business@tribunemedia.net
THURSDAY, MARCH 31, 2022
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Food Task Force: We’ve given 1.4m unit account By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE COVID-19 food task force distributed 1.447m food parcels and vouchers to needy Bahamians at the pandemic’s height, it was revealed yesterday, as its chair unveiled the comprehensive database provided to the Government. Susan Larson, who ran the National Food Distribution Task Force created by the former Minnis administration, disclosed the detailed records covering the criteria it used to identify the 14,427 “highly vulnerable” households that became the primary focus for the $53m, 70-week initiative. While each household remained anonymous, the data included the number of pregnancies, chronic medical ailments, disabilities, children and employment status of each home, which enabled the Task Force - using criteria developed by the United Nations Development Programme (UNDP) and World Food Programme - to target and determine the amount of assistance required by the 54,107 total registrants and their dependents.
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‘Very real risk’ COVID food audit prejudiced • Task Force head ‘very concerned’ by Parliament airing • Argues that 8% administrative costs are ‘unheard of’ • NGOs owed ‘debt of gratitude’ for 10k weekly parcels By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
• COVID feeding data shared with Gov’t, World Bank • Some 14,427 ‘vulnerable’ households were assisted • ‘We managed the money as diligently as possible’
NATIONAL Food Distribution Task Force members at work. Cabinet ministers and government officials in the Davis administration have repeatedly asserted there are no records of the Task Force’s work, and that they have been unable to provide detailed information to the likes of the World Bank on how its $100m loan was used to prevent the collapse of Bahamian society and the
SEE PAGE FOUR
THE HEAD of the former COVID-19 feeding programme yesterday warned of “a very real risk” that the Government’s audit of the $53m initiative will be prejudiced by premature disclosures in Parliament. Susan Larson, who ran the National Food Distribution Task Force created by the former Minnis administration, said she was “very concerned” that assertions about an effort which aided some 54,000-plus Bahamian families were being
aired in public before the audit report had even been completed. Backing the need to audit the COVID food programme, as the Bahamian people “deserve to know where the money was spent”, she nevertheless said the auditor’s refusal to discuss her “terms of reference” from the Government on the basis that it is “a confidential document” had “raised red flags for me”. Mrs Larson, who was reluctant to touch upon the Government’s audit as it is ongoing and not completed, said she had been advised
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Water Corp’s Property tax challenge deadline is ‘too tight’ $18.8m debt paid-off come ‘early 2023’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Water & Sewerage Corporation’s main supplier yesterday revealed that it had “received assurances from the highest level” of the Bahamian government that the multi-million sum owed to it will be brought current by “early 2023”. Rick McTaggart, BISXlisted Consolidated Water’s chief executive, in a conference call with Wall Street analysts to discuss the company’s 2021 full-year results, said: “Our receivables balance in The Bahamas is still high but we’ve received assurance from the highest level of the Government in The Bahamas that balance will be brought current by early 2023.” And David Sasnett, the water supplier’s chief financial officer, added:
“We appreciate the Government’s renewed focus on paying Consolidated Water (Bahamas) receivables given the impact the pandemic has had on The Bahamas.” It is unclear whether the Consolidated Water executives were referring to Prime Minister Philip Davis QC, but bringing the Water & Sewerage Corporation’s debt current will require a collective $18.8m payment within one year. Tribune Business revealed on Wednesday how the Government has pledged to bring the Water & Sewerage Corporation’s record $26.4m debt owed to its main BISX-listed supplier “current”. Consolidated Water, which is the sole potable water supplier for the Corporation’s New Providence
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REALTORS yesterday said today’s deadline for challenging 2022 real property tax billings is “too tight” because appraisers have been overwhelmed by clients requesting valuations of their real estate. Robin Brownrigg, a broker and appraiser with Bahamas Realty, told Tribune Business that the
extent of some over-valuations - and the “doubling, tripling and quadrupling” of tax assessments - was “a little frightening” as the Government seeks to make sure all taxable properties and their owners pay their fair share. Disclosing that he is “booked out a month in advance”, he spoke out as Christine Wallace-Whitfield, the Bahamas Real Estate Association (BREA)
president confirmed that the body had requested the Government extend today’s deadline for submitting real property tax challenges as there were simply not enough realtors to meet the demand. “There’s been so many inquiries that we’ve been getting inundated with it,” she told this newspaper. “People have been asking if they can get their
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CHRISTINE WALLACE-WHITFIELD
PAGE 2, Thursday, March 31, 2022
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COLINA SHAREHOLDERS IN 26% PROFITS BOOST COLINA Holdings (Bahamas) yesterday revealed a 25.6 percent in ordinary shareholder net income for the 2021 fullyear as it benefited from a reflating economy following the prior year’s COVIDenforced lockdowns. The BISX-listed life and health insurer’s unaudited financial results for the 12 months ended December 31, 2021, disclosed that net income attributable to ordinary shareholders rose to $22.1m or $0.89 per ordinary share compared to $17.6m and $0.71 per ordinary share the year before. Improved market conditions saw net investment income near-double to $31.2m for the 2021 fullyear compared to $16.5m for the same period in 2020. The COVID-19 pandemic resulted in significant valuation losses on Colina’s investment securities holdings in 2020 as it was forced to write down their value, negatively affecting net investment income. Premium revenues rose by 10.6 percent year-overyear, reaching $136.6m for the 12 months to-end December 31, 2021, as opposed to $123.5m in 2020. The growth in total revenues to $176.2m, a $30m increase on the prior year’s $146.2m,was driven by increases in net investment income and premium revenues. Net policyholder benefits totalled $89.6m compared to $79.1 million for the 2020 full-year. Claims activity in 2020 was shaped by business restrictions that were implemented in response to the COVID-19 pandemic, resulting in levels below normal expectations.
