$5.48
Ex-minister: Reforms let tax authorities ‘run amok’
By NEIL HARTNELL Tribune Business Editor
A FORMER Cabinet minister is accusing the Government of devising laws that permit the tax authorities to “run amok” over law-abiding businesses who are constantly placed at a disadvantage.
Dionisio D’Aguilar, ex-minister of tourism and aviation under the Minnis administration, told Tribune Business that the changes to VAT and other tax-related legislation accompanying the 2025-2026 Budget are reinforcing the belief that the Government is focused on “designing systems that make it more difficult” for tax-compliant businesses to invest and grow.
Asserting that “a new level of bureaucracy” is seemingly being imposed on the Bahamian private sector “every single day”, the Superwash principal, who has multiple other business interests, said politicians then turn
• D’Aguilar hits VAT credit restriction, DIR power
• ‘Making it more difficult’ for law-abiding firms
• ‘We’re not all criminals’, don’t treat us as such
round and “wonder why” the Bahamian economy’s annual growth is projected to slow to 1.7 percent, and then remain flat at 1.6 percent, over the next three upcoming Budget cycles to 2027-2028.
And, while agreeing that the Department of Inland Revenue must be “empowered” to collect all outstanding taxes due to the Government, Mr D’Aguilar told this newspaper that existing laws as well as the reforms tabled in Parliament alongside the Budget “give them all the power to the detriment of the business and consumer”.
In particular, Mr D’Aguilar pointed to the existing statutory requirement that businesses must pay over the entire VAT sum that is in dispute before they can challenge the Department of Inland Revenue’s assessment before the Tax Appeals Commission. Suggesting that the uncertainty, time and expense associated with mounting such challenges means many businesses elect not to bother, he also argued that those who succeeded often faced a long wait to recover their funds - the exact opposite of tax authority demands that
taxpayers make timely payments in full.
And, besides pointing out what he hinted were double standards, Mr D’Aguilar also slammed proposed reforms that effectively mean Bahamian businesses will have to close down before they can claim a refund of VAT credits if these are not used up in the tax reporting immediately after the one in which they were created. He added that “no rightthinking, decent Bahamian will think that’s right”.
BREA: VAT reforms ‘unequitable’ in law
By NEIL HARTNELL Tribune Business Editor
nhartnell@tribunemedia.net
THE Bahamas Real Estate Association (BREA) has warned the Government it is “unequitable in law” to impose the compliance burden, and related penalties, for property sales VAT on its members.
Carla Sweeting, BREA’s president, in a letter sent to senior tax officials prior to the four-day holiday weekend argued that proposed reforms to the VAT Act are unfair to Bahamian realtors because they do not handle any funds related to
real estate sales and nor are they responsible for legally closing transactions. Pointing out that these duties fall to attorneys, not realtors, she suggested that the Government could employ a much easier
method to check whether it is receiving the full VAT due on a Bahamian property transaction. This, Ms Sweeting explained, would involve imposing a legal requirement for attorneys to submit the VAT invoices
they receive from realtors to the Department of Inland Revenue.
Realtors typically invoice attorneys for their commission, which is normally 6 percent of the purchase
Ex-AG’s warning of ‘disastrous consequences’ on law’s
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A FORMER attorney general is warning that legal reforms intended to combat real estate-related VAT evasion will have “disastrous consequences” for the industry and all related sectors if passed as is.
Sean McWeeney KC, now consultant counsel at Graham, Thompson & Company, in an e-mail analysis seen by Tribune Business sounded the alert that, if proposed changes to the Conveyancing and Law of Property Act are not altered, they threaten to create multiple “title woes and legal controversies” when the Government’s new fiscal year begins on July 1.
reform
Asserting that the present Bill should be “abandoned”, he added that its intent - rendering all real estate transactions closed since July 1, 2022, “void” unless they have been recorded in the Registry of Records - creates numerous unanswered questions such as whether, and how, a “void” conveyance can be “resurrected from the dead” and brought into compliance with the amendment.
