01262022 BUSINESS

business@tribunemedia.net

WEDNESDAY, JANUARY 26, 2022

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Bahamas corruption: ‘Full picture not told’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE BAHAMAS’ latest relatively favourable corruption ranking “doesn’t tell the full picture”, governance reformers warned yesterday, as they urged it to “grow a culture of integrity”.

Matt Aubry, the Organisation for Responsible Governance’s (ORG) executive director, told Tribune Business that The Bahamas needed to guard against complacency after Transparency International’s just-released Corruption Perceptions Index 2021 ranked this nation 30th out of 180 when it came to graft.

The Bahamas dropped one spot compared to the 2020

• Graft low: Nation No.2 in the Caribbean • But ORG chief gives ‘status quo’ warning • And says ‘piecemeal’ reforms insufficient rankings, where it was rated 29th, swapping positions with Barbados, which replaced it as the Caribbean’s least corrupt country according to the global transparency watchdog. The Bahamas’ ‘score’ remained flat at 64, which was two points below the peak result achieved in 2016.

Besides being ranked as less corrupt than virtually all its Caribbean neighbours, at least when it came to impressions, The Bahamas also scored better than the likes of South Korea and Israel plus many developed European countries such as Spain, Portugal and Italy.

MATT AUBRY And this nation finished just two spots, and three points, below the 28th ranked United States of America, whose federal government has continued to bash The Bahamas

SEE PAGE 7

Construction VAT silence branded ‘unconscionable’ GINA BROOKS

PATRICK WARD

Bahamas First says portal ‘won’t marginalise’ agents

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMAS First’s top executive yesterday reassured that its new online insurance portal will “not marginalise” agents and brokers, and had been created “in lock step” with the law and regulations.

Patrick Ward, its president and chief executive, told Tribune Business that the BISX-listed property and casualty underwriter had been “very careful” to ensure First Online did not breach the Domestic Insurance Act’s prohibition on ‘direct selling’ to consumers by carriers.

It had achieved this, he explained, by integrating Bahamas First’s agents and brokers into the online platform such that all clients must either select their existing intermediary or choose a new one before they can complete paying for either a new policy or a renewal.

In that way, Mr Ward said the underwriter’s existing agent portfolio will not miss out on any fee or commission income while clients will still effectively have to purchase all general insurance policies through an intermediary as required by law.

Asked by this newspaper whether First Online would violate the bar on ‘direct selling’ to consumers by underwriters, the Bahamas First chief denied this and said: “We looked at this very carefully.

SEE PAGE 4

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ABACO’S Chamber of Commerce president yesterday said it was “unconscionable” that the Government had yet to reverse VAT’s return on construction services, adding: “There’s a lot of angry people here.”

Ken Hutton told Tribune Business that the Dorian-devastated island had yet to receive a formal response from the Davis administration or its two MPs, Kirk Cornish and John Pinder, to its pleas for the 10 percent levy to be removed with VAT-registrant contractors uncertain whether to bill clients as the deadline for filing and payment looms.

“I would like to say there are so many people here that are incredibly angry,” he blasted. “We

KEN HUTTON were already assured prior to the SERZ (Special Economic Recovery Zone) coming out that it [the VAT exemption on construction services] would be included.

“There are a bunch of very upset people, particularly contractors, who are going through the first month and don’t know whether to bill clients

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OBIE FERGUSON QC

Gov’t U-turn on Grand Lucayan union appeal • Settles, instead of contesting, claim by 36 managers • PLP senator among likely beneficiaries of reversal • Change follows election, PLP’s MoU with unions

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

for VAT or not. The fact it’s there, but not been changed, leaves a huge amount of uncertainty which is unconscionable.

“We need that VAT on construction services taken off and it needs to be confirmed as soon as possible.

We have inflation in building materials, and now on food and fuel. Adding 10 percent on to the cost of rebuilding your life, it’s not fair.”

Mr Hutton said the former Minnis administration had promised Abaconians that the VAT, import duty and other tax breaks would be in effect for between three to five years to aid post-Dorian reconstruction. While over two years gave now passed since Dorian struck in September 2019, he added that “the world was shut down”

THE GOVERNMENT has reversed course and settled a wrongful/unfair dismissal claim by 36 current and former Grand Lucayan managers that it previously won before the Supreme Court.

Sir Michael Barnett, the Court of Appeal’s president, in a short oral judgment read out on January 18, 2022, said the attorneys representing the Government-owned hotel and Bahamas Hotel Managerial Association (BHMA) members had confirmed “the matter has been resolved” and the union’s representative “does not intent to pursue the appeal” as a result.

Obie Ferguson QC, the Trades Union Congress president and BHMA attorney, told Tribune Business yesterday that the dispute had been settled but both parties had agreed not to disclose the terms.

“I agreed that we were not going to disclose the content of the settlement. I thought that was fitting,” he said. “The Government saw fit to resolve it, it’s been resolved and I have to meet with the successful parties and we will deal with the matter. We agreed not to disclose the details. We’re very, very pleased with that.”

Robert Adams QC, attorney for Lucayan Renewal Holdings, the Government-owned entity that holds a hotel which remains up for sale, could not be reached for comment yesterday. However, one source, speaking

SEE PAGE 6

SEE PAGE 5

Unions voices concern on civil service reforms

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government has been warned not to “disadvantage” any civil servants in its planned reforms with their union chief voicing disappointment with the Government’s failure to fully consult.

Kimsley Ferguson, the Bahamas Public Services Union’s (BPSU) president, told Tribune Business that the Government will not arbitrarily be able to move persons without

PIA GLOVER-ROLLE

running afoul of the protocols and procedures that govern such activities within the civil service.

Responding after Pia GloverRolle, minister of state for the public service, unveiled a “ten-point” plan to reform the public sector while warning that its future was “hanging in the balance”, Mr Ferguson argued that the 20,000-strong civil service was “not overstaffed” and the Government cannot simply “pick up and move these people”.

“The movement of public servants is not something you can just arbitrarily do,” he warned. “It must be governed in accordance with public service regulations. You don’t unveil something like this and not consult the union.

