The Advent of Majority Rule in The Bahamas

What does Majority Rule in The National Affairs of The Bahamas mean?

Majority Rule Day marks the day when, for the first time in history, The Bahamas had achieved full democratic status

Majority Rule: a different eyewitness report

By Patrick Rahming

Someone once said that anyone who wants to test the veracity of history should listen to two eyewitness reports of the same car accident. In that spirit, this is another eyewitness report of the advent of Majority Rule and the events following. This report may appear to contradict one that appeared in The Nassau Guardian on the eve of Majority Rule Day, January 9, 2023, but it does not. It simply adds another shade of color to the picture. To be even clearer, then, I would refer to another quote about history: “History is created by those who write it.” I share my opinion for the benefit or otherwise of Bahamian history.

What does Majority Rule mean?

The popular belief is that Majority Rule has something to do with the majority party in Parliament finally looking like the majority of the people – that is, black. That, of course, would suggest that a community of majority black citizens could not choose to be represented by white politicians, and that The Bahamas determines its national affairs on the basis of race. I cannot believe that is the meaning of Majority Rule Day.

More likely, Majority Rule Day marks the day when, for the first time in history, the country had achieved full democratic status. I have spoken to many younger Bahamians who were unaware that, prior to 1962, there were four categories of Bahamian citizens. First, there were those who qualified to vote ordinarily, which applied to men with property only. Then there were those who owned properties in multiple constituencies, who could vote wherever they owned property, giving a single individual the opportunity to vote multiple times in the same election. Thirdly, there were those who owned or represented companies, who could vote “for the company”. Finally, women and men without property could not vote at all, basically a voiceless category of citizens. In other words, prior to 1962, national elections were anything but fair. The Bahamas was legally and constitutionally not a democratic country.

However, following changes to those laws, women voted for the first time in 1962 and by 1964 both the land vote and the company vote had been rescinded. By 1964, then, The Bahamas had finally become legally and constitutionally a democratic country. So, it is quite true that the 1967 election was the first election held as a true democracy (the results determined by one man, one vote). Regardless of who won that election, the day would have been the first Majority Rule Day. The meaning of the day was determined by its history, not its participants.

*It is therefore wrong to continue to vilify those who actually passed the laws we now celebrate. The PLP was not the government when the laws providing the franchise for women and those eliminating the preferential positions for land and company ownership were passed, and therefore could not have been responsible for them. Regardless of their role as promoters or agitators, they cannot accept responsibility for the legislation passed by a previous government. In the courts, for example, the judge holds the perpetrator of the crime responsible, not the person who convinced him to commit it. This is a matter of historical record, not opinion or preference. Our children deserve the truth, not our prejudice. If we are to celebrate, let us celebrate history, not partisan rhetoric and half-truths.*

Majority Rule and the economy

Those of us over 65 (that is, old enough to remember pre-Majority Rule conditions) have a view of the 1960s that is very different from the world we hear about when current politicians speak. We recall a world in which there was considerable participation in the economy by ordinary black and white Bahamians. In tourism, the anchor of the economy, almost all of the entertainment business, the primary wealth creator in the tourism business, was owned locally, over 90 percent by black Bahamians. All of the transportation business was owned by Bahamians, also mostly black Bahamians. Except for the heritage sites, almost every tourist attraction was owned and operated by Bahamians, again mostly black. Throughout the real City of Nassau (over the hill) just about every consumer business was owned and operated by black Bahamians: grocers, meat markets, dry cleaners, dry goods stores, shoe sales and repair stores, barbers and beauticians. Everyone seemed to be an entrepreneur, from bicycle repair to raising rabbits to operating joinery shops to teaching music. Even on Bay Street, almost every business was owned and operated by Bahamians. While the majority of them may have been white, they were Bahamians (unlike today) and their participation in the tourism economy was significant. We recall a productive, confident, self-sufficient, self-assured, future-oriented communities. This is the starting point for measuring our economic progress.

The fact that, after 52 years we find ourselves standing outside foreign-owned resorts begging for participation in a business we had shaped for decades before, speaks volumes about our lack of attention to our own business. Rather than patting ourselves on our backs because we now drive expensive cars and live in gated communities, we should be asking why we have become a nation of dependent, frightened observers begging for a job. If the political establishments would claim credit for our new middle-class, they must also accept credit for the high reliance on a pay check and fear of risk.

