• Argues cut aided by vendor payment delay
• Urges switch to accrualbased accounting
• * ‘I am sceptical over very rosy fiscal picture’
By NEIL HARTNELL Tribune Business Editor
THE Free National Movement’s (FNM) chairman yesterday challenged whether the Government “cooked the books” to bring last fiscal year’s deficit in close to its original $131.1m target.
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
FINANCIAL services providers and corporate Bahamas were yesterday promised that resolution of payment “backlogs” and other woes with the new online Companies Registry portal is “on the horizon”.
• AG affirms ‘challenges’ after new online portal launch
• Payment and escrow account ‘backlogs’ being tackled
• Registrar General gains its own permanent secretary
DR DUANE SANDS
Dr Duane Sands told Tribune Business he has heard sufficient “anecdotal” evidence from frustrated businesses, who have been waiting months to receive compensation from the Government for goods and services rendered, to suggest that the spending reductions responsible for achieving 2023-2024’s $186.7m deficit were heavily aided by deferring many of these payments.
Arguing that this will have caused a buildup in payables arrears that has spilled over into the current 2024-2025 period and future fiscal years, he called for the Government to complete the long-promised transition to accrual-based accounting across the public sector so that a true picture of its financial position is presented.
The Ministry of Finance’s monthly fiscal report for June 2024 and the full-year affirms that the figures and data presented are based on “a modified cash basis of accounting” that is guided by International Public Sector Accounting Standards (IPSAS). This makes clear “revenue is recognised when received and not when earned”, and that “expenditure is recorded in the period in which it is paid”.
While there is nothing wrong with this, Dr Sands argued that this form of accounting does not recognise spending commitments made, or bills that are owing such as those due to the Government’s vendors. Accrualbased accounting would record, and expose, such commitments and payables, but under
Ryan Pinder KC, the attorney general, in a messaged response to Tribune Business inquiries asserted that the Davis administration is “completely committed” to providing the necessary resources and upgrades that will ensure the Corporate Administrative Registry Services (C.A.R.S.) portal provides the more efficient, user-friendly experience promised.
Confirming that there have been “administrative challenges” with the new online Companies Registry platform since its full launch just months ago, he acknowledged that a fully-functioning portal
“is a necessity” for both the international and domestic economy while pledging that recently-initiated reforms will drive “a material improvement in the customer service experience”.
These reforms include the appointment of a dedicated permanent secretary for the Registrar General’s Department, Cecilia Strachan, who will have oversight responsibility for all administrative and operational functions in a bid to boost efficiency. Staff numbers are also being
further increased to address the difficulties associated with payment processing and the creation of escrow accounts.
Documents obtained by Tribune Business reveal that financial and corporate services providers, which include banks and trust companies as well as law and accounting firms, have encountered difficulties in setting up these “escrow accounts” which are intended to hold funds to facilitate and cover transactions such as company incorporations and pay due annual fees.
Mr Pinder yesterday said the need to “verify” corporate filings and approve applications has required a reorganisation of the Registrar General’s Department’s administrative functions, while adding that the Government is “deeply invested” in the new online companies portal and other imminent changes at the agency.
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
A BAHAMIAN chef yesterday described the closure of his Nassau Cruise Port restaurant as “a smart business decision” while confirming all 24 staff have received “generous severance packages”.
Simeon Hall Jr, the Bahamian celebrity chef and restaurateur, told Tribune
Business that he is not abandoning the Preacher’s Kid concept but, instead, taking “a pause” while seeking to move and re-establish the restaurant at a location more suitable for its Bahamian customer base. He explained that the Nassau Cruise Port restaurant enjoyed its “busiest days” when it attracted large numbers of Bahamian diners, with their presence helping to attract a greater crowd of
visitors. As a result, Chef Hall said he wants to re-locate to a site that is more accessible to Preacher’s Kid’s target market. Confirming that the closure is temporary, and that he plans to reopen in a new location that is more accessible to residents and visitors alike, Chef Hall told this newspaper: “We definitely plan on reopening, keeping the same structure of the brand, but just going to a new location.
“We want to be a neighbourhood restaurant, something that people come to frequently. We believe that we have the product and the brand that can do that, and so we just had to pivot to make sure that that happens.”
Chef Hall said his decision to exit the Nassau Cruise Port was a “smart business decision” as the relocation will
By ANNELIA NIXON anixon@tribunemedia.net
TRINIDAD & Tobago is set to receive lessons in “crisis management best practices” from The Bahamas so it can better protect its own tourism industry and ensure its sustainability. The initiative, which is receiving $20,000 in financing from the InterAmerican Development Bank (IDB), is set to take place from September 23-27, 2024, with Trinidadian officials set to visit this nation “to examine firsthand” the measures that The Bahamas takes to protect its largest industry and employer when trouble strikes.