Additional net reserves of $5.9m were booked during 2020. Colina Holdings (Bahamas) said these additional reserves are included in the provision for future policy benefits net of the changes in reinsurance assets at December 31, 2021. The Company also continued rebalancing its investment portfolio, and facilitated the disposal of some securities. Some of these proceeds were reinvested into the portfolio and used in operating activities. Total assets at December 31, 2021, were $810.1m with invested assets remaining the largest component of total assets, comprising 72.5 percent. Shareholders’ equity as at December 31, 2021, totalled $197.3m and is net of dividend distributions to the Class ‘A’ preference shareholders through December 31, 2021, totalling $2.4m, and dividends to the ordinary shareholders of $5.4m or $0.22 per ordinary share. “Generally, the company’s financials are a reflection of ongoing recovery from the pandemic, most notably the positive economic effects of the reopening of The Bahamas,” said Terence Hilts, Colina Holdings (Bahamas) chairman. “Colina Holdings (Bahamas) continues to concentrate on strategies that will strengthen its balance sheet and capital position to provide the company with the flexibility necessary to consistently meet the needs of policyholders and customers within these shifting economic conditions.”
WARREN ROLLE
BAHAMAS FIRST NAMES SENIOR VICE-PRESIDENT BAHAMAS First Holdings has named Warren Rolle to the newly-created role of group senior vice-president and chief operating officer. Having returned to The Bahamas after a two-year posting as managing director of the BISX-listed property and casualty insurer’s subsidiary, Cayman First Insurance Company, Mr Rolle will now oversee business operations, administration and all financial aspects of subsidiaries Cayman First and NUA Insurance Agents & Brokers. He will also take charge of the group’s marketing and branding, with specific focus on sales and customer facing units. “We’re happy to welcome Warren home after his very successful tenure in the Cayman Islands,” said Bahamas First’s president & chief executive, Patrick Ward. “We did not know it at the time but his fortuitous appointment at the beginning of 2020, just before the start of a global pandemic, placed a steady hand at the wheel during one of the most disruptive moments in world history. “He managed to achieve not only balance, but growth, during this difficult time and, in his new role, is poised to reposition and strengthen our house of
brands within our existing markets and the region at large.” Mr. Rolle joined Bahamas First in 1993 as section head of NUA’s claims department, and has held progressively senior roles across the group. He was appointed NUA’s managing director in 2011. Under his leadership, NUA underwent significant growth, both organically and through multiple agency/broker acquisitions. He also broadened NUA’s footprint in the Family Islands by opening three new branches in Eleuthera, Grand Bahama and Abaco. In January 2020, Mr Rolle took the position of Cayman First managing director, where he oversaw the expansion of the property and casualty and health business segments, and created an internal succession plan. Mr. Rolle has served as chairman of the Bahamas Insurance Association and vice-president of the Cayman Islands Insurance Association. He is also a director of the Bahamas Entrepreneurial Venture Fund and a member of the Rotary Club of East Nassau, Alpha Phi Alpha Fraternity and the Scottish Masonic Lodge, Claudius R. Walker.
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Thursday, March 31, 2022, PAGE 3
GOV’T ‘OPEN’ TO TARIFF SLASH SUGGESTIONS By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A CABINET minister yesterday said the Government is “open to suggestions” from the private sector on tariff cuts that could be incorporated in the upcoming 20222023 Budget as a means to ease the impact of surging inflation. Senator Michael Halkitis, minister of economic affairs, described this as normal Budget planning where the Government receives numerous proposals from the business
community and others. It then assesses whether these fit in with its policy priorities, and if they make sense from a fiscal perspective, by Ministry of Finance officials vetting the numbers to determine the revenue and deficit impact. “It’s just a natural part of a budget cycle,” he explained. “We’re in the middle of preparing the Budget and so we accept submissions from individuals, or businesses, about suggestions that they would like to see in terms of adjusting rates, for example, on electric cars, scooters, all the gamut.” The Ministry of Finance then gauges the
MICHAEL HALKITIS potential impact of each potential tariff cut before determining whether it can be granted. Mr Halkitis said: “The business
community, they’re constantly writing to us and suggesting things, and I know some that I’ve already received somewhere. “Again, if the rates are too high and make them non-competitive, and defeat the purpose, they would put in a submission to defend it and ask: ‘Would you consider this?’ We sit down with our budget people and our Customs people and then we make a decision. So it’s a normal part of the budget process that we do.” Mr Halkitis said the Government will likely have to borrow less money than projected for the 20212022 fiscal year, with the deficit also likely to come
in below forecast. With the economy reflating, and government revenues rebounding towards levels seen pre-COVID, he added that the Davis administration will need less debt financing for 2022-2023. “For every Budget there’s what we call a borrowing resolution, which is a borrowing authorisation which authorises the Government to borrow money for the upcoming year,” Mr Halkitis said. “So, in, 2021 a resolution was passed, authorising all of the borrowing and, as you move through the year, based on your cash flow and your needs you exhaust that borrowing resolution. We don’t
think that we will use all of the authorisation. “In fact, we think we might have to borrow less than what was originally authorised. And we make all that information available as time goes on and, at the Budget time, we’ll have a new authorisation for the upcoming year, which we expect will be significantly less than last year.” The Government borrowed a gross $1.85bn in 2020-2021 to cover its financing shortfall. The extraordinary borrowing resulted from the COVID19-induced shutdown.
