‘Every
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
day that goes by retards fiscal progress’
A MEMBER of the original Fiscal Responsibility Council is warning that “every day we go without it is a day that retards our fiscal progress” amid signs the Government is moving to finally re-establish the watchdog.
Gowon Bowe, who was the Bahamas Institute of Chartered Accountants (BICA) representative on the inaugural Council created by the Minnis administration, told Tribune Business that “at least three persons” - who he declined to identify - have recently reached out to him to gain a better understanding of its purported independence and how it works.
And, while no formal appointments have been announced, at least one of this newspaper’s contacts has confirmed they have been approached by the Government to sit on a body that was
‘Major headwind’: Doctors triples provisions for unpaid patient bills
By NEIL HARTNELL
DOCTORS Hospital has warned of “a material headwind” to profitability after it was forced to more than triple provisions to cover medical bill non-payment by government patients and insurers to $12.7m. The BISX-listed healthcare provider, unveiling its annual report covering the 12 months to end-January 2024, disclosed that allowances for unpaid medical bills had jumped almost 263 percent year-overyear compared to the prior year’s total $3.5m patient provisions. Government patients accounted for $11m, or 86.6 percent, of the provisions total after increasing significantly from $3m at the end of Doctors Hospital’s 2023
financial year. It attributed the surge to its increased willingness to “bridge bottlenecks” in the Bahamian public healthcare system by taking in more patients from Princess Margaret Hospital (PMH) to relieve that facility’s capacity constraints. And allowances for sums owed by “third-party payers”, namely health insurers covering medical bills on clients’ behalf, also more than tripled yearover-year from $549,277 to $1.662m. The BISX-listed healthcare provider said this increase stemmed from insurers either not fully covering medical costs or raising co-payments and deductibles, which has resulted in more patients struggling to meet their share of the bill.
formed to examine whether the Government’s annual Budget, Fiscal Strategy Report and other measures align with set fiscal responsibility targets and principles.
These developments signal that the Davis administration appears to be moving, albeit slowly, on the Prime Minister’s late-May pledge to re-establish a Fiscal Responsibility Council that has not properly functioned for more than a year. The International Monetary Fund (IMF), in its recent Article IV statement on The Bahamas, described the Council’s reformation as “welcome” but said members must be “independently selected”.
That references the fact that the new Public Finance Management Act, which came into effect
in 2023, changed the process for selecting and appointing Council members. It switched this from recommendation by the House of Assembly speaker to being appointed by the minister of finance (currently the Prime Minister), who is responsible for the very ministry they are supposed to be scrutinising.
Mr Bowe, who confirmed that he discussed the fiscal watchdog’s importance with the visiting IMF team, told Tribune Business that while the minister of finance’s involvement represents a “watering down” of the Council’s perceived independence there are ways to mitigate this if the appointment process is fair and transparent. And the candidates
Blackbeard’s Cay dolphin notice sparks ‘sale’ alarm
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A BAHAMIAN environmental activist yesterday said she is “very concerned” that the Government may by seeking to sell the five dolphins rescued earlier this year from the Blackbeard’s Cay project.
Sam Duncombe, reEarth’s president, told Tribune Business she has “no idea” about the purpose behind yesterday’s newspaper advertisement by the Ministry of Agriculture and Marine Resources, which was described as a “notice of claim” to the dolphins who are currently residing at Atlantis after being transferred from their
previous location
The advertisement called for persons claiming to own the dolphins to produce the necessary ‘proof of ownership’ documents within the next four days, as well as pay unspecified fees. “Further be informed that the law allows for the disposal of impounded/ seized animals if they are not claimed or prescribed pound fees paid within four days of this notice,” the advertisement read.
Greg Bethell, The Bahamas’ director of marine resources, who signed the notice declined to comment yesterday when contacted by Tribune Business. He referred this newspaper to Montez
Gov’t extends six-month real estate tax ‘amnesty’
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Government has extended the six-month “amnesty” for persons to bring forward unstamped real estate conveyances and pay the outstanding transaction tax by another two weeks.
The Department of Inland Revenue (DIR), via a notice posted on its website, confirmed that the deadline for persons to exploit what the Prime Minister branded “a significant concession” has been extended from the original December 1, 2024, expiration date to December 16.
No explanation was provided for the extension, and both Cabinet ministers and Department of Inland Revenue officials
did not respond to Tribune Business calls and messages seeking comment before press time last night.
However, several Bahamian attorneys speaking to this newspaper on condition of anonymity said there had been a “rush” late last week to meet the original cut-off for a sixmonth ‘amnesty’ designed to incentivise persons with unrecorded conveyances and outstanding taxes to bring those documents forward for stamping and make the necessary payments.