Describing it as a “knowledge exchange” to “strengthen tourism crisis management” in the southern Caribbean country, the IDB said on its website: “The objective of the
SEE PAGE A18
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
for Miami-based Yntegra Group, produced by Bahamas-based consultant Bron Ltd, pledges that the project’s workforce will be 80 percent Bahamian once operational with 150 units constructed on the Exumabased cay to provide employee housing. Besides the two marinas, the EIA discloses that the project will also feature a yacht club, gym, medical clinic, marketplace and organic farm, beach tennis, padel tennis and pickleball amenities, library and nursery. It adds that an amendment to Yntegra’s Heads of Agreement with the Government has granted permission to subdivide the project’s eastern side into 88 lots. Other commitments detailed in the EIA, which examines a virgin site with zero utilities infrastructure and residents, are that Rosewood Sampson Cay will source 40 percent of its food needs from the
Scaling in the business context refers to a company’s ability to manage a growing workload, or potential increase in its output, in a cost-effective manner. It involves strategising and implementing processes that can cope with, and support, the expansion of operations without sacrificing performance or revenue.
But scaling is not just about increasing revenue. It involves expanding all aspects of the business, including its customer base, infrastructure and workforce. Scaling allows a company to handle more customers, deliver more products or services, and generate higher revenues.
This definition sounds like the ultimate goal of most
micro, small and mediumsized business enterprises. There are some clear notes of caution for businesses who have set, as their immediate goal, to scale up their operations. This week’s column focuses on some of the issues to look out for.
* Hiring the wrong people: Businesses must hire for a cultural fit, especially for positions of power. Determine if potential new hires have values and ethics that align with your business. Ask about their personal goals to ensure they fit your company’s mission. Invest in people who are willing to invest their time into your company long-term so they can add to, not detract from, your growth efforts.
* Prioritising short-term growth over long-term sustainability: You might think scaling your business as quickly as possible will result in even more growth and positivity for your brand. However, growing a business too quickly is a mistake that can cause you to sacrifice product quality and the customer experience. Prioritise product quality and the customer experience to enjoy long-term sustainability rather than being a flash in the pan.
* Having messy accounting: Small business accounting can be straightforward but, as you grow, it becomes more challenging to manage profit margins, sales conversions, projections and taxes. Some businesses face
THE Carnival Vista gave Freeport an unexpected boost by bringing 4,100 passengers and 1,450 crew members to the city after being forced to divert from Grand Turk.
dire financial repercussions when they do not prioritise financial accounting. Hiring a CPA (certified public accountant) and working with the best accounting software can help you keep your finances orderly.
* Relying on projections: It might be tempting to use sales projections to grow your business. However, anticipated sales do not always happen at the rate you expect, potentially leaving you with too many employees and poor cash flow. Play it safe and only expand your business based on existing numbers, not predictions.
* Hiring bad leaders: Scaling your company involves hiring or promoting new managers with the skills
needed to guide and lead your growing business. A leader with the right skills and vision can achieve exceptional results, but poor leadership will get you the opposite.
* Ignoring issues that arise: Upscaling your business might throw you out of your comfort zone as uncomfortable situations present themselves, such as problems with staff, processes or products. You must address these issues as soon as they arise. If you ignore them, the will fester and create larger headaches in the future.
• NB: Ian R Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organisations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@ coralwave.com.
The ship’s captain,Francesco Fiorentino, said passengers on the six-day cruise also visited Nassau on Wednesday as a second call in The Bahamas before heading back to Port Canaveral in Orlando, Florida, on Saturday following a day at sea.
Nuvorali Chotoosingh, the Ministry of Tourism, Investments and Aviation’s general manager for Grand Bahama, said the last-minute visit was a boost for the island’s economy as all vendors would benefit from the extra passenger spending.
Shown from left during the presentation welcoming the ship are: Cory Winter, hotel director, Carnival Vista; Mr Chotoosingh; Captain Fiorentino; Elaine Smith, Ministry of Tourism; Anya Hanna, Ministry of Tourism; and Marco Medau, staff captain, Carnival Vista.
By FAY SIMMONS
SANDALS yesterday confirmed that some of the 425 staff impacted by its Emerald Bay property’s closure have already been redeployed to its Nassau and Turks & Caicos resorts.
Jeremy Mutton, the Exuma resort’s general manager, told Tribune Business that the hotel chain has dispatched several of the displaced workers to fill roles at Sandals Royal Bahamian and Beaches Turks and Caicos while others were helped to find alternative employment at last month’s job fair.
He reiterated that Emerald Bay staff will be given
priority for positions once the Exuma resort re-opens as a family-friendly Beaches brand, which Chester Cooper, deputy prime minister, has said will need more employees than the previous workforce because of the anticipated increase in visitors and amenities.