Bahamas must take ‘aggressive steps’ over renewable energies By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A CABINET minister yesterday said current oil price volatility shows The Bahamas must take “aggressive steps” to harness renewable energy as it signed an agreement to access $9m in European Union (EU) grant funding. Michael Halkitis, minister for economic affairs, speaking at a signing ceremony attended by EU and InterAmerican Development Bank (IDB) officials, said ever-diminishing global oil reserves meant it was only a matter of time before per barrel prices hit the $200 mark. The Bahamas, which is behind target in generating 30 percent of its energy needs by 2030, is also among the world’s most vulnerable countries to climate change impacts. As a result, the minister argued that this nation needs to press forward with reducing its near-100 percent dependence on fossil fuels and making renewable energy the “reality”. “Today, the EU and the IDB are providing grant funding of approximately $9m to assist in transforming a plan for renewable energy into reality,” Mr Halkitis said. “This support is indeed timely, especially when one considers the current geopolitical circumstances that are impacting fuel prices and, invariably, an increase in the price of goods and services through increased transportation and production costs. “Stakeholders, including government, must now
PICTURED from L to R: IDB country representative, Daniela Carrera-Marquis; minister of economic affairs, Senator Michael Halkitis; European Union ambassador, Marianne Van Steen; and Ministry of Works and Utilities permanent secretary, Luther Smith. Photo:Patrick Hanna/ BIS act by channelling more resources into clean energy and the means to engender a clean environment. In 2021, Prime Minister Phillip Davis participated in the conference of COP 26 in Glasgow, Scotland. “Among the salient issues discussed at this gathering, and within the umbrella of climate change, was encouraging investment in renewable energy. While The Bahamas is categorised as a small island state, we will address in a structured manner, requirements deemed necessary to reduce our dependence on fossil fuel.” The $9m grant will supplement an $80m IDB loan already targeted at renewable energy penetration on Abaco and Grand Bahama, the two islands hit by Hurricane Dorian in 2019. That IDB project is already targeting renewable energy capacity in east Grand Bahama. “Notwithstanding the IDB investment energy
loan, the grant funding operation is expected to complement the investment project, as more than 90 percent of the finance allocated for this initiative will be channelled towards renewable energy in New Providence and Family Islands,” Mr Halkitis added. “Minus any sort of geopolitical disruption, we can expect to see fuel prices go higher and approach $200 [per barrel for oil] in the next 20 to 25 years just because the cheap sources will be depleted, and it becomes more difficult to mine it. That even makes it more important what we’re doing here today, shifting to renewables. The minister reiterated that there was little The Bahamas can do in the short-term to counter high global oil prices and other inflationary impacts: “In terms of immediate relief, I’ll say again, because the nature of our country is small and we import everything, we will be
disproportionately impacted by external events,” Mr Halkitis said. “There’s not much that we can do, given our economy, given the fact that we’re still emerging from a COVID-19 pandemic that has devastated our economy and a lot of other economies, and has caused a significant run-up in the debt of the Bahamas. “So we are managing our way out of it, and we are hopeful that the volatility that we’ve seen will normalise in the shorter rather than longer term, and prices will move to a more normal and historically normalised - level. But I think the lesson is that we have to begin now to take aggressive steps to ensure that we reduce our reliance on fossil fuels that are impacted by things out of our control, and move more to renewables, which we have an abundance of when you talk particularly about solar energy.” Daniela Carrera-Marquis, the IDB’s Bahamas country representative, said the grant will facilitate the construction of two micro grids in Abaco in a bid to improve the resilience of its electricity infrastructure post-Dorian. The initiative is expected to benefit up to
18,000 residents on the island. “The grant money has been analysed to support two micro grids in Abaco for electricity generation capacity and also for storage capacity,” she said. “This will allow Abaco to have not only a new source of energy that is renewable, but in a more resilient manner in case so far as new natural disasters were to occur.” One grid will be located in Marsh Harbour near the government complex and impact up to 17,000 persons. The other will be
located in the Cooper’s Town Medical Clinic facility and benefit 1,000 persons. The funds will also be used to boost renewable capacity in New Providence at three locations with a capacity of 407 kilowatts. Those grids will be located at the University of the Bahamas (UB); C.I. Gibson Senior High School; and Bahamas Customs Headquarters. The UB grid will also serve as a pilot programme, and will provide training and supplementary electricity.
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‘SOBER REALITY’: BAKERY ON 5-8% PRICE HIKES
By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A BAHAMIAN bakery yesterday said there are no concerns about potential bread shortages despite having to raise prices by between 5-8 percent with effect from April 4 due to the “cascading” effect of raw materials cost rises. Kimani Smith, Purity Bakery’s general manager, told Tribune Business “there is ample supply
of flour in the market” after its March 21, 2022, letter to customers warning of the upcoming price increases started to circulate through the community. It is yet another example of external inflation driving local price increases and spikes in the cost of living. “This is just the cascading effects of globalisation,” Mr Smith said. “You’ve got issues with the supply chain that were occurring during the pandemic now being compounded by the war in Ukraine.” Over one-third of the world’s wheat stocks come from Russia and the
Ukraine, which are now locked in conflict. Responding to concerns that the war will cause wheat and flour shortages, Mr Smith said: “We just have to pay more for flour. The wheat that is bought goes to the mills in the US, and then they process that and convert it into flour, and we buy flour from the mills. So let’s not create unnecessary panic. There’s no fear of a shortage of bread. It’s just that we have to pay a little more, unfortunately, for what we consume.”
