Ex-top Gaming Board official in $42,000 wrongful dismissal FROM PAGE A24

his dismissal and did not afford him the requisite notice set out in the Employment Act. Further, and in contrast to Gaming’s contentions that he was purportedly paid benefits commensurate with his years of service, he was not as his vacation pay was reduced by some $42,404.”

Mr Scott sued on the basis that this was wrongfully deducted, but the Gaming Board insisted that his vacation pay should be based on when it was accrued not his current rate of pay. The former secretary said he “objected strenuously” to this, but was told by the chairman in response: “Well, you contact your lawyer.” The chairman is not named, but is thought likely to have been former MP, Kenyatta Gibson. And Mr Scott also asserted that “in some cases I was directed not to take vacation due to industry matters such as regularisation of domestic gaming and opening of Baha Mar. In fact, in every such case my inability to proceed on vacation was duly noted and approved by the appointed Board”. Giving evidence on Mr Scott’s behalf, Georgette Dorsett-Johnson, a former assistant secretary of the Gaming Board’s administrative services division until she was placed on leave at the same time as the ex-secretary, said vacation pay was always calculated on an employee’s current pay rather

“The fuel charge under-recovery will be recovered via the recently implemented glide path recovery mechanism, which will be used to pay for current and overdue balances to the supplier,” the minister said, referring to Shell. “What the Government has done is top-up the existing facilities to BPL.

“I am referring specifically to the 2019 and the 2021 loans. These loan facilities provided BPL with additional cash to meet its obligations. The arrangements of these loans are the subject of ongoing negotiations between BPL and the Ministry of Finance.”

Mr Sears provided no specifics on the nature of these discussions, while noting that BPL’s government credit lines were put in place by the former Minnis administration. He later reiterated: “This is not a subsidy, but a top-up of the existing facility by way of a loan which was entered into in 2019 and 2021. The present value of the facility is pegged at $100m. To date, approximately $50m has been advanced to BPL.”

Stating that what he described as “interim funding” complied with regulations requiring BPL to adjust its fuel charge “to recover all prudently incurred fuel costs”, the minister added: “That is, the interim funding will be repaid from the funds recovered via the fuel charge.”

Mr Sears, in what appeared to be carefullyworded answers to the Opposition’s questions, did not link BPL’s $50m drawdown on the loan facilities provided by the Government or their recovery to the ongoing fuel hedging controversy. Indeed, he avoided any mention of the word “hedge” in his statements, which were read out in the House of Assembly during the morning session.

However, well-placed BPL sources said Mr Sears was clearly indicating that the fuel charge hikes imposed on electricity customers this year are designed at least in part to recover the Government’s $50m advances. Given that the increases are also designed to repay $90m in unpaid fuel bills due to Shell, it appears that the rolling series of fuel charge rises could be seeking to recover as much as $140m via BPL’s household and business consumers.

Based on Mr Sears’ disclosures, one well-placed source told Tribune Business yesterday: “What we are paying in these additional fuel charges is to recover the Government’s fees for that debt and the loan, which is what we suspected. That’s what it sounds like to me, based on what he’s saying. When they

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put forward these additional fuel charges everyone was trying to figure out how they made those calculations.”

Other Tribune Business contacts said the two BPL loan facilities identified by Mr Sears were each worth $30m when set-up under the former Minnis administration in 2019 and 2021. They added that only $30m was outstanding, and due to government, when the former administration was voted out in the September 16, 2021, general election, implying that a further $20m drawdown has occurred under the Davis administration.

“It was a float to help BPL remain solvent and pay its bills,” one contact said, adding that this was supposed to have been fully paid-off via BPL’s now-aborted $535m rate reduction bond (RRB) refinancing. They pointed out that BPL has been close to financial meltdown for years across multiple administrations, with its cash flow insufficient to pay all its vendors and debt servicing costs alone amounting to around $2m.

“The reality is that BPL has had financial challenges for years, for decades,” one source said. “It is still spiralling downwards from there. Nobody has put forward a comprehensive solution to resolve it, and whatever resolutions come to the fore, no government commits to them. It’s a challenge the than at the time when it was accrued. Two current Gaming Board employees, its deputy secretary and senior salary administrator, gave evidence for the regulator.