Some Emerald Bay staff have also been retained during the temporary closure to manage and secure the facility. Mr Mutton previously told Tribune Business that Sandals plans to begin the 12 to 15-month upgrade into a Beaches brand once it obtains all the required permits and approvals this fall. He said the start date for the rebrand will commence once all labour agreements and permits
have been finalised by the Government. “We do plan the project commencing in the fall of 2024, but that is really contingent on the Government’s co-operation in terms of the necessary labour agreements and permits,” said Mr Mutton.
“Assuming that we could start in the fall of 2024, we then anticipate, based on our previous experience, between 12 and 15 months for that project.”
Howard Thompson, the Government’s director of labour, also confirmed to Tribune Business that a number of Emerald Bay employees were given the option to be redeployed to Sandals Royal Bahamian or other hotel properties but was unable to give a
final number for how many chose to take this.
Mr Mutton had anticipated that airlift to Exuma will decrease during the transition period, as Sandals Emerald Bay accounts for 40 percent of air traffic to Exuma, but is confident it will rebound.
“Sandals is the main driver as far as the international airlift is concerned, so during a period of closure I have no doubt that that is going to negatively impact the airlift,” said Mr Mutton.
“That’s why it is important that we reach those agreements with the Government, because it’s in everyone’s interest that we start this project as quickly as possible. The quicker we can start it, the quicker
we can open as a Beaches Exuma.
“Certainly, I do believe once we do open as Beaches Exuma, the airlift will bounce back, and I’m sure that will actually be greater than what it is now, but it is going to have a negative impact in the meantime.”
Despite concerns over reduced airlift to Exuma during Sandals’ temporary closure, Mr Cooper, who is also minister of tourism, investments and aviation, voiced optimism that shortterm rentals will support existing airline service.
He said there are over 3,000 short-term rental listings in Exuma compared to the 245 rooms offered by Sandals Emerald Bay. And, as a result of the alternative accommodations,
technical co-operation is to contribute to the institu-
tional strengthening of the THA through the exchange of experiences, knowledge and learnings based on the experience of the crisis management unit of the Ministry of Tourism, Investments and Aviation of The Bahamas.
“In particular, this study tour is expected to provide participants with first-hand insights into best practices for destination crisis management. The goal is to
review and analyse The Bahamas’ tourism crisis management strategies, with a particular emphasis on the operations and effectiveness of their Visitor Relations Unit.”
Latia Duncombe, The Bahamas’ tourism director-general, told Tribune Business that Trinidad is interested in learning how “to enhance existing tourism destination crisis management strategies, and to engage in networking with technical experts from state enterprises related to
NOTICE is hereby given that ROHAN LEOPOLD WILLIAMSON of Cox Way, East Street South, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twentyeight days from the 6th day of September, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
tourism destination crisis management”.
She said: “They indicated that it was to examine first-hand the factors and lessons learned from the Bahamas Ministry of Tourism as a successful and long-standing example of tourism destination crisis management..
“To equip participants to enhance existing tourism destination crisis management strategies, and to engage in networking with technical experts from state enterprises related to
tourism destination crisis management.
“So, for us, we’re fortunate that we have a complete unit that focuses on this and it’s important. So it’s just sharing information, best practices and some of the things that we’ve done to prepare for storms and to re-open the destination if any island is impacted.”
Mrs Duncombe said there are plans for Trinidadian officials to visit either Abaco or Grand Bahama, the two Dorian-ravaged
NOTICE is hereby given that VENCANN JEUNE of Koolair Subdivision, Joe Farrington Road, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 6th day of September, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
tourists will have other places where they can stay.
“The last record we had was Airbnb had about 3,000 listings in Exuma, and to put that in context, Sandals has 245 rooms,” said Mr Cooper.
“This is huge, and this is why we feel confident that we had the kind of diversification and accommodations in Exuma to be able to carry on smartly, as you will, supporting the tourists that come, supporting the airlift and ensuring that we keep Exuma as a vibrant destination for tourism.
“So, I only make that point to say that Airbnbs and vacation rentals play a critical role in the overall economy. I want to do all that we can to encourage more.”
islands, with the latter likely to be the preferred choice.
“So when we look at it, it’s making sure that the visitors are aware that they’re safe, that we communicate effectively, that we know what’s going on on each of the islands within the Bahamas, and then that we also make sure that the brand and the reputation is also protected in The Bahamas,” she said of the ministry’s approach.
“We always speak about the 16 islands, and so we want them [the world] to know that, okay, if a storm is hitting one island, it doesn’t mean that we’re closed. We saw with the passing of Hurricane Dorian where two of our islands were impacted. We did quite a bit of work to make sure that the world knew we were still open and you could still visit the islands of The Bahamas.
