Vexing and environmentally damaging Oil Spill along the shores of southwest New Providence Island

Oil Leak Was From Bec And One Other Source

By SANCHESKA BROWN

Tribune Staff Reporter

sbrown@tribunemedia.net

BAHAMAS Electricity Corporation executives met with government officials and a team of biological engineers from the United States yesterday morning after it was discovered that fuel from the corporation’s Clifton Pier facility was leaking along the coastline.

According to Environment Minister Ken Dorsett, the fuel from BEC was mixed with oil from another source that began spilling into canals near Stuart Cove’s Aqua Adventures and Albany last week.

He said the government’s main focus is on containing the oil.

During an address in the House of Assembly, Mr Dorsett said an inspection of BEC’s plant on Sunday revealed that not only was fuel being discharged from one of the facility’s outfalls, but it also revealed that BEC’s containment booms were not preventing all of the fuel emitted into the marine environment from spreading.

“Initial reports indicate that on Wednesday of last week, Stuart Cove’s discovered an extraordinary amount of fuel in the canal area of their operations and the dive sites they use off the southwest coast of the island of New Providence. Initial reports also indicate that Albany also reported fuel in the water and coastline of their property. On Thursday past it was reported to the port controller that there was a smell of oil and an oil slick seen in the Clifton area,” he said.

He said that on Sunday the Royal Bahamas Defence Force took members of the National Oil Spill Committee along the coastline to inspect the marine environment.

“I also inspected the outfalls of the BEC Plant, the BEC containment booms in Clifton Bay and Stuart Cove’s on Sunday morning,” Mr Dorsett said. “The BEC containment booms were not preventing all of the fuel emitted into the marine environment from spreading. It also appeared that fuel was being discharged from one of the outfalls. An inspection of Stuart Cove’s facilities, revealed evidence of fuel discharge in their canal, along the coastline and on the bottoms of their vessels.

“This morning (Monday) two biological environmental engineers from Coastal Systems International arrived in Nassau. A briefing meeting was held at the Ministry of Works at 8:30 am for all government stakeholders and advisors, including officials from BEC. As we speak, the government’s response team and our environmental consultants are inspecting the relevant properties, including BEC’s Clifton Pier Plant.”

Mr Dorsett said all relevant parties and businesses in the industrial area will be engaged in discussions with the government over the next few days to assess and confirm the source or sources of the oil spills as well as the extent of the contamination of properties in the area, including the Clifton Heritage Park.

The consultants will also advise the government on the best way to mitigate and remediate the oil leaks.

This latest spill comes after a significant quantity of oil washed ashore on Adelaide Beach.

The oil found at Adelaide Beach is suspected to have been dumped by a passing ship, according to Aviation and Transport Minister Glenys Hanna Martin, who addressed parliament on the matter.

Last month BEC Executive Chairman Leslie Miller also denied that BEC’s Clifton Pier plant was the source of the oil. Mr Miller explained at the time that if the oil came from BEC’s plant it would have “run in the opposite area” near Jaws Beach away from Adelaide.

July 07, 2014

Tribune242

The Bahamas’ Credit Bureau Project (the BCBP) ...and the establishment of a national credit reporting system in The Bahamas

Bad debt costing millions in credit

Central Bank floats Credit Reporting Bill, Regulations

K. QUINCY PARKER
Guardian Business Editor
quincy@nasguard.com

Bad credit cost The Bahamas about $1.6 billion in available credit between 2009 and 2013, according to The Central Bank of The Bahamas (CBOB), which has circulated for public consultation a draft Credit Reporting Bill and Regulations – which call for the creation of a credit bureau.

In the context of discussing the need for a credit bureau, and the changes such an entity might entail , Guardian Business spoke with CBOB Governor Wendy Craigg about the cost of bad debt to the economy. Between 2009 and 2013, banks in The Bahamas wrote off about $463 million. During the same period, banks restructured loans valued at about $780 million. And the provisions – the amount of capital set aside against bad loans – were $442 million for the same period.

“This (figure) is only banks. You also have the Bahamas Development Bank, the Bahamas Mortgage Corporation and the credit unions who also have bad debt. So those figures are not included in (that number),” Craigg told Guardian Business.

For perspective, the value of loans restructured between 2009 and December 31, 2013 – nearly $780 million – represents 12.6% of available credit at year end 2013.

The bank notes that these are cumulative figures, which shift from time to time.