Mr McWeeney, acknowledging the Government’s legitimate desire to promptly collect all VAT due on real estate sales, amid the belief that it is losing $100m in revenue per year to avoidance and evasion in this area, argued that the problem could be tackled by reform
Budget debate awaiting unfunded $4.1bn civil service pension reform
• Fiscal Report: Bill ‘expected to be tabled’
• Taxpayer pension payouts to hit $238.1m
• Fears will ‘crowd out’ public service spend
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Government is “expected to table in Parliament” legislation to tackle unfunded civil service pension liabilities - forecast to hit $4.1bn in only seven years’ timeduring the current Budget debate. The just-unveiled Fiscal Strategy Report 2025, which has been seen by Tribune Business, identifies the public sector pension ‘black hole’ as a “significant structural risk” that is projected to require a near-$50m annual increase, or 25.5 percent jump, in annual Bahamian taxpayer funding over the next four fiscal years to 2028-2029.
The report reiterates that, if not addressed, the unfunded civil service pensions will “exert increasing pressure on the fiscal balance” and “crowd out resources” needed for investment in critical public services, such as education, healthcare and national security, plus infrastructure upgrades. However, there has been no mention yet of the proposed Pensions Bill’s House of Assembly tabling so far during the 2025-2026 Budget debate. Instead, Prime Minister Philip Davis KC announced an imminent salary increase for civil servants, with ‘middle managers’ set to enjoy a rise in their endJune pay cheques. And
Realtor’s commission bid on $57m sale dismissed
By NEIL HARTNELL Tribune Business Editor
A BAHAMIAN realtor’s bid to be paid a 4 percent commission on the $57m sale of a prominent Lyford Cay property has been dismissed by the Supreme Court. Diane Holowesko, former Town Planning Committee chair under the Minnis administration, had sought a court declaration and Order that she was entitled to be paid a $2.28m commission plus VAT for arranging the April 2022 sale of the nine-bedroom, 11-bathroom Harbour House that covers two acres at Lyford Cay’s marina entrance.
However, senior justice Deborah Fraser, in a June 5, 2025, verdict rejected Mrs Holowesko’s claim and ruled in favour
of the purchaser, Fabio Mantegazza, a Swiss businessman described in media reports as being “fabulously wealthy”. His father, Sergio, is said to have founded and launched the Cosmos Holidays travel firm, and at one point also owned Monarch Airlines.
The judge, while acknowledging that Mrs Holowesko may have been placed in “an unfortunate position”, found the latter was not due the 4 percent commission because she was unable to meet the agreed contractual stipulation that she close Harbour House’s $57m purchase by Mr Mantegazza no later than 10pm on the same day she was formally engaged. However, the very next day, the corporate entities acting as directors
By NEIL HARTNELL Tribune Business Editor
THE GOVERNMENT says it has further slashed payables owed to its vendors by a sum equal to 0.4 percent of gross domestic product (GDP) as it bids to switch to accrual-based accounting within two years. The just-released Fiscal Strategy Report 2025 discloses that the Davis administration cut its arrears payables to the
equivalent of 1.7 percent of nominal economic output at year-end 2024, as opposed to 2.1 percent one year earlier, while acknowledging that its unpaid bills still represent a significant fiscal risk. Based on nominal GDP figures for the 2023-2024 and 2024-2025 fiscal years contained in the Government’s Budget data, these percentages translate into $272.952m in outstanding arrears or
DIONISIO D’AGUILAR
SOUTHERN AIR PLANE IN TRANSFER MISHAP
By
SOUTHERN Air executives yesterday confirmed one of its aircraft suffered “minor damage” due to a mishap that occurred when it was being moved for mechanical service.
Anthony Hamilton, the carrier’s director of administration, confirmed that the plane was involved in an incident on Saturday while being transferred from Odyssey Aviation to another hanger for repairs. He said it was not in service at the time and only had “minor damages” that will be repaired shortly.
“The aircraft was not in service. It was being transferred from one aspect of the airport to another, from Odyssey over to another hanger with regards to repairs. There was no extensive damage due to it, just minor damages that should be repaired soon,” said Mr Hamilton.