Philip Davis KC, in launching the initiative during the 2024-2025 Budget’s unveiling at endMay, said persons would be permitted to pay tax based on the value of the property when they purchased it and the conveyance was signed. Given
Foreign LPIA departures fall 11% in tourism drop
By NEIL HARTNELL
FOREIGN air departures from Nassau’s Lynden Pindling International Airport (LPIA) declined by 11.1 percent year-over-year in October 2024 to signal the extent of the fall stopover tourism slowdown. The Central Bank, unveiling its monthly economic developments report for October, said departures via The Bahamas’
major aviation gateway excluding Bahamians and residents dropped to just under 91,000. Based on Tribune Business calculations, this represented a decline of around 11,300 compared to the numbers achieved in October 2023. “Monthly data suggest that the tourism sector continued to post healthy gains during the review month, although at a more tempered pace given stopover capacity constraints,” the Central Bank said.
“According to the most recent data provided by the Nassau Airport Development Company (NAD), total departures - net of domestic passengersreduced by 11.1 percent to 90,900 in October compared to same period in 2023.
“Leading this outcome, US departures contracted by 13.9 percent to 75,186. In a slight offset, international departures grew by 5.6 percent to 15,714 relative to the comparative period in
the preceding year.” NAD is LPIA’s operator. The Central Bank data underscores the September and October year-over-year occupancy decline reported by many hotels. However, rather than capacity constraints, the drop-off was blamed on hurricane-related fears and the devastating impact of storms on Florida and other key visitor source markets, as well as the ‘wait-and-see’ attitude adopted by many
Williams, under-secretary in the Ministry of Agriculture and Marine Resources, who was said to be out of the country until tomorrow and did not respond to messages seeking comment.
Mrs Duncombe, who was among those who first drew attention to the plight of Blackbeard Cay’s dolphins, said she has been unable to obtain updates from either the ministry or Atlantis as to the dolphins’ present condition. She warned that, given the global attention previously drawn to the dolphins’ fate, this again had the makings of “a negative story” for The Bahamas when it comes to animal care.
“I have had zero communication from the ministry since the middle
that real estate prices have risen since, he added that this would result in them paying less in tax than they would based on today’s value.
While attorneys have told this newspaper that the Government has not waived the fees or penalties for late recording/stamping, they added that it is also not challenging the transaction values on conveyances brought forward under this initiative. As a result, it is not calling for properties to be appraised or deals reviewed.
of June when they had said they were going to let us take over care of the animals,” the reEarth president said. “I have tried to get in contact with Atlantis to find out how the animals are doing; no response. Nobody is saying a word. I did message Mr Williams, whose name is in the ad, but it’s a total black-out. He’s not responded to me.
“I have no idea what this notice is about. It sounds to me, and four days’ notice to produce paperwork saying whoever owns the dolphins is a
“A lot of people were rushing last Friday to get
PAGE A18
“They’re going to extend it even though they’ve given enough time,” one attorney said before the new December 16, 2024, deadline was confirmed. “We have several of those, worth a collective $20m, and we cannot get a response from the Department of Inland Revenue.” Another attorney added that one hold-up had been the Department of Inland Revenue’s position that it would not accept the VAT (formerly Stamp Duty) on conveyances brought forward under this initiative until outstanding real property taxes associated with the same property were also paid.
on Balmoral Island off New Providence’s northern coast.
SAM
‘FIRING ON ALL CYLINDERS’ AS 5G LOOMS
THE Bahamas Telecommunications Company’s (BTC) chief executive yesterday pledged to deliver “more innovation” in 2025 via 5G and improved connectivity, adding: “It feels like we’re firing on all cylinders.”
Sameer Bhatti, speaking as BTC was awarded the Ookla Speedtest Award for best mobile coverage in The Bahamas during the 2024 first half, told Tribune Business that innovation is not achieved through a “finger snap”.
He said the carrier has been working diligently over the past years to expand its reach through initiatives such as Jump, which was developed to foster greater digital inclusion across The Bahamas, plus the Silver Blue Connection programme that is targeted at vulnerable persons.
“Innovation doesn’t happen on a finger snap or on a dime. We’ve been working steadily across our networks on innovation,” Mr Bhatti said. “We’ve
been working steadily on innovation in our contact centre. We’ve been working steadily on innovation for segments, be they our most vulnerable segments, be they the less-connected segments who may be mobile only by programmes like Jump or Sliver Blue connections.
