Perceived Issues Which Stand Out as Having the Very Real Potential of Destroying The Bahamian Way of Life in The Bahamas

The Inter-American Development Bank (IDB) is going along with a scheme to put the people of The Bahamas under great financial, social, physical and psychological pain...

I am proposing that if The Bahamas and the Inter-American Development Bank (IDB) are serious about our future and the future of our children here in The Bahamas, that we begin a discussion asking the IDB and other lenders to completely forgive our existing debt...

By: Norman Trambulsy Jr 

Mangrove Cay, Andros Island, The Bahamas

There are two issues which stand out as having the very real potential of destroying our entire way of life, our standard of living and our national security in The Bahamas in the very near future.  I postulate a conservative estimate of the very near future being five-15 years time.

The two existential threats which are now upon us are as follows: Our looming debt crisis and sea level rise.

Each of these threats have the potential to totally upend life as we know it here in our beautiful country.

One of the greatest criticisms I see, of this and previous Bahamian administrations is the lack of transparency, and the lack of accountability.  One flows from the other.  Without knowing what our politicians are doing, it is not possible to contribute, nor to criticise, the actions of those who represent us.  It appears this is our history and present day attitude among those at the political top.  By their own words and actions, those in Parliament seem to believe that the Bahamian public has little right to know what they do.

This seemingly valid complaint comes from watchdog groups, the press, and the public with a usual stonewalling by those in government.

The “financial experts”, those who make their living speaking on such matters, the accountants, the bankers, the Minister of Finance, know exactly what pain will be imposed on The Bahamian people in the coming years.

They know the consequences of this odious debt our country now finds itself in.  They have seen this exact same scenario play out in countries around the world.  Whether or not they were present when the government took out these loans, they must, if they are to be called financial experts, know what is coming.

Under what are loosely called Structural Adjustment Programmes, The Bahamas will be raising taxes and cutting social spending.  Who will be impacted most heavily?

What I am claiming is that The Bahamas has a whole lot of so-called “financial experts” in government, in finance, in banking, in accounting, in consulting, in business - who are refusing to tell the Bahamian people the truth about where we are headed.  If these experts have paid attention these last few decades, and they have, they know just what to expect from the experience of other countries, even more advanced than The Bahamas.

The cuts to social services and the raising of taxes will take a very heavy toll on this country.  Who will bear most of the burden and suffer the most?  The poorest among us.  And, what effects will the cuts to social services have on our small island nation and the hardscrabble Family Islands?

Perhaps these experts have entrenched interests.  Perhaps they do not believe the Bahamian public would understand.  Perhaps they are afraid of losing clients if they tell the truth.  Perhaps they believe they may be blackballed by the political class.  Or, worse, that those who speak the truth will be voted out of office if Bahamians knew how careless these politicians have been.  Careless, as in not caring about all of our people in this island nation.

“Politics is killing this country” is something I hear from many, many people here.  They are not wrong, as far as I can see.

According to Mr Hubert Edwards, now head of the Organisation for Responsible Governance, in a recent Tribune article, says “The Bahamas finds itself at a place where it has a significant concentration of external debt, maybe more than it has ever had in the history of the country..... It has suffered over the last couple of years a number of credit downgrades which effectively put it into ‘junk’ bond status.  There are elevated external pressures on The Bahamas at this time......” “At some point in time, the Government is going to have to get their fiscal house in order.”

Now, I would like to reference an article in the Tribune, by Neil Hartnell on August 25, 2023, entitled “IDB: $856m strategy for The Bahamas ‘too ambitious’”.  This article focused on the fact that for the most part, the Inter-American Development Bank and The Bahamas have failed in far too many of the projects and programmes the IDB had lent money to The Bahamas to implement.

Not only that, the actual money spent was five times what the experts originally budgeted.  Most of the blame was as follows:

- The Inter-American Development Bank (IDB) has admitted its last country strategy for The Bahamas was “overly ambitious and unrealistic” despite approvals for over five times the originally-forecast level of financing.

- The multilateral lender, in a report by its internal watchdog, the Office of Evaluation and Oversight, found that the 2018-2022 Bahamas’ country programme made no or little contribution to seven of the 11 strategic objectives for improving areas such as fiscal consolidation, strengthening the Government’s institutional and digital capabilities and bolstering “integrity and transparency” in the public sector.

- The country programme evaluation attributed the Government’s low implementation capacity to a lack of technical experts to design and implement financed programmes, slow decision making, low co-ordination capacity, and lack of political commitment.”

So, where did that billion dollars go?  One might ask.

Of even greater concern to me is the near term financing needs that will be necessary for our country to deal with the immediate need to mitigate sea level rise impacts.  This, the IDB makes very clear they acknowledge, along with the fact that some of our debt burden is due to the impacts of 4 hurricanes in the last 10 years.

Has anyone seen the forecasts for hurricanes in the coming years?  Such as more frequent and more intense storms?  Does anyone deny, today, that sea levels are rising and the science behind these claims?

Now, let’s be real.  There are no surprises in the idea that The Bahamas government squandered money, and failed to do the things they said they would do.  Use whatever pretty words you wish to make excuses.  Our governments have a history of failure.  Is that a fair statement?

Now, with that said, let’s ask what are the Inter-American Development Bank’s responsibilities?

The IDB is a lending institution with a mandate to help improve the lives of the people in the country they are working in.  Do they have no culpability in these failures?  And what of the consequent economic burdens on the Bahamian people because of the loans taken out in their name, who got little to nothing in return?

Did any of these IDB experts, or their Bahamian liaisons, have a reduced salary because of these failures?  So, truth be told, the only ones who have to pay the bill for these failures are the poor and working people of The Bahamas.

The exact group of people who has no say in the programmes, no say on the loans, no benefits from the failed programmes.  Sounds like a recipe for utter failure and true injustice.  How can any thinking individual think this is OK?