He added that the incident has already been reported to, and investigated by, the Civil Aviation Authority which is responsible for safety oversight and all other aviation matters. “The authorities are addressing it as we speak. The Civil Aviation Authority had the investigators come up and do an assessment of everything. They’ll have a correct analysis of the situation,” said Mr Hamilton. He said Southern Air has another aircraft similar to the one being repaired that is still in operation, and there have been no adjustments to the flight schedule due to one plane being out of service. “As a matter of fact, the other aircraft is actually functioning and executing flights as we speak,” said Mr Hamilton. Images of a small aircraft toppled over the perimeter fence at the airport, with its nose embedded in the grass, the middle section resting atop the fence and the tail section suspended in the air,
circulated on social media over the weekend, leading some to speculate there was an accident.
Mr Hamilton said it is important that correct information be given to the public, as the industry is very competitive and safety is the “primary function” of all operators in the sector.
“It’s a very competitive industry, and the competitiveness of the industry is not only local competition, but it’s also world competition. We need to be more responsible and recognise that we have to protect the sovereignty of our nation, and this aviation industry that has great value to bring to the nation at large for the benefit of the Bahamian people,” said Mr Hamilton.
“There’s nothing to be trifling there. This is a major industry. Aviation is the key means of transportation in this country, and we ought not to be trifling with it, because safety is the primary function on the part of all the operators the aviation sector.”
FIRE SPARKS CLOSURE OF WEST NEW PROVIDENCE RESTAURANT
A well-known western New Providence restaurant has closed indefinitely after a fire caused “significant damage” over the Labour Day holiday weekend.
PrimeOne Seafood and Steakhouse, located in the One West Plaza, said a fire ignited at its premises early on Friday morning and caused extensive damage. Its management, in a statement, said firefighters quickly contained the blaze before it could spread to other buildings in the plaza, and no injuries were reported.
“This morning, PrimeOne Seafood and Steakhouse experienced a fire that caused significant damage to the building. Thankfully, there were no injuries. The local fire department responded swiftly, managing to contain the blaze before it could spread to adjacent units within the One West Plaza,” said the statement.
“At this time, the restaurant will be closed until further notice and we apologise to all customers with bookings for the inconvenience this will cause. Be assured that PrimeOne is committed to safely reopening as soon as possible restoring the establishment.”
THE $200m Rosewood Exuma project was yesterday said to have drawn both support and opposition for the development targeted at Sampson Cay.
M’wale Rahming, president of Public Domain, the opinion surveying firm, said the phone poll of 1,000 Bahamians found 68 percent of Exuma residents supported the development.
“These results suggest that Bahamians, and particularly those living in Exuma, who are aware of the project believe that it has the potential to generate economic opportunity, foster job growth and provide new avenues for entrepreneurship,” said Mr Rahming.
“More broadly, when we asked Bahamians what issues are most important when it comes to approving development projects generally - job creation, long-term economic benefit and opportunities for Bahamian businesses and entrepreneurs ranked highest.”
The poll was conducted nationwide between May 10-27 using a weighted sample of 1,000 Bahamian residents. According to the survey, 63 percent of Exuma residents that are aware of the development strongly support it, while only 15 percent said they strongly or somewhat oppose the development.
Survey respondents identified the top reasons for supporting the project as job creation, cited by 63 percent; an economic boost to Exuma, noted by 43 percent; and opportunities for Bahamian businesses, mentioned by 36 percent.
Speaking to Tribune Business, Mr Rahming confirmed the survey was commissioned by clients and conducted using computer-assisted telephone interviewing which randomly generates phone numbers for the pollsters to contact. He added that questions related to the
environmental impact of the project were not included in the survey.
“There wouldn’t be specific questions about the environment, because if I call you and say ‘Oh, are you worried about the environment?’ you wouldn’t know what that means, right? We didn’t ask about dredging or deforestation or anything like that,” said Mr Rahming
“We asked the main concerns about any development, and those are the top three answers, so environment was not one of the main concerns.”
Yntegra Group’s Rosewood Exuma project has received backlash from neighbouring businesses and residents who have launched a petition due to the environmental concerns it has raised.