“We still had another 14 islands. So when we look at the crisis management component, tourism and public relations and communicating, making sure that the visitors are safe, that falls under our ministry.” Other tourism-related crises that The Bahamas has had to face, and overcome, besides
hurricanes includes the fall-out from US and international crime alerts and associated travel advisories. Mrs Duncombe said the Trinidad delegation’s itinerary consists of visiting the Disaster Reconstruction Authority (DRA); discussions about protocols; and engagements with the private sector, hotels and the Family Islands. She said agencies including the Department of Meteorology, the Bahamas Red Cross, Department of Social Services and others will “play a very important role”.
“We’ve invited the Out Island Promotion Board to join as well,” she added.
“NAD (the Nassau Airport Development Company) will also be a part of it and, for us at the Ministry of Tourism, in addition to that committee, the emergency co-ordinating committee, we also have units like the Visitor Relations Unit that would engage with our guests, the Visitor Safety and Security Department, and then also the tourism police, so they’re going to be very active and an integral part of it as well. And, in the words of the IDB, we’ve been most successful as it relates to tourism destination crisis management in the campaign.”
MUSGROVE of P.O. Box N831 St. Albans Srive off West Bay Street, New Providence, Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 30th day of August, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
ALBANY yesterday said it has promoted Bahamian employee, D’Angelo Charlton, to executive chef.
In his new post, Mr Charlton will lead the south-west New Providence community’s culinary team and oversee all dining experiences, menu development and culinary for five restaurants and several other food
and beverage outlets on the property. “Our executive chef, D’Angelo Charlton, embodies the essence of culinary excellence. His unparalleled creativity, attention to detail and passion for the craft have elevated Albany’s dining experiences for guests over his tenure here,” said Albany’s vice-president of food
and beverage, Ivan Haller. “I am incredibly proud of his achievements and the dedication he brings to the team every day.”
Mr Charlton was said to have found his calling in the food and beverage industry at a young age. As the grandchild of restaurant owners from Mayaguana, he practically grew up in the kitchen, learning the
recipes and traditions of his family culture.
Mr Charlton then enrolled in The College of The Bahamas, and began competing in culinary events on New Providence as well as internationally, eventually obtaining ten medals for his innovative creations.
After graduating he worked in different roles at
various Caribbean resorts ranging from Atlantis to the Lyford Cay Club.
Mr Charlton also trained at top international restaurants, including the three-Michelin starred restaurant that is also the 52nd best in the world and has a green star for sustainability - Atelier Moessmer Norbert Niederkofler, in Brunico, Italy.
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An efficient Companies Registry that operates smoothly is vital to The Bahamas’ ease of doing business, and the financial services industry and wider private sector functioning efficiently, since it acts as a critical hub that all domestic companies, International Business Companies (IBCs) and many other corporate vehicles must touch on an annual basis during their existence.
It handles company incorporations, the filing of corporate documents such as annual returns, fee payments, name reservations, certificates of good standing and other certified documents. The company portal woes have also occurred just when the Registrar General’s Department is being asked to assume more responsibilities with the future addition of a land registry.
Niekia Horton, the Bahamas Financial Services Board’s (BFSB) chief executive and executive director, called for patience from the industry as she voiced optimism that “a better situation is on the horizon” based on talks with Mr Pinder and his officials.
In a note to BFSB members that has been seen by Tribune Business, she wrote: “We would like to acknowledge the challenges some of you have encountered with the C.A.R.S. platform and to update you on the measures being implemented to address them. Following discussions with the Attorney General, we can confirm that he is aware of the situation and is actively working towards solutions.” These included the appointment of Ms Strachan as permanent secretary for the Registrar General’s Department. “Ms Strachan will be overseeing
the registry’s administrative activities to ensure smoother co-ordination and enhanced efficiency,” Mrs Horton wrote.
“A new finance officer has been appointed to address issues related to the escrow account and other accounting matters. It has been noted that some of the delays you are experiencing stem from establishment of the escrow account, and the new officer will work to resolve these promptly. Any processing backlog will likewise be addressed.”
Mrs Horton said additional “support staff” are being recruited at the Registrar General’s Department to help address “day-to-day queries” and provide a “timely response” to private sector concerns with the companies portal.
“We appreciate the difficulty the challenges pose in managing business relationships and making business decisions, and we can confirm that the Attorney General and the Registrar General are committed to working through the issues,” the BFSB chief executive told members.
“ We anticipate that, with the improvement measures, a better situation is on the horizon and we kindly request your steadfast patience as the issues are addressed. Updating the Company Registry is indeed a monumental task, requiring strong collaboration between the Government and the private sector. Let us remain united as we work to strengthen our industry.”