“(Bad debt) is using the banks’ resources that they could have to lend,” Craigg said. “So to the extent that banks have written off $463 million between 2009 and 2013 - they’ve written it off, they’ve not collected it, and whenever you write off, you write off against capital. That is capital that you have to lend...(and) if you’re drawing down on your capital, you’re endangering the health of the banking system, which could impact financial stability.

“We want to ensure that whatever happens in the system, all of these developments are aligned with the Central Bank’s objective of maintaining financial stability,” Craigg said.

In this context, the governor noted that a credit bureau will not necessarily restrict the amount of credit, but it will ensure that “the quality of the credit improves” due to the comprehensive nature of the information a credit bureau can supply a bank or other lender, on which they can then determine creditworthinesss.

“As it currently stands, they are making their credit decisions on incomplete information,” Craigg said. “What can happen in these circumstances is what is called ‘adverse selection,’ where you may be granting credit to persons who may not have the ability to repay the credit.

“So it could curtail the credit, but its certainly going to reduce considerably the riskiness of the credit process.”

The Bahamas’ Credit Bureau Project (the BCBP) was launched by the Central Bank in 2010, for the purpose of establishing a national credit reporting system in The Bahamas.

The Bank says in its public consultation document that a national credit reporting system should be supported by an appropriate legal and regulatory framework

“(The Bank) has, therefore, drafted the Credit Reporting Bill, 2014 and accompanying Credit Reporting Regulations, 2014 (attached to the consultation document). The Bank is now seeking public feedback on the draft Bill and Regulations.”

These drafts were prepared with support from the International Finance Corporation (IFC) as part of the technical assistance which the Bank is receiving under the IFC’s Caribbean Credit Bureau Project—which is a 5 (five) year project for credit bureau development in the English‐speaking Caribbean, funded by the Canadian International Development Agency (CIDA). The draft Bill and Regulations have gone through several revisions, following review by the Central Bank and the BCBP’s inter‐disciplinary Legal Working Group.

October 03, 2014

thenassauguardian

Hubert Ingraham answers female caller of Rodney Moncur "STRAIGHT TALK" radio show ...with Martin Albury and Reverend Gregory Collie

Rodney Moncur -

NASSAU, THE BAHAMAS
NEWS TALKS AROUND THE ISLAND

THIS IS A LETTER FROM THE FORMER PRIME MINISTER OF THE COMMONWEALTH OF THE BAHAMAS, THE RIGHT HONOURABLE HUBERT A. INGRAHAM:



I have been told that a female caller to your radio programme, yesterday maligned me asserting that I interfered in police investigations and prosecutions while in the Office of the Prime Minister.That allegation is a lie.

I never interfered in a police matter during my entire career in public office including the 15 years during which I was honoured to serve as Prime Minister.

The record will show that during my second term in office my close cousin Ejnar Cornish was arrested by the police after it was alleged that he, a serving Immigration Officer, beat a Jamaican national seeking to enter The Bahamas. I did not interfere in that arrest.

Ejnar was subsequently charged in court, convicted and sentenced. I did not interfere in the matter at any stage.

The Public Service Department interdicted Enjar’s public service. As a result of his arrest and conviction Enjar was dismissed from the Public Service in accordance with established Public Service policies. I did not interfere.

I never sought to influence, one way or the other, how the police, the court or the public service bureaucracy dealt with my close cousin following his breach of the law.

My refusal to seek to influence those in authority or to seek leniency on my cousin’s behalf created
tensions between me and some family members. Regardless of the hurt I did not seek to obtain preferential treatment for my relative.

In 2002, the Then Opposition Party, knowing of what had transpired in the matter befriended my cousin and promised to have him reengaged in the Public Sector should they win the election if he would join them and campaign against me leading up to the General Election.

My cousin took the bait and Mr. Christie’s first Government caused him to be engaged at BAIC; something that I would not do.

But my cousin soon grew disillusioned with the PLP who could not be trusted to administer honest, accountable Government. Notwithstanding their and his action, in the lead up to and following the 2002 general election; my cousin abandoned the PLP and returned to my support ahead of the 2012 general election.

After the 2012 General Elections and the return of the PLP to office they exacted their retribution by firing him from BAIC.

I was grateful and appreciative of Enjar’s support in 2012. That support is uncompromised; it was not tied to any favour that he was seeking nor to anything that I might offer. He knows and all my family knows that I do not go that way.

Any suggestion that I would interfere and secure leniency for a stranger arrested and prosecuted in The Bahamas is ludicrous, it is outrageous and it is a lie.

I would be grateful if you would inform your listening public of my statement on the defaming statement uttered by the female caller to your programme.