Save Exuma Alliance (SEA), an alliance of businesses, neighbouring islands and residents, have launched a petition urging the Department of Environmental Planning and Protection (DEPP) to halt approvals for the project and requested further analysis of the environmental impact of the seabed dredging.
The Environmental Impact Assessment (EIA) for Miami-based Yntegra Group, produced by Bahamas-based consultant Bron Ltd, revealed plans to dredge almost 240,000 cubic yards of fill to create two marinas for a development set to cover most of the island’s 124 acres when completed in 2031.
Eric Carey, environmental consultant for the neighbouring Turtlegrass Resort & Island Club, said support for the petition, which currently has over 3,500 signatures, demonstrates that residents are opposed to permanently damaging the seabed to benefit a “wealthy few”.
“More than 3,500 concerned citizens have signed a petition begging their government to act
responsibly. Any government that would ignore such an outcry would be saying ‘Your voices don’t matter’ and I personally believe that this is a government that listens to the people,” said Mr Carey
“And the people are clearly and loudly saying ‘Save Exuma. Don’t dredge, don’t destroy our precious marine resources in the name of catering to a wealthy few’ because that is what this fight really amounts to; the protest against a project that is too dense, too big in size for a small cay in the Central Exumas, and too great a risk for the environment, the economy and personal safety.”
Bob Coughlin, owner of Turtlegrass Resort & Island Club, also located on Sampson Cay, has been outspoken in his call to resolve the environmental concerns surrounding the neighbouring resort.
Mr Coughlin said that although he has already invested $17m of the $25m first phase he is prepared to stop his $75m project if the nearby mega luxury resort
is allowed to significantly alter the environment shared with his sustainable eco-property.
He said his project can co-exist with Rosewood Exuma if the project is scaled down to an appropriate size for the island and does not include dredging to build a supply dock in the North Bay of the island.
Amongst SEA’s members are Staniel Cay Yacht Club, Makers Air, Embrace Resorts, Hattie Cay, Over Yonder Cay, Little Major’s Spot, Staniel Cay Adventures, Turtlegrass Resort & Island Club, Wild Tamarind Cay, Bahama Boyzz Adventurezz, and Flying Pig Cafe.
AIRLINE PLANS TO LAUNCH DAILY CAT ISLAND SERVICE
A FORT Lauderdalebased airline is launching daily service to Cat Island on November 1, 2025, and has also unveiled plans to expand its route to Stella Maris, Long Island, at the same time.
Makers Air, in a statement, said scheduled service between Fort Lauderdale Executive Airport and New Bight, Cat Island, will begin on November 1 as part of a major expansion in its drive to provide greater Family Island airlift connectivity.
“We’re thrilled to expand our service to meet the growing demand for direct access from South Florida to Cat Island,” said David Hocher, president of Makers Air. “Our goal is to make travel to The Bahamas, particularly to the Out Islands that are not currently well served by the major airlines, as seamless and enjoyable as possible.
“This new expanded schedule into New Bight, Cat Island, underscores our commitment to providing consistent, high quality and reliable airlift into these destinations, and highlights the continued and unwavering support from The Bahamas Out Island Promotion Board and the Ministry of Tourism as we navigate expansion through the Family Islands.”
Flights will operate out of Makers Air’s private terminal at Fort Lauderdale Executive Airport. The
carrier also revealed that it is expanding its scheduled flights from the same airport to Stella Maris on Long Island with effect from November 2, 2025. Makers Air will now offer three flights weekly - Tuesday, Thursday and Sunday - as part of its seasonal service which runs from November through August.
Following the successful launch of scheduled flights in winter 2023, Makers Air said strong feedback and requests from local stakeholders for more frequent service prompted the addition of a third weekly flight.
“We’re excited to expand our service to Long Island, offering even more flexibility for travellers while also enhancing access for the island’s residents,” said Mr Hocher. “This additional flight not only supports tourism but also makes it easier for residents to receive essential goods and supplies more quickly and reliably.
“It’s a win for both visitors and the local community, and we are pleased to serve Long Islanders in this regard. I would be remiss without expressing our gratitude to the Bahamas Out Island Promotion Board and Bahamas Ministry of Tourism for their continued partnership and encouragement as we continue to develop these routes.”