I would suggest that after the first round failures and the consequent poor results of the IDB’s Project Implementation Units to follow, there should have been the rethinking of the due diligence, for the sake of The Bahamas increasing debt obligations, in making sure the IDB wasn’t further burdening our country with more odious debt.

I believe that the Inter-Development Bank has also failed in a major and equal way.  As much as we have failed here in The Bahamas.  Either by accident or by design, these loans were ostensibly intended to help develop The Bahamas in a financially sustainable way.  In fact, where we are now, I believe, is in a decidedly worse place than we were before the IDB stepped in.

Now, we are taking out loans, big loans, for the sole purpose of paying the interest on the loans we’ve already taken out.  And now, at higher interest rates.  This is NOT sustainable.

The IDB experts know full well what Structural Adjustment Programmes and austerity measures will be put into place in The Bahamas if The Bahamas performs in the way they have, historically speaking.

Do they believe in miracles?

They know through experience, that with either a PLP New Day or an FNM People’s Time, the results do not change.  They say as much in their report.  We know politicians lie.  Is this wrong to say?

So, the IDB is going along with a scheme to put the people of The Bahamas under great financial, social, physical and psychological pain.  The experts at the IDB know all too well that the poorest among us will be paying the highest price for the sins of those who claimed they were representing us.

Those we voted into office.  They know full well that the austerity measures they will require the government of the The Bahamas to impose on our country will cripple our economy, and our standard of living.

Bahamians will suffer for the sins of those whom we elected to look after us, and for the sins of those we invited to our shores to help us out of this mess.  The IDB is not blameless.  They know poverty will increase in The Bahamas.

Another question I have, which I believe is pertinent, is why The Bahamas has any debt, at all?  Why does a country, that all the experts say is one of the richest in the Caribbean, not have a surplus of money?

After 50 years of independence, this is where we are as a country?  We are in so much debt that it is strangling our economy, destroying any hopes for national development, dashing the dreams of our youth and sending so many Bahamians into poverty.

Is this the best we can do?

With these thoughts, I am proposing that if The Bahamas and the IDB are serious about our future and the future of our children here in The Bahamas, that we begin a discussion asking the IDB and other lenders to completely forgive our existing debt.

Let me say it again, I believe we must ask the IDB and other lenders to completely forgive our debt.

At some point, we have to put people above money.  Given the existential economic threat posed by our indebtedness, and the all too real climate events unfolding upon us, is it really unreasonable, as decent human beings, as adherents to something called Christianity, that we ask for this debt forgiveness?

Is this asking too much of those who say they wish to help us?

The Bahamas simply cannot continue to see millions of dollars leave our shores each day solely to pay the interest on loans.  There is no way, absolutely no way, that The Bahamas can prepare itself for the expenses associated with mitigating the effects of sea level rise and future hurricanes, take care of our Bahamian people, and still make the outrageous and odious interest and principal payments coming due in the next few years to these financial institutions.

I am sick and tired of watching people all over the world suffer - terribly, innocent, hard working people, all because a handful of corrupt people couldn’t keep their hands out of the cookie jar.  It is not fair to punish a whole country for the crimes of a few politicians.  It is patently unChristian, let alone an affront to human decency to allow collective punishment, as we will soon experience, for the crimes of our ruling class.

At some point, the people of the world must stand up to the rulers.  Whether they are the rulers of their own country, or the heads of the big banks and transnational corporations.  It is way past time to truly put people’s lives and human decency first and foremost.

Debt forgiveness for The Bahamas – 2023

...a push to The Bahamas government for the enactment of a Food Security Tariff ...to ensure that what is produced locally is available to the Bahamian public

Eneas Calls For Food Security Tariff

by Korvell Pyfrom
Jones Bahamas


Agricultural expert Godfrey Eneas yesterday made a push to the government to enact a “Food Security Tariff,” which he said will give better market access to local producers.

Mr. Eneas, who also serves as The Bahamas’ Ambassador to the Food and Agriculture Organisation (FAO), noted that The Bahamas’ food system has to overcome significant barriers.

“I will shortly propose to the minister that we introduce a Food Security Tariff to ensure that what we produce is available to the Bahamian public,” he said. “Food and nutrition security in The Bahamas will not be a reality without the cooperation of local food importers who, at the moment, control the food market.”

Mr. Eneas was among the speakers at a ceremony commemorating World Food Day at Arawak Cay.
As The Bahamas’ representative at the FAO he explained that world hunger is among one of the greatest challenges facing mankind.

“Many of us in this country take food for granted,” Mr. Eneas said.

“If you need some rice, meat, eggs, vegetables we go to the food store. However, there are scores of countries where food is not readably available because of poverty – food is unaffordable, because food production has been adversely affected by factors like climate change, the inability to purchase or obtain inputs like seeds, fertilizer, pesticides or the harvest has been destroyed by pest and diseases.

“One out of every eight people globally suffers from hunger. Feeding mankind has become a very complex undertaking.”

He noted the significance of this year’s World Food Day theme, “Sustainable Food Systems for Food and Nutrition Security” and reminded that The Bahamas imports $1 billion dollars’ worth of food.

“We depend on the global food system because our food system is woefully inadequate,” Mr. Eneas said. “With reference to our present food system and its ability to provide food and nutrition security, there are serious shortcomings which, I am happy, to say are being addressed.”

October 17, 2013

The Bahama Journal

Caribbean Blog International

The public is fed up ...In cases where bail can be given, they want it given ...Of course, with the amended bail act magistrates can no longer grant bail in serious cases, such as murder, armed robbery, rape, attempted rape and the various offences involving firearms

Magistrates starting to open their eyes

tribune242 editorial


AT LAST, public exasperation at the lenient manner in which cases are handled -- especially for accused with well established criminal records -- is getting through to the magistrates.

In the delay of the trial of two men and a woman charged in a major gun and ammunition seizure case yesterday, the magistrate told the prosecution to make certain that defence lawyers were given all relevant statements. She then set a date for trial and warned defence counsel to be prepared to go ahead on that date so as not to waste the court's time. Also, she did not want the public to be given a negative impression of justice in the court system.

