK Water on October 19, 2005.
The report seems at odds with Mr Roberts' claims that allegations linking him to negotiations with Veolia/BK Water over the Arawak Cay plant were "utter BS".
"In general, it appears that the procedure followed in consideration of the bids by the Board and management of Water & Sewerage for the Arawak plant is faulty and chaotic, and I have detailed my findings based on my examination of the Board Minutes, which indicates that there is no proper record of consideration of the bids and/or approval of the bids right up to the issuance of the conditional letter of acceptance to BK Water," Mr Bhatnagar told the then-Prime Minister.
"A similar faulty procedure was followed in the Blue Hills reverse osmosis plant project, whereby at one stage Biwater was agreed to be issued a letter of acceptance. This has resulted in Water & Sewerage having to face litigation from Biwater in the form of an injunction."
Outlining the confused bidding process for the contract to build and operate the Arawak Cay reverse osmosis plant, which would sell water to the Water & Sewerage Corporation, Mr Bhatnagar's report details how the original process was annulled on June 22, 2005, by the Corporation's Board. Instructions were then issued to negotiate with Veolia.
No mention was made of BK Water at this point, reflecting the Board's desire to deal with Veolia instead. It wanted to develop a strategic partnership with "a viable organisation", and Mr Bhatnagar said: "This surely meant the Board was to create a strategic partnership with Veolia and not BK.
"The latter was formed only for the purpose of the Arawak Cay reverse osmosis plant, and does not have any track record either in the Bahamas or internationally. As per letter from Higgs & Johnson, BK Water is controlled by Messrs Jerome Fitzgerald, Mark Finlayson, Prince Wallace and Judson Wilmott."
Handing the contract to BK did not meet the "strategic partnership with a viable international organisation" condition, Mr Bhatnagar wrote, because Veolia would not be involved in the Arawak Cay plant's operations. Nor was there a true joint venture partnership between BK Water and Veolia, but a contractor/sub-contractor relationship.
"The Board ought to have pursued negotiations with Veolia," Mr Bhatnagar concluded.
"But the process got polluted with the emergence of BK Water and Board's entertaining to deal with BK Water rather than Veolia.
"The focus of forming a 'strategic partnership with an international company' was altogether lost."
May 06, 2010
tribune242
Bradley Roberts denies conspiring with former Water and Sewerage chairman Don Demeritte
Bradley Roberts denies conspiring with former Water and Sewerage chairman
By MEGAN REYNOLDS
Tribune Staff Reporter
mreynolds@tribunemedia.net:
PLP chairman Bradley Roberts has denied claims he conspired with the former Water and Sewerage Corporation chairman to offer a lucrative contract to a PLP member as alleged during testimony in an industrial tribunal.
The former Minister of Works and Utilities was said by sacked Water and Sewerage Corporation (WSC) engineer Mario Bastian to have conspired with former Corporation chairman Don Demeritte to call off the bidding process for a reverse osmosis plant to start negotiations with BK Water Limited/Veolia, whose principal was Jerome Fitzgerald, now a PLP senator.
The deal, according to the testimony given before the Industrial Tribunal, was allegedly discussed before Mr Bastian's termination from the corporation in September, 2006. In his testimony, Mr Bastian claimed it would have cost Bahamians millions of dollars more to have gone with BK Water. However, the plan did not go ahead as the PLP government was voted out of office the following May, the tribunal was told.
Mr Roberts was unwilling to devote any time to the claims when asked by The Tribune yesterday, angrily shrugging off all allegations as false and of little cause for concern.
"It is utter BS," Mr Roberts said.
And when asked to comment in further detail, he added: "I was emphatic with you, that is utter BS!
"I never met the young man in my life, I never dealt with individuals at the corporation, the board of directors was it.
"There is nothing for me to defend myself about.
"This is like water off a duck's back for Bradley Roberts."
Mr Demeritte declined the opportunity to speak publicly on the matter as he is due to appear as a witness at the tribunal.
However the tribunal, presided over by Harrison Lockhart which met on Monday, has now been postponed indefinitely owing to the ill health of an attorney, a court official told The Tribune yesterday.