“Everything we’re doing, have done this year, and actually started last year, is on bringing forward these innovations.” Mr Bhatti said he looks forward to
providing better Internet broadband connectivity throughout The Bahamas by the end of 2025. BTC has already achieved 100 percent residential connectivity to its new fibre-to-the-home network in Grand Bahama, and is close to achieving the same in New Providence.
“What I look forward to is better broadband connectivity for all of The Bahamas, covering all The Bahamas, by the end of next year,” said Mr Bhatti. “We have fibre at 100 percent
for residential in Grand Bahama. We are well on our way to that same metric here in New Providence. We will migrate customers from copper. We already are doing that from copper to fiber.”
Mr Bhatti said there are projects scheduled for the Family Islands in 2025 as well as new partnerships with the Government to expand communications connectivity. “I look forward to announcing some innovations we’re doing
with the Government of The Bahamas on some exciting new technologies that we’re partnering with them on,” he added.
“I won’t get in front of that, but I will work alongside them and their teams to communicate really exciting stuff, first for not just The Bahamas, not the Caribbean, but this entire region, including South America. What we’re doing feels like we’re firing on all cylinders. I have a great team that I support and, frankly, it’s often challenging to keep up with the innovations that we’re rolling out right now.”
Mr Bhatti said BTC is currently consulting with the Utilities Regulation and Competition Authority (URCA) on the introduction of fifth generation (5G) cellular network technology in The Bahamas. He added that BTC is planning to acquire 5G once URCA sets out the “next steps”. “5G, or any next generation wireless technology that requires spectrum, is something that we are in conversations with URCA on, with the regulator, and there are consultations happening right now,” Mr Bhatti said. “And, as
spectrum becomes available, we look forward to participating in its acquisition so we can provide next generation services to The Bahamas, but we will go as fast and work hand in glove with URCA on next steps for any spectrum availability.”
Mr Bhatti pledged BTC will continue to provide quality service to all customers, including vulnerable persons, and will expand programmes that keep subscribers educated on technology and improve their experience.
“We also look forward to bringing new programmes like Silver Blue connections, which is for our most vulnerable population. Let’s just say many 60, or 70 or 80 years and older who, as we are migrating to new technologies, they’re not familiar with it. They’re not comfortable with that move,” said Mr Bhatti.
“We will show up and make it easy for them. We will make it easier for them in our retail stores. We’ll make it easier for them and new customer value propositions down the line. I look forward to bringing those innovations.”
MARINE FORECAST
Gov’t extends six-month real estate tax ‘amnesty’
things in,” they said, “and there were some issues that came up as far as delays and where the Department of Inland Revenue would not accept VAT on a deed unless real property tax was paid up. If somebody had an issue with real property tax that could cause a delay.
“I think the extension was just to give everybody a chance, especially those who were backed up dealing with these issues, to have that opportunity. It stings a bit for everybody who paid on time. I think the Government is going to see some decent revenue come in from those that were lagging behind.”
The Prime Minister, in unveiling the Budget, said the ‘amnesty’ was part of a wider package designed to increase the Government’s
tax earnings from real estate transactions by encouraging persons to bring forward unstamped, unrecorded conveyances and pay the appropriate levies.
He also warned that buyers were exposed to increased risk if they fail to record their purchases, plus pay the due taxes, because their property titles and ownership are not secured or perfected. “The Government is aware that there are a number of unstamped documents held by persons, which results in these persons not being able to prove land ownership to the Department of Inland Revenue and otherwise,” Mr Davis said “This is an impediment for development and commerce in this country. So, the Government has made the decision to grant
FOREIGN LPIA DEPARTURES
Americans to the thenimpending US presidential election.
Pointing to a better yearto-date performance, the Central Bank report added: “On a year-to-date basis, total outbound air traffic grew by 3.5 percent to 1.4m, although markedly less than the 25.2 percent growth in the previous year. Specifically, US departures increased by 3.6 percent to 1.2m, while international
amnesty to allow documents to be stamped at the value of the time in which the transaction took place rather than at the current market value. This regime is temporary and effective immediately with an expiration date of December 1, 2024.
“This is a significant concession,” the Prime Minster added. “At present, all documents are stamped at their current market value regardless of when they were purchased. For example, suppose an individual purchased a property 30 years ago for $25,000 and sold that same property for $50,000, but never stamped the documentation.
“Later on, a new prospective buyer wants to acquire the property through a mortgage. The property now has a small house on it that is worth $150,000. In
FALL 11% IN TOURISM DROP
departures rose by 2.9 percent to 200,000.”