Unfortunately, the public already has that negative impression. It is now up to the courts to dispel it, not only by efficiently handling cases, but by more frequent denial of bail.

The public's criticism does not just rest with the magistrates. What many of our letter writers say about some defence lawyers is unprintable.

Bahamians know that many of the court delays are from the Outer Bar, and the pleading for leniency for hardened criminals comes from the mouths of many of those pleading attorneys.

The public is fed up. In cases where bail can be given, they want it given. Of course, with the amended bail act magistrates can no longer grant bail in serious cases, such as murder, armed robbery, rape, attempted rape and the various offences involving firearms.

In these cases, magistrates have to take into consideration the need to protect the safety of the public and public order. The need to protect the safety of the victim of the offence and the nature and seriousness of the offence and the nature and strength of the evidence against the defendant.

Another -- and it appears recent -- element that seems to be slipping into our court system is a defendant's attempt to select his judge.

Last week, the Appeal's Court turned down such an appeal calling it "forum shopping".

Accused of drug conspiracy, the defendant tried to get his case moved from the court of Deputy Chief Magistrate Carolita Bethel, by claiming bias.

The higher court found no bias against him on the part of the magistrate, but did find an attempt by him to "forum shop". This is something that has to be stopped in its tracks before it gets out of hand.

In his contribution to the House debate on the crime bills, Fox Hill MP Fred Mitchell challenged government to live up to its promise of reducing crime through criminal justice legislation.

However, when it came to the witness protection bill, Mr Mitchell complained that it was unconstitutional to deny the accused the right to know his accuser.

It would seem that Mr Mitchell not only wants his cake, but he wants to eat it too. Prime Minister Ingraham described what would happen to our judicial system if essential witnesses were not protected.

Last week, the cruel death of a man -- a case of mistaken identity -- should have sealed Mr Mitchell's lips forever on the issue of witness protection.

The dead man was a case of mistaken identity. The bullet was intended for a witness in a murder case. This was the second time that his assailants had missed him. He is now in the witness protection programme.

In the House, Mr Ingraham explained the need for such protection.

"It is the duty of every citizen," he said, "to report the commission of a crime, to cooperate with the police, to give evidence in court if they are called upon to do so, to assist the police in the execution of their duties and to go to the Supreme Court to serve as a juror.

"In order for a citizen to carry out that duty the citizen must feel safe, must feel and indeed know that they are going to be safe not going to be intimidated, not going to be hanged, that their family are going to be safe, and unmolested because they are simply doing their civic duty.

"Whenever that can't happen, the citizen is not inclined to cooperate, is unwilling to cooperate; if he's unwilling to cooperate we are unable to have prosecutions, we have a state that cannot enforce its laws and protect its citizens from criminal activity."

We recall the outcry when airline passengers resented being searched before boarding an aircraft -- it was unconstitutional and demeaning many said.

Today when faced with either giving up that constitutional right or being blown to smithereens, they stand in long lines, meekly taking off their belts and shoes, emptying their pockets and taking their turn walking through a metal detector. In choosing between their constitutional right and their life, they chose Life.

Today, that is what Bahamians will have to accept with the witness protection programme. In some instances, accused persons will have to give up their right to know the person giving evidence against them, in return for the witness's evidence and to make if possible for government to grant Mr Mitchell and all Bahamians' wish to reduce crime through the criminal justice system.

October 25, 2011

tribune242 editorial

Caribbean Blog International

The more Democratic National Alliance (DNA) leader Branville McCartney speaks, the more the Bahamian public learns about his poorly conceived ideas... the quicker the loss of potential support for the DNA Party

Branville McCartney and the question of experience

Front Porch

BY SIMON



DNA Leader Branville McCartney has ensnared himself in a classic conundrum that severely limits the viability of certain politicians: The more he speaks, the more the general public learns about his poorly conceived ideas, the quicker the loss of potential support. Sarah Palin is a typical example of this phenomenon.

Mrs. Palin still excites her base. But among other voters including independents there is a ceiling she has proven incapable of breaking, mostly because the majority of voters find her persona, politics and policy prescriptions unappealing. They cannot envision her as president of the United States.

The razzmatazz and hoopla surrounding various DNA launches, publicity exercises and media curiosity is diminishing, with an increasing number of potential voters jolted by many of Mr. McCartney’s statements and calling into question his credibility, substance and critical thinking abilities. It is highly unlikely that most Bahamians view him as a potential prime minister.

As long as she is not formally running for president, Mrs. Palin can continue to just tweet her way into the hearts of her more ardent supporters and carefully select her media appearances. Mr. McCartney does not have this luxury. While some in the media have given a number of his bizarre statements a pass, this is beginning to change. He is now coming under greater reportorial and editorial scrutiny.

XENOPHOBIC

Mr. McCartney has pandered to xenophobic hysteria, claimed that God has chosen him, made curious statements about marijuana smoking by voters during a by-election, proposed a constitutional change barring children born to illegal immigrants from access to applying for citizenship, and made wild charges with no evidence about political donations by a foreign government, among other public relations fireworks.

Asked if he would disclose his donors as a part of his promise of campaign financing, Mr. McCartney turned the hypocrite in record speed. Given an opportunity to act boldly rather than just offer glib talk, the DNA leader refused to become the brand of change in which he wants us to believe. The man who said he was different did not demonstrate the courage of his purported convictions.

The question voters have of any new party is: Is it a credible alternative? This speaks to the question of experience which is measured not only by time in politics and government, though time served is of considerable importance in every field from journalism and business to teaching and medicine.

Poor analogies are typically a sign of faulty reasoning and poor thinking. About two weeks ago the Bamboo Town MP suggested to Jeffrey Lloyd, host of “Jeffrey” on Star 105.6 FM, that the Bahamian people are the board of directors of the country, responsible for hiring and firing the nation’s chief executive.

The analogy is revealing of Mr. McCartney’s mindset. It is a brittle analogy. A country is essentially not like a corporation. While various qualities associated with business should be practised by government, the major purpose and various goals of the two are significantly different.