SOUTHERN AIR PLANE IN TRANSFER MISHAP
By
SOUTHERN Air executives yesterday confirmed one of its aircraft suffered “minor damage” due to a mishap that occurred when it was being moved for mechanical service.
Anthony Hamilton, the carrier’s director of administration, confirmed that the plane was involved in an incident on Saturday while being transferred from Odyssey Aviation to another hanger for repairs. He said it was not in service at the time and only had “minor damages” that will be repaired shortly.
“The aircraft was not in service. It was being transferred from one aspect of the airport to another, from Odyssey over to another hanger with regards to repairs. There was no extensive damage due to it, just minor damages that should be repaired soon,” said Mr Hamilton.
He added that the incident has already been reported to, and investigated by, the Civil Aviation Authority which is responsible for safety oversight and all other aviation matters. “The authorities are addressing it as we speak. The Civil Aviation Authority had the investigators come up and do an assessment of everything. They’ll have a correct analysis of the situation,” said Mr Hamilton. He said Southern Air has another aircraft similar to the one being repaired that is still in operation, and there have been no adjustments to the flight schedule due to one plane being out of service. “As a matter of fact, the other aircraft is actually functioning and executing flights as we speak,” said Mr Hamilton. Images of a small aircraft toppled over the perimeter fence at the airport, with its nose embedded in the grass, the middle section resting atop the fence and the tail section suspended in the air,
circulated on social media over the weekend, leading some to speculate there was an accident.
Mr Hamilton said it is important that correct information be given to the public, as the industry is very competitive and safety is the “primary function” of all operators in the sector.
“It’s a very competitive industry, and the competitiveness of the industry is not only local competition, but it’s also world competition. We need to be more responsible and recognise that we have to protect the sovereignty of our nation, and this aviation industry that has great value to bring to the nation at large for the benefit of the Bahamian people,” said Mr Hamilton.
“There’s nothing to be trifling there. This is a major industry. Aviation is the key means of transportation in this country, and we ought not to be trifling with it, because safety is the primary function on the part of all the operators the aviation sector.”
FIRE SPARKS CLOSURE OF WEST NEW PROVIDENCE RESTAURANT
A well-known western New Providence restaurant has closed indefinitely after a fire caused “significant damage” over the Labour Day holiday weekend.
PrimeOne Seafood and Steakhouse, located in the One West Plaza, said a fire ignited at its premises early on Friday morning and caused extensive damage. Its management, in a statement, said firefighters quickly contained the blaze before it could spread to other buildings in the plaza, and no injuries were reported.
“This morning, PrimeOne Seafood and Steakhouse experienced a fire that caused significant damage to the building. Thankfully, there were no injuries. The local fire department responded swiftly, managing to contain the blaze before it could spread to adjacent units within the One West Plaza,” said the statement.
“At this time, the restaurant will be closed until further notice and we apologise to all customers with bookings for the inconvenience this will cause. Be assured that PrimeOne is committed to safely reopening as soon as possible restoring the establishment.”
THE $200m Rosewood Exuma project was yesterday said to have drawn both support and opposition for the development targeted at Sampson Cay.
M’wale Rahming, president of Public Domain, the opinion surveying firm, said the phone poll of 1,000 Bahamians found 68 percent of Exuma residents supported the development.
“These results suggest that Bahamians, and particularly those living in Exuma, who are aware of the project believe that it has the potential to generate economic opportunity, foster job growth and provide new avenues for entrepreneurship,” said Mr Rahming.
“More broadly, when we asked Bahamians what issues are most important when it comes to approving development projects generally - job creation, long-term economic benefit and opportunities for Bahamian businesses and entrepreneurs ranked highest.”
The poll was conducted nationwide between May 10-27 using a weighted sample of 1,000 Bahamian residents. According to the survey, 63 percent of Exuma residents that are aware of the development strongly support it, while only 15 percent said they strongly or somewhat oppose the development.