Mr Bastian claims he was wrongfully dismissed from WSC, and victimised because he refused to engage in unprofessional and unscrupulous management practices. He also alleges breach of contract and damage to his reputation.
However, Corporation officials maintain they terminated Mr Bastian's contract as he was simultaneously serving as a director of CBA Engineering Ltd, a company in direct competition with WSC.
Mr Bastian denied the conflict of interest allegation, but raised further allegations about a WSC conspiracy to waste millions of dollars paid by hardworking Bahamian taxpayers by engaging in an economically nonsensical contract with BK Water/Veolia.
He told the hearing on Monday how WSC general manager Abraham Butler gave a directive to end the bidding process and engage in negotiations with BK Water/Veolia.
Negotiations began but were stopped when the government changed in May 2007.
WSC counsel Thomas Evans, QC, said Mr Bastian was accusing Mr Roberts, Mr Demeritte, and other WSC senior officials of, "a dastardly conspiracy to rob Bahamian people of millions of dollars."
However, Mr Bastian alleged that WSC chairman Demeritte manipulated the corporation and intimidated him into providing information about Mr Butler that could lead to his dismissal as the chairman inferred that he (Bastian) would be sacked if he did not comply, and promoted if he did.
Mr Demeritte and Mr Butler reached an irreconcilable position when the general manager criticised the chairman's "unauthorised" promotion of minor staff to lucrative positions in February 2006.
The promotions soon prompted industrial action when employees learned 56 staff had been promoted twice within 12 months, while 45 were twice overlooked.
And as fights erupted between Mr Butler, Mr Demeritte and union members, Mr Butler was removed from the corporation under the PLP.
Mr Bastian wants the tribunal to decide if the corporation was justified in terminating his contract.
May 05, 2010
tribune242
By MEGAN REYNOLDS
Tribune Staff Reporter
mreynolds@tribunemedia.net:
PLP chairman Bradley Roberts has denied claims he conspired with the former Water and Sewerage Corporation chairman to offer a lucrative contract to a PLP member as alleged during testimony in an industrial tribunal.
The former Minister of Works and Utilities was said by sacked Water and Sewerage Corporation (WSC) engineer Mario Bastian to have conspired with former Corporation chairman Don Demeritte to call off the bidding process for a reverse osmosis plant to start negotiations with BK Water Limited/Veolia, whose principal was Jerome Fitzgerald, now a PLP senator.
The deal, according to the testimony given before the Industrial Tribunal, was allegedly discussed before Mr Bastian's termination from the corporation in September, 2006. In his testimony, Mr Bastian claimed it would have cost Bahamians millions of dollars more to have gone with BK Water. However, the plan did not go ahead as the PLP government was voted out of office the following May, the tribunal was told.
Mr Roberts was unwilling to devote any time to the claims when asked by The Tribune yesterday, angrily shrugging off all allegations as false and of little cause for concern.
"It is utter BS," Mr Roberts said.
And when asked to comment in further detail, he added: "I was emphatic with you, that is utter BS!
"I never met the young man in my life, I never dealt with individuals at the corporation, the board of directors was it.
"There is nothing for me to defend myself about.
"This is like water off a duck's back for Bradley Roberts."
Mr Demeritte declined the opportunity to speak publicly on the matter as he is due to appear as a witness at the tribunal.
However the tribunal, presided over by Harrison Lockhart which met on Monday, has now been postponed indefinitely owing to the ill health of an attorney, a court official told The Tribune yesterday.
Mr Bastian claims he was wrongfully dismissed from WSC, and victimised because he refused to engage in unprofessional and unscrupulous management practices. He also alleges breach of contract and damage to his reputation.
However, Corporation officials maintain they terminated Mr Bastian's contract as he was simultaneously serving as a director of CBA Engineering Ltd, a company in direct competition with WSC.
Mr Bastian denied the conflict of interest allegation, but raised further allegations about a WSC conspiracy to waste millions of dollars paid by hardworking Bahamian taxpayers by engaging in an economically nonsensical contract with BK Water/Veolia.
He told the hearing on Monday how WSC general manager Abraham Butler gave a directive to end the bidding process and engage in negotiations with BK Water/Veolia.
Negotiations began but were stopped when the government changed in May 2007.