Majority Rule and human development

That said, I agree whole-heartedly with concerns expressed about the growth of the gap between the government and its people, and the urgent need to complete the Westminster system by establishing a true system of local government. Parliamentarians are today too busy to know what their constituents need. That must be a sign that something is wrong. There appears to be little or no concern for involving citizens in their own affairs, which has led to a strong sense of “us and them” throughout the country.

I am proud of many of the advances made over these 52 years, but cannot avoid the apparent complete lack of a concern for human development by successive governments. The simple fact that the people of the de facto City of Nassau have not yet been recognized as such in law, after 50 years of independence is shocking. The fact that successive governments still find excuses not to spend on the infrastructure for the reinforcement of our identity through cultural activity is shocking. The fact that when a draft of the National Development Plan, published three years ago, stated that at graduation, 50 percent of students in public schools did not qualify to graduate, it was not considered a national emergency, is shocking. Self-Image and identity are the bedrock of social behavior. Meanwhile the same governments seem mystified by our children’s antisocial behavior. Majority Rule officially made us all equally responsible for the future of The Bahamas. I am not sure we have lived up to that responsibility.

What is the significance of Majority Rule Day? It marks the day The Bahamas became a democracy. That, I believe, is by far more important than seeking partisan credit for a public holiday.

Pat Rahming is an architect, writer and songwriter who is passionate about the importance of the built environment and its importance to the social development of The Bahamas. He can be reached at prahming@gmail.com or via his blog “From the Black Book” at prahming.wordpress.com. He welcomes other points of view.

Bahamians are Suffering in The Bahamas, Prime Minister Davis!

An Open Letter to Prime Minister Davis on Bahamian Suffering 

The cost of running The Bahamas is placed entirely on the backs of those least able to afford it, the wage earners, the poorest of us.

Dear Mr. Davis, 

You have spent much time lately talking about inflation impacting the high cost of living here in The Bahamas.  It is striking to me that for the most part, you and the majority of your class are completely immune from the realities facing MOST Bahamians. 

Most Bahamians do not have the luxuries you do.  Perhaps you have earned these luxuries.  Yet, I would argue that living paycheck to paycheck, uncertain of what tomorrow will bring economically, should not be the fate of most Bahamians in 2023, in a relatively rich country. 

Yet, these are our realities, Mr. Davis, not yours.  So, how can you say you and your party truly “represent” us?  How can you say we are all in this together? 

Even more important, is what you are not saying regarding the dire situation The Bahamas faces as a whole; in the collapse of our standard of living, rising crime, a 100% debt to GDP ratio, millions of dollars leaving our coffers on a daily basis to pay off loans which were taken out solely to cover up the corruption, theft, inefficiency and incompetency of our political class. 

This is before we confront the very real and near term costs associated with climate change mitigation.  Let me be direct here, Mr. Davis, most of our social problems stem directly from the regressive and odious taxation policies here at home. 

I am claiming that, above all else that is going on in the world, our own taxation scheme is what is causing the pain and suffering here in The Bahamas.  You have not mentioned this, as far as I know. 

Instead, you focus on things we can do nothing about.  There are things we can do here and now that would be game changers for our standard of living and hopes for our children's future. 

All this talk of Duty, VAT, NIB contributions, rising fuel and electricity costs, business licenses, of hiring people to go around as “price controllers”, is utter nonsense.  These are diversionary tactics to hide the real villain. 

Trickle down economics, upon which the premise of our taxation scheme is predicated, has proven to be an utter intellectual fallacy.  This experiment has failed everywhere in the world.  Why do we still cling to this lie that if we don't tax the rich our economy will prosper and everyone will be better off? 

The cost of running The Bahamas is placed entirely on the backs of those least able to afford it, the wage earners, the poorest of us.  Here in The Bahamas, we have taxation exactly backwards.  Rich people can come to the Disney World of the Caribbean, our Bahamas, and live virtually tax free.  No tax on their income.  No tax on their business gains, no real property tax, to speak of.  Is this fair? 