Leaving this aside, the Bahamian people are more like shareholders with the Cabinet being the board of directors. Ours is a parliamentary democracy with collective responsibility. Mr. McCartney seems to be running for president evincing in his public rhetoric a misunderstanding or purposeful ignorance of our system.

MISPERCEPTIONS

It would be a good civic deed were Mr. McCartney to help educate voters rather than pandering to general misperceptions. The constitution does not place executive authority in the hands of a single chief executive. The authority is placed into the collective hands of a cabinet.

Article 72 of the Bahamas Constitution provides that the Cabinet “shall have the general direction and control of the government of The Bahamas and shall be collectively responsible to Parliament”.

When the former minister recently thumped his chest on various immigration matters he claims he attempted to advance when he was in the Cabinet, he might have noted that the position taken by any minister on a particular matter before Cabinet is not to be revealed publicly. Further, ministers don’t make policy on an individual basis. That is the prerogative of the Cabinet.

For someone who boasts that he would have more total cabinet experience than Sir Lynden Pindling and Hubert Ingraham combined were he ever to assume the prime ministership, Mr. McCartney’s pronouncements on how our system works suggests a combination of studied and self-serving ignorance or just plain ignorance.

Like some, he is fixated on the personalities of Messrs Ingraham and Christie, who in all likelihood are entering their last electoral contest as leaders of their respective parties; which undercuts a significant part of the rationale for the DNA.

By no stretch of the imagination does Branville McCartney even remotely possess the leadership qualities of a Lynden Pindling or a Hubert Ingraham. Both men would run wide circles around him even if they had no cabinet experience and he had a lifetime in cabinet. They were battle-tested over many years with significant party and parliamentary experience before becoming prime minister.

Even so, had Sir Lynden been older and more mature before becoming premier he may not have succumbed to some of the temptations of power which brought harm to the country as well as to his legacy.

In our system, a potential prime minister is elected along with men and women who can form a government and are of such a calibre that voters view them as a credible government. In 1967 Sir Lynden had a deep bench with the likes of the great Sir Milo Butler, Arthur Hanna, Cecil Wallace Whitfield, Arthur Foulkes, Carlton Francis and Jeffrey Thompson among others.

Moreover, the PLP had been in existence since 1953 with thinkers and strategists immersed in the study of government and policy, and widely travelled in the interest of learning about party politics and parliamentary democracy. They were a part of a movement for majority rule which had matured through many years of struggle with experience forged in fire and a deep sense of history.

EXPERIENCED

In 1992, Hubert Ingraham led an FNM with two decades of experience as a party, seasoned politicians and mature and wise men and women as well as relative newcomers ready to form a government.

Sarah Palin repeatedly boasted she had more executive experience than Barack Obama. That assertion, similar to Mr. McCartney’s experience claim, requires no further comment. After his election, President Obama chose an impressive cabinet team with wide government and other experience.

In comparison to Messrs. Pindling, Ingraham and Obama, what will Mr. McCartney’s team look like and literally bring to the Cabinet table? For someone who is boasting of having had a few years in cabinet as a selling point, that his DNA has been in existence for less than a year contradicts his own logic.

Most of the DNA’s candidates are undoubtedly well-meaning people who love their country. With about half of its candidates nominated, voters have some idea of potential cabinet members and therefore legitimate questions about those who would serve in a McCartney-led cabinet.

Just as most voters appear not to see the DNA leader as prime minister, the view of his team as the Cabinet of The Bahamas is not credible to most voters.

Mr. McCartney noted during the “Jeffrey” interview that there are a good number of individuals in the PLP and FNM who may serve as prime minister. That claim cannot be seriously made of any of his announced candidates.

Recall Mr. McCartney’s corporate analogy about Bahamians hiring a chief executive to run the country? Any company that hires an untested CEO or a cadre of lower level to junior executives or an inexperienced board of directors would lose market credibility and stock value, not to mention incite a shareholder revolt.

Yet, Mr. McCartney proposes that the management and direction of the highly valued Bahamas Incorporated be turned over to a group of amateurs with no deep bench, no longstanding organizational experience as a political party nor a leader with the type of experience and ability that counts, including superior judgement and intellectual depth as well as credibility and maturity.

The vast majority of Bahamian voters, whether they are metaphorically viewed as members of a board of directors or as shareholders, are unlikely to approve such an initial public offering.

frontporchguardian@gmail.com

bahamapundit.com

Aug 09, 2011

thenassauguardian

Caribbean Blog International

Branville McCartney says: ...move this, our beloved country, forward toward the future of empowerment that has been promised to us for almost 40 years

Branville McCartney
Press Release –
10th April, 2011


I would like to take this opportunity to thank the Right Honorable Prime Minister for his support and assistance over the years, particularly in support of me as the representative for Bamboo Town in 2007, as well as the Junior Minister of Tourism and Aviation and the Minister of State for Immigration. During my term, I represented the government and the Bahamian people to the best of my ability. I did those things that I believed were agreed upon by the present government. I know that I did my best. I have no regrets, and may have further comments in the future.

However, for now, I am humbled and honored by the overwhelming show of love and support that I have received from Bahamians of all walks of life, at home and abroad, particularly those in the great constituency of Bamboo Town, since my resignation from the Free National Movement.

In recent days, I have also been overcome with humility by the growing number of people who have come forward to express their interest in working along with me to move this, our beloved country, forward toward the future of empowerment that has been promised to us for almost 40 years.

I do want the public to know, as I noted in my address to the House of Assembly on the 23rd March 2011, that when I entered public life, I did so because I saw Bahamian families who were beginning to feel trapped and powerless in a society that appeared to be imploding all around them. I did so because I recognized a force of complacency in our youth, brought on by years of neglect and disrespect, which was draining them of all self- respect to the point that they were, and still are, failing out of society in larger numbers than ever before. I said that I was motivated by the idea that I could possibly be one of a new generation of public servants who could offer a clear vision of meaningful change and be that difference when it came to shaping the future direction of what is, potentially, the greatest nation in the world. I want the Bahamian public to know that my intentions remain the same and I remain steadfast and committed to that purpose.