“The only thing they can do now, in my opinion, is that there should be more consultation with the union to let us know what they intend to do.

And if they fail to consult and do things inappropriately, we’ll

SEE PAGE 10

PAGE 2, Wednesday, January 26, 2022

FIVE POLICY PRIORITIES FOR BAHAMAS IN ‘22 By the ORGANISATION FOR RESPONSIBLE GOVERNANCE AS The Bahamas ushers in 2022 amid the social and economic crises brought on by the COVID-19 pandemic, there are many immediate needs that the current Bahamas government should address.

However, the challenges that have emerged from the current crisis build upon decades of issues with governance, partisan politics and changing agendas.

As the Government tackles immediate needs, it is vitally important to take steps towards long-term, sustainable reform.

The Organisation for Responsible Governance (ORG) has identified several key policy and legislative opportunities for the coming year that that can

address long-standing issues which have plagued The Bahamas, strengthen transparency and accountability, improve governance and benefit mid and longterm economic growth and development in the country.

The five Priority Policy Opportunities in 2022 for The Bahamas are: * The full enactment and functioning of the Freedom of Information Act (FOIA) 2017. Passed in the final days before the 2017 general election, the Act has yet to be fully implemented and the Bahamian public have long waited for the ability to access this fundamental right. While experts have reported that the average time to bring such an Act into full effect can be expected to take three to five years, The Bahamas remains in the formative stages of bringing

the legislation into force after a five-year period.

To-date there have been consultations with Freedom of Information Act experts in Jamaica and Latin America, and some preliminary training and public outreach. However, the public still cannot utilise their legal rights as per the Act. The hiring of an information commissioner, deputy and associate information commissioner, and the opening of their office indicate the most significant step forward. Late last year, the Government also stated that ten of its agencies will be able to receive and respond to FOIA requests from the public beginning in 2022.

In anticipation of this, ORG will be offering virtual town hall sessions to provide public education on how and when to use the FOIA. ORG also encourages the Government to commit, over the next four years, to an equal or greater number of government agencies being added each year to those responding to FOIA requests. This will ensure compliance and citizen access to information across the entirety of government. * The full enactment and compliance with the Public Procurement Act. Brought

into effect on September 1, 2021, this legislation is designed to make government procurement more transparent and encourage economic growth by making public sector contracting opportunities more accessible to a wider scope of Bahamian vendors. Key components of the Act are based on global standards including online pre-registration of vendors; established government procurement criteria and processes by amount; regular reporting of awarded contracts; and the development of a Procurement committee for open multi-sector oversight of significant contracts.

The Government has pledged to assess, and potentially amend, the Act to increase opportunities for local vendors and to remove obstacles for government procurement in times of crisis. ORG holds that it will be important for any reforms to be undertaken through extensive consultation with the private sector, and to ensure no loss of transparency or accountability. Adherence to open and timely reporting of awarded contracts will be critical to ensure public confidence and the competitiveness that will result in the widest

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participation by Bahamian vendors. * Change the Fiscal Responsibility Act to strengthen the role of the Fiscal Responsibility Council. In response to the implementation of VAT, ORG and many civil society and private sector groups pushed for the passage of legislation to commit the Government to reduction of the national debt and more open reporting.

The passage of the Fiscal Responsibility Act in 2018 brought The Bahamas in line with modern governance expectations.

However, the dual crises of Hurricane Dorian and COVID-19 required The Bahamas to deviate from its pre-established fiscal responsibility goals. The Government has continued to borrow funds to manage the expenses of the COVID-19 crisis, and the national debt has expanded to near 100 percent of the nation’s economic output.

Subsequently, The Bahamas’ credit rating was reduced to ‘junk’ status making further borrowing more difficult and expensive at a time when government revenue is down.

As the economy recovers, utilising the structures outlined in the Fiscal Responsibility Act will be a key resource for the Government and public to monitor the nation’s fiscal health and the strategies in place to support sustainable growth. The Government has indicated they wish to amend the Act to strengthen the role of the Fiscal Responsibility Council. ORG commends this and supports the timelier inclusion of independent perspectives and expanded public reporting of The Bahamas’ fiscal position, and the sources of expenditure and revenue. * Passage of anti-corruption legislation. Corruption, and the perception of corruption, continue to be a

THE TRIBUNE

drag on The Bahamas’ reputation, competitiveness and culture. Estimated to result in hundreds of millions of dollars in lost revenue to The Bahamas, the cost of corruption is borne by the public. Many steps have been taken, such as moving government services online, to reduce the incidence of corruption, but a stronger national response is required to make a significant impact.

Comprehensively addressing corruption at all levels can result in increased revenue, increased public trust and increased efficiency and effectiveness in government services. Over the past years, ORG has dedicated significant time and resources to advocate for the establishment of an independent body to receive and vet concerns and claims related to corruption, conflict of interests, public disclosure and patronage. This body can lead the public and government towards a culture of Integrity, identify and monitor opportunities that can reduce the incidence and perception of corruption, and stand as a testament that The Bahamas is a best-of-class jurisdiction for investment and development.

• Comprehensive programme of public service reform, including legislation, evaluation and training. All who reside or do business in, or with, The Bahamas rely upon the public service to provide a functional operational framework and an accessible direct point of access for the citizen and private sector. The effectiveness and efficiency of the public service is strongly linked to the capacity of the private sector to grow. A wellmanaged, dependable and user-friendly public service can improve the ease of doing business, inclusion and competitiveness. A

SEE PAGE NINE

THE TRIBUNE

Wednesday, January 26, 2022, PAGE 3

CABLE CHIEF: REMOTE WORK NEEDS PRODUCTIVITY ‘BALANCE’

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net CABLE Bahamas’ top executive yesterday said companies must “strike a balance between productivity and flexibility” when employees are working remotely.

Franklyn Butler, the BISX-listed communications group’s president and chief executive, told a webinar that the COVID19 enforced shift to remote work has “huge implications for productivity in the workplace”.

Asserting that it was now more difficult to assess whether an employee is working or not, given that they are operating at home, he added this has forced companies to carefully weigh how they achieve a balance between staff productivity and flexibility.