As for vacation rentals, the regulator said: “Data provided by AirDNA revealed that, total room nights sold increased by 2.6 percent to 30,478 in October vis-à-vis the corresponding period last year. However, the occupancy rates for both hotel comparable and entire place listings decreased to 37.8 percent and 38.1 percent, respectively, from 40.2 percent each in the
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 27th day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
corresponding period in the year prior.
“Further, the average daily room rate (ADR) fell for hotel comparable listings by 4.5 percent to $163.58 and for entire place listings by 2 percent to $605.55. On a year-to-date basis, total room nights sold grew by 6 percent reflecting increases in both hotel comparable bookings (7.2 percent) and entire place bookings (5.4 percent).
“However, occupancy levels for entire place and
order to have the property financed, all of the transactions for the last 30 years need to be recorded; that is, to have the VAT paid at the current market value of $150,000 plus penalty.
“Unfortunately, this is all too often a deal breaker, preventing the transaction from moving forward, hurting both the buyer and the seller and acting as a drag on the real estate market.”
To highlight the initiative’s importance, Mr Davis again referred to it when he launched the 2024-2025 Budget debate a week later.
“Taxes on real estate, whether Stamp tax or VAT on real estate, have been a prominent part of our tax mix for a very long time. It is a tax without the automatic enforcement mechanisms of modern taxes such as VAT or Business Licences. The purchaser or his/her agent
hotel comparable listings declined by 5.5 percent and 3.5 percent, respectively. Despite lower occupancy levels, the ADR moved higher for entire place listings (0.9 percent) and hotel comparable listings (0.5 percent).”
Meanwhile, the Central Bank said The Bahamas’ annual inflation rate for the 12 months through August fell by more than two-thirds year-over-year to help ease the country’s cost of living crisis for middle and lower income families.
“Average consumer price inflation, as measured by
NOTICE is hereby given that AARON DEON MISCALIN of Pinewood Gardens, New Providence, 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 4th day of December, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
has to willingly present the conveyance for stamping, and recording the sale of the property,” the Prime Minister said.
“If they do not present the conveyance for stamping, that by itself does not invalidate the sale, and recording the property itself does not validate the sale. However, it does create an unnecessary risk for the legitimate purchaser. Because of the lack of financial resources, some purchasers have not paid the tax and, given the passage of time, the property value has increased and, therefore, the tax burden has also increased.
“This is why the sixmonth period where conveyances for property can be stamped at the original value is such an important concession. It allows purchasers the
the All-Bahamas Retail Price Index, reduced to 1.3 percent during the 1 months to August 2024 relative to 4.4 percent in the comparable 2023 period,” the Central Bank said. “Contributing to this development, average costs declined for communication by 7.3 percent, transport, by 4.6 percent, clothing and footwear by 2.4 percent, and recreation and culture by 2.2 percent after recording gains in the preceding year.
“Further, average inflation moderated for health (5.3 percent); housing, water, gas, electricity and other fuels (2.8 percent); food and nonalcoholic beverages (2.5 percent); alcoholic beverages, tobacco and narcotics (2.3 percent); restaurants and hotels (2.2 percent); and furnishing, household equipment and routine household maintenance (1.5 percent). In contrast, inflation quickened for education (4.5 percent) and miscellaneous goods and services (3.6 percent)”. On the monetary front, foreign currency outflows decreased sharply in October. “Provisional data on foreign currency sales for current account transactions showed that monthly outflows decreased by $274.9m to $512.6m relative to the corresponding period in 2023,” the Central Bank said.
ability to regularise their purchases.”
Mr Davis then added: “Over the last two years, as a tax authority the Department of Inland Revenue detected some unusual activity in this tax. Unusual in that significant real estate transactions, although announced by realtors, were not immediately followed by the presentation of conveyances for stamping.
“As I said before, the presentation of a conveyance for stamping is by no means automatic or mandatory, and purchasers could delay the presentation of conveyances for a number of reasons. However, for high-end real estate, traditionally these conveyances have been presented without delay.”
“Leading this outcome, payments for ‘other’ current items - primarily credit and debit card financed imports - declined by $166m, and for oil imports by $105.2m. Further, outflows reduced for factor income payments by $21m and travel-related transactions by $1.7m. Conversely, payments for non-oil imports rose by $17.3m and transfer payments by $1.7m.”
The Central Bank added that Bahamian dollar credit grew by $10.6m in October, which represented a reversal from a $21.3m reduction during the same month in the previous year.
“Underlying this outturn, the growth in private sector credit extended to $17.2m from $6.3m in the previous year,” it added.