Mr Pinder, in his response to Tribune Business, confirmed all the reforms detailed by Mrs Horton and also revealed that “a major scanning project” has been launched to ensure all historical files and their data are uploaded into the new C.A.R.S. system.
“Yes, there have been some challenges on the
administrative side of the launch of C.A.R.S. and, as you mention, a backlog of matters regarding payment processing and escrow accounts,” the Attorney General said, clarifying that escrow accounts are set-up and funded by corporate services providers to cover fee costs associated with using the Companies Registry.
“This, in theory, will allow quicker processing and a smooth transaction experience,” Mr Pinder said. “The administration of C.A.R.S. also requires back-end support to verify filings and approve requests. These new functionalities have resulted in a need to reorganise the administrative functions of the Registrar General’s Department.
“The Government is deeply invested in C.A.R.S. and the upgrade of the Registrar General’s Department, and is completely committed to putting in what is necessary to ensure the service experienced is as advertised and what is intended by the launch of C.A.R.S.”
Mr Pinder confirmed Ms Strachan’s appointment, with responsibility for “overseeing the administrative governance when we reorganise the Registrar General into a separate Company Registrar, Registrar of Records and launch of the land registry”.
The expanded finance and accounting team, he added, is better placed to facilitate the speedier creation of escrow accounts, “clear any backlog that exists” and address all accounting-related functions, while extra clerks have also been recruited for the agency.
“We are launching a major scanning project to ensure that all legacy files have been uploaded into C.A.R.S. so the functionalities are applicable to historical matters as well as
Biden says rural electrification and internet improvements underscore ‘American comeback’
By FATIMA HUSSEIN Associated Press
PRESIDENT Joe Biden traveled to rural southwest Wisconsin on Thursday to champion new investments in electrification and expanded high-speed internet, proclaiming that "all these investments mean family farms can stay in the family."
In the town of Westby, Biden announced $7.3 billion in investments for 16 cooperatives that will provide electricity for millions of families in rural areas across 23 states, with the goal of lowering the cost of badly needed electricity connections in hard-to-reach areas.
Funding for the project comes from the Democrats' Inflation Reduction Act, signed into law in August 2022 and passed in Congress along party lines. The law invests roughly $13 billion in rural electrification across multiple programs and will create 4,500 permanent jobs and 16,000 construction jobs, according to the White House, which called the effort the largest investment in rural electrification since the New Deal in the 1930s.
Biden also championed 2021's infrastructure law, which was approved with some support from congressional Republicans and which he said had provided 72,000 additional Wisconsin homes and small businesses with high-speed internet.
"Just like we're making the most significant investment in rural
electrification since FDR, we're also making the most significant investment ever in affordable, high-speed internet because affordable high-speed internet is just as
essential today as electricity was a century ago," Biden said, referring to New Deal architect and President Franklin Delano Roosevelt.
current matters,” Mr Pinder said. “Ensuring C.A.R.S. and the company registrar is functioning at the level and efficiency that the client expects is a necessity and we will ensure that the resources are provided to make it happen.
“As you can see we have already initiated reforms that we think will ensure a material improvement in the customer service experience. We continue to refine the operations and look to the eventual reorganisation into a dedicated Registrar of Companies and Registrar of Records.
“We have a full understanding of the importance of a well-run and functioning Registrar General, and especially Registrar of Companies, and will ensure that we meet the expectations.” The private sector has long called for an improved digital platform at the Companies Registry to boost efficiency and turnaround time for its corporate and individual clients.
Mr Pinder, in his 20242025 Budget debate contribution in June 2024, said several financial and corporate services providers had already participated in pilot testing of the new companies registry. “This marks the culmination of years of development work, data integrity projects and data migration,” he said then.
“We firmly believe this will revolutionise the country’s company registry. I extend my thanks and congratulations to registrar general, Camille GomezJones, for her dedication and commitment to completing this project, often under challenging circumstances. We are very excited
to introduce this platform, a significant step forward in modernising our business sector.
“Following the launch of C.A.R.S., the Registrar General’s Department will commence the digitisation of the civil registry. This will include a fully digital civil registry services platform, enabling users to obtain certified copies of birth, death and marriage records, as well as certified
copies of recorded documents without needing to visit the Registrar General’s Department.
“Development work on this project has already begun, with the new civil registry platform slated for launch for new registrations by the end of this calendar year. Gone are the days of waiting in line outdoors to file registrations and retrieve documents.”
the present system these do not show up in the revenue and expenditure figures.
Neither Simon Wilson, the Ministry of Finance’s financial secretary, nor Michael Halkitis, minister of economic affairs, responded to Tribune Business calls and messages requesting comment before press time last night. However, the $186.7m deficit outturn gives the Government a chance to argue that its fiscal forecasting is far better than even the International Monetary Fund (IMF) as well as its critics.