Mr Butler said: “That, to me, is probably one of the big areas that I wouldn’t say keeps me up at night, but it’s a big area of concern, because we look at how the pandemic has continued

on much longer than I think any of us could have anticipated from where we started from in February 2020.”

Michael Anderson, RF Bank & Trust’s president, told the same webinar: “The biggest learning I’ve had through this whole experience of remote work was also remote discussions taking place across larger areas, and this ability to speak to more people at the same time.”

The remote working trend has forced companies to improve their communication, with senior management logging into meetings from

different countries. Mr Anderson said this is a “significant improvement” to pre-COVID office working practices where staff tended to meet in-person to get things done.

Mr Anderson added: “I think, really, it’s enhanced your ability to communicate, and so one of those key aspects of our businesses is how do we always keep in touch with each other. To me that aspect has really been enhanced.

“The other piece, which I think about quite a lot, is this idea of outsourcing remote work.” This is where companies sub-contract work to third party

providers based overseas, who perform tasks that locals would previously executed. It also eliminates costs associated with bringing in high-priced specialists from another country.

Jeffrey Beckles, Island Pay’s managing director, said COVID-19 has forced him to focus on employees more and have fewer “rah-rah” sessions. “We’ve had to really look at what impact the pandemic has had on our employees, these really important assets that we have, and how do we first meet their needs,” he added.

“We typically talk about the multiplicity of needs,

FRANKLYN BUTLER

MICHAEL ANDERSON

JEFFREY BECKLES

CUSTOMS PROMOTIONS BY MONTH’S END ‘IMPOSSIBLE’

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A CABINET minister yesterday said it was “absolutely impossible” to complete all Customs promotions by month’s end as the team assessing the matter had only just begun their work.

Pia Glover-Rolle, minister of state for the public service, told reporters ahead of the weekly Cabinet meeting that she wished to “clear up some miscommunications” on when Customs Department promotions will occur because her ministry is still conducting a thorough review of all personnel files.

“We have to review files, we have to look at

recommendations and the unit has just been put in place that started their work this month,” she said. “I know there’s been some saying that letters will be issued this month. That is absolutely impossible.

“The work is being done, the assessment of files is being done to ensure that, first of all, we don’t miss out any people that are deserving of their promotions in this exercise, but also so that we can ensure that it’s a thorough process.

“So, I wanted to make note of that. We have some other ministries and departments that we are also looking at simultaneously. Many teachers are getting their confirmation letters,” Mrs Glover-Rolle continued.

“Persons throughout the service are getting their confirmation letters, so it is a simultaneous exercise, but there was a full-on approach of looking at the Customs Department in this first month to three months of the year.”

Sloan Smith, vice-president of the Bahamas Customs, Immigration and Allied Workers Union, told Tribune Business that he agrees with the approach being taken by Mrs Glover-Rolle to sort out promotions not only at the Customs Department but Immigration as well.

Mr Smith said: “With having to go through the review and putting things together, I agree with her that that is reasonable. Because you have to remember the public service

has to deal with everyone, whatever that number is, and assessing that can’t be done.... certainly not in the matter of a month.

“Let me tell you what I understand what’s happening in Immigration.

Customs is one thing, as she spoke in terms of Customs over the next quarter, and I do know the Immigration side of it is not yet done and there are persons receiving letters. I think even as early as Monday morning.”

Suggesting that the Customs Department has expanded by “over 400 people since 2016-2017”, Mr Smith said he understands the promotions assessment will take some time.

but then that could have been financial, it could have been physical, it could be emotional. It could be any number of ways that employees were affected.

“So it has forced me as a chief executive to take a very deep look at who we

have, how they’ve been affected and how do we best put them in a position where they can be reasonably comfortable to be able to produce the outputs that we have expectations of.”

PAGE 4, Wednesday, January 26, 2022

THE TRIBUNE

BAHAMAS FIRST SAYS PORTAL ‘WON’T MARGINALISE’ AGENTS FROM PAGE ONE

“If you go on to the portal and attempt to use it for registration, to access policies online or get a quote for new business or a renewal, the process requires you to select your

existing agent or identify a new agent to do business with as the case may be.

“You cannot really progress or use the functionality of the system to pay for a policy without selecting an agent before you actually complete,”

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Mr Ward continued. “In the development stages of this we have very close collaboration with our agents to ensure they were part of the process and we were in lock-step with the regulations.

“We think this benefits the agencies and the consumer..... We’re providing the marketplace with more efficiency and the end-consumer with more opportunity to engage 24 hours a day, seven days per week and 365 days a year and, at the same time, maintain the integral of agents throughout the process.

“It’s not intended to marginalise the role of agents.

We regard ourselves as as being very much in the

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front line of supporting agents and brokers, and this works in lock-step with that process.”

One Bahamas First agent, speaking on condition of anonymity, backed Mr Ward’s assessment. “It does have the appearance of direct selling,” they said, “but if it’s an existing client of a broker that does it, they will remain a client of that broker and they’ll be directed to us.

“We knew about this a couple of years ago. It does have the appearance of direct selling but that’s not the intent. If a client without an existing intermediary goes into purchase cover they’ll be given a list of brokers and agents to select from.

“They aren’t selling direct, but it does have the

appearance on the outside.

They told us this some time ago, and we had discussions with them. They have to look to protect their book of business, but they will be growing it through intermediaries.”

Mr Ward, meanwhile, said “a few thousand people” have engaged with First Online since its launch earlier this month, and the platform is set to make its debut with Bahamas First’s Cayman Islands subsidiary in February.

“We were planning to do it prior to the arrival of COVID-19,” he added, “but COVID just demonstrated to us it was something that was absolutely necessary and not something that was nice to have. It accelerated our plans and ultimate

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“It’s not cheap, but so far, so good. We’ve had good feedback from clients. A few thousand people have engaged with it, either making inquiries or trying to do a transaction. I think this is unavoidable down the road, whether a company or agent that makes the investment, someone has to do it and take the initiative to be at the forefront of this development.”

Focusing initially on auto and homeowners insurance policies, First Online offers policy quotes, purchases, payment transactions and claim reporting/initiation.