WSC counsel Thomas Evans, QC, said Mr Bastian was accusing Mr Roberts, Mr Demeritte, and other WSC senior officials of, "a dastardly conspiracy to rob Bahamian people of millions of dollars."
However, Mr Bastian alleged that WSC chairman Demeritte manipulated the corporation and intimidated him into providing information about Mr Butler that could lead to his dismissal as the chairman inferred that he (Bastian) would be sacked if he did not comply, and promoted if he did.
Mr Demeritte and Mr Butler reached an irreconcilable position when the general manager criticised the chairman's "unauthorised" promotion of minor staff to lucrative positions in February 2006.
The promotions soon prompted industrial action when employees learned 56 staff had been promoted twice within 12 months, while 45 were twice overlooked.
And as fights erupted between Mr Butler, Mr Demeritte and union members, Mr Butler was removed from the corporation under the PLP.
Mr Bastian wants the tribunal to decide if the corporation was justified in terminating his contract.
May 05, 2010
tribune242
Wednesday, May 5, 2010
Time to rethink oil drilling in The Bahamas
Time to rethink oil drilling in Bahamas
tribune242 editorial:
WORLD WAR I was supposed to have been the "war to end all wars," until 21 years later the mistakes made around the negotiating table of that war spawned World War II. Since then the world has been involved in many skirmishes of varying proportions.
A few minutes past midnight on March 24, 1989 the oil tanker Exxon Valdez struck a reef in Alaska's Prince William Sound, spilling 11 million gallons of crude oil over 470 miles, leaving behind an environmental nightmare that the world had never seen before -- and hoped it would never see again. The initial cleanup took three years and cost more than $2.1 billion. The deadly toll on wildlife will never be known.
As a result of the Valdez accident an unsuspecting public would no longer believe a corporation's word that its operations are completely safe.
The Alaskan disaster resulted in tighter environmental regulations being imposed on various industries. "The most important regulation attempting to protect against a repeat of the spill," said one report after the accident, "is the modern standard for tanker ships, which now must be built with double hulls, so that if the outer skin is punctured, no oil will leak."
Ostensibly the Valdez was an oil spill -- like World War I -- that was to end all oil spills of such magnitude. But then there was April 22 -- just 11 days ago -- when BP's oil rig exploded in the Gulf of Mexico, spewing out an estimated 200,000 gallons of oil a day, with still no sign of letting up. Eleven persons were killed. Ironically, the chaos erupted as the world celebrated Earth Day.
According to reports BP hopes to deploy a giant, 40-foot steel funnel within the next few days to attempt to trap much of the leaking oil at source. However, while the technique has worked in shallow water, it has never been done under a mile of ocean.
It is forecast that this spill will be far worse than the Exxon Valdez tragedy and will threaten even more extensive areas, killing wildlife, destroying beaches, and annihilating the livelihood of hundreds of fishermen, and allied businesses. Bahamians are holding their collective breath that the wind currents don't shift, sending the oil splashing on our shores.
Although, now is not the time for fingerpointing as every resource is being used to stop the flow and spread of the life threatening oil, shortly after the explosion it was suggested that BP's oil rig did not have what is known as a blow-out preventer. It was claimed that cost was a consideration. However, as the news continued to flow as fast as the oil, it was reported that although BP had the preventer, the equipment had malfunctioned.
Apparently, blow out preventers, which would have capped the spill, are mandatory in Norwegian and Brazilian offshore oil drills, but not in oil drills off the United States. It was claimed that regulation of these drills are not sufficiently strict.
This was a spill that after the Valdez was not meant to have happened. But it did.
In May last year it was predicted -- almost jubilantly -- that the Bahamas could be an oil producing company within 10 years. As far back as we can remember oil companies have been poking around in our waters prospecting for oil. So far nothing has been found. In view of what is now happening in the Gulf, it is probably a blessing, and could be a warning that fate should not be tempted.
In March, when asked about the two companies that have raised £2.4 million to increase working capital to invest in deep water drilling in the Bahamas, Phenton Neymour, minister of state for the environment, said the government was "proceeding cautiously."
In view of what is happening in the Gulf, we suggest that government turn its back on oil and think in terms of more environmentally sustainable methods to provide our needs.