It initially projected, in unveiling its 2024-2025 Budget, that last year’s deficit would come in slightly higher than forecast at between 1 to 1.5 percent of Bahamian gross domestic product (GDP). That, according to this newspaper’s own calculations, placed the outturn between $146m to $219m, and the revised target was latter narrowed to around $210m.
The full-year outcome unveiled Wednesday beats the latter figure.
The May and June monthly fiscal reports, which were released within five days of each other over the past week, were also disclosed just prior to Standard & Poor’s (S&P), the credit rating agency,
visits The Bahamas for its annual assessment of this nation’s creditworthiness as well as economic and fiscal performance. However, Dr Sands yesterday questioned whether “the rosy picture” presented by the Government represented reality - especially for many Bahamian businesses and households. “There are some interesting things that are there,” he told Tribune Business. “You have a repayment of loans in June by $300m even though you are running a deficit. It doesn’t quite add up.”
The FNM chairman was referring to the June 2024 report showing that the Government’s direct debt declined by a net $162.4m that month, with $300.6m in total repayments exceeding $198.2m in new borrowings, even though a $35.6m deficit was incurred for that period. Observers questioned whether the bond sinking funds, or recurrent revenues, were used to pay down debt and achieve that outcome.
“It seems like some of the fiscal decisions don’t really add up,” Dr Sands reiterated. “You can pay certain things but you cannot pay other things. You are making out-size payments on one side but cannot keep up with recurrent
expenditure.” He also questioned how the Government missed its full-year VAT target by $238m, or 15 percent, generating $1.353bn as opposed to $1.591bn.
Spending that fell below original Budget estimates was chiefly responsible for slashing the Government’s full-year deficit by 65 percent, or $346.7m, yearover-year. Spending on goods and services with local and international vendors was just 89.2 percent of forecast, finishing some $67.8m below estimates at $560.8m compared to the projected $628.6m.
So-called “other payments” also amounted to just 83.6 percent of Budget forecasts, closing 2023-2024 at $287.1m as opposed to the anticipated $343.3m. “You had less expenditure on goods and services than you thought: How much of this is book cooking?” Dr Sands queried.
“I can make the books look good if I keep the cheques in the drawer. How much of the reduction in expenditure comes from simply extending accounts payables into the next fiscal period so that the vendors are on the hook for the Government’s books to look better?”
Fred Mitchell, the PLP’s chairman and minister of foreign affairs, in a recent
note to the party’s supporters said The Bahamas “is in a tight economic squeeze” and that the Government is “seeking to pay as we go, not to borrow if we don’t have to”. The Opposition, interpreted this as an admission the Government has cash flow and liquidity difficulties, and is paying vendors in installments.
This was vehemently denied by Mr Mitchell. And Prime Minister Philip Davis KC, during the 2024-2025 Budget debate, asserted “that suggestions that the reduction in the deficit is due to an accumulation of payables are erroneous” as these had been slashed from 3.9 percent of GDP to 2.1 percent.
Dr Sands, though, begged to differ. “When I listen, and I heard a physician say yesterday that they have not seen it as bad in the hospital in 27 years in terms of shortages, in terms of challenges related to supplies and what have you, this is just one part of a massive procurement machine but not an insignificant part of the procurement machine,” he said.
“You listen to some vendors say they have not been paid in six months. The Beaches and Parks vendors have not been paid on time. It is possible that they have cooked the books in order to make the numbers
good since our normal fiscal accounting is on a cash basis.
“Certainly, with this administration, the numbers just are not there. They do not add up to what the expenditure is. You are watching and hearing and, or course, these are anecdotes but when you hear this every day from reliable persons they become believable. When you are also one of those business people who has had a similar experience you start to realise there is some truth to it.”
Dr Sands said all doubts would be banished by transitioning the entire government and public sector to accrual-based accounting. The work to realise this switch began under the last Christie administration, and has now lasted into its third administration with no timelines or deadlines for completion provided recently.
“We have had this discussion over and over and over,” he added. “I think it’s reasonable to make that transition.... This situation where you make things look good because of the nature of the accounting, when the system doesn’t have to take into account commitments or hypothecations. It’s cash in, cash out.
“If I’m owed $10m, $15m, the cheque is written in
$40m Exuma project to dredge 240k cubic yards over marinas
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Bahamas Agricultural and Marine Science Institute (BAMSI) and other local farmers when “feasible”, while at least 30 percent of energy requirements will come from renewable sources.
“The estimated project capital is $40m,” Bron detailed in the EIA. “The project will increase local housing availability, and thus is expected to result in increased population growth in the project area. Additionally, the project is not expected to displace or otherwise affect existing housing developments involving minority and lowincome communities.