Users can engage with support teams by web chat or telephone during normal business hours.

“Self-service is no longer a ‘nice to have’ feature. It has become essential for any business that is serious about customer acquisition and support in the digital age,” said Mr Ward. “This was one of several key lessons that companies around the world learned during the pandemic of 2020.

“First Online is an important milestone in our strategies to build an insurance company for the future and support our agency network’s inperson expert service with an online option driven by technology and data.”

Gina Brooks, Bahamas First’s group manager of innovation, said: “First Online empowers our customers to transact insurance services effortlessly by providing continuous client access without the constraints of time or the client’s location.

“We have invested tremendously in the function of the platform, as well as in support and security, so the public can be confident that we can continue to meet their expectations for secure transactions and high-quality service.”

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GOV’T U-TURN ON GRAND LUCAYAN UNION APPEAL FROM PAGE ONE on condition of anonymity, said of the Government and hotel: “They’ve settled with the BHMA. Against that backdrop, there was no need for the BHMA to prosecute the appeal.

“They reached an agreement, the terms of which have not been disclosed, but it’s something the union is obviously happy with. It’s a new day, peace, love and harmony between the Government and the unions.”

The Government’s sudden, sharp u-turn contrasts with the position taken under the former Minnis administration, where Lucayan Renewal Holdings and its then-Board was all set to vigorously contest the appeal by the middle management union and its members after Justice Petra Hanna-Adderley ruled in the resort’s favour at the Supreme Court level.

The 180-degree reversal appears to have occurred following the September 16 general election and change in government. The Davis administration signed a prolabour Memorandum of Understanding (MoU) with Mr Ferguson’s TUC and the National Congress of Trades Unions of The Bahamas (NCTUB) in August, committing to labour-friendly reforms if elected to office.

And Kirkland Russell, the BHMA’s vice-president and one of the plaintiffs in the legal battle against the Grand Lucayan, unsuccessfully contested the central Grand Bahama seat on the Progressive Liberal Party’s (PLP) behalf and now sits in the Senate as one of its representatives in the upper chamber.

Each BHMA member claimed five-figure sums averaging in the $40,000$50,000 range as a result of their termination from the resort, taking the total sum sought in their wrongful/ unfair dismissal claim into the $1m-plus range. It is unclear whether this is now the price tag that Bahamian taxpayers will have to pay

as a result of the decision to settle.

Michael Scott QC, the Grand Lucayan’s former chairman, last night told Tribune Business that the resort would have contested the BHMA appeal if the Minnis administration had been elected to office, as well as seeking to overturn the award of notice pay and wages - minus unemployment benefit payments - to Mr Russell for the period between the March 2020 COVID shutdown and termination.

“I stand by the decision of the then-Board to contest the appeal,” he said. “We were successful before the first judge, and we would have been successful on appeal.....

There was never any merit to the entire case. It was misguided, it was misconceived and there was never any judicial basis for bringing that action to begin with.

“This was an attempt to bring a meritless claim that they had somehow been treated unfairly, and it was never redundancy. We paid them out properly when we terminated them. The whole thing was completely and utterly misguided, and that was my opinion at the time.

“But this government is entitled in the interests of the public purse to bring finality to that issue. I imagine for those reasons it was only practical that they would settle or find a basis for settlement. That truly is in the discretion of the Government.”

Mr Ferguson, not surprisingly, disagreed. “It was contentious because Mr Scott took the view that once the union agreement expired there was no union, and he had no obligation to deal with the union. That was a fundamental error made,” the TUC chief added.

“The registration of the union is separate and apart from a collective industrial agreement. The union does not need an industrial agreement for it to be a union... It was a total misunderstanding. It was like a sentence without a subject. It didn’t make sense. We had a

certificate of registration for the union, determining its validity and existence, but he came in and said we’re not following this.”

Justice Hanna-Adderley, in a June 3, 2021, verdict, denied virtually all claims by the BHMA and its members stemming from the Grand Lucayan Board’s decision to terminate most of the workforce in June 2020 in accordance with the terms of the now-defunct sales agreement with ITM/Royal Caribbean.

She dismissed the case brought by three managers because they had been retained by the Grand Lucayan, and were still working there, while three BHMA executives and trustees had no standing to bring an action because they were never employed by the resort.

And she dismissed virtually all other claims after finding that most managers had signed a “deed of release”, barring them from bringing future legal actions against the Grand Lucayan, in order to receive their termination pay and other benefits. Justice HannaAdderley found there was no evidence to support allegations they were “coerced” into signing the releases.

The only BHMA member not to correctly sign a “deed of release” was Mr Russell, former Grand Lucayan head chef.

While finding that Mr Russell was entitled to notice pay, and his wages - minus unemployment benefit payments - for the three-month period between the COVID19 shutdown in March 2020 and his termination, Justice Hanna-Adderley said he was not released because of redundancy but the “temporary cessation” of the Grand Lucayan’s business due to the global pandemic.

As a result, this meant Mr Russell’s wrongful and unfair dismissal claims, as well as his bid to be reinstated and the BHMA’s claim that the resort breached the Employment Act by failing to consult with it prior to the terminations, all fell away.

Wednesday, January 26, 2022, PAGE 5

PAGE 6, Wednesday, January 26, 2022

CONSTRUCTION VAT SILENCE BRANDED ‘UNCONSCIONABLE’

FROM PAGE ONE for one of those due to COVID-19.

“We’re not going cap in hand on bended knee to ask for a favour from the Government,” Mr Hutton added. “This is what they told us was going to happen, so let’s make it happen. We are not begging for something that we are supposed to be getting. There are a bunch of people right now that are very angry about it.”

With inflation beginning to bite, the Abaco Chamber chief argued that the removal of VAT ‘zero ratings’ and exemptions on breadbasket foods, medicines and other essentials “has certainly taken some wind out of the sails of the economy here”.

“The increase in inflation across the board has certainly not helped,” Mr Hutton said,”so any kind of assistance would certainly be beneficial to getting this place back up and running. Fuel is up 40 percent year-over-year, food is up essentially 20 percent, building materials since December are up 35-40 percent. The supply chain challenge everyone is facing means securing these materials is a challenge.