Purity Bakery, in its letter to customers, had warned: “The disruption to the global supply chain caused by the COVID-19 pandemic resulted in soaring commodity prices, shipping constraints and high energy costs to our industry. This disruption is now being compounded by the war in Ukraine. “Prices for ingredients that are essential to our baking process continue to rise quickly, and the availability of these supplies are constrained. Consequently, we find ourselves in a position where it is necessary
for us to increase the pricing of the domestic breads, rolls and sweet goods in our product portfolio. The new price list is attached, and the new wholesale prices will be effective with deliveries as of Monday, April 4.” Despite rising raw material costs, Purity Bakery is planning no lay-offs in the near future. “Everybody is still reeling and recovering from the pandemic. This is just another setback in a series of setbacks that we’ve had, as well as other businesses have had in the past two-and-a-half years
FOOD TASK FORCE: WE’VE GIVEN 1.4M UNIT ACCOUNT FROM PAGE ONE economy at the pandemic’s peak in 2020. However, Tribune Business and other media saw a report dated January 19, 2021, that was submitted to the World Bank by the Task Force and went so far as to identify whether persons assisted were above/ below the National Insurance Board (NIB) ceiling or were not making contributions. It also included a case study on the work performed by Lend A Hand Bahamas, the non-governmental organisation (NGO) working to distribute food on the Task Force’s behalf to the “most densely populated zone” of inner-city New Providence. At June 2020, just after the COVID lockdown peak, and with the tourism industry yet to open, Lend A Hand Bahamas was feeding 2,309 beneficiary households comprising 9,900 persons, roughly 50 percent - some 4,900 - of whom were children. A further data breakdown revealed that 589, more than 25 percent, of
those 2,309 households had seen their water and/ or electricity disconnected. And some 547 households, or close to 24 percent, were headed by single parents. And, with the “hotels closed, tourism fallen out”, the number of households being aided by Lend A Hand Bahamas soared to 13,750 by the time the Task Force’s “first phase” ended in October 2020. Mrs Larson said yesterday that the complete database has been shared with both the Ministry of Finance and Ministry/ Department of Social Services, both of which have it in their possession. “The database was shared with Ministry of Finance officials who deal with the World Bank,” she added. “On January 19, we submitted the first report to the World Bank. It laid out for them everything that was going on. I have participated in two meetings with the World Bank since then.” Given what was shared with Tribune Business and other media, it is unclear why the Government is seemingly unable to
pass these details on to the World Bank. Besides the household records, Mrs Larson explained that the COVID19 feeding programme’s finances were managed via a “weekly dashboard” that every participating NGO had to fill in for every one of the 70 weeks that the initiative lasted. These provided records of the funds flowing from the Government to the NGO’s to feed COVID-hit Bahamian households, many of which had seen all their income sources dry up or severely curtailed due to the economic shutdown. Besides detailing how many food parcels and vouchers, and the number of households, each NGO was distributing and assisting, the “dashboards” also broke down how they were spending taxpayer monies on food purchases, trucking, shipping, stipends and other overhead costs incurred in the programme’s delivery. Other typical expenses were garbage disposal, warehouse and office rents, fuel, and sanitisation/COVID
personal protection equipment. “Every NGO had weekly dashboards for the 70-week programme,” Mrs Larson explained. “This dashboard template was shared with the financial secretary at the time [Marlon Johnson]. He signed off on this, approved this as a method of record-keeping. The expenditure of each NGO was itemised.....” To further enhance accountability, she restricted access to the “dashboards” once they had been submitted to ensure no one could reenter the system and alter the data. The “dashboard” data was then sent to the Ministry of Social Services, which was responsible for approving all COVID-19 food programme payments to the NGOs from the Public Treasury. Mrs Larson said she and the Task Force were especially insistent that, if an NGO still had food programme funds in its account, then this balance was to be deducted from the next disbursement received. “It’s important to understand we were trying to manage the people’s money as diligently as we possibly could,” she explained.
“As phases came to an end, one of the first things we discussed in our weekly meetings held every Monday was how much money did they [the NGOs] have on hand. “We declared it a priority to manage the money down to zero at the end of every phase. The NGOs had to check with their financial people how much money they had on hand.” If there was a remaining balance, this was then deducted from the next disbursement of funding. The Task Force chair said the last batch of “dashboards”, including 39 weeks’ for Hands for Hunger and the entire records for the Bahamas Feeding Network, were due to be passed yesterday to the Government-appointed auditor of the COVID feeding programme, Kershala Albury, president and principal consultant at her own firm, ATI Company Ltd. Mrs Larson said the initial 54,107 household registrants, of which 38,394 or 76 percent were headed by women, were reduced to 18,000 - including the 14,427 deemed most vulnerable - towards the end of 2021. Of those 18,000,
grappling with the pandemic,” Mr Smith said. “We don’t expect to raise prices by any more than between 5 percent and 8 percent. It’s important to get that into the media, but what you saw in our letter was a sober reality of the situation that the country faces that you will find across all industries.” US president, Joe Biden, has warned that food shortages are “going to be real” as he foreshadowed that processed food supplies will be affected significantly by the war in Ukraine.