Sir Ian, while accepting the Gaming Board’s evidence that Mr Scott was dismissed as part of a restructuring, found he was not properly compensated for vacation pay. “It was evident that Scott’s duties that kept him tethered to the Gaming Board and not country is going to continue to face.

“It’s one of those things that has to be communicated to the public that, at some point in time, to resolve the problem it’s going to cost people some money. There needs to be a realistic conversation with the public about what it takes to fix BPL once and for all. It’s just one of those things.”

Mr Sears yesterday did not explain what has caused such sharp hikes in BPL’s 2023 fuel charges other than to blame the early 2022 increase in global oil prices sparked by Russia’s invasion of Ukraine. He again sought to justify the Government’s decision to delay passing on increased fuel costs to BPL’s customers so as to give them more time to recover from COVID-19’s ravages.

“In order to insulate consumers from the impact of rapidly-rising fuel costs brought on by the Ukraine crisis, we delayed the passthrough to coincide with the economy’s emergence from the shocks brought on by Hurricane Dorian and the COVID-19 pandemic,” the minister confirmed.

This meant holding BPL’s fuel charge at 10.5 cents per kilowatt hour (KWh) for at least an extra seven to eight months, even though the Government had not executed the trades to purchase extra cut-price fuel volumes that were essential to hold the charge at this level. As a result, the fuel bills paid