Thank you.
Hubert A. Ingraham

Her Majesty Prisons (HMP) and the harsh realities of crime and punishment in the modern Bahamas

Prison reform must be a national priority

The Nassau Guardian Editorial

Her Majesty’s Prisons (HMP) is obsolete. Built in simpler and more peaceful times, the country’s only correctional facility has seen its physical capacity simply overwhelmed by the harsh realities of crime and punishment in the modern Bahamas.

Today, HMP holds more than 1,500 inmates – a far greater number than envisioned by those who designed it – with the Maximum Security Unit housing more than double the 400 convicts it was originally intended to accommodate.

In addition, there are serious health and sanitation issues, staffing shortages, security concerns and infrastructural problems.

Minister of National Security Dr. Bernard Nottage is aware of the situation. Blaming the chronic overcrowding on the slow movement of the courts and a consequent build-up of remand prisoners, earlier this year, he said it could be alleviated if more inmates were granted bail or sentenced to community service instead of prison time.

While it is true that there are currently hundreds detained at HMP awaiting trial, there are a number of problems with Nottage’s suggestion.

For one thing, despite the repeated promise to usher in Swift Justice, it is unclear whether the government will ever manage to influence the speed at which the judiciary operates – or even whether such an outcome exclusively of the government’s doing is desirable, given the country’s constitutionally-enshrined separation of powers.

For another, the public at large can be expected to express some level of discomfort at the idea of certain categories of accused persons being released on their own recognizance, particularly in light of the many recent claims of persons committing violent offenses while on bail.

Perhaps most importantly, Nottage’s solution seems rather modest considering the severity of the problem and its potential consequences for society.

Back in early 2012, an era of grand political promises, the then opposition PLP said the state of the prison was unacceptable and could not be allowed to persist.

Its election manifesto said: “The increase in crime in our society and the number of offenders at HMP has resulted in severe overcrowding and unsanitary conditions. The ratio of officers to inmates is not ideal, and the health and working conditions are a concern to both inmates and the officers assigned to watch them.”

The PLP promised that, if elected, it would build a much-needed clinic at the prison, increase staff numbers to “safe levels”, establish halfway houses to smooth the entry of ex-offenders into society and even consider building a new prison complex.

The now governing party made a number of pledges in the run-up to the May 2012 election, many of which have been forced onto the back-burner by unpleasant economic realities.

Even in these cash-strapped times, addressing the state of Her Majesty’s Prisons must remain among our top national priorities.

The majority of HMP inmates are young men who will one day rejoin this society, but it is very difficult to rehabilitate a person under inhumane and unsanitary conditions. Whether they return to us as promising assets or dangerous liabilities therefore hangs in the balance.

September 27, 2014

thenassauguardian editorial

Bahamas National Energy Policy 2013-2033

20-Year Energy Policy Outlined

By Jones Bahamas:

Environment and Housing Minister Kendred Dorsett on Monday released the Bahamas National Energy Policy 2013-2033 a document which serves as the road plan to securing the energy future of The Bahamas.

Minister Dorsett said recognising the critical need for reform within the energy sector of The Bahamas, the government has set out to effect transformation through legislation and policy changes.

“In August of 2013, Prime Minister Perry Christie, released a document on behalf of the government, stating the case for energy sector reform with several key objectives. All of which when achieved would lead to a, modern, diversified and efficient energy sector, providing Bahamians with affordable energy supplies and long term energy security towards enhancing international competitiveness and sustainable prosperity.’

“The document also foreshadowed, at the time, the realignment of the Bahamas Electricity Corporation (BEC), which is key to real reform within the sector. In the past two years, in the furtherance of our objective to change the energy sector, this administration has established an Energy Task Force which was charged with advising on solutions to reducing the high cost of electricity. We eliminated the excise tax on fuel used by BEC in the 2013-2014 budget.

“We eliminated tariffs on inverters for solar panels and LED appliances to ensure that more our citizens would be able to afford these energy saving devices. With the assistance of the Inter-American Development Bank (IDB) and the Global Environment Facility (GEF), the government was also able to advance two pilot projects devised to collect data on renewable energy technologies. The first project provided for the installation of solar water heaters and the second project for the installation of photovoltaic systems in Bahamian homes.

The minister added that The Bahamas National Energy Policy 2013-2033 is a document which serves as the road plan to securing the energy future of The Bahamas, presenting the government’s vision and goals for a reformed energy sector after consultation with industry stakeholders.