“Shipping costs are up 10 percent. It’s a challenge, it really is. It’s just another challenge that we’re facing in Abaco that we will have to deal with, and we will.

We’re not going to quit.

That’s not even in our consideration.”

The latest Disaster Reconstruction Authority (Special Economic Recovery Zone) Order 2022, which took effect on New Year’s Day, revealed that the VAT ‘zero rating’ treatment for construction

THE TRIBUNE services effectively came to an end on New Year’s Eve. Services provided in 2021 must have been invoiced before year-end, and paid in full by end-March 2022, for the VAT relief to apply.

The end to the ‘zero rating’ means home owners and businesses in Abaco and Grand Bahama will now have to pay 10 percent VAT on contractors’ labour and other service costs.

This creates a potentially significant hike in rebuilding costs as labour typically accounts for around 50 percent of the contractor’s price. With all VAT-registrant contractors now having to charge their Abaco and Grand Bahama customers the 10 percent levy, this could deter persons from hiring such tradespersons, potentially impacting the quality and standard of reconstruction.

The Ministry of Finance, in a statement responding to the outcry, pointed out that VAT and other tax breaks on physical goods imports, such as building materials; furniture; furnishings and appliances; hardware supplies; electrical fixtures and materials; and plumbing fixtures and materials had been extended until December 1, 2022.

However, it seemed to imply that the reimposition of VAT on construction services would only impact a small minority of wealthy homeowners who could afford to pay the tax. “It should be noted that the vast majority of persons in the impacted areas, in repairing their property, will purchase materials and employ labour to effect the repairs,” the Ministry of Finance said.

“With the extension of the SERZ Order, those persons will not be affected

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because building materials will remain tax free and VAT is not charged on labour in these circumstances. The removal of the zero-rating on construction services is expected to impact a minority of cases, mostly high-end properties.

“The Ministry of Finance will continue to process applications for relief under the SERZ on a case-bycase basis and consider any application for special consideration on its merits.”

Pro-government Internet and social media blogs subsequently leapt to its defence, asserting that only the likes of foreign second homeowners at Baker’s Bay would be impacted by the reinstatement of VAT and construction services while suggesting that the Government was giving away too much in tax concessions and needed to safeguard its revenues.

However, some 98 percent of Abaco businesses and home owners surveyed by the Chamber said reinstating 10 percent VAT on construction services will “significantly influence” whether they rebuild or not.

The findings revealed more than three-quarters of respondents - almost 77 percent - were either “very concerned” or felt the tax break’s loss would prevent them from being able to afford their reconstruction plans.

Some 20.51 percent - over one-fifth - fell into the category of being unable to rebuild. The survey also found 71 percent were financing post-Dorian rebuilding from their own pockets, with just 16 percent having access to bank/ debt funding and the remaining 13 percent able to rely on proceeds from insurance settlements.

Asked about the value of their reconstruction projects, some 66 percent or two-thirds said these were valued at $500,000 or below, with just onethird above this threshold.

And the Abaco Chamber’s survey drew 100 percent unanimous responses when persons were asked if construction services should remain VAT-free and if they planned to use such services within the next 12 months.

THE TRIBUNE

Wednesday, January 26, 2022, PAGE 7

BAHAMAS CORRUPTION: ‘FULL PICTURE NOT TOLD’ FROM PAGE ONE in successive reports for having a “political system beleaguered by reports of corruption” and a culture of “accepting small-scale ‘bribes of convenience’”.

Based on the Transparency International rankings, some observers will argue that the US has little standing to point accusing fingers at The Bahamas. However, Mr Aubry yesterday voiced concern that this nation’s ranking among the world’s top-sixth least corrupt nations could lull it into a false sense of security, and a desire to retain “the status quo”, when all is not well.

The ORG chief, pointing out that the same Transparency International found The Bahamas leads the Latin American and Caribbean region for paying “bribes of convenience” to public officials as recently as 2019, said studies conducted by the group “clearly show citizens are not happy” about the unfairness and graft they encounter in dealing with this nation’s public bodies.

Suggesting that The Bahamas’ static position in the rankings shows it is not making meaningful progress in cracking down on corruption and related activities, Mr Aubry urged the Government to go beyond “piecemeal” reforms and instead adopt a comprehensive “anti-corruption strategy” complete with legislative reforms such as the long-awaited Integrity Commission.

Calling on The Bahamas to “seize this critical opportunity”, he added that such changes would show The Bahamas is serious about cracking down on corruption that is estimated to cost the country “hundreds of millions of dollars” annually.

This, in turn, would help attract “the best and brightest” in foreign direct investment (FDI) and “unleash the full creativity of the private sector” at a time when the country most needs a major economic boost following the COVID-19 pandemic’s devastation.

“It’s a where it takes a bit of the pressure off,” Mr Aubry explained of The Bahamas’ Transparency International ranking. “We can say we’re 30th in the world and that’s not bad.

But it doesn’t tell the full picture, it doesn’t speak to the full impact on citizens.

“We’ve done studies, and it’s clear citizens are not happy. We are confronted with a sense that things are not equal, and inequities breed less trust in government, and that’s where things break down.

There’s less compliance, less belief in reforms and things that are put forward.

“We have to change perceptions locally and internationally. Being 30th in the world may mean we’re not the Democratic Republic of Congo or South Sudan, but it means that we want to move this needle when we’ve been in the same space for a while, moving one place up, one place down. It [the ranking] reinforces the status quo,” he added.

“There’s a massive opportunity for The Bahamas if we want to grow.

There are a lot of things happening today, so that people would start to believe in a new way and culture of integrity, but we haven’t marshalled them.... If we do it piecemeal we won’t be seen as addressing this issue, and making it a top-line issue that The Bahamas wants to promote.”

The former Minnis administration brought Bills to establish an Integrity Commission, which would receive and vet corruption-related complaints against the likes of ministers, MPs and public officials, as well as the creation of an Ombudsman to redress complaints by citizens over their treatment by government agencies, to Parliament but they were never debated or passed into law.