MONDAY, 20 FEBRUARY 2023 CLOSECHANGE%CHANGEYTDYTD% BISX ALL SHARE INDEX: 2671.551.800.0726.491.00 BISX LISTED & TRADED SECURITIES 52WK HI52WK LOWSECURITY SYMBOLLAST CLOSECLOSECHANGE VOLUMEEPS$DIV$P/EYIELD 7.005.30 AML Foods Limited AML 6.95 6.950.00 0.2390.17029.12.45% 53.0040.06 APD Limited APD 39.95 39.950.00 0.9321.26042.93.15% 2.762.04Benchmark BBL 2.76 2.760.00 3000.0000.020N/M0.72% 2.652.31Bahamas First Holdings Limited BFH 2.65 2.46 (0.19) 2,2760.1400.08017.63.25% 3.322.25Bank of Bahamas BOB 3.02 3.320.30 1,0000.0700.000N/M0.00% 6.306.00Bahamas Property Fund BPF 6.30 6.300.00 1.7600.000N/M0.00% 9.808.78Bahamas Waste BWL 9.65 9.650.00 0.3690.26026.22.69% 4.503.25Cable Bahamas CAB 4.09 4.240.15 1,923-0.4380.000-9.7 0.00% 10.657.50Commonwealth Brewery CBB 10.23 10.230.00 0.1400.00073.10.00% 3.652.54Commonwealth Bank CBL 3.58 3.580.00 0.1840.12019.53.35% 9.307.01Colina Holdings CHL 8.50 8.500.00 0.4490.22018.92.59% 17.5012.00CIBC FirstCaribbean Bank CIB 15.99 15.990.00 0.7220.72022.14.50% 3.252.05Consolidated Water BDRs CWCB 3.04 3.060.02 0.1020.43430.014.18% 11.2810.05Doctor's Hospital DHS 10.50 10.500.00 0.4670.06022.50.57% 11.679.16Emera Incorporated EMAB 9.94 9.950.01 0.6460.32815.43.30% 11.5010.75Famguard FAM 11.20 11.200.00 0.7280.24015.42.14% 18.3014.50Fidelity Bank (Bahamas) LimitedFBB 18.10 18.100.00 0.8160.54022.22.98% 4.003.55Focol FCL 3.98 3.980.00 0.2030.12019.63.02% 12.1010.00Finco FIN 12.10 12.100.00 0.9390.20012.91.65% 16.2515.50J. S. Johnson JSJ 15.76 15.760.00 0.6310.61025.03.87% PREFERENCE SHARES 1.001.00Bahamas First Holdings PreferenceBFHP 1.001.000.00 0.0000.0000.0000.00% 1.001.00Colina Holdings Class A CHLA 1.001.000.00 0.0000.0000.0006.25% 10.0010.00Fidelity Bank Bahamas Class A FBBA 10.0010.000.00 0.0000.0000.0007.00% 1.001.00Focol Class B FCLB 1.001.000.00 0.0000.0000.0006.50% CORPORATE DEBT - (percentage pricing) 52WK HI52WK LOWSECURITY SYMBOLLAST SALECLOSECHANGEVOLUME 100.00100.00Fidelity Bank (Note 22 Series B+)FBB22 100.00100.000.00 100.00100.00Bahamas First Holdings LimitedBFHB 100.00100.000.00 BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92104.79Bahamas Note 6.95 (2029) BAH29 107.31107.310.00 100.00100.00BGS: 2014-12-7Y BG0107 100.00100.000.00 100.00100.00BGS: 2015-1-7Y BG0207 100.00100.000.00 100.00100.00BGS: 2014-12-30Y BG0130 100.00100.000.00 100.00100.00BGS: 2015-1-30Y BG0230 100.00100.000.00 100.00100.00BGS: 2015-6-7Y BG0307 100.00100.000.00 100.00100.00BGS: 2015-6-30Y BG0330 100.00100.000.00 100.00100.00BGS: 2015-10-7Y BG0407 100.00100.000.00 95.0093.54BGRS FX BGR120037 BSBGR1200371 94.9994.990.00 250 100.12100.12BGRS FL BGRS88037 BSBGRS880378100.03100.030.00 94.1594.09BGRS FX BGR132139 BSBGR1321391 93.3693.360.00 101.55101.42BGRS FX BGR124228 BSBGR1242282 101.45101.450.00 103.49103.38BGRS FX BGR118027 BSBGR1180276 102.70102.700.00 92.6792.67BGRS FX BGR131239 BSBGR1312390 92.5592.550.00 90.9890.98BGRS FX BGR132249 BSBGR1322498 90.9590.950.00 94.8094.80BGRS FX BGR134140 BSBGR1341407 93.9493.940.00 100.39100.39BGRS FX BGR138230 BSBGR1380306 100.39100.390.00 96.8496.84BGRS FX BGR138240 BSBGR1380405 96.1096.100.00 100.32100.32BGRS FL BGRS81035 BSBGRS810359100.66100.660.00 100.34100.34BGRS FL BGRS81037 BSBGRS810375100.17100.170.00 100.57100.57BGRS FL BGRS84033 BSBGRS840331100.15100.150.00 MUTUAL FUNDS 52WK HI52WK LOW NAV YTD%12 MTH% 2.592.11 2.593.87%3.87% 4.903.30 4.904.87%4.87% 2.271.68 2.273.03%3.03% 203.47164.74 195.65-3.84%-3.84% 212.41116.70 180.14-15.19%-15.19% 1.771.71 1.773.07%3.07% 1.981.81 1.988.44%8.44% 1.881.80 1.884.42%4.42% 1.030.93 0.95-7.23%-7.23% 9.376.41 10.188.63%8.63% 11.837.62 13.6115.01%15.01% 7.545.66 7.732.87%2.87% 16.648.65 13.13-20.87%-20.87% 12.8410.54 12.06-4.33%-4.33% 10.779.57 10.62-0.31%-0.31% 16.279.88 16.27N/AN/A 11.228.45 11.223.00%25.60% 14.8911.20 N/A N/A N/A MARKET TERMS BISX ALL SHARE INDEX 19 Dec 02 = 1,000.00 YIELD - last 12 month dividends divided by closing price 52wk-Hi - Highest closing price in last 52 weeks Bid $ - Buying price of Colina and Fidelity 52wk-Low - Lowest closing price in last 52 weeks Ask $ - Selling price of Colina and fidelity Previous Close - Previous day's weighted price for daily volume Last Price - Last traded over-the-counter price Today's Close - Current day's weighted price for daily volume Weekly Vol. - Trading volume of the prior week Change - Change in closing price from day to day EPS $ - A company's reported earnings per share for the last 12 mths Daily Vol. - Number of total shares traded today NAV - Net Asset Value DIV $ - Dividends per share paid in the last 12 months - Not Meaningful P/E - Closing price divided by the last 12 month earnings TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | CORALISLE 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333 Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F CFAL Global Equity Fund Leno Financial Conservative Fund Leno Financial Aggressive Fund Leno Financial Balanced Fund Leno Financial Global Bond Fund RF Bahamas Opportunities Fund - Secured Balanced Fund RF Bahamas Opportunities Fund - Targeted Equity Fund RF Bahamas Opportunities Fund - Prime Income Fund RF Bahamas International Investment Fund Limited - Equities Sub Fund RF Bahamas International Investment Fund Limited - High Yield Income Fund RF Bahamas International Investment Fund Limited - Alternative Strategies Fund INTEREST Prime + 1.75% being able to take leave on demand,” Sir Ian ruled.