Survey respondents identified the top reasons for supporting the project as job creation, cited by 63 percent; an economic boost to Exuma, noted by 43 percent; and opportunities for Bahamian businesses, mentioned by 36 percent.
Speaking to Tribune Business, Mr Rahming confirmed the survey was commissioned by clients and conducted using computer-assisted telephone interviewing which randomly generates phone numbers for the pollsters to contact. He added that questions related to the
environmental impact of the project were not included in the survey.
“There wouldn’t be specific questions about the environment, because if I call you and say ‘Oh, are you worried about the environment?’ you wouldn’t know what that means, right? We didn’t ask about dredging or deforestation or anything like that,” said Mr Rahming
“We asked the main concerns about any development, and those are the top three answers, so environment was not one of the main concerns.”
Yntegra Group’s Rosewood Exuma project has received backlash from neighbouring businesses and residents who have launched a petition due to the environmental concerns it has raised.
Save Exuma Alliance (SEA), an alliance of businesses, neighbouring islands and residents, have launched a petition urging the Department of Environmental Planning and Protection (DEPP) to halt approvals for the project and requested further analysis of the environmental impact of the seabed dredging.
The Environmental Impact Assessment (EIA) for Miami-based Yntegra Group, produced by Bahamas-based consultant Bron Ltd, revealed plans to dredge almost 240,000 cubic yards of fill to create two marinas for a development set to cover most of the island’s 124 acres when completed in 2031.
Eric Carey, environmental consultant for the neighbouring Turtlegrass Resort & Island Club, said support for the petition, which currently has over 3,500 signatures, demonstrates that residents are opposed to permanently damaging the seabed to benefit a “wealthy few”.
“More than 3,500 concerned citizens have signed a petition begging their government to act
responsibly. Any government that would ignore such an outcry would be saying ‘Your voices don’t matter’ and I personally believe that this is a government that listens to the people,” said Mr Carey
“And the people are clearly and loudly saying ‘Save Exuma. Don’t dredge, don’t destroy our precious marine resources in the name of catering to a wealthy few’ because that is what this fight really amounts to; the protest against a project that is too dense, too big in size for a small cay in the Central Exumas, and too great a risk for the environment, the economy and personal safety.”
Bob Coughlin, owner of Turtlegrass Resort & Island Club, also located on Sampson Cay, has been outspoken in his call to resolve the environmental concerns surrounding the neighbouring resort.
Mr Coughlin said that although he has already invested $17m of the $25m first phase he is prepared to stop his $75m project if the nearby mega luxury resort
is allowed to significantly alter the environment shared with his sustainable eco-property.
He said his project can co-exist with Rosewood Exuma if the project is scaled down to an appropriate size for the island and does not include dredging to build a supply dock in the North Bay of the island.
Amongst SEA’s members are Staniel Cay Yacht Club, Makers Air, Embrace Resorts, Hattie Cay, Over Yonder Cay, Little Major’s Spot, Staniel Cay Adventures, Turtlegrass Resort & Island Club, Wild Tamarind Cay, Bahama Boyzz Adventurezz, and Flying Pig Cafe.
AIRLINE PLANS TO LAUNCH DAILY CAT ISLAND SERVICE
A FORT Lauderdalebased airline is launching daily service to Cat Island on November 1, 2025, and has also unveiled plans to expand its route to Stella Maris, Long Island, at the same time.
Makers Air, in a statement, said scheduled service between Fort Lauderdale Executive Airport and New Bight, Cat Island, will begin on November 1 as part of a major expansion in its drive to provide greater Family Island airlift connectivity.
“We’re thrilled to expand our service to meet the growing demand for direct access from South Florida to Cat Island,” said David Hocher, president of Makers Air. “Our goal is to make travel to The Bahamas, particularly to the Out Islands that are not currently well served by the major airlines, as seamless and enjoyable as possible.
“This new expanded schedule into New Bight, Cat Island, underscores our commitment to providing consistent, high quality and reliable airlift into these destinations, and highlights the continued and unwavering support from The Bahamas Out Island Promotion Board and the Ministry of Tourism as we navigate expansion through the Family Islands.”