Remember there has never -- and will never be a war -- to end all wars, unless it is the final war. Nor will there be an oil drilling accident that will end all such accidents. But if we don't take heed and realise that no matter what proud Man believes, it is Nature that has the last word, an oil drilling accident in these waters could be the final curtain on a Bahamas that we once knew.
It is true, that an oil find in our waters would mean tremendous wealth, but it could also mean tremendous tragedy.
And as we should all know by now, money is not everything -- as a matter of fact one wise man warned that it is "the root of all evil."
May 04, 2010
tribune242
tribune242 editorial:
WORLD WAR I was supposed to have been the "war to end all wars," until 21 years later the mistakes made around the negotiating table of that war spawned World War II. Since then the world has been involved in many skirmishes of varying proportions.
A few minutes past midnight on March 24, 1989 the oil tanker Exxon Valdez struck a reef in Alaska's Prince William Sound, spilling 11 million gallons of crude oil over 470 miles, leaving behind an environmental nightmare that the world had never seen before -- and hoped it would never see again. The initial cleanup took three years and cost more than $2.1 billion. The deadly toll on wildlife will never be known.
As a result of the Valdez accident an unsuspecting public would no longer believe a corporation's word that its operations are completely safe.
The Alaskan disaster resulted in tighter environmental regulations being imposed on various industries. "The most important regulation attempting to protect against a repeat of the spill," said one report after the accident, "is the modern standard for tanker ships, which now must be built with double hulls, so that if the outer skin is punctured, no oil will leak."
Ostensibly the Valdez was an oil spill -- like World War I -- that was to end all oil spills of such magnitude. But then there was April 22 -- just 11 days ago -- when BP's oil rig exploded in the Gulf of Mexico, spewing out an estimated 200,000 gallons of oil a day, with still no sign of letting up. Eleven persons were killed. Ironically, the chaos erupted as the world celebrated Earth Day.
According to reports BP hopes to deploy a giant, 40-foot steel funnel within the next few days to attempt to trap much of the leaking oil at source. However, while the technique has worked in shallow water, it has never been done under a mile of ocean.
It is forecast that this spill will be far worse than the Exxon Valdez tragedy and will threaten even more extensive areas, killing wildlife, destroying beaches, and annihilating the livelihood of hundreds of fishermen, and allied businesses. Bahamians are holding their collective breath that the wind currents don't shift, sending the oil splashing on our shores.
Although, now is not the time for fingerpointing as every resource is being used to stop the flow and spread of the life threatening oil, shortly after the explosion it was suggested that BP's oil rig did not have what is known as a blow-out preventer. It was claimed that cost was a consideration. However, as the news continued to flow as fast as the oil, it was reported that although BP had the preventer, the equipment had malfunctioned.
Apparently, blow out preventers, which would have capped the spill, are mandatory in Norwegian and Brazilian offshore oil drills, but not in oil drills off the United States. It was claimed that regulation of these drills are not sufficiently strict.
This was a spill that after the Valdez was not meant to have happened. But it did.
In May last year it was predicted -- almost jubilantly -- that the Bahamas could be an oil producing company within 10 years. As far back as we can remember oil companies have been poking around in our waters prospecting for oil. So far nothing has been found. In view of what is now happening in the Gulf, it is probably a blessing, and could be a warning that fate should not be tempted.
In March, when asked about the two companies that have raised £2.4 million to increase working capital to invest in deep water drilling in the Bahamas, Phenton Neymour, minister of state for the environment, said the government was "proceeding cautiously."
In view of what is happening in the Gulf, we suggest that government turn its back on oil and think in terms of more environmentally sustainable methods to provide our needs.
Remember there has never -- and will never be a war -- to end all wars, unless it is the final war. Nor will there be an oil drilling accident that will end all such accidents. But if we don't take heed and realise that no matter what proud Man believes, it is Nature that has the last word, an oil drilling accident in these waters could be the final curtain on a Bahamas that we once knew.
It is true, that an oil find in our waters would mean tremendous wealth, but it could also mean tremendous tragedy.
And as we should all know by now, money is not everything -- as a matter of fact one wise man warned that it is "the root of all evil."
May 04, 2010
tribune242
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