“In fact, the correspondence in evidence shows that Scott was offered, on one occasion, compensation for 50 percent of his leave by then-chairman Terah Rahming. I accept that he was properly permitted to accrue the vacation due to the exigencies and demands of his high office as secretary to the Board. I was not persuaded that the Gaming Board acted ultra vires at the time in doing so.” by BPL’s customers were insufficient to repay Shell, the fuel supplier, in full and the debt owed to the latter began to accumulate.

Ruling that this had set a precedent that the Gaming Board could not ignore, Sir Ian ruled that there was no evidence produced to show Mr Scott’s vacation leave was to be based on the time at which it was accrued. With nothing to show this was policy or standard procedure, he added: “Such a practice would necessitate a reverse accounting of sorts which, on balance, I do not consider was ever the norm when calculating such benefits.” generate sufficient funds so as to clear the utility’s debt to Shell.

BPL, in early March 2022, sought to get ahead of the Shell debt accumulation by announcing a 30.4 percent, or 3.2 cent, increase in the fuel component of consumers’ bills to 13.7 cents per KWh. This, though, was rejected by the Government, with the Prime Minister pledging that it would “brainstorm” to come up with alternatives - which never materialised.

Mr Sears, though, yesterday denied that the magnitude of the correction - and fuel charge hikes set be experienced throughout 2023 - would have been less if BPL had implemented these adjustments earlier.

“The overall costs paid by Bahamians would remain the same regardless of the rate of recovery as the fuel costs are a direct passthrough,” he said.

“However, the monthly fuel charge (as in the case of the recently-announced glide path schedule rates) is dependent on the period set for the recovery. It is noted that the Government sought to hold the fuel charge constant to provide price stability to the consumer over a fixed period, and is now facilitating the recovery of the accrued amount over an equitable comparable period to dampen the impact of the same, as announced in October by the Prime Minister.”

The extent of BPL’s debts was disclosed in the recentlypublished Fiscal Strategy Report, which said: “The recent disclosure of approximately $150m of payment arrears of Bahamas Power & Light (BPL) represents a significant unbudgeted liability of the Government.

To ensure continued provision of essential electrical services to the public, the Government has committed to ensuring payment of this liability by the corporation.” The Davis administration vehemently denied that the bulk of this sum was accrued on its watch due to the decision not to execute the trades that would have underpinned BPL’s hedging initiative and the 10.5 cents per KWh fuel charge. It instead claimed much of the unpaid bills were built up under its Minnis predecessor, which the Opposition has rejected.

Mr Sears’ House of Assembly answers indicate that, besides the unpaid fuel bill owed to Shell, the $150m sum also includes monies owed to the Government and other vendors. While a portion was likely incurred under the Minnis and other administration, the evidence - especially the timing of the disclosure - strongly suggests that the majority built-up during this administration’s term.

The minister, meanwhile, said the Government has no plans to eliminate VAT on BPL’s fuel purchases as this would result in greater costs being passed on to consumers. “The Government has not removed VAT on fuel purchases because BPL charges VAT on the electricity which it produces, and the removal of VAT would impose on the suppliers of the fuel a cost increase which would be greater than the VAT on fuel,” Mr Sears said.

“This cost increase would be transferred to the consumers of electricity. It is to be remembered that VAT is charged on the importation of fuel, and disallowing VAT on the sale of fuel would lead to an increase in the price of fuel. Most fuel used for generation is diesel so this decision would impact other consumers, not just BPL.”