03252021 BUSINESS

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business@tribunemedia.net

THURSDAY, MARCH 25, 2021

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Digital transformation unit deficiencies ‘can lead to wrongdoing’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE agency responsible for the government’s digital transformation has yet to fully address admitted weaknesses in its procurement and supplier controls that “could open the door for wrongdoing”. Management at the Department of Transformation and Digitisation, responding to the “unsatisfactory” rating given by the Auditor General’s Office, pleaded guilty to deficiencies in its processes and the absence of policies to guide management of payments to its vendors. It pledged to write the necessary guidelines and policies by end-April 2021, and implement them together with a vendor management system - by

June 30 this year. Given that the Auditor General’s Office report assessed the period between July 1, 2018, and June 30, 2019, this is seemingly an admission that the vulnerabilities identified have yet to be fully addressed two years’ later. “The Department of Transformation and Digitisation acknowledges the deficiencies of its processes/ procedures,” the Auditor General’s Office report said of management’s response to its findings. “It is also agreed that there is a need for proper vendor management, the creation of policies and the establishment of a registry for easy access to the policies. “Management agreed that these weaknesses were not indicative of fraud, criminality or malfeasance

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GB airport deal labelled ‘pivotal to Freeport survival’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A PROMINENT Freeport hotelier yesterday said the government’s acquisition of Grand Bahama International Airport is “pivotal to the survival” of the island’s economy. Magnus Alnebeck, the Pelican Bay hotel’s general manager, told Tribune Business that the Minnis administration needed to “immediately tackle the low-hanging fruit once it gets the key” to convince Freeport’s private sector and

wider population that positive change is finally coming. The government has allocated $1.5m to improve the air traffic control tower and its elevator, repair the domestic cargo hangar and put offices in the former domestic terminal while it seeks a private sector partner to manage the facility and raise $50m to finance its rebuilding, but Mr Alnebeck urged it to also focus on more mundane issues. These ranged from being able to purchase a simple

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Infrastructure spend: Keep the politics out By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net INCREASED infrastructure spending “must not be driven by politics” if The Bahamas is to maximise investment returns from scarce resources, a governance reformer warned yesterday. Robert Myers, the Organisation for Responsible Governance’s (ORG) principal, told Tribune Business that taxpayer monies had too often been “wasted”

ROBERT MYERS by politically-led decision making determining which capital projects were initiated and where. Speaking after the

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Govt challenged over BPC licence renewals By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

ENVIRONMENTALISTS yesterday challenged the Minnis administration to make good on its pledge to bar oil drilling after the Bahamas Petroleum Company (BPC) revealed it will seek to renew its four licences. Activists told Tribune Business they plan “to coerce the government as much as possible” to reject the oil explorer’s bid for a three-year renewal that would commit it to drilling another exploratory well within The Bahamas’ territorial waters during that period. Besides calling on the prime minister and his Cabinet to live up to their publicly professed

• Activists: Deliver on oil drilling opposition • Explorer to seek three-year extension • Commits to spud further well in that time

STENA ICEMAX DRILL SHIP opposition to oil exploration, the environmental groups argued it would be inappropriate to approve BPC’s application until

their Judicial Review action challenging the permits it received for its first Perseverance One exploratory is ruled upon by the

Supreme Court. Their concerns were sparked after BPC yesterday formally confirmed to the global capital markets that it plans to seek renewal of its four Bahamas exploration licences. Despite Perseverance One failing to strike commercial quantities, the oil explorer signalled that the drilling data obtained - as well as interest from other companies in partnering with it - had given it sufficient confidence to move forward. “Since the completion of the drilling of Perseverance

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GB airport owners to keep Dorian insurance By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A SENIOR government official yesterday confirmed the Grand Bahama International Airport’s two outgoing owners have retained the Hurricane Dorian insurance proceeds rather than financing restoration. Algernon Cargill, director of aviation, responded by saying “that’s what I understand” when asked whether Hutchison Whampoa and the Grand Bahama Port Authority (GBPA) were keeping the payout as part of the deal that will see the government acquire the airport for just $1. He also disclosed that

• Govt to ‘reimburse’ Hutchison 50% of staff payout • Tender for private sector partner out ‘in 30 days’ • Rebuilding price tag pegged at around $50m the government (Bahamian taxpayer) will “reimburse” Hutchison Whampoa for half the costs it incurs in paying due severance and other benefits to the airport’s 60-70 staff, who will leave its employment and be transferred to the stateowned Airport Authority. Speaking as the House of Assembly debated legal reforms to facilitate Grand Bahama International Airport’s purchase, Mr Cargill told this newspaper: “The deal is just about complete. The Heads of Terms

have been signed. The next step is to transfer the employees. The intent is to ensure that no one loses their jobs. “The intent is to bring them all over. Hutchison is paying all the employees and the government is reimbursing 50 percent of the costs.” Dionisio D’Aguilar, minister of tourism and aviation, told Parliament that the cost of this reimbursement will be less than $1m. While many have hailed the purchase as vital to Freeport and Grand

Bahama’s “economic survival”, others are distinctly less impressed. While much of the focus will be placed on the $1 purchase prices, one well-placed source argued that Hutchison and the GBPA had effectively been allowed to abandon their developmental obligations to Freeport under the Hawksbill Creek Agreement. Suggesting that the Dorian insurance claim payout may have been as

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