The four goals covered in the policy are to ensure that Bahamians will become well aware of the importance of energy conservation, use energy wisely and continuously pursue opportunities for improving energy efficiencies with key economic sectors embracing eco-efficiency; ensuring that The Bahamas will have a modern energy infrastructure that enhances energy generation capacity and ensures that energy supplies are safely, reliably, and affordably transported to homes, communities and the productive sectors on a sustainable basis; ensuring that The Bahamas will be a world leader in the development and implementation of sustainable energy opportunities and continuously pursues a diverse range of well- researched and regulated, environmentally sensitive and sustainable energy programmes, built upon geographical, climatic and traditional economic strengths and ensuring that The Bahamas will have a dynamic and appropriate governance, institutional, legal and regulatory framework advancing future developments in the energy sector underpinned by high levels of consultation, citizen participation and public-private sector partnerships.

“This document provides the country with a guide to total energy reform by the year 2033 through strategic steps such as fuel diversification, infrastructure modernisation, renewable energy source development, conservation and efficiency. It also includes a table for target evaluation and monitoring,” Minister Dorsett said.

“As it states in the policy, ‘to ensure that the goals of the policy are achieved, the government in consultation with the private sector and civil society will develop three year action plans that will enable the development of key actions to support the strategies articulated in the policy document. These plans will provide detailed information on specific actions to be undertaken, the implementing agencies or stakeholders, time lines and costs.’”

In conjunction with the release of this policy document, Cabinet has also approved the framework for the Residential Energy Self Generation (RESG) and Renewable Energy Power Purchase/Inter- connection agreements prepared by BEC.

“The Electricity Act will be amended in short order to enable the government to advance the programme which will provide a framework for residential and certain commercial customers with renewable energy generation capabilities sited on their respective properties for serving their own electricity requirement to connect to the grid,” he added. “The applicable renewable energy technologies will be wind turbines or solar photovoltaic power sources. BEC will reserve the right to limit the number of services per individual, entity or classification.”

Minister Dorsett and Prime Minister Christie left the country yesterday as part of a delegation representing The Bahamas at the United Nations climate change summit being held in New York.

According to a statement released by the UN on its website, Secretary-General Ban Ki-moon has “invited world leaders, from government, finance, business, and civil society to Climate Summit to galvanise and catalyse climate action.

The prime minister is expected to address the general assembly today.

23 September, 2014

Jones Bahamas

The Bahamas government’s gaming legislation has attempted to make fools of the Bahamian voting public ...and has again shed light on the corruption ...and dishonesty which have become hallmarks of the Progressive Liberal Party - PLP’s term in office

THE GAMING BILL: A BAD BET TO REPAY AN OLD DEBT!

A few days of Parliamentary debate culminated Monday evening, with the passage of the government’s gaming legislation during which time Bahamians watched as some of their elected officials made a mockery of our democratic process by ignoring the results of last year’s gaming referendum, while others failed to show up at all.

In the wake of what is becoming yet another political snowball for the Progressive Liberal Party, the Minister responsible for elections and referenda issued what can only be described as a lackluster apology for the government’s decision to ignore the will of the people. That apology, comes several months too late and reeks of political manipulation. A government truly apologetic about this decision would abide by the results of the referendum as the Prime Minister previously committed to.

During his contribution to the debate, the Prime Minister called the finalized legislation the result of months of effort, and focused dialogue with the relevant stakeholders. He further intimated that the legislation was designed to, as he put it, “engender public confidence” in the gaming sector. Sadly to say, the Prime Minister has failed on both fronts.

Clearly, the response from the church and other sectors of the country disproves the PM’s assertion that he truly listened to the dissenting voice on this issue. Instead, it suggests a desire to repay the web shop owners the reported millions contributed to the PLP’s election campaign and further highlights the utter DISTRUST that Bahamians feel toward this administration.

Even more egregious however, was the posture taken by this PLP government against the Church. After years of courting the country’s religious leaders and their parishioners the PLP’s hostile response to criticisms from the church was not only unnecessary, but also ill advised; particularly during a time where the many social ills facing the nation will require the assistance of ALL NON GOVERNMENTAL AGENCIES – especially the church –to help improve the lives of Bahamians.

There is an old proverb which says: “In a Bet, there is a fool and a thief”. The government’s gaming legislation has attempted to make fools of the voting public in this country; and has again shed light on the corruption and dishonesty which have become hallmarks of the PLP’s term in office.

As described by the church, the government’s actions constitute a direct attack on the foundation of this country’s democracy. Their continued disregard for the will of the people is bound to backfire for this Christie administration.