“It will positively affect unemployment/job availability in the construction and operations phase, and subsequently additional economic growth through the patronage of businesses, vendors and other service providers in the surrounding area. Specifically, 80 percent of the project’s workforce will be composed of Bahamian labourers.”
The report added: “The construction and operation of marinas, complete with a fuel depot and ancillary services, promises to attract maritime enthusiasts, fostering economic activity through boat
rentals, docking fees and marine-related services in the Exuma Cays. Additionally, the establishment of a yacht club further enhances the Cay’s allure, catering to high-end clientele and potentially stimulating tourism revenue.
“Furthermore, the provision of essential backof-house facilities and 150-unit employee housing not only supports the operational needs of the project, but also generates employment opportunities, bolstering local economies and fostering community development.
“A total of 80 percent of employees will be Bahamian and only 20 percent will be non-Bahamian during operation. During construction Bahamian landscaping companies will be contracted to landscape the site to help stimulate the local economy.”
Yntegra Group’s website describes it as “a privately-held investment firm specialising in the development of ultra-luxury resorts and branded residences in the Exumas”. It touts a series of impressive numbers, including $1.8bn in “projected sales”; 1.1m square feet and 365 acres of land said to be “in development”; and a $2.5bn “economic impact”.
to us in a way that helps to support the business.
bring him closer to the target market. He explained that the restaurant saw greater crowds on days when locals chose to dine in and this activity sparked the interest of visitors.
“We realised that moving will give us the target market that we were looking for,” said Chef Hall.
“I’m pro Bahamian, and I want to make sure that Bahamians find us and get
“Our busiest days were when we had more Bahamians in the restaurant. Once the visitors see more Bahamians they would tend to flock to the restaurant because it kind of validates what it is that you’re doing. So, we’re just making a pivot.
“It’s a smart business decision, not the emotional one that people sometimes think about. It’s just pure
FIRST LEGAL NOTICE
INTERNATIONAL BUSINESS COMPANIES ACT, 2000 Mercury Mgmt Ltd. Voluntary Liquidation
NOTICE IS HEREBY GIVEN in accordance with Section 138 (4) of the International Business Companies Act, 2000 as follows:-
a) Mercury Mgmt Ltd. is in dissolution under the provisions of the International Business Companies Act, 2000.
b) The dissolution of the said Company commenced on 4th September 2024 when its Articles of Dissolution were submitted to and registered by the Registrar General.
c) The Liquidator of the said Company is Israel Borba whose address is Lyford Financial Centre, Building 2- Western Road, P.O. Box CB-10988, Lyford Cay, New Providence, The Bahamas.
Israel Borba Liquidator
the drawer but there is no money in the account. That does not show up on the Government’s balance sheet though they have some deeply-offended vendors.
“The Government has generated a very rosy fiscal picture, but I am sceptical that the rosy fiscal picture is an actual reflection of what’s going on. The scale back of spending is probably an indication of a severe cash crunch. The question that has to be put to Finance is: Are arrears accruing, especially as we are hearing from hundreds of people who say they cannot be paid by the Government,” Dr Sands added.
“I think the public looking at it might believe things look really, really good, but this doesn’t tell the whole story. There are some interesting signs that are built into this report that persons with an educated eye would have a jaundiced view of.
“If things are so wonderful, why are you scaling back and why is it the Government feels things are so great? The public doesn’t feel it, the business community doesn’t feel it. Businesses are screaming about the additional cost of electricity and the Government is just smiling ‘lovely report’. I’m sure it is cook book economics.”
It is unclear what these numbers relate to with Sampson Cay being Yntegra Group’s first resort-based development project in the Exumas or, for that matter, the world. However, the biography for Felipe McLean, its founder and chief executive, describes the firm as “leading Exuma’s hospitality complex evolution”.
Several sources, speaking on condition of anonymity, have previously queried whether Yntegra has the track record and development depth to pull-off such a large and complex project on a relatively remote Exuma cay with no existing infrastructure.
However, in unveiling the partnership with Rosewood as the project’s hotel brand, Mr McLean recently met and had dinner with both Prime Minister Philip Davis KC and Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, who is also Exuma’s MP. Allyson Maynard-Gibson KC, former attorney general, is Yntegra Group’s attorney.
“The developer intends to develop East Sampson Cay into a world-class luxury resort and environmentally sustainable mixed-use resort, which will be constructed in a manner that will enhance the natural
business. It’s good business to make a move when you know that you can bring the product back, and that is our goal.”
Preacher’s Kid opened in April 2024 and was wellknown for its eclectic dishes that highlight Bahamian food culture. Although not ready to reveal where the restaurant may relocate to, Chef Hall shared he is considering a number of “strategic” sites.
surroundings of the cay and minimise impact on the ecosystem,” Bron’s EIA said.