“In particular, consumer credit rose by $14.1m, exceeding the $600,000 uptick last year, while mortgages increased by $9.9m, a shift from a $12m fall-off in the prior year. In a partial offset, commercial credit declined by $6.8m vis-à-vis the $17.7m build-up in the comparative period a year earlier.
“Further, credit to public enterprises edged up by $1.2m, a switch from last year’s $2.4m decrease. However, net claims on the Government fell to $7.9m, albeit less than the $25.3m reduction in 2023.”
NOTICE
NOTICE is hereby given that DE IS A TH FRA IS of 5 Pine Tree Close, Sea Horse Village, Freeport, Grand Bahama 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 27th day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE is hereby given that ANTHONY TREVOR ROY WILLIS of South Beach Drive, New Providence, 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 27th day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
BLACKBEARD’S CAY DOLPHIN NOTICE SPARKS ‘SALE’ ALARM
FROM PAGE A20
joke to the average person, that they are trying to do this so they can go ahead and sell the animals. They continue to operate in the dark and leave us out of the situation, and I’m very concerned.
“There is a consistent concern that, once again, this is going to be a negative story about the treatment of animals in our country. Communicate with the public. Let the public know what’s going on. There were many, many people from all over the world commenting on that story, that particular situation and wanting to know what was going on. We’ve got to stop acting like we’re sitting in the middle of nowhere where nobody else knows what’s going on.”
Tribune Business previously revealed the background to the dolphins’ fate is complex, as they were owned by a business that was ordered to shut down by the Supreme Court but remained
open in defiance of its orders and amid a lack of enforcement action. The tale also involves two US bankruptcy court proceedings, a former Cabinet minister and litigation in The Bahamas. Blackbeard’s Cay, also known as Balmoral Island, is located off New Providence’s north coast almost directly opposite the Sandals Royal Bahamian resort although the latter has nothing to do with the project and dolphins. The dolphin encounter and marine park, designed as an attraction and excursion primarily targeted at cruise passengers, was owned by a company called Blue Illusions. That entity’s ownership was split 50/50 between two foreign investors, Samir Andrawos and his business partner, Victoria Iglesias. However, Blue Illusions was almost immediately hit with a Judicial Review action by Mrs Duncombe and reEarth
‘Every day that goes by retards fiscal progress’
PAGE A20
put forward for selection must also be competent and objective.
“It’s the same message,” he said. “Every day we go without the Council is a day we retard our progress with regard to fiscal responsibility. The purpose behind the Council was for it to serve as an independent reviewer and assessor of the work done by the Ministry of Finance to give the public confidence it will stand up to scrutiny by the best and brightest minds in the country.”
Reiterating that the watchdog was never intended to be “a rubber stamp”, Mr Bowe said that while there have been no formal announcements regarding its reformation and membership several persons have contacted him to obtain an understanding of how the inaugural body operated.
“I have heard they were looking at various appointments, but I’m not aware of them making final appointments or reappointing those there previously,” he added. “I’ve had at least three people reach out to me for a perspective on its history and effective autonomy, and to find out the functions and how it operated. Those persons are certainly competent and I see them as independent.”
Philip Davis KC, in unveiling the 2024-2025 Budget, pledged: “In accordance with the Public Finance Management Act, and to ensure prudent fiscal management, this Budget year we are appointing both the Public Sector Audit Committee and the Fiscal Responsibility Council.
“The Fiscal Responsibility Council will assess compliance with the general principles, fiscal responsibility principles and fiscal objectives, and advise on fiscal and budgetary matters of the Government.” This was picked up by the IMF on its recent visit, and it said: “The reconstitutions of the Fiscal Responsibility Council and the Public Sector Audit Committee are welcome. Members of both should be independently selected.”
However, the minister of finance’s role in the appointments has led many to refer to the ‘fox guarding the hen house’ scenario, given that Council members will be responsible for scrutinising the work of the very person who selected them. Mr Bowe, though, argued that while it is possible to mitigate these concerns via a fair and transparent nomination process, “we want to see independence in fact and appearance”.
“I met with the IMF in my former capacity as a member of the Fiscal Responsibility Council,” he added. “I was the one that said to them it does need to be properly constituted and to be effective. They’ve always expressed the reservation in terms of how we achieve independence and objectivity.