These Bills fell off the legislative agenda when the House of Assembly was prorogued for the September 16 general election. The Davis administration, when in Opposition, promised to revive these Bills and pass a package of anti-corruption laws within 100 days of taking office but that timeframe has now gone and it is uncertain where this falls on its list of priorities.

Mr Aubry, voicing fears that other countries will bypass The Bahamas while it remains static in the Transparency International rankings, argued that this nation needs to pass “a national anti-corruption strategy that takes out the political rhetoric” and places decisions on graft-related complaints in “apolitical” hands.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The public is hereby advised that I, RASHA ANTONIQUE KNOWLES of P.O. Box CB-12143, Sandilands Village, Nassau, Bahamas, intend to change my name to RASHAE ANTONIQUE KNOWLES. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of the publication of this notice.

NOTICE

NOTICE is hereby given that NAZAIRE FERTILUS of P. O. BOX N-10326, Golden Gates No. 1, 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 26th day of January, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE NOTICE is hereby given that HEPZ STANLEY RENAUD of South Beach, Nassau, 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 26th January, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

He added that ORG had recently met with the parliamentary speaker in the Turks & Caicos Islands, who voiced enthusiasm for the benefits its Integrity Commission-equivalent has brought. “It’s a measure of corruption perceptions,” Mr Aubry said of Transparency International.

“Perception is something we have to take seriously because it affects our competitiveness.

“When you look at the index, it’s important to understand we’re being rated against other countries. Our position is based as it relates to what other countries are doing. There are lots of bad actors in that list, and we don’t want to fall into that category, but it doesn’t meant our perception of corruption doesn’t matter when we’re seeking to attract the best and brightest FDI and unleash the full creativity of the private sector.”

Many Bahamians, residents and foreign investors will speak privately about the low-level, everyday corruption they have encountered when seeking to obtain government permits and services. And Mr Aubry referred to the 2019 Transparency International survey that found The Bahamas led the Western Hemisphere in “paying bribes without being asked”.

“It’s a matter of course, where people believe it’s the system and just follow through,” Mr Aubry said of an endemic culture that he described as a “pay to play” environment.

“There’s this low level corruption that most of our citizens expect to run into at public offices,” he added.

Acknowledging the Government’s efforts to digitise many such services to reduce the opportunity for corruption, the ORG chief said: “People’s perceptions are that this is always how government operates.

We have to do something to change the paradigm and put forward something to say how we grow this culture of integrity.”

While some would argue there are more pressing issues to address amid the ongoing COVID-19 pandemic, Mr Aubry argued that The Bahamas “doesn’t have that opportunity, that surplus” to continue losing hundreds of millions of dollars annually due to the waste of taxpayer funds, contracts being awarded to the least qualified bidders

and investors that went elsewhere.

Describing The Bahamas’ relatively small 400,000 population size as “both a blessing and a curse”, he added it was harder to protect evidence and encourage whistleblowers to come forward in a society where everyone knows each other and many persons are connected by interlocking family relationships.

But commerce and society, Mr Aubry said, flourish best in an environment “not based on who you know or have to pay because corruption is the rule of the day.... where you can grow your business in a direct way without having to find doors for access and opportunity.

“That opens the door for less than best-in-class, who can then settle in and not worry about diligence and being the best corporate partner,” he added.

THE TRIBUNE

Wednesday, January 26, 2022, PAGE 9

FIVE POLICY PRIORITIES FOR BAHAMAS IN ‘22 FROM PAGE TWO mismanaged public service leads to increased corruption, non-compliance with laws and wastage of taxpayer money through recurrent expenditure on non-performing civil servants.

Past studies have estimated that 20% of the Bahamian public service is under-performing. In 2019, the Inter-American Development Bank (IDB) rated civil service development to be low with a score of 19 out of 100. Functional capacity and management capabilities were identified as the most critical areas

of need. The IDB offered recommendations for improvement using seven indices that included: Efficiency, merit, structural consistency, functional capacity, integrative capacity, management capabilities and diversity management.

Additionally, the Government of The Bahamas is the largest employer in the country with the public service accounting for a significant portion of annual expenditure. Subsequent administrations have been reluctant to reduce the public service even in the face of significant under-performance.

The draft National Development Plan of The Bahamas refers to the many limitations in the public service and identifies several specific recommendations.

In response, the Government has looked to improve the performance of government agencies through the development and work of the Deliverables Unit and the Public Financial Management and Performance Monitoring Reform (PFM/ PMR) project. These programmes have been in place for several years, but levels of success have not been easy for the public to discern.

well-managed public service. ORG contends that The Bahamas would be well served by developing a strong open plan, anchored by legislation and the recommendations of the draft National Development Plan, for public service improvement across all government agencies and state-owned enterprises (SOEs), which would be co-ordinated via the Deliverables Unit.

ORG offers the above policy recommendations as feasible, and imminently actionable, opportunities for the gGvernment to improve the conditions and democracy of its citizens, and support the growth and success of the private sector.

Additionally, the policy actions are opportunities to

Strong legislation can ensure that improvement of the public service is seen as a priority by being grounded in statute. There are several relevant policy examples that can be used as benchmarks including the Public Service Bill, which was tabled in The Bahamas in 2010, or the State Sectors Act from New Zealand, which was the key to reform of their public service. As such, ORG is currently benchmarking these and other pieces of policy to complete a report with recommendations for legislative improvements to support a more effective, efficient and

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 65° F/18° C Low: 57° F/14° C

TAMPA

FRIDAY

SATURDAY

SUNDAY

Mostly cloudy with a shower or two

Cloudy with a couple of downpours

Variable clouds with brief showers

Nice with sun and some clouds

Very windy; not as warm

Sun and areas of low clouds

High: 80°

Low: 68°

High: 79° Low: 66°

High: 79° Low: 64°

High: 71° Low: 57°

High: 69° Low: 58°

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

81° F

67° F

82°-70° F

83°-56° F

67°-50° F

67°-56° F

The exclusive AccuWeather RealFeel Temperature® is an index that combines the effects of temperature, wind, humidity, sunshine intensity, cloudiness, precipitation, pressure and elevation on the human body—everything that affects how warm or cold a person feels. Temperatures reflect the high and the low for the day.