“A subsequent amendment to the Heads of Agreement approved the subdivision of the eastern Side into a total of 88 individual lots. The development will divide these amenities into three sections on the island: North Ridge branded residences, North Marina hotel and residences, and South Marina branded residences.”
The two marinas will be key drivers for the project. “An estimated 143,000 cubic yards of material will be removed for the creation of the South Marina and an estimated 96,000 cubic yards to be removed for the creation of the North Marina,” the EIA added. “An estimated 44 percent of the site will be impacted and allocated for surface areas and buildings (around 124 acres).....
“There will be habitat loss due to dredging associated with the marina development and service dock, which will remove the benthos of this environment. This includes the development of the entrance channel for both marinas and entrance to service dock.
“The entrance channel for the North Marina is an estimated 200 foot channel
“We’re on a pause, and we’re pivoting and we’re going to move,” he said.
“We have considered the 21 by seven island of New Providence, and we have locations in mind; strategic locations that we’re not ready to announce to anybody yet, but we definitely do have options on the table.”
Chef Hall, who is Preacher’s Kid’s managing partner and head chef, explained that all employees were
NOTICE IS HEREBY GIVEN as follows:
(a) GENTLE BREEZE TRADING INTERNATIONAL LTD. is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.
(b) The dissolution of the said Company commenced on the 5th day of September 2024.
(c) The Liquidator of the said Company is Baird One Limited of Deltec House, Lyford Cay, P.O. Box N-3229, Nassau, Bahamas.
Dated this 6th day of September A.D., 2024.
Baird One Limited Liquidator
and the South Marina has an estimated 75 foot channel. The service dock has an estimated 100 foot channel. Dredging will negatively affect marine life and the sea floor that is partially covered in coral, algae and seagrass.”
Promising that Rosewood Sampson Cay will be developed in a phased approach over the next six to seven years, and positively impact Exuma’s economy, the EIA said: “In an effort to support local communities, 40 percent of the project’s agricultural products will be sourced from the Bahamas Agriculture and Marine Science Institute (BAMSI) and other local producers where available and feasible.
“Furthermore, the provision of essential backof-house facilities and 150-unit employee housing not only supports the operational needs of the project, but also generates employment opportunities, bolstering local economies and fostering community development......
“The Project site does not have any previously installed utility infrastructure. The developer intends to provide energy throughout the project site using renewable energy sources. Solar panels and accompanying battery cells, or other
renewable energy sources, will be appropriately sized to provide a minimum of 30 percent of the power demand of the project. The project’s maximum energy demand is an estimated 2.75MVA.”
The scale of Yntegra’s plans has already sparked concerns from the nearby Turtlegrass Resort and Island Club project, which views it as conflicting with its low density, sustainable development. Eric Carey, environmental consultant for Turtlegrass, told Tribune Business previously that the marina plans were “diametrically opposed as far as the model for tourism in the Exumas.”
He said: “There are parts of our country where we will approve marinas, and even mega marinas, because the environment has more capacity to absorb that. But that untouched part of the Exumas is not a place that should have to absorb that impact.
“A mega marina in a pristine area is totally destructive to the environment, and totally destructive to our client’s concept. We cannot co-exist with a mega yacht marina having destroyed the seagrass and coral reefs on the nearby beach, off shore of the beach, where my clients are going to be snorkelling, paddle boarding, etc. We’re talking about absolute and total incompatibility.”
given two weeks’ notice of the closure while the restaurant also reached out to industry partners to arrange alternative employment for staff. He remains optimistic that some employees will be open to returning to work for the restaurant when it reopens. “All of our 24 employees were given very decent severance packages,” said Chef Hall. “We also used our connections to get some of them interviews. We had quite a bit of options available to the staff members, leaning on industry partners and friends. We gave them that opportunity and opened the door so they could be easily placed in a like-minded, fast casual environment, and it was up to them to fulfill it or not.
“Some took it, some didn’t take it. Some decided to go back into school fulltime, some have had other options that they took. We told them some two weeks in advance we were absolutely adamant to make sure that we took care of our people. Some of them, we hope, will come back when we reopen.”
NOTICE
INTERNATIONAL BUSINESS COMPANIES ACT, 2000 Honey Labs Inc. (IN VOLUNTARY LIQUIDATION)
NOTICE IS HEREBY GIVEN that in accordance with section 138(4) of the International Business Companies Act, 2000, as amended, Honey Labs Inc. is in dissolution.
The dissolution of the said Company commenced on 3 September 2024 when the Articles of Dissolution were submitted to and registered with the Registrar General in Nassau, The Bahamas.
The Sole Liquidator of the said Company is Kim D. Thompson of Equity Trust House, Caves Village, West Bay Street, P O Box N 10697, Nassau, Bahamas.
Kim D Thompson Sole Liquidator