As I also noted in the House of Assembly on that day, I remain steadfast to ensuring that our society, from Grand Bahama to Inagua, Long Island to Rum Cay, from Bain Town to my beloved constituency of Bamboo Town, will continue, on an even greater scale, to be a society free from the forces of complacency, oppression, insensitivity, bitterness, and self-doubt – a society where people will feel safe and secure both in and out of their homes; a place where people will feel like people again. As I continue my work in this vein, I again wish to thank the many people of our great country for their encouragement.

To the people of Bamboo Town and The Bahamas, when you next hear from me publicly, I will not be alone in presenting a real vision and mission plan for our country that will speak to your desires, your dreams, and your possibilities.

Like America, who against all odds elected its first Black President; like Trinidad, with its first female Prime Minister; and like Haiti, electing “underdog” musician Michel Martelly as President, it is my utmost belief that together, as a people united, Bahamians and The Bahamas, will join other countries around the world in redefining what is possible.

I ask all to remain encouraged and know that I am using my time away wisely and creatively to ensure that the next government of The Bahamas will be prepared to represent them well, by putting together a plan that will once again put people first.

I close with a paraphrased version of 2 Corinthians 4:16-18:

Therefore, do not lose heart. Although, as a country, outwardly we are wasting away, inwardly we are being renewed day by day. These momentary troubles are achieving for us an eternal greatness that will far out-weigh all the troubles we are experiencing now. So fix your eyes not on what you see, but on what is yet to be seen.

Continue to keep me, my family, and our beloved country in your prayers.

Bahamas Blog International

The opposition Progressive Liberal Party (PLP) cries shame on The Bahamas government for accepting an offer that is clearly below market value for the Bahamas Telecommunications Company (BTC)

BTC political row worsens
By CANDIA DAMES
The Nassau Guardian News Editor
candia@nasguard.com


Parties hit out over $210M deal


The sparring over the government’s decision to sell 51 percent of the Bahamas Telecommunications Company (BTC) to Cable and Wireless Communications (CWC) has intensified, with the two major political parties arguing over whether the majority of Bahamians support the deal.

The Progressive Liberal Party (PLP) said yesterday that its parliamentary caucus has embarked on a thorough and comprehensive review of the BTC and CWC transaction, and will be releasing regular positions on each component of the transaction.

“The PLP has clear and unequivocal objections to the commercial terms of this transaction, and more specifically the purchase price and consideration the government, and the Bahamian people, will realize from the sale of this prized national asset,” the party said in a statement.

The government has agreed to sell 51 percent of the shares of BTC to CWC for $210 million plus taxes.

“However, when one looks more closely at the terms of the transaction as set out in the share purchase agreement, it is clear The Bahamas government is receiving far less than $210 million, and it is equally clear that whatever the government eventually receives is far less than the value of 51 percent of BTC,” the PLP claimed.

“The Bahamas government is obligated to leave at least $15 million in cash in the company. Furthermore, The Bahamas government is obligated to fund pension liabilities in the amount of $39 million. Taking into account these obligations of the Bahamian government, the most the government will receive is $156 million for 51 percent of BTC.

“The PLP objects to this and cries shame on the government for accepting an offer that is clearly below market value for BTC. In fact, the Financial Times pointed out that the $210 million purchase price was below the industry average; certainly $156 million is significantly below market price for 51 percent of BTC.”

Meanwhile, an argument has intensified over the level of support the government has on the privatization issue.

An earlier statement released by Elizabeth MP Ryan Pinder on behalf of the PLP said the party takes exception to the Free National Movement’s practice of “misleading the Bahamian public on the support for the BTC sale to Cable and Wireless.”

“The PLP proposes that the majority of Bahamians are against this specific sale of BTC. The PLP has committed itself to a series of statements and position pieces that will clearly note our objections to the BTC sale, focused on different objections,” Pinder said.

“The PLP is also committed in these releases to educating Bahamians as to the shortfalls of this proposed sale of BTC. The PLP demands that the FNM be honest and straightforward with the Bahamian people on this give away of the people's asset, BTC.”

But the FNM shot back in a statement last night, saying as support for the opposition’s position on the partnership to create a new BTC with Cable and Wireless continues to erode, it has begun to panic and continues to ignore the voices of the majority of Bahamians.

“The opposition says that it ‘proposes that the majority of Bahamians are against this specific sale of BTC’. Rather than proposing, the FNM has taken note of two surveys over the past two weeks which have shown the surge of support for the creation of a new BTC. One survey was conducted by a private group (Consumer Voices Bahamas) the other by one of the dailies,” the FNM said.

The FNM noted that in The Nassau Guardian’s online survey 4,563 people responded. The question was whether respondents supported the PLP’s decision to reject the deal.

“It appears that the voices of these thousands of Bahamians and many others are of no consequence to the PLP, which now seeks to substitute its own faltering position for that of the majority of Bahamians,” the FNM said.

But Pinder said in his statement that a previous FNM release and associated polls “misrepresented” the views of Bahamians.

“The unscientific polls focused on whether privatization was a good idea, and not [the] real issue that concerns the majority of Bahamians, which is whether this sale to Cable and Wireless under the proposed terms tabled in the House of Assembly last week is a good deal,” he said.

The FNM insisted however that support for the deal continues to grow among Bahamians.

“We believe that after the House of Assembly debate on BTC’s future, that many more Bahamians will support the new partnership, as misinformation and incorrect information are countered with the facts, which will shed more light on the fiction promoted by certain narrow interests,” the FNM said.

2/16/2011

thenassauguardian

Bahamas Blog International

The history of the Baha Mar project

The history of the 1,000 acre Baha Mar project
BY LARRY SMITH



AFTER years of manoeuvering over the 1,000-acre Baha Mar project on Cable Beach, the Ingraham government (in its own words) has finally made sweet lemonade from the sour fruit left on the table by the Christie administration.