almanac

E

W

ABACO

S

N

High: 75° F/24° C Low: 70° F/21° C

7-14 knots

S

High: 74° F/23° C Low: 63° F/17° C

6-12 knots

FT. LAUDERDALE

FREEPORT

High: 77° F/25° C Low: 65° F/18° C

E S

E

W

WEST PALM BEACH

W

uV inDex toDay

THURSDAY

N

N

| Go to AccuWeather.com

TONIGHT

High: 66° F/19° C Low: 56° F/13° C

High: 77° F/25° C Low: 67° F/19° C

MIAMI

High: 78° F/26° C Low: 65° F/18° C

7-14 knots

Statistics are for Nassau through 1 p.m. yesterday Temperature High ................................................... 73° F/23° C Low .................................................... 53° F/12° C Normal high ....................................... 77° F/25° C Normal low ........................................ 65° F/18° C Last year’s high ................................. 81° F/27° C Last year’s low ................................... 64° F/18° C Precipitation As of 1 p.m. yesterday ................................. 0.00” Year to date ................................................. 3.50” Normal year to date ..................................... 1.05”

ELEUTHERA

NASSAU

High: 80° F/27° C Low: 68° F/20° C

Forecasts and graphics provided by AccuWeather, Inc. ©2022

High: 78° F/26° C Low: 72° F/22° C

N

KEY WEST

High: 77° F/25° C Low: 69° F/21° C

High: 79° F/26° C Low: 72° F/22° C

N

S

E

W

6-12 knots

S

4-8 knots

ANDROS

Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

The higher the AccuWeather UV IndexTM number, the greater the need for eye and skin protection.

tiDes For nassau High

Ht.(ft.)

Low

Ht.(ft.)

Today

1:46 a.m.

1:58 p.m.

2.6 2.1

8:11 a.m. 0.2 8:15 p.m. -0.3

Thursday

2:49 a.m.

3:04 p.m.

2.8 2.1

9:20 a.m. 0.1 9:17 p.m. -0.4

Friday

3:54 a.m.

4:11 p.m.

2.9 2.1

10:27 a.m. 0.0 10:21 p.m. -0.5

Saturday

4:56 a.m.

5:14 p.m.

3.1 2.2

11:29 a.m. -0.2 11:23 p.m. -0.7

Sunday

5:55 a.m.

6:14 p.m.

3.2 2.4

12:26 p.m. -0.4 ---------

Monday

6:49 a.m.

7:10 p.m.

3.3 2.5

12:21 a.m. -0.8 1:19 p.m. -0.6

Tuesday

7:41 a.m.

8:03 p.m.

3.3 2.6

1:17 a.m. -0.9 2:09 p.m. -0.7

sun anD moon Sunrise Sunset

6:55 a.m. Moonrise 5:50 p.m. Moonset

1:10 a.m.

12:29 p.m.

New

First

Full

Last

Feb. 1

Feb. 8

Feb. 16

Feb. 23

CAT ISLAND

E

W

respond to needs identified in the National Development Plan: Vision 2040 and, subsequently, the United Nations (UN) Sustainable Development Goals.

As polices are developed, ORG encourages the broadest engagement of the public through consultations and education so that their input and interests can be fully considered.

ORG recognises the vital importance of civil society and private sector collaboration with government, and stands ready and available to apply our time and resources in partnership to advance these policy opportunities work toward a brighter future in The Bahamas.

SAN SALVADOR

GREAT EXUMA

High: 79° F/26° C Low: 72° F/22° C

High: 79° F/26° C Low: 73° F/23° C

N

High: 81° F/27° C Low: 67° F/19° C

E

W S

LONG ISLAND

tracking map

High: 80° F/27° C Low: 72° F/22° C

4-8 knots

MAYAGUANA High: 79° F/26° C Low: 74° F/23° C

Shown is today’s weather. Temperatures

CROOKED ISLAND / ACKLINS

are today’s highs and tonight’s lows.

RAGGED ISLAND High: 80° F/27° C Low: 74° F/23° C

GREAT INAGUA High: 83° F/28° C Low: 73° F/23° C

N

L

N E

W

E

W

H

High: 79° F/26° C Low: 73° F/23° C

S

S

6-12 knots

6-12 knots

marine Forecast ABACO ANDROS CAT ISLAND CROOKED ISLAND ELEUTHERA FREEPORT GREAT EXUMA GREAT INAGUA LONG ISLAND MAYAGUANA NASSAU RAGGED ISLAND SAN SALVADOR

Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday: Today: Thursday:

WINDS E at 6-12 Knots ENE at 6-12 Knots SE at 6-12 Knots SSE at 4-8 Knots SE at 4-8 Knots SE at 4-8 Knots E at 6-12 Knots E at 4-8 Knots SE at 4-8 Knots S at 4-8 Knots SSE at 6-12 Knots NE at 6-12 Knots SE at 4-8 Knots SSE at 3-6 Knots NE at 6-12 Knots ENE at 6-12 Knots ESE at 4-8 Knots E at 4-8 Knots ENE at 4-8 Knots ENE at 4-8 Knots SSE at 6-12 Knots SSW at 4-8 Knots E at 6-12 Knots E at 4-8 Knots SE at 4-8 Knots SSE at 4-8 Knots

WAVES 2-4 Feet 1-3 Feet 0-1 Feet 0-1 Feet 2-4 Feet 1-3 Feet 1-3 Feet 1-3 Feet 2-4 Feet 2-4 Feet 1-2 Feet 1-2 Feet 0-1 Feet 0-1 Feet 1-3 Feet 1-3 Feet 1-3 Feet 1-3 Feet 3-5 Feet 2-4 Feet 0-1 Feet 1-2 Feet 1-2 Feet 1-3 Feet 1-2 Feet 1-2 Feet

VISIBILITY 8 Miles 9 Miles 8 Miles 10 Miles 8 Miles 10 Miles 10 Miles 10 Miles 8 Miles 7 Miles 8 Miles 9 Miles 9 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 8 Miles 8 Miles 10 Miles 10 Miles 8 Miles 9 Miles

WATER TEMPS. 76° F 75° F 74° F 76° F 79° F 79° F 79° F 79° F 77° F 77° F 77° F 77° F 79° F 79° F 81° F 81° F 80° F 81° F 78° F 78° F 77° F 77° F 80° F 80° F 78° F 78° F

PAGE 10, Wednesday, January 26, 2022

Unions voices concern on civil service reforms

FROM PAGE ONE

have to respond to what they do. If they don’t follow the policies and procedures for how people move, we’ll have some concerns.