12,800 households registered as being unemployed. And while 1,026 gave their status as ‘employed’, the household head’s income was typically insufficient to meet the needs of family members with disabilities or chronic illnesses. Some 32 percent of households had persons suffering from medical ailments, and Mrs Larson said the Task Force went so far as to take a “statistically significant” sample from each feeding zone and carry out door-todoor visits. The results, she added, confirmed that the initiative was “well within the margin of error” when it came to identifying the most vulnerable families needing the Task Force’s urgent assistance. The COVID-19 feeding programme, she added, distributed 474,420 food vouchers and 972,191 food parcels during its 70 weeks for a total of 1.447m units. Mrs Larson explained that the Task Force focused more on parcels because it was able to purchase food at deeper discounts from wholesalers, while vouchers enjoyed a smaller concession at the retail level. It ultimately reduced the food parcel and supplemented it with a $15 voucher that allowed persons to purchase proteins such as meat.
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Thursday, March 31, 2022, PAGE 5
BAHAMAS PRESENCE TAKES MAJOR CONFERENCE ‘CAPTIVE’ REPRESENTATIVES from the Bahamian private sector and industry regulators attended the Captive Insurance Companies Association Conference (CICA) 2022 held earlier this month in Tucson, Arizona. The Bahamas Financial Services Board (BFSB) teamed with managers from the Insurance Commission of The Bahamas (ICB) and industry professionals for a conference that brings together captive insurance companies, captive owners, potential
captive owners, risk managers and regulators. It typically hosts more than 500 professionals. Tanya McCartney, BFSB’s chief executive and executive director, said: “It is important for us to participate in events such as this as we seek to raise the profile of The Bahamas as a captive domicile. We believe that there is a tremendous value proposition for small and mediumsized captives to consider The Bahamas. It also provides an opportunity for us
to share details about our supervisory framework for captives.” Carl A. Culmer Jr, manager for policy and practices at the Insurance Commission, added: “The Commission is intent on maintaining a robust regulatory and supervisory framework which meets international standards.” The Bahamas will next be represented at the Risk Management Society (RIMS) 2022 annual conference and exhibition in San Diego from April
10-13. That will bring together captive professionals from around the world in a domicile-neutral setting to explore new uses of captives, engage new talent, and outline best practices. RIMS is regarded as the premier event for the risk management community, and the BFSB said it will use the opportunity to place the spotlight on The Bahamas as an attractive captive domicile as it seeks to regain ground in this area.
L TO R: Representatives of the Insurance Commission at CICA 2022 Pictured above L to R are: Darrin Rodgers, senior analyst, supervision unit; Kencil McPhee, deputy manager, supervision unit; Carl A. Culmer Jr, manager, policy and practices.
PROPERTY TAX CHALLENGE DEADLINE IS ‘TOO TIGHT’ FROM PAGE ONE properties appraised, reassessed and revalued. It’s been quite substantial. I know there’s a lot of appraisers who have been very, very busy. Because there’s been so many we’ve been asking the Government for an extension” of the March 31 deadline. Mrs Wallace-Whitfield added that she had been sent a notice yesterday afternoon informing persons that if they submit their queries and challenges by today then the Department of Inland Revenue will examine them, although she was unsure whether it was genuine. Tribune Business, too, was unable to confirm this before press time last night. Mr Brownrigg, who specialises in high-end properties, said: “With these appraisals on tax, I’m just overwhelmed. It’s been all over.” He added that Paradise Island and the Ocean Club Estates, in particular, had seen “a lot of over-evaluations” with persons billed “double, triple, quadruple, whatever it is” compared to previous assessments “and not having time to adjust”. “The deadline of March 31 is too tight,” he added. “People in general want to be assessed fairly..... Some of the over-valuations have been extremely high. I don’t need to get into percentages. It’s a little frightening. There’s been high demand for my valuations and the timeframe is being
exacerbated by that short deadline. That’s the issue. I do so much that I’m booked out a month in advance now at least with the work in front of us.” The outcry over sharp hikes in real property tax bills stems from the Government contracting US-based Tyler Technologies to conduct an island-wide mapping exercise of New Providence. This was designed to ensure all properties are captured on the real property tax roll. This, and the subsequent revaluations, are a first step in what the Government views as a wide-ranging exercise that will lead to all taxable property owners paying their fair share. The valuation process employed by Tyler and the Department of Inland Revenue was a “bulk” assessment that used algorithms to calculate the worth of properties in a particular neighborhood or subdivision based on their dimensions/size and which category - owner-occupied, residential, commercial, undeveloped land etc - they fell into. This has resulted in triple-digit increases for some taxpayers, with the Bahamas Chamber of Commerce and Employers Confederation (BCCEC) saying its members had reported increases of between 100 percent to 435 percent compared to 2021 billings. Commercial and residential property owners have been scrambling ever since to obtain appraisals that can
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be used to challenge these valuations. Mr Brownrigg, praising the Government “for wanting to try and get it right”, said of the Tyler Technologies assessment: “They thought they were doing the right thing. It really has not been the answer.... Everybody is trying to get it right. The Government is trying to get it right, but these folks, their formulas have not played out across the board. They’ve worked out in some areas, but fallen short in others.” Many of the objections will likely come from high-end residential and commercial property owners, given that real property tax and its rates are structured such that the burden is heavier for more expensive real estate. A significant portion of complaints will also stem from owners whose properties have not been valued for years, sometimes for decades, meaning that the Tyler Technologies revaluation will have resulted in a seemingly-huge tax hike even though it may have only brought the bill to the correct level. The Act calls for a revaluation to be conducted every five years, which has not been done. Peter Dupuch, ERA Dupuch Real Estate’s principal, told Tribune Business that several of his