In April 2005 the newly formed Baha Mar Development Company (owned by a Lyford Cay-based property developer named Sarkis Izmirlian) bought three aging hotels on the Cable Beach strip with a $200 million loan from the Bank of Nova Scotia. The venerable Nassau Beach was subsequently closed, while the Crystal Palace and Cable Beach Hotels were renovated and re-branded.

That same year Baha Mar concluded an agreement with the Christie administration for a $1 billion-plus development, including several hotels, a casino, retail village, convention centre, expanded golf course, and beach and pool amenities. Ironically, had the project got underway when it was supposed to, it would have opened in the midst of the Great Recession - with potentially devastating consequences.

Side agreements to the 2005 agreement included deferred taxes that could later be paid in instalments, a $20 million marketing contribution from the Ministry of Tourism, and a commitment to upgrade the airport and other infrastructure.

There was also an agreement to transfer to the developer hundreds of acres of both Crown and government land on Cable Beach worth an estimated $150 million.

However, Baha Mar proved unable to raise $400 million in capital, show evidence of further financing, produce detailed plans, or attract world class partners by the agreement's stated deadline of October 2006.

With an election approaching, the Christie government scrambled to revive the project. And by early 2007 it had been reorganised as a joint venture with Harrah's Entertainment. The planned capital spent more than doubled to $2.6 billion (along with more than a quarter billion dollars in government concessions) and promoters were hailing the project as unprecedented in scope and character.

The revised project included a larger casino, double the meeting room space, and 1200 more hotel rooms.

But despite "vigorous negotiations" a deal could not be finalised before May 2007. And when the electoral dust had settled, Perry Christie was replaced as prime minister by Hubert Ingraham, who immediately launched a review of the project.

Although the new government eventually decided it would abide by the 2005 terms, Baha Mar insisted on further negotiations, according to the prime minister. And by February 2008 he unveiled a supplemental Heads of Agreement that trimmed some of the concessions given three years earlier.

"There is high expectation by the Bahamian public about the Baha Mar project," Ingraham acknowledged in March, 2008 during passage of a parliamentary resolution to authorise the transfer of public lands to the developer. "We will do all we can to facilitate it, but I do not want to oversell it."

March 2009 was the new deadline set for the government's conditions to be met so that the deal could be finalised. But long before that could happen, Harrah's got cold feet due to the economic downturn and pulled out of the partnership, putting the whole project in jeopardy. Unable to obtain regular financing in the capital markets, Baha Mar turned to the cash-rich Chinese government to save the development.

Earlier this year, China's Export-Import Bank agreed to arrange $2.5 billion in financing, and Beijing's state-owned construction corporation signed on to build the project, which will feature six hotels and add 3,500 hotel rooms and condos to the country's current inventory of 15,000 - more than half of which in Nassau.

Following the prime minister's recent trip to China to firm up the details of the construction arrangements, the House of Assembly unanimously passed a government-sponsored resolution to approve the project, including the unprecedented issuance of up to 8,150 work permits for non-Bahamian construction workers.

After talks with the Chinese, Ingraham was able to announce that he had doubled the share of business for Bahamian subcontractors, with more than construction 4,000 jobs now on offer, and that some $8 million would be spent on training programmes for Bahamian workers.

"We put down some benchmarks, like the $400 million in Bahamian contracts, and said if they accepted our terms we would approve the project by the end of November," the prime minister told me.

"We always disclose the terms of deals - not like the PLP when they signed the 2005 Baha Mar Heads of Agreement with a confidentiality clause, and contemporaneously issued side letters containing larger exemptions from taxes and committing even more public money in violation of the (phase three) deal they had agreed with Kerzner two years earlier."

In fact, this last point has proven to be the only remaining fly in the Cable Beach lemonade.

The prime minister does not accept that the current Baha Mar deal violates the guarantees to Atlantis developer Sol Kerzner that no subsequent investor would get more favourable terms. Kerzner's complaint focused on the ratio of Bahamian to non-Bahamian construction workers, presumably because Baha Mar will benefit from a cheaper, more skilled, and more productive labour force.

"Among the many requirements that the government imposed (on us) was a strict rule that at least 70 per cent of the total construction labour force would be Bahamian. However, this new (Baha Mar) deal will constitute a complete reversal of (that) standard," Kerzner said angrily.

The prime minister's response is that "the government will review Kerzner's claim and seek to resolve all issues."

The question of whether the Bahamas can accommodate thousands of new hotel rooms opening at the same time is another issue for Atlantis.

"The reason is that the tourism infrastructure needs to catch up to additional demand.

"Airlift is not going to grow and develop in one day just because another 3,000 luxury rooms are opened. And I think that is very critical...and not easily done," Managing Director George Markantonis told The Tribune recently.

The Baha Mar project will get underway before the end of this year, with contracts awarded to Bahamian firms. The China State Construction & Engineering Company should begin work by the spring, and the project could be substantially completed by 2014.

In response to market concerns, Baha Mar has agreed to stagger the opening of the new hotels over a five-month period stretching into 2015, and close the Crystal Palace Hotel during renovations.

According to the Chinese, the project relies on being developed, marketed and operated as a single phase "to induce demand that would not otherwise exist for a series of standalone hotels."

They point out that the Hyatt, Morgan's and Rosewood hotel companies are investing $62 million of their own money into the project, and note that the airport will be redeveloped by the time Baha Mar opens. Expectations are that the tourism market will have rebounded by then.

Another issue that has received somewhat less attention in the media is the provision of water and power for such a massive project being built and brought on stream at one time. As we all know, these commodities are relatively scarce on New Providence these days, and there are fears that our infrastructure will be further strained in the short-term.

In fact, BEC will need to generate an additional 25 megawatts of electricity to accommodate the projected power demand for Baha Mar.