“For us, if it’s not consistent with the rules and regulations, we’ll have something to say. If they’re going to go out and move people, they must know what they’re doing. As a major stakeholder, and a key stakeholder in what is happening, we have a role to play in how things move around in the public sector.

I want to see what they’re going to do.”

Mrs Glover-Rolle last week unveiled a strategy designed to transform the public service’s culture, and boost morale, by ensuring that workers are deployed into the jobs and roles most suited to their specific skill-sets.

The plan also seeks to improve management of the Government’s real estate, with between $9m$12m worth of leases currently being reviewed at the Attorney General’s Office for potential cancellation. Mrs Glover-Rolle blamed “bad management” by the previous administration for securing leases, and making payments, on properties not being used by the Government.

“Cries for reform in the public service are becoming deafening from both our internal and external stakeholders,” she said. “We are at a critical point with the future of the service hanging in the balance, and there’s no more time for talk. Focused, deliberate,

aggressive action is the only solution. But that action will take lots of work, lots of strategising, and lots of change management.

“So, the Ministry of Public Service, under this ‘New Day’ administration, as noted in our Blueprint for Change and expanded in the ‘New Day’ agenda for the public service, speaks to a reimagining of how we run the public service in every aspect and function, bringing us into a 21st century model for efficiency and productivity.”

Several “units” have been created to drive the reforms. They include the accommodations unit, tasked with making better use of the Government’s office spaces and improving working conditions; the labour relations unit, assigned the job of improving local labour relations; and the career path development and training unit.

The latter will be responsible for clearing the promotions backlog in the public service, developing career paths and better integrating existing training opportunities into the government internship and hiring processes.

Other units include the contributory pension plan unit, charged with reforming and expanding access to the public sector pension plan; the special project human resources unit, which is responsible for solving longstanding human resources matters, and the ‘New Day’ delivery unit, mandated with assisting in various human resources and communicationsrelated areas.

THE TRIBUNE

STOCK INVESTORS’ NERVES TESTED

BY INFLATION, OMICRON, RUSSIA

By STAN CHOE AND PAUL WISEMAN Associated Press NEW YORK (AP) — The stock market is losing crucial support from the Federal Reserve. Omicron is causing havoc at businesses around the world. And Russia just might be preparing to invade Ukraine, creating more uncertainty and raising the prospect of even higher oil prices.

No wonder investors are freaking out — and selling stocks.

The S&P 500 has dropped nearly 10% from its record set on the first trading day of the year, the biggest setback for Wall Street since its collapse when the pandemic first struck. And the market's moves have been fierce amid the mounting uncertainty.

The S&P 500 had four straight drops of 1% through Friday, the longest such streak since late 2018. The streak broke only after the S&P 500 eked out a slight gain on Monday, when a furious 11th-hour rally erased what had been a 4% loss. Tuesday was another volatile, down day for stocks.

For nearly two years, investors had poured money into stocks, confident that the Federal Reserve would help keep share prices upright. The Fed's superlow interest rates and the rapid U.S. economic recovery from the pandemic recession made stocks a more lucrative bet than safer investments such as low-yielding bonds.

The S&P 500 more than doubled between its pandemic low in March 2020 and the end of last year.

But the Fed is now threatening to end the party.

Determined to cool down the hottest inflation in four decades, the U.S. central bank is moving away from its easy money policies and

A PEDESTRIAN passes the New York Stock Exchange, Monday, Jan. 24, 2022, in New York. The stock market is losing crucial support from the Federal Reserve. Omicron is causing havoc at businesses around the world. And Russia just might be preparing to invade Ukraine, creating more uncertainty and raising the prospect of even higher oil prices.

Photo:John Minchillo/AP preparing to raise interest rates. And that spells trouble for the stock market.

As rates rise, bonds will look more attractive, likely encouraging investors to shift money out of riskier areas of the market.

Worse, higher rates are likely to slow the U.S. economy, reducing consumer spending — and hurting the corporate profits that drive stock prices. The prospect of higher rates is one reason the International Monetary Fund on Tuesday slashed its forecast for U.S. economic growth this year to 4% from the 5.2% it had predicted in October.

The unknowns are daunting: The Fed hasn't had to raise interest rates sharply to combat inflation since the early 1980s, and policymakers have no experience at all dealing with the aftershocks of a global pandemic. Omicron and other COVID-19 variants threaten to disrupt

business activity in unpredictable ways.

As if all that weren't enough, tension over Russia's threat to invade Ukraine — and the likelihood that the United States will retaliate with sanctions — could send oil prices higher and put more pressure on the global economy.

Investors don't see the volatility going away soon.

The VIX index, which measures how much investors are paying to protect against drops for stocks in the upcoming 30 days, recently touched its highest level since October 2020.

The heaviest losses in the market's swift readjustment have hit the big, fast-growing companies that were earlier the biggest stars of the pandemic. Amazon has lost nearly 18% since Jan. 3, and Tesla has lost more than 23%. Netflix, another pandemic darling, is down nearly 39%.

The damage has been widespread, with the most speculative corners of the market hit in particular. Bitcoin has fallen by more than 40% since hitting an alltime high in November. The smaller companies in the Russell 2000 index, many of which are losing money, have lost 18% since peaking in early November.

And the "meme stocks" that rocketed higher almost exactly a year ago have also come down. GameStop has lost nearly a third of its value so far in 2022, and AMC Entertainment is down 41%.

"It's scary a little bit,'' said investor Emily Binder, 34, of Austin, Texas, who puts money in a wide range of investments - from stocks to bitcoin. But she says things were a lot scarier when COVID-19 hit the U.S. economy and shook markets in early 2020.