neighbours in Port New Providence have been hit with real property tax bills for vacant land. While Bahamian-owned vacant, undeveloped land is not taxed, he explained that these properties were being treated as having commercial use because a dock is attached to them. “People have been asking me about it,” he added of the real property tax hikes. “I know my home almost doubled in value for property tax payments. Like
everybody else I’ve put in my inquiry and will see if they reassess it. In my neighbourhood I’ve had 10-15 people call me to ask me what I am doing and what I think of it. Almost everyone I’ve spoken to has had a real property tax increase; everyone in Port New Providence. “They didn’t really change it in Palm Cay and Treasure Cove, but really went up on us here. They’ve really hit us in Port New Providence. What is a bit frustrating is
there are a lot of vacant lots they have classified as commercial because they have a dock, and are trying to charge Bahamians. I really don’t understand that. Yes, you can rent dock space out, but you can rent out a house and it’s not commercial. “I have been hearing out east, especially in the highend neighbourhoods, a lot of complaints. Nothing doubles in a year. Where are people going to find the money from? You don’t in one fell swoop just go and double it. I just don’t understand how they expect people to pay that.”
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‘VERY REAL RISK’ COVID FOOD AUDIT PREJUDICED FROM PAGE ONE that it was common industry practice for auditors to disclose the scope of their assignment to subjects something that was backed up by financial industry
sources spoken to by Tribune Business yesterday. This newspaper previously revealed that the auditor conducting the COVID-19 feeding initiative probe is Kershala Albury, president and
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principal consultant at her own firm, ATI Company Ltd. Mrs Larson, meanwhile, said the Food Task Force planned to commission its own independent report - by an external party - once the funding was in place as the initiative has “a great story to tell” on “the tremendous good that has been done”. She described as “almost unheard of” the 8 percent funding that went to administrative costs, arguing that this was “something to be lauded, not criticised” as it was almost half the global 15-20 percent average for NGOs. This, Mrs Larson said, had enabled the Task Force and its nongovernmental organisation (NGO) partners such as One Eleuthera, Hands for Hunger and the Bahamas Feeding Network to divert more resources to food purchases. She added that The Bahamas owes the participating NGOs “a great debt of gratitude” given that they were responsible for putting together 10,000-12,000 food parcels per week at the COVID-19 pandemic’s height in 2020. “I agree that there should be an audit,” Mrs Larson told media yesterday, acknowledging the significant sums invested on behalf of Bahamian taxpayers in one of the largest social assistance efforts this country has seen. “The Government and the people of The Bahamas deserve to know where the money was spent. “Our initial reaction to the audit was absolutely, let’s do this and, once we’ve substantiated accountability for all of the funds, let’s use the audit to determine how we strengthen the partnership between the Government and private sector moving forward.” The Task Force chair said its work had to be viewed
against the backdrop of COVID-19, and the urgent need to feed thousands of Bahamian families whose income sources had dried up overnight with the tourism industry’s closure and various lockdowns. The food programme had to be structured from zero, and rapidly put in place, given the widespread social and economic fall-out, and she added: “Unemployment had gone through the ceiling, and the next thing that happens when people cannot feed themselves is civil unrest.” Given the hast with which the Task Force had to act, Mrs Larson said the initiative was “not flawless”, and there were likely to be lessons that could be learned for the benefit of future public-private partnerships (PPPs) involving the Government and NGOs and “brought forward for the future”. However, she added: “It was not a productive way to start the audit by saying the terms of reference are confidential.” Attitudes towards the audit have also likely changed among Task Force members and the NGOs, with Mrs Larson saying: “I can only speak using messages that I’ve received from the NGOs, and putting them together collectively. I don’t speak for them individually. “I can tell you that in my conversations with them they want the audit to be over, and they are all somewhat saddened that there seems to be some level of politics that has filtered into the process. I can tell you from direct conversations with them, and can tell you from my own 30-plus years of experience in the NGO world, NGOs go to great lengths to remain apolitical, finding ways to work with every government.” NGOs, she added, were especially keen to demonstrate to donors that funds are being used properly. Asked how worried she was that the Government
continues to cast aspersions on the COVID-19 feeding initiative before the audit report is complete, Mrs Larson said: “Two-word answer is: Very concerned.” And, as to whether these allegations will prejudice the audit’s outcome, she added: “That’s certainly a very real risk.” Former prime minister, Dr Hubert Minnis, and others have already voiced concerns that the Government is undermining the integrity and reputation of the NGOs and all Task Force participants, and that its actions will deter these groups from participating in future initiatives that will aid Bahamian society. Mrs Larson yesterday said the Task Force had worked for the “betterment” of The Bahamas during one of the most traumatic times in the country’s history. Turning to the COVID food initiative’s administrative costs, which at 8 percent of total spending (running to 12 percent on Dorian-hit Abaco) have also come under fire, she said: “We were determined to keep administrative costs below what is found in The Bahamas and what is found internationally.” Such costs typically run to between 15-20 percent of total spend, but on Grand Bahama these were kept to a minimum thanks to the use of government offices. “The 8 percent is almost unheard of in programmes like this in The Bahamas and around the world,” Mrs Larson added. “I think that should be really highlighted as one of the great strengths of the work of the Task Force that it did so much with so little overhead, and that’s something to be lauded not criticised...... What the general public needs to know is the administrative costs went directly to every NGO to support the overheads they were encountering by taking on the food assistance programme.