All taxes placed on businesses, are passed along to the consumer, the poorest of us.  With this recent FTX scandal, what stood out to me was not the level of criminality involved.  What really struck me was how willing we were to take Sam Bankman Fried's ill-gotten money and use it for frivolous political contributions, sports stadiums, high end real estate, yet not use a penny of it to ease the burdens of most Bahamians. 

Before a Bahamian wage earner's money is touched by the Bahamian government, we need to agree upon and implement a fair, reasonable and Christian way of taxing our people.  A progressive income tax is one way.  Taxing those best able to pay. 

Arguing against this is can only work with those uneducated and ignorant of fiscal and Christian thinking.  Regressive taxation, as we have here, is in the same category as defending marital rape.  

Smart, educated Christian people simply can't defend these policies anymore.  To ignore the very real social costs of our present taxation system is unacceptable. 

Our rising crime is economic in nature.  Poverty, homelessness, poor nutrition, poor educational outcomes, mental health issues, and suicide are all directly tied to our declining financial security. 

I maintain that it is not just poor household decisions which are at the root of these ills, rather they are a direct result of our unchristian, and unfair taxation of our people, by the political ruling class.  Until you are honest Mr. Davis, about the true causes of human suffering here in The Bahamas, you will only be a politician, never a leader. 

A true leader of the people would wish for the best possible outcome for all of us, and speak the truth.  A true leader would not support policies that benefit a select few, as you do now, who get richer by the day. 

If we are all truly in this together, the present status quo is unacceptable. Period.  You do not have to be a PhD. in economics to see what is going on here. 

That you do not have in your administration, even one bold, moral and intellectually honest member willing to speak to this matter, says wonders.  From my perspective, neither the PLP or the FNM, nor any other fringe party, has any hope of leading our country into the future. 

For all the talk of Christianity in this country, I find it absolutely incredible that we continue, in a methodical and calculating way, to place such unchristian burdens on the backs of those the bible refers to as, the least of us.  We are not behaving as a Christian country. 

Let's quit pretending, and claiming that we are a Christian nation, until we get our odious taxation system in line with Christian values.  Mr. Davis, the Bahamian people are only asking for fairness and decency. 

For too long we have accepted the short end of the stick, all for the benefit of the well-to-do and rich class, whom we refuse to tax adequately and fairly.  Until we make this substantial change of how we raise taxes to run this country, and pay our politicians, I can see no progress in our country that benefits the majority of the Bahamian people.  Until we fix our broken tax scheme, our social and fiscal ills will continue to get worse. 

Porcupine

Securities Commission of The Bahamas applies for directions from The Bahamas Supreme Court (“Court”) in light of the dispute between the court-appointed Joint Provisional Liquidators (“JPLs”) of FTX Digital Markets Ltd (“FTXDM”) and the US Debtors over the JPLs’ rights of access to the records of FTXDM

Securities Commission of The Bahamas 
Poinciana House North Building, 
2nd Floor 

31A East Bay Street 
P.O. Box N-834

Nassau, The Bahamas  

Securities Commission of The Bahamas Seeks Court Direction Regarding Disclosure of Information 

On 29 December 2022, the Securities Commission of The Bahamas (“Commission”) announced that it applied for directions from the Bahamian Supreme Court (“Court”) in light of the dispute between the court-appointed Joint Provisional Liquidators (“JPLs”) of FTX Digital Markets Ltd (“FTXDM”) and the US Debtors over the JPLs’ rights of access to the records of FTXDM. 

The Commission requested the Court’s direction as to whether information respecting the digital assets in the secure digital wallets established by the Commission may be provided to the US Debtors representatives.  On the same day, the Court entered an order (“Order”) affirming that the Commission may only lawfully provide assistance to a domestic regulatory authority, or overseas regulatory authority. 

The Order further indicated that the JPLs may cooperate with, and provide information to, the US Debtors by sharing with their representatives, in a highly confidential manner, certain information respecting the digital assets being held in the secure digital wallets established by, and under the control of, the Commission. 