“I think they’re looking to see what the new membership looks like and if they are appointed by a clear and transparent process that also demonstrates the individuals are competent and independent.... If it appears to be political appointments or friends of the administration then I think we’ll see criticism in terms of watering down the appointment process.
challenging the permits and approvals granted for the project. Then-Supreme Court justice, Stephen Isaacs, ruled in the environmental activists’ favour by ordering that Blackbeard’s Cay effectively be shut down. He overruled the dolphin import licences, ordering that the mammals be moved to a suitable location and also quashed the development’s Town Planning Committee approval and ordered that the site be restored to its previous use.
However, Blackbeard’s Cay and its dolphin attraction remained in business for six further years with no enforcement action taken by the authorities to enforce its shut down until the COVID19 forced all activities to cease. The financial impact
from the pandemic-enforced closure ultimately proved an insurmountable obstacle for Blue Illusions to climb.
Both Mr Andrawos and Ms Iglesias have been embroiled in personal bankruptcy proceedings before separate US courts in Maryland and southern Florida, respectively. Each had a bankruptcy trustee appointed over their financial affairs following legal actions initiated by Blue Illusions’ main creditor, SuttonGate Holdings.
Court filings obtained by Tribune Business reveal that Mr Andrawos’ creditors view Blackbeard’s Cay as their best source of debt recovery. They allege that financial records show the dolphin attraction and other amenities were generating $7m per year in annual revenue, or a
collective $49m over seven years, prior to the COVID-19 pandemic. The situation, though, has been further complicated by the fact Mr Andrawos’ 50 percent equity ownership interest in Blue Illusions has been claimed by Damian Gomez KC, former minister of state for legal affairs, via Bahamian legal proceedings in a bid to recover $1.25m in outstanding legal fees allegedly owed to him by the Blackbeard’s Cay developer. It thus remains unclear exactly who has ownership of the abandoned Blackbeard’s Cay project and the dolphins, although there is no suggestion that Mr Gomez has done anything wrong. Mrs Duncombe, meanwhile, yesterday renewed her call for The Bahamas to phase out animal
attractions and instead establish a dolphin sanctuary. “What we need to do is stop the importation and exportation of animals, stop breeding at these facilities and say to the world we will not be doing this,” she argued. “Grandfather all those facilities in, no more breeding and, when those animals pass, there will be no more facilities. We should never have started this business in the first place.”
Mrs Duncombe said the idea of creating a dolphin sanctuary was raised when she met Jomo Campbell, minister of agriculture and marine resources, and his officials over the Blackbeard’s Cay situation for the first and only time this summer. However, there has been no further progress.
“I think the IMF certainly wants to see that body fully functional however it is done.” Mr Bowe said that, based on the identities of the persons who have contacted him regarding the Council, the Government “appears to be going down the path, but if they are not clear and transparent appointments it starts to leave itself open to scrutiny and questions”.
Acknowledging that “the minister [of finance] should not be the one choosing his judges”, he argued that the Council’s membership should be chosen from a nomination process where multiple qualified and competent persons are recommended. If the process was open and transparent, and the names of all candidates publicly known, Mr Bowe said this could lessen some of the conflicts created by the minister’s role. “The purpose and role of the Council is to independently challenge the work of the Ministry of Finance,” he reiterated. “It has the responsibility for making recommendations for improvement in the fiscal management process, whether that’s systems, whether that’s the process for determining the debt management strategy, the process for determining the fiscal management strategy.”
While auditors scrutinise the Government’s finances at the back end, Mr Bowe said the Council’s role is to test and validate its forecasts and economic models plus the assumptions and data upon which they are based to determine fiscal predictions are sound. “I know we have so many things we as a country are seeking to address, but sometimes we need to pick the low hanging fruit,” he said of the Council.
The original Fiscal Responsibility Council released just two assessments - on the 2020 Fiscal Strategy Report and the 2021-2022 Budget. Besides Mr Bowe, its other members included Christel Sands-Feaste, the Higgs & Johnson attorney and partner, representing the Bahamas Chamber of Commerce and Employers Confederation (BCCEC); Khalil Parker KC, who holds the Bahamas Bar Association’s seat; and Dale McHardy from the University of The Bahamas (UoB). Holland Grant, the Bahamas International Securities Exchange’s (BISX) chief operating officer, had previously replaced Kevin Burrows as the Chartered Financial Analyst (CFA) Society of The Bahamas representative, bringing the Council’s membership back up to the mandated five. All were appointed under the statutory regime that was repealed in 2023 by the new Public Finance Management Act. The latter changed the process for selecting and appointing Council members, switching this from recommendation by the House of Assembly speaker to being appointed by the minister of finance (currently the Prime Minister), who is responsible for the very ministry they are supposed to be scrutinising. As a result, the existing Council members no longer consider themselves appointed given the absence of formal notification or confirmation as to their standing by the Davis administration. This has resulted in the independent fiscal watchdog’s work grinding to a halt.