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“The 8 percent and, in some instances, 12 percent and higher covered trucking, shipping and packaging materials and stipends, and some of the NGOs had to take on extra people. It covered salaries, it covered food supplies, it covered PPE. All the costs the NGOs encountered in carrying out the work of the Task Force are grouped together under administrative charges and that’s where the money went.” Confirming that the Task Force plans to commission its own report on the initiative by an external consultant, Mrs Larson said: “We’re doing our own report because this was a precedent setting programme. The collaboration between the Government and private sector in averting a food crisis in our country is a story that needs to be told” to the Bahamian people and NGO donors. “It was a huge undertaking,” she added, “and I really was in awe of the NGOs who rallied their supporters and workers to do what needed to be done week in, week out. At the height of the pandemic in 2020, NGOs were putting together 10,000 to 12,000 food parcels a week and getting them distributed. It was an extraordinary feat, and everybody carried out that work with distinction. Their efforts really need to be recognised. I’ve said it before: The country really owes them a debt of gratitude.” Addressing criticism that churches had not been included in the COVID-19 feeding effort, Mrs Larson said this was incorrect and that they were “our number one community partner” and engaged in “many, many ways”. She added that some did not participate because they declined to agree to the Task Force’s terms and refused to sign a non-disclosure agreement (NDA) protecting participants’ data.
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WATER CORP’S $18.8M DEBT PAID-OFF COME ‘EARLY 2023’ FROM PAGE ONE customers, disclosed it had been informed by the Ministry of Finance in late February 2022 that the Davis administration this year plans to steadily reduce the delinquent payments that make up more than 75 percent of the debts owed to it. Of the $21.5m due to Consolidated Water at yearend 2021, some $16.34m - representing more than three-quarters of the total - was delinquent or more than 90 days past due for payment. And the total sum owed increased by almost $5m, or 22.8 percent, over the following two months to hit the record $26.4m at end-February 2022. The latter figure has now been reduced by $7.6m, dropping the Water & Sewerage Corporation’s debt to around $18.8m, after the Government (Bahamian taxpayers) made a series of payments during the first three weeks of March. There was no explanation for why the water utility’s debt to Consolidated Water soared so high, although it likely reflects the COVID19 pandemic’s devastating impact on the ability of customers to pay for the water they receive. “In February 2022, we received correspondence from the Ministry of Finance of the Government of the Bahamas that set forth a payment schedule providing for the gradual reduction over the course of 2022 of the Consolidated Water (Bahamas) delinquent accounts receivable due from the Water & Sewerage Corporation,” Consolidated Water said in its 10-K annual report filing with the US Securities & Exchange Commission (SEC). “Such correspondence also indicated that the Government intends to return all of Consolidated Water (Bahamas) accounts receivable from the Water & Sewerage Corporation to current status. As of February 28, 2022, Consolidated Water (Bahamas) accounts receivable from the Water & Sewerage Corporation totalled $26.4m. During the
first three weeks of March 2022, we received $7.6m in payments on these accounts receivable.” The Water & Sewerage Corporation last month revealed that it is owed some $50m by a combined 45,625 customers who are in arrears on their payments. This represented an increase on the $38m accounts receivables owed prior to COVID-19, which likely explains why the debts owed to Consolidated Water have also been steadily climbing especially as disconnections were suspended. Those were due to resume from Monday, March 28. The Water & Sewerage delinquency has caused havoc for Consolidated Water’s cash flow and liquidity, and that of its Bahamian subsidiary. Its 10-K filing makes clear, though, why it has stuck with the contract. “A significant portion of our consolidated revenue is derived from our water supply agreements with the Water & Sewerage Corporation. The loss of the Water & Sewerage Corporation as a customer would adversely affect us,” Consolidated Water said. “One bulk water customer, the Water & Sewerage Corporation, accounted for approximately 36 percent of our consolidated revenue for the year ended December 31, 2021. If, for financial or other reasons, the Water & Sewerage Corporation does not comply with the terms of our water supply agreements, our consolidated financial condition, results of operations, and cash flows could be materially adversely affected.” Revealing that the latest talks over the Water & Sewerage Corporation’s debts took place on March 7, Consolidated Water said: “Consolidated Water (Bahamas) accounts receivable balance, which included accrued interest due from the Water & Sewerage Corporation, amounted to $21.5m as of December 31, 2021. “Approximately 76 percent of the December 31, 2021, accounts receivable balance was delinquent as
of that date. The delay in collecting these accounts receivable has adversely impacted the liquidity of this subsidiary. From time to time, including presently, Consolidated Water (Bahamas) has experienced delays in collecting its accounts receivable from the Water & Sewerage Corporation. “When these delays occur, we hold discussions and meetings with representatives of the Water & Sewerage Corporation and The Bahamas government and, as a result, payment schedules are developed for Water & Sewerage Corporation’s delinquent accounts receivable. Our most recent such discussions occurred during the week of March 7, 2022,” the BISX-listed reverse osmosis supplier added. “All previous delinquent accounts receivable from the Water & Sewerage Corporation, including accrued interest thereon, were eventually paid in full. Based upon this payment history, Consolidated Water (Bahamas) has never been required to provide an allowance for doubtful accounts for any of its accounts receivables, despite the periodic accumulation of significant delinquent balances. As of December 31, 2021, we have not provided an allowance for doubtful accounts for Consolidated Water (Bahamas) accounts receivable from the Water & Sewerage Corporation.” Consolidated Water said its two New Providence-based reverse osmosis plants, Blue Hills and Windsor, are capable of producing a combined 14.8m gallons of water per day. For the 2021 full-year, they supplied the Water & Sewerage Corporation’s customers with 4.4bn gallons compared to 4.2bn in 2020.