As part of the above request, the Commission filed with the Court a Third Affidavit of Christina R. Rolle, Executive Director of the Commission, which sets out in detail the manner in which the Commission has exercised its regulatory powers in relation to FTXDM, and provides a detailed chronology of the protective actions the Commission has taken to date in connection with the insolvency of FTXDM. 

Relevant actions include the suspension of FTXDM’s registration under the Digital Assets and Registered Exchanges Act, 2020 ("the DARE Act") on 10 November 2022, and placing FTXDM into immediate involuntary provisional liquidation. 

The Commission acted promptly upon assessing known information regarding FTXDM’s liquidity crisis, in the exercise of its obligation to “protect the public” under section 19(3) of the DARE Act. 

This action – the first commenced globally against an FTX entity – placed FTXDM under the control of a court-appointed fiduciary and removed prior management from exercising any authority over FTXDM. 

As indicated on the 12 November 2022 media release titled ‘Securities Commission Addresses FTX Statement on Bahamian Withdrawals’, The Commission did not in any way direct, authorize or suggest to FTXDM the prioritization of withdrawals for Bahamian clients. 

The Commission further noted that such transactions may be characterized as voidable preferences under the insolvency regime and consequently result in clawing back funds from Bahamian customers. 

Based on information provided by Sam Bankman-Fried to the Commission concerning the cyberattacks that took place on the systems of FTXDM, the restricted access by the employees of FTXDM to its AWS system, and other available information, the Commission determined that there was a significant risk of imminent dissipation as to the digital assets under the custody or control of FTXDM to the prejudice of its customers and creditors. 

As a result, in the exercise of its regulatory powers, the Commission requested and obtained a Court order to safeguard the digital assets owned by or under the custody or control of FTXDM or its principals by transferring them to secure digital wallets under the exclusive control the Commission. 

Accordingly, on 12 November 2022, the Commission, in the exercise of its powers as regulator acting under the authority of an Order made by the Supreme Court of The Bahamas, took the action of directing the transfer of all digital assets of under the custody or control of FTXDM or its principals, valued at more than US$3.5 billion, based on market pricing at the time of transfer, to digital wallets controlled by the Commission, for safekeeping. 

While certain token protocols may require the burning of old tokens and the simultaneous minting of new replacement tokens to effect transfer, in no case, did the process involve the creation of any additional tokens. 

In order to promote the protection and security of the assets being held by the Commission for the customers and creditors of FTXDM the above steps were conducted under a sealing order requested by the Commission and granted by the Supreme Court of The Bahamas on 16 November 2022.  The digital assets transferred on 12 November 2022 to digital wallets under the exclusive control the Commission are being held by the Commission on a temporary basis, until such time as The Bahamas Supreme Court directs the Commission to deliver them to the customers and creditors who own them, or to the JPLs to be administered under rules governing the insolvency estate for the benefit of the customers and creditors of FTXDM. 

The Commission has consistently taken necessary steps to protect FTXDM customers and creditors as well as the public interest when discharging its duties duly backed by a solid regulatory regime within The Bahamas and international treaties, as well as sound regulatory practices and policies that promote consumer confidence and protections. 

The Commission will continue to conduct a comprehensive and diligent investigation into the causes of FTX’s failure, act in accordance with directions issued by the Supreme Court of The Bahamas, collaborate with other supervisory authorities, and take such further actions as needed to preserve the assets of FTXDM and to safeguard the interests of customers and creditors of FTXDM. 

The Third Affidavit of Christina R. Rolle, Executive Director of the Securities Commission of The Bahamas, and Order issued by the Bahamian Supreme Court may be viewed at:

https://www.scb.gov.bs/wp-content/uploads/2022/12/Third-Affidavit-of-Christina-Rolle-filed-on29Dec22.pdf and https://www.scb.gov.bs/wp-content/uploads/2022/12/Order-of-Hon-CJ-Winder29Dec22.pdf . 

Prior releases issued by the Securities Commission of The Bahamas may be viewed at: https://www.scb.gov.bs/media/newsroom/media-releases/.