And the developer is supposed to cover the cost of a new BEC substation, as well as build a central sewerage system, and a reverse osmosis plant for potable water.

Although there was understandable shock and dismay when Baha Mar's requirement for such a large foreign labour component first became known, public opinion seems to have quickly moved to accept the inevitable - no doubt fully motivated by the recession.

For example, in June of this year the PLP said it would not involve itself in the decision to allow thousands of Chinese workers into the country and seemed determined to let the government twist in the wind. But only two months later they were singing a different tune, based on the state of the economy.

And from the sense of jubilation conveyed by the government since the Baha Mar deal was approved, it seems that the studied scepticism of the past few years was aimed not only at getting the best deal possible in a difficult environment, but also at drawing the opposition into a full embrace of the project's current framework in order to minimize the obvious political risks.

As one well-connected insider told me: "I'm sure there was some political thinking involved, but for the most part it was to get a doable deal."

What do you think?


Send comments to

larry@tribunemedia.net


Or visit www.bahamapundit.com

November 24, 2010

tribune242

Bahamas Blog International

Philip “Brave” Davis - The Opposition Progressive Liberal Party (PLP) Deputy Leader - Questions The Governing Free National Movement (FNM) Road to Nowhere

Hon. Philip “Brave” Davis M.P.
Deputy Leader of The Progressive Liberal Party


HOW MUCH FOR SEVEN MILES OF AIRPORT HIGHWAY?


The Tribune of 4th October 2010 reported “The prime minister formally signed agreements for the $70.8 million highway project with two China State Companies; the China Export Import Bank and the China Construction Company on Thursday at the British Colonial Hilton” referring to the signings on the previous Thursday, 30th September 2010.

Since the government decided to give a contract to a foreign state owned construction company to build some seven miles of highway from the airport to the roundabout at Farrington Road, Thompson Blvd, and JFK Drive at some $71Million after passing a resolution in the House of Assembly the day before to borrow $58Million from the foreign state owned China Export-Import Bank I have tried to understand what Citizens of The Bahamas were getting for our investment of @ $10,000,000 (TEN MILLION DOLLARS) PER MILE OF ROAD!!!!

Minister Zhivargo Laing said during the debate on the government’s resolution for the loan from the Chinese Export-Import Bank, in the House of Assembly that the government HAD to use the Chinese state owned China Construction company to build the road BECAUSE we are borrowing $58,000,000 from the Chinese government owned bank at a very low interest rate.

In the House of Assembly and at the subsequent press conference for the contract signing, a lot of colourful renderings were shown.

I went to the government’s website and the Works & Transport Ministry’s website in search of the airport highway description in the hope that I could begin to fathom WHY seven miles of a four lane highway with utilities being placed underground, government acquired private land (I presume), and, landscaping along the highway, should cost $10,000,000 per mile. The government has not yet put the information online.

In the absence of information to the contrary, I concluded that the same road contractors hired by the government to build the road are the people who designed the road and calculated the cost of the works to be done. There has been no competitive bid on this massive expenditure. How does the Bahamian tax payer know that she or he is getting value for money? If we are overpaying to build the road then the low interest rate has no real value. Maybe Minister Laing would kindly explain this?

Further, even if the work that is to be done really does cost $10,000,000 per mile for a total of $71,000,000, what were the alternatives considered by the government? Do we need to spend $71,000,000 to build seven miles of landscaped road way from the airport to Farrington Road? How is the Bahamian public to receive benefit for their investment?

I call on those Bahamians with the technical and financial backgrounds to guide us on a full appreciation of this matter to weigh in on the issue.
The government is not supposed to be the overlord but, rather, it should be the servant of the People answerable to the People.

14th October, 2010

myplp.com

Bahamas Blog International

Earl Deveaux - Environment Minister - Resignation Sought Over Billionaire Islamic Leader - The Aga Khan Matter

Calls made for Earl Deveaux to resign
By MEGAN REYNOLDS
Tribune Staff Reporter
mreynolds@tribunemedia.net:



CALLS were made yesterday for the resignation of Environment Minister Earl Deveaux over plans to develop Bell Island in the Exuma Cays Land and Sea Park.

Dr Deveaux said he was minded to approve plans submitted by Island of Discovery Limited, understood to be billionaire Islamic leader the Aga Khan. He also admitted accepting a free ride in the Aga Khan's helicopter to attend a film screening in Abaco before going on to Bell Island with BNT executives the next day.

However, former PLP MP Philip Smith said: "Does this sound familiar to anyone else?

"In late 2006, Shane Gibson, quite correctly, resigned from Cabinet in a similar matter involving a permanent residency permit for an American entertainer.

"Maybe when he tenders his resignation from Cabinet, Dr Deveaux will also tell the Bahamian public how much it will take to buy him since he claims he does not 'think a helicopter ride could buy' him.

"I look forward to reading the resignation statement; or failing this, the letter of dismissal from the Prime Minister."

Plans to dredge and excavate at least 8.8 acres of marine sand flats, rock and vegetation for two channels, 12ft and 14ft deep, a barge landing and 20 slip yacht basin, as well as roads across the 349-acre island, have been passed on to the BNT for their input, Dr Deveaux said.

But after they were revealed in The Tribune yesterday, conservationists opposed to any development in the park expressed further concerns over allegations the BNT accepted a $1 million donation from the Aga Khan last year.

Sam Duncombe, from conservation group reEarth, said: "By allowing development in the park, they are destroying the natural beauty, the ecological diversity and history associated with being the first marine park started in the world.

"Does a million dollars negate this critically important focus?

"If this is the case, the BNT hierarchy should resign immediately followed closely by the Minister for the Environment, because it's painfully clear that they have abandoned their directives."

BNT executive director Eric Carey refused to comment on whether the Trust accepted a donation from the Aga Khan, nor would he state the Trust's position on the Bell Island development despite being the usual spokesman for the Trust.

"This isn't an environmental issue anymore," Mr Carey said.

"It's getting too political.