‘Major headwind’: Doctors triples provisions for unpaid patient bills
The $12.7m in patientrelated loss provisions accounted for 95.5 percent of the $13.3m in total expected credit losses (ECL) at end-January 2024. The latter figure represented a more than doubling, or 145.8 percent increase, compared to the prior year’s $5.404m total allowances. And the near-$8m provisioning increase was arguably the major drag on Doctors Hospital’s profitability for the year to end-January 2024, with net and comprehensive income declining by more than $860,000 or 30 percent compared to the prior year.
The healthcare provider’s bottom line for the period fell from $2.81m in 2023 to $1.945m.
Warning shareholders about its “rising exposure to uncompensated care and declining payer coverage [and] reimbursement, Doctors Hospital management nevertheless confirmed it will never turn any patient in need of care away while pledging to work with the Government to address the challenges posed by uninsured persons who cannot afford to cover treatment costs themselves.
“Due to broad issues with inpatient capacity at the national level, and the spillover effects of those constraints as a driver of higher self-pay patients in New Providence, Doctors Hospital Health Systems (DHHS) saw its related provision for expected credit losses under IFRS (international financial reporting standard) nine grow to $11m versus $3m in
the prior year,” the BISXlisted healthcare provider wrote.
“Notwithstanding these earnings challenges, the group continues to stand affirmatively in the gap, bridging bottlenecks in the public system and working collaboratively with the Government of The Bahamas to define long-term solutions to its capacity challenges for uninsured patients.” And the inability of the Government and public healthcare patients to cover their bills is not the only challenge.
“In addition to growing self-pay financial risk, the group saw increased exposure to declining reimbursement rates across large payers which also negatively impacted net income,” Doctors Hospital added in relation to sums due from Bahamian health insurers. “The provision against third-party accounts receivables balances increased to $1.7m in financial year 2024, up materially from $0.5m in the period prior.
“Decreased reimbursement exists when payers remit less than what is invoiced for services or when higher financial risk is transferred to members/ groups in the form of higher out of pocket obligationsco-payments, deductibles - which are subsequently unmet.” This means more patients are unable to meet their share of treatment costs as insurers move to mitigate and reduce their own risk exposure.
With other provisions added to the total $12.7m allowance for non-payment by patients and their insurers, Doctors Hospital added: “Combined, the expected credit loss expense (loss
NOTICE
Vilela Moraes Holding Ltd. Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas. Registration number 212334 B (In Voluntary Liquidation)
Notice is hereby given that the above-named Company is in dissolution, commencing on the 2nd day of December A.D. 2024.
Articles of Dissolution have been duly registered by the Registrar. The Liquidator is Mr. Alexandre Machado Vilela, whose address is Rua Tomaz Gonzaga 1140 CT, Alphaville, CEP: 34018-046, Nova Lima, MG, Brazil. Any Persons having a Claim against the above-named Company are required on or before the 30th day of December A.D. 2024 to send their names, addresses and particulars of their debts or claims to the Liquidator of the Company, or in default thereof they may be excluded from the beneft of any distribution made before such claim is proved.
Dated this 2nd day of December A.D. 2024.
SERGIO ROMAN LIQUIDATOR
INC.
allowance) for financial year 2024 was $13.3m, a material headwind to net income.”
A deeper dive into Doctors Hospital’s financial statements for the year to end-January 2024 reveals that total patient-related receivables owed to it stood at $54.705m. This represented a more than $9m, or 20.9 percent, increase on the prior year’s $45.247m.
Of that $54.705m, some $12.7m or 23 percent has been provided for. And the bulk of that figure, some $36.326m, is due from insurers, the Government and its related agencies and other third parties, while the remaining $18.379m is owed directly by patients. With $11m in allowances, Doctors Hospital is forecasting that patients will be unable to pay almost 60 percent of the total sum they owe.
Accounts receivables, largely representing monies owned for medical care by patients, insurers and the Government, have typically been an historical challenge that has weighed down Doctors Hospital’s financial performance. They have been controlled more tightly in recent years, but now appear to be on the rise again.
Dennis Deveaux, Doctors Hospital’s chief financial officer, could not be reached for comment before press time last night. However, the annual report and accompanying financial statements are the first performance indicators to be released by the BISX-listed healthcare provider for some months after it previously obtained an extension to their publication from the stock exchange. The accounts were only signed-off and approved by
KPMG, the external auditors, on November 29, 2024, which was last week. That date is almost ten months from when the healthcare provider’s 2024 year-end closed at end-January and just two months away from when its current 2025 financial year closes.