Sam Bankman-Fried ("SBF"), the former CEO of FTX Extradition to the United States of America Confirmed by The Bahamas Attorney General, and The Foreign Affairs

Nassau, NP, The Bahamas - December 21, 2022 - Sam Bankman-Fried ("SBF"), former CEO of FTX Extradition to the United States of America to Face Criminal Charges Against Him

 

Statement from Attorney General Sen. Ryan Pinder KC on The Extradition of Sam Bankman-Fried to the United States

‘The Office of the Attorney General of The Bahamas announced the extradition to the United States of Sam Bankman-Fried ("SBF"), the former CEO of FTX.  SBF will depart from The Bahamas for the United States tonight.

The Royal Bahamas Police Force arrested SBF, a United States citizen, on 12 December 2022 following notification in the form of a diplomatic note from the United States that it had filed criminal charges against him, The United States requested that a provisional arrest warrant be issued for SBF in anticipation of his extradition pursuant to an extradition Treaty between the two nations.  After the arrest, SBF subsequently waived his right to challenge his extradition to the United States, The Bahamas has determined that the provisional arrest, and subsequent written consent by SBF to be extradited without formal extradition proceedings satisfies the requirements of the Treaty and our nation’s Extradition Act.

 

December 21, 2022
Office of The Attorney General And Ministry of Legal Affairs
Commonwealth of The Bahamas

*****

Statement From the Ministry of Foreign Affairs On The Extradition of Sam Bankman Fried

Today the Foreign Minister, who is the Minister responsible for the Extradition Act, signed the Warrant of Surrender for Sam Bankman Fried.  This allows the extradition of the subject to the United States of America.

December 21, 2022
Ministry of Foreign Affairs
Commonwealth of The Bahamas

The Bahamas Attorney General on the arrest of Sam Bankman-Fried

Attorney General of The Bahamas Sen. Ryan Pinder KC Statement on the arrest of Sam Bankman-Fried

On 12 December 2022, the Office of the Attorney General of The Bahamas is announcing the arrest by The Royal Bahamas Police Force of Sam Bankman-Fried (“SBF”), former CEO of FTX.  SBF’s arrest followed receipt of formal notification from the United States that it has filed criminal charges against SBF and is likely to request his extradition.

As a result of the notification received and the material provided therewith, it was deemed appropriate for the Attorney General to seek SBF’s arrest and hold him in custody pursuant to our nation’s Extradition Act.

At such time as a formal request for extradition is made, The Bahamas intends to process it promptly, pursuant to Bahamian law and its treaty obligations with the United States.

Responding to SBF’s arrest, Prime Minister Davis stated, “The Bahamas and the United States have a shared interest in holding accountable all individuals associated with FTX who may have betrayed the public trust and broken the law.  While the United States is pursuing criminal charges against SBF individually, The Bahamas will continue its own regulatory and criminal investigations into the collapse of FTX, with the continued cooperation of its law enforcement and regulatory partners in the United States and elsewhere."
 

December 12, 2022
Office of The Attorney General &
Ministry of Legal Affairs
Commonwealth of The Bahamas

FTX’s Burst Bubble Is Very Bad News For The Ruling Progressive Liberal Party - PLP in The Bahamas

Actually, FTX is already becoming the daily topic of discussion of national focus in The Bahamas – and we have at least three solid years to go before the next general election.  It looks like a rough ride ahead on the FTX wave with ‘Brave’ – in my humble estimation. Like the song goes: Oh Sam – oh Sam, by damn – by damn. 

By Dennis Dames
Nassau, NP, The Bahamas

The full financial, social and political impact of FTX’s collapse is far from being known – in my view.  One thing is certain, and that is a multitude of ordinary hardworking folks throughout the world have lost their whole life savings – or a significant portion of it as a result of FTX’s burst bubble.

It’s the worst case of betrayal of public trust that I have seen in my lifetime.  Many of the clients concerned – are expressing their frank and honest emotions in social media circuits as the FTX saga plays out in bankruptcy court; and their sentiments are far from nice and pleasant. 

All of this is happening while the former loose cannon CEO of FTX continues to add fuel to the fire in the press and on social media platforms.  He simply cannot keep his friggin trap shut!

There are already reported cases of suicides and assassinations relating to the demise of FTX in countries around the world, and the situation is looking grimmer by the minute.  The complete fallout from FTX’s failure is unknown, but one thing if for sure, and that is many politicians – especially in the USA have a lot of questions to answer for the general voting public in regards to FTX failed crypto exchange.  