Branville McCartney
DNA Leader - September 17, 2014

No reduction in the excise tax to offset value-added tax (VAT) tax

Price hikes likely on price-controlled items after VAT

By K. QUINCY PARKER
Guardian Business Editor
quincy@nasguard.com

Auto dealers and likely other businesses that deal in price-controlled items may hike their prices by more than the proposed value-added tax (VAT) rate of 7.5 percent proposed by the government in order to compensate for losses incurred by VAT compliance.

As Bahamians contemplate the impending institution of a value-added tax regime, the Bahamas Motor Dealers Association (BMDA) is sounding the alarm about the ability of price-controlled industries to remain profitable given an already onerous tax burden.

“There are some misconceptions that even the government has,” said Automotive Industrial Distributors (AID) Ltd. General Manager Jason Watson.

The government, according to Watson, is assuming that in the case of the BMDA, prices will be able to be kept at the same level, and as far as price-controlled items, that is so. However, for a company like AID that also sells items that are not price-controlled, the price of those items will go up in order to compensate for the losses on price-controlled items.

“That’s just an economic fact,” he said. “There’s just no getting around that.”

In fact, Watson said the likely price hike will be more than the VAT rate, because dealers will be compensating for losses due to inventory devaluation, gross profit declines and the costs of VAT compliance.

Fred Albury, president of the BMDA and owner of Executive Motors, talked about the “very negative” effect of recent changes to the government’s tax regime on the cost of doing business, even before adding VAT.

“It started in 2010. The business license fee increased from 0.5 percent to 0.75 percent. That’s a 50 percent increase when you translate that into dollars and cents,” Albury said.

He explained that there had been a revaluing of properties for property taxes – whereas he had been paying $20,000 a year for his parts and services building, the cost shot up to $75,000. He said that for a showroom, which had been $4,000, he is now paying $12,000 a year.

“All of that goes as an expense to the bottom line,” he said.

“If I was paying $200,000 a year in business license fees, that went to $300,000 (using the formula given above). And on top of that, we’re under price control, so we can’t up the prices to absorb these additional costs.”

“We have some of the same issues [as Albury and the other dealers], being under price control ourselves,” Watson explained. “Vehicles, parts, paints, accessories – it’s all under price control. Whenever we receive a price increase in our business costs, we’re not able to pass that on to the consumer.”

Watson admitted that potential layoffs were on the table in the long-term.

He said that even if sales remain constant, costs will increase, cash flow will decrease, gross profits will decrease because duty will be applied at a lower level in the cost structure. Still, he expects that sales will decrease. And he said that while business at AID is good now, and no layoffs are predicted in the near future, with no alterations in the governments plans, the current business model is “unsustainable.”

The two appeared on the ZNS economy-themed talk show “You And Your Money,” which airs at 8:30 p.m. on Wednesday nights and is rebroadcast at 9 a.m. Fridays.

Watson talked numbers. Accounting software to be able to invoice VAT and file for returns is valued at $300,000, and loss of value on inventory and other matters means a loss of $1.4 million; it will cost his company $1.7 million to become VAT compliant.

Watson said that it will take him six months to be completely compliant, and Albury added that his company, Executive Motors, has more than 30,000 different part numbers that would have to be revalued individually in order to comply with the VAT regulations. Both men said it was impossible to be ready for VAT by January 2015. Albury admitted that he would have to seriously consider whether to remain in business if the VAT is to be implemented in the current iteration.

“Having it where the VAT is a line item, based on what you’re selling – that’s simple. I’m ready for that. But if they say it’s gotta be built into the pricing, I’ve gotta think twice about whether I can stay in business.”

The BMDA is part of the Bahamas Chamber of Commerce and Employers Confederation, and through the chamber’s Coalition for Responsible Taxation (CRT) has expressed its concerns about the impact of VAT in addition to the government’s tax and fee structure. It is understood that on three occasions, State Minister for Finance Michael Halkitis has declined to meet with the BMDA representatives. BMDA members have instead met with Financial Secretary John Rolle and economist Simon Wilson of the Ministry of Finance.

“The Motor Dealers Association has attempted to get some meetings with [Minister Halkitis] but was unable to do so,” Albury confirmed.

“We’ve made it known that its going to have drastic negative effect on sales due to the fact that there’s going to be no reduction in the excise tax to offset the VAT tax,” he said. “The impact to the consumer is going to be tremendous [in terms of] increases.”

September 18, 2014

thenassauguardian