CALL 502-2394 TO ADVERTISE IN THE TRIBUNE TODAY!
Thursday, March 31, 2022, PAGE 7
WATER & SEWERAGE CORPORATION HEADQUARTERS
Bahamas Customs Department Sale By Sealed Bids In accordance with Section 201 of the Customs Management Act 2011, the following good is available for sale by the Bahamas Customs Department: Shipment#1-Thirty-three (33) pieces of Building Supplies Shipment # 2-Six (6) - 20’ Containers of Galvanized Steel The goods can be viewed at the Bahamas Customs Warehouse located at the Gladstone Freight Terminal, Monday thru Friday from 8:00 a.m. to 4:00 pm or call 376-5607 or 424-8065. Each of the shipments is being sold separately. Bidders must specifically state what shipment they are bidding on. Interested persons are asked to submit sealed envelopes marked “SALE BY SEALED BIDS’ to the office of the Comptroller of Customs, Customs House, 55 University Drive, New Providence, The Bahamas. The deadline for bid submissions is Friday, 22nd April 2022 at 5:00 p.m. The right is reserved to reject any or all tenders.
PAGE 10, Thursday, March 31, 2022
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AFTER SPATE OF STRIKES, BIG RAISES FOR KELLOGG WORKERS By JOSH FUNK AP Business Writer OMAHA, Neb. (AP) — Several hundred workers at a Kellogg’s plant that makes Cheez-Its won a new contract that delivers more than 15% wage increases over three years after 1,400 workers at the company’s cereal plants went on strike for nearly three months last fall. The wage and benefits improvements that 570 workers at the Kellogg’s plant in Kansas City, Kansas, secured this week are the largest that have been seen in that location by the Retail, Wholesale and Department Store Union, it said Wednesday.
U.S. companies are struggling to fill the more than 11 million job openings across the country that represent nearly two openings for everyone unemployed, and workers are demanding more after keeping plants operating throughout the pandemic. Job openings hovered at a near-record high for the second consecutive month in February, the Labor Department reported this week. “This contract is further evidence of the power of a union voice and collective bargaining,” said the union’s president Stuart Appelbaum.
Officials at Kellogg’s, which is based in Battle Creek, Michigan, said they treat each negotiation differently based on the needs of the businesses and the local market. “We’re glad to have negotiated a contract that recognizes the important work of our employees in Kansas City and helps ensure the long-term viability of the bakery and our business,” spokeswoman Kris Bahner said. Besides the strike at Kellogg’s plants in Nebraska, Michigan, Pennsylvania and Tennessee last fall, workers also walked out last year at a Frito-Lay plant in Topeka, Kansas, and at five Nabisco plants nationwide. And
STRIKING Kellogg’s workers stand outside the company’s cereal plant in Omaha, Neb., on Dec. 2, 2021. Several hundred workers at a Kellogg’s plant that makes Cheez-Its won a new contract, Wednesday, March 30, 2022, that delivers more than 15% wage increases over three years after 1,400 workers at the company’s cereal plants went on strike for nearly three months last fall. Photo:Josh Funk/AP meatpacking workers have been winning significant raises when their contracts come up at plants across the country. Unions in other industries, including one that represents more than 10,000 John Deere workers, also went on strike last year. The Deere workers received 10% raises and improved benefits after going on strike for month. Workers have also voted to unionize at more than a half dozen Starbucks stores across the country and unions are trying to organize at roughly 140 other stores nationwide. And Amazon is trying to stave off unions at two of its warehouses in New York and Alabama where ballots
are in the process of being counted now. Experts say the ongoing labor shortages and the actions unions have taken have given unions more leverage than they have had in decades during contract talks. “The recent upsurge in strike activity has reminded employers that the threat of a strike is a realistic possibility, and workers in general can gain leverage from that,” Fordham University sociologist Chris Rhomberg said. Rutgers University professor Todd Vachon, who teaches classes about labor relations, said it’s clear that Kellogg’s and other companies are taking a different approach to negotiations
in light of the shift in the labor landscape. Even some union leaders are being surprised by workers’ willingness to fight for better wages and benefits, he said. “With many would-be workers refusing to accept low-wage jobs and existing employees prepared to take collective action to increase wages, the decision-making metric is much different for employers than it was just a couple of years ago,” Vachon said. “Add to that the generally high level of public support for unions and strikes in recent months, and employers are really feeling the pressure to do right by their employees, especially if they are taking in high and even record levels of profit.”