It will have a great influence on the next Presidential election in the United States and the next round of midterm congressional elections – in my opinion.  Trump is going to have the time of his life – I can imagine.  Wow wow we waa!

Politicians in The Bahamas will also have a lot of voters questions to answer, and FTX could be the main subject of concern moving in to the next general election season in The Bahamas.  This is totally bad and unwanted news for the ‘New day’ administration – no doubt.

Actually, FTX is already becoming the daily topic of discussion of national focus in The Bahamas – and we have at least three solid years to go before the next general election.  It looks like a rough ride ahead on the FTX wave with ‘Brave’ – in my humble estimation. Like the song goes: Oh Sam – oh Sam, by damn – by damn.  

FTX will adversely affect a good number of governments in our universe – as more and more horrific details of its internal operations are publicly revealed. It’s a budding international scandal of monumental proportions.  Let’s face it, as it’s not going anywhere soon.

The work of the Joint Provisional Liquidators (JPLs) in The Bahamas has been hampered by the JPLs' lack of access to FTX Digital's own books and records

The Joint Provisional Liquidators (JPLs) in The Bahamas are seeking to re-establish access to FTX Digital’s books and records

FTX Digital Markets Ltd. (in Provisional Liquidation)
Building 27, Veridian Corporate Center
Western Road
Nassau, N.P., The Bahamas
 
 

November 30, 2022

Contacts: Mike Davies, PwC Global Corporate Affairs and Communications Team
Telephone: +44 7603 974136
Email: mike.davies@pwe.com

 

Update by the Joint Provisional Liquidators of FTX Digital Markets Limited ("FTX Digital")

 

FTX Digital was placed into provisional liquidation by the Supreme Court of The Commonwealth of the ‘Bahamas (the "Supreme Court’) on 10 November 2022 (the “Provisional Liquidation Order’).  The ‘Supreme Court appointed Brian Simms KC, of Lennox Paton, Kevin Cambridge, of PwC Bahamas, and Peter Greaves, of PwC Hong Kong, as the Joint Provisional Liquidators (collectively the "JPLs’).

‘Since their appointment by the Supreme Court, the JPLs have been reviewing the financial position of FTX Digital, investigating the causes of the collapse of FTX globally and its impact on FTX Digital, ‘seeking to identify and secure assets, and investigating all paths available to the company with a view to realising the maximum possible value for FTX Digital stakeholders.  This work is ongoing, 

‘As previously disclosed, the work of the JPLs has been hampered by the JPLs' lack of access to FTX Digital's own books and records, particularly customer information, stored on cloud-based servers.  The JPLs are seeking to re-establish access to FTX Digita’s books and records.  This includes an application to seek recognition of the provisional liquidation of FTX Digital in the United States under Chapter 15 of the US Bankruptcy Code.  Additionally, the JPLs intend to enter discussions with the debtors in possession under the Chapter 11 proceedings in the U.S. in order to seek to agree a protocol whereby ‘amongst other matters, information may be shared.

‘The JPLs have been in communication with the Securities Commission of the Bahamas (the Commission”) and are cooperating fully with the Commission's investigations.  The JPLs also ‘acknowledge and appreciate the steps taken by the Commission to safeguard the digital assets managed by FTX Digital.

There remains significant uncertainty around the outcome of proceedings involving FTX Digital.  As of the date hereof, the JPLs confirm that they have not made any redundancies and that employees who remained in the employment of FTX Digital as at the date of Provisional Liquidation Order and had not resigned or indicated their intention to resign, will continue to be retained by FTX Digital until further notice.  The JPLs are focused on addressing FTX Digital employee issues and concerns, and would like to thank the employees for their ongoing understanding and cooperation.  Any employee who wishes to contact the JPLs’ team may do so by emailing bs_employees_ftx_fdm@pwc.com.  Please note that any discussions by the JPLs with employees of FTX Digital will relate to his/her role at FTX Digital, and not with respect to his/her employment, if applicable, by any other FTX entity.

The JPLs continue to work hard to carry out their duties including seeking to gain full access to FTX Digital's information.  The JPLs will communicate further updates as and when appropriate.