"This requires input from the board so I will let the president know that a statement is expected and he will meet with his colleagues on the board to address all of the concerns that have been raised."

He said BNT president Neil McKinney is expected to return to Nassau next week.

An Environmental Impact Assessment (EIA) conducted by Florida consultants Turrel, Hall and Associates Ltd concluded the development would not have a significant environmental impact and the planning applications state "no negative environmental impacts expected".

But in an area where fishermen are arrested for taking anything within the 112.6 acre park, the possibility of approving plans to dredge and excavate in a zone that has been protected since 1958 has astounded former Exuma MP and PLP Minister of Agriculture and Fisheries George Smith.

He said: "We will arrest a Bahamian from Black Point who passes through the cays and catches a few fish, but we're going to let a man come in, because he's Mr So-and-so, and do dredging to 15ft?

"If it was John Brown from Long Island I think it would be a different story.

"I cannot envision that we would want to see that in the park, where after the dredging, the silt will settle on reefs and on shoals in an area that has not been disrupted from the day it was made a park."

September 15, 2010

tribune242

Bahamas Blog International

Bahamian Taxpayers Urged to Meet Their Tax Obligations

The monies raised from taxes in The Bahamas are required to meet essential expenditures which are also approved by the Bahamian legislature 

PM Pleads To Taxpayers

 

By Macushla N. Pinder

Nassau, The Bahamas

Journal Staff Writer

05/27/04

 

 

 

In an impassioned plea, Prime Minister Perry Christie on Wednesday begged Bahamian taxpayers to meet their tax obligations in a timely manner.

“The taxes levied in The Bahamas are in accordance with the laws passed by this legislature, “ Mr. Christie pointed out, while making his Budget Communication to Parliament.

He said, “The monies raised are required to meet essential expenditures which are also approved by this legislature.  We have an open and transparent budgetary system and the purposes of taxation are known.”

The 2004/2005 budget projects total expenditure of $1.324 billion and total revenue of $1.063 billion.

Mr. Christie – in an unprecedented move – departed from the custom of lengthy and involved reports on budgetary allocations, giving a brief overview of his government’s spending plan.

It was the shortest Budget Communication in the post-Independence Bahamas.

About an hour and 20 minutes after he started his much-anticipated communication, Mr. Christie, who is also Minster of Finance, ended by declaring that, “The 2004/2005 budget and the economic prospects on which it is based, represent yet another landmark in my government’s commitment to the interests of the Bahamian people.”

As expected, the country’s social sector – education and training, health, housing, social services and youth development – will receive a huge chunk of the government’s $954 million 2004/2005 recurrent expenditure, a figure totaling $428 million or 45 percent.

Mr. Christie further revealed that almost 20 percent of the recurrent expenditure would be spent on national security, including the police and defence forces, judicial and legal affairs.

Some $65 million, he said, will go towards infrastructure like works and transport.

Another $100 million will be spent on economic services, including tourism, trade and agriculture and fisheries; while $173 million has been allocated to administrative services like foreign affairs, public service, finance and local government.

According to Mr. Christie, another $500,000 has been earmarked for consultancy services for, amongst other things, planning the development of Clifton Cay National Park.

“The consultancy will provide an outline of how the Park should be developed and laid out so as to maximize public benefit from it,” he said.  “In this regard, it is envisaged that the Park would provide a facility which would be of enjoyment to Bahamians as well as an attractive enhancement to the cultural experience of our visitors.”

There is also provision of $1 million for interest payment on the bonds that will be issued for the purchase of the Park.

“I am sure that the Bahamian public appreciates that while each priority is of equal weight, an appropriate balance must be maintained in allocating the increasing flows of resources between them in the coming years,” he said.

“This will involve some degree of patience because not everything can be achieved or accomplished in one single year.  The overarching consideration, however, is that all of these priorities be steadily and concurrently addressed as the flow of budgetary resources intensifies, not from increases in taxation, but rather from the strengthening of the economy arising form this government’s policies and from firmer and more efficient revenue administration.”

During his address, the Prime Minister also unveiled a package of measures that are sure to cause certain sectors of the Bahamian population to breathe a collective sigh of relief.

Among these are the removal of customs duties and stamp duties on imports from building materials used by private schools.

According to the Prime Minister, the new fiscal plan positions The Bahamas to take advantage of the country’s “imminent surge in economic performance” like that provided by Kerzner International’s Phase III $1 billion project.

He said it is this economic stability allied with political maturity that will make the country’s economy a magnet for investments.

Mr. Christie added that while geopolitical uncertainties like the continued surge in oil prices could result in early increases in interest rates, these uncertainties would have “diminishing implications as (economic) growth becomes firmly entrenched.”

“There is one factor working strongly to our advantage, and that is, the sizeable depreciation in the value of the United States dollar that has occurred since 2002 as a result of the expanding record-level Federal budget deficit and shortfalls on the US trade account,” Mr. Christie said.

“As these imbalances persist, the dollar is expected to remain weak in the year ahead, making dollar priced vacation destinations such as The Bahamas more affordable for people from North America, Europe and Asia.”

While on his feet, the nation’s chief also reiterated that the over-riding priorities for the economy, fiscal and non-fiscal, are to generate enough quality employment opportunities for all Bahamians.

“Our goals are clear-cut and unambiguous…” he said.

“Simply stated, they are to maximize the job creation potential of the Bahamian economy by strengthening the key sectors and encouraging the highest possible levels of employment-generating investment; accelerate the social advancement and inclusion of all members of society; ensure that every major settlement in The Bahamas participates in national prosperity and advancement and raise standards of delivery of public services so as to get the best possible value for the taxpayers’ dollar.”

As is customary, many Bahamians were drawn to the House of Assembly’s gallery to hear the budget communication first hand.

Among them were a key fiscal architect, Minister of State for Finance, Senator James Smith; former PLP Cabinet Minister Paul Adderley; government advisor Sean McWeeney; PLP Chairman Raynard Rigby; various FNM senators, including Tanya McCartney and Desmond Bannister, and other citizens.