Doctors Hospital has embarked on fast-moving expansion in recent years with the addition of multiple outpatient care and other facilities across New Providence and other islands as it bids to become a truly nationwide healthcare provider.
Dr Charles Diggiss, Doctors Hospital’s president and chief executive, told shareholders that it plans to open a diagnostic and imaging centre on Village Road during its upcoming 2026 financial year that will begin on February 1, 2025. And it is targeting completion of its new Grand Bahama hospital for that same year.
“The Doctors Hospital Village Road Signature Outpatient Diagnostic Imaging Centre, scheduled for opening in financial year 2026, will be equipped with state-of-the-art imaging technology, including advanced MRI, CT scan, ultrasound, X-ray and mammography systems,” Dr Diggiss wrote in the annual report.
“This technology allows for precise diagnostics and enhances the accuracy of medical imaging. The launch of this Imaging Centre represents a transformative step forward in elevating healthcare standards and advancing diagnostic capabilities within our organisation. We are elated about the positive impact this facility will have on
NOTICE
JURERE BLUE INVESTIMENTOS LTD.
Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas. Registration number 205496 B (In Voluntary Liquidation)
Notice is hereby given that the above-named Company is in dissolution, commencing on the 2nd day of December A.D. 2024.
Articles of Dissolution have been duly registered by the Registrar. The Liquidator is Mr. Sergio Roman, whose address is Rua Marechal Deodoro, 220 Apto 1101, CEP: 95700-010, RS, Brazil. Any Persons having a Claim against the above-named Company are required on or before the 30th day of December A.D. 2024 to send their names, addresses and particulars of their debts or claims to the Liquidator of the Company, or in default thereof they may be excluded from the beneft of any distribution made before such claim is proved.
Dated this 2nd day of December A.D. 2024.
SERGIO ROMAN LIQUIDATOR
NOTICE
MCGC INTERNATIONAL LIMITED In Voluntary Liquidation
improving patient outcomes and enhancing the overall quality of care.”
As for the 25-bed Freeport hospital, which is under construction at the First Commercial Centre, Dr Diggiss added: “The new Rockwell hospital in Grand Bahama is set to open its doors in financial year 2026, and we couldn’t be more thrilled to begin this new chapter in healthcare excellence.
“Rockwell will feature state-of-the-art medical technology, modern amenities and specialised care units to provide the highest quality of healthcare services to our patients in the Grand Bahama community and surrounding areas.”
Dr Diggiss added that close to 18,000 persons were now enjoying improved access to healthcare at all levels. “Our strategic focus on delivering the best value to our customers by leveraging technology and expertise, through the merging of innovation and industry knowledge, is apparent through our Loyalty Advantage Membership Programme (LAMP), which has seen exponential growth in the past year,” he asserted.
“To-date, LAMP has 1,245 active paying
members, 8,031 NHI enrollees, 4,500 Baha Mar associates and 5,000 Royal Bahamas Police Force members. LAMP is working toward becoming a viable alternative financing arrangement to manage care at all levels. Via LAMP, we have realised increased affordability of our services by our customers/patients. This financial access tool is one way we optimise our fiscal performance.”
Doctors Hospital management said enrollment in its LAMP scheme grew by 42.2 percent year-over-year during the 12 months to end-January 2024. It added that the plan’s evolution has driven an increased number of patient visits to its care facilities as well as a rise in laboratory tests and diagnostic/imaging visits.
“A prominent driver of the higher outpatient clinic segment remains the group’s Loyalty Advantage Membership Programme (LAMP), which presents a more affordable alternative than conventional insurance, effectively lowering barriers to access for average Bahamians,” Doctors Hospital said.
NOTICE
NOTICE is hereby given that JACKSON DATUS of Kool Air Subdivision, Nassau, The 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 4th day of December, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
Pursuant to the Provisions of Section 138 (8) of the International Business Companies Act 2000 notice is hereby given that the above-named Company has been dissolved and struck off the e ister ursuant to a ertifcate of issolution issued by the Registrar General on the 8th day of November, 2024.
Carlos Fernando Arbiza Mangiarotti Liquidator of LAKE CHARLESTON INC
Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, MCGC INTERNATIONAL LIMITED is in dissolution as of November 29, 2024.
Mr. Yasuo Matsunaga with address at 1-1, Toranomon 2-chome, Minato-ku, Tokyo, Japan is the Liquidator.