Flights will operate out of Makers Air’s private terminal at Fort Lauderdale Executive Airport. The
carrier also revealed that it is expanding its scheduled flights from the same airport to Stella Maris on Long Island with effect from November 2, 2025. Makers Air will now offer three flights weekly - Tuesday, Thursday and Sunday - as part of its seasonal service which runs from November through August.
Following the successful launch of scheduled flights in winter 2023, Makers Air said strong feedback and requests from local stakeholders for more frequent service prompted the addition of a third weekly flight.
“We’re excited to expand our service to Long Island, offering even more flexibility for travellers while also enhancing access for the island’s residents,” said Mr Hocher. “This additional flight not only supports tourism but also makes it easier for residents to receive essential goods and supplies more quickly and reliably.
“It’s a win for both visitors and the local community, and we are pleased to serve Long Islanders in this regard. I would be remiss without expressing our gratitude to the Bahamas Out Island Promotion Board and Bahamas Ministry of Tourism for their continued partnership and encouragement as we continue to develop these routes.”
PM and DPM open new Cat Island hotel
THE Prime Minister and deputy prime minister were both present for the official opening of Curly’s Beach Resort in Bennett’s Harbour, Cat Island, on June 6. Philip Davis and Chester Cooper were joined by Clay
Sweeting, minister of works and Family Island affairs; Jamahl Strachan, parliamentary secretary in the Ministry of Foreign Affairs; Shanta Knowles, commissioner of police, and others.
PM and DPM unveil Cat Island Icon sign
THE Prime Minister and Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, officially unveiled an Icon sign heralding the beauty and mystique of Cat Island.
The signage was created by visual artist, Jamaal Rolle, and situated at the Cultural Village in New Bight. At the ceremony, a prayer was delivered by Bishop Winslow B. Moss, while the national anthem was performed by the Cat Island Community Band. The moderator was Phylicia Thurston Rolle, and chief councillor for the Cat Island district, Linda Bannister, gave the welcome. Photo:Kemuel Stubbs/ BIS
The Prime Minister and Mr Cooper, also minister of tourism, investments and aviation, are pictured in the ribbon cutting with Vincent ‘Curly’ McDonald and family.
UNION LEADER CALLS FOR BETTER GOV’T DIALOGUE
By ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net
A TRADE union leader is calling for better consultation by the Government over proposed labour reforms and actions following the Prime Minister’s revelation of upcoming civil service pay increases.
Deron Brooks, the Bahamas Customs, Immigration and Allied Workers Union (BCIAWU) president, told Tribune Business that the lack of dialogue between the Government and the unions leaves no room for input and access to information.
He cited Philip Davis KC’s disclosure that civil service ‘middle managers’ will receive a pay rise as early as end-June as one example of such lack of consultation, adding that he and the union are unable to advise there members as to who will be included in this.
“I am told that there was an announcement made by the Government as it relates to an increase in salary for middle managers,” Mr Brooks said. “So the question was asked: ‘Who do you consider middle managers?’ And membership was asking, but see... what my definition of a middle manager might be may not be what the Government considers to be a middle manager.
“So even in that regard, as simple as that is, members would ask and we didn’t have a definitive answer, because we don’t know what government deems to be a middle manager. That’s just one example. So it’s just things like that.
“Members would ask us a question based on the statements made by the Government on what they plan to do, and we would have no answers to give them;, no definitive answers, because we were never consulted. So we won’t know what the Government’s plan is... So we’re not against what
they’re trying to do, but we can’t answer our members because we don’t have the information,” Mr Brooks added.
“Here’s the Government’s example of consultation. They contact you and tell you what they’re going to do. So it really doesn’t matter what you think. They just there to tell you what they’re going to do. So it’s not where you have an input in anything. That’s their version of consultation. They just tell you what’s happening, or what’s going to happen.
“It doesn’t matter how you feel about it, or if you have any input in it, and how it would affect anybody. That’s usually their definition of consultation. Sometimes they don’t give you the option for input, or most times you don’t get an option for input. That’s their definition, usually, of consultation. They contact you and tell you what’s going to happen. So it’s not a decision that’s arrived at mutually.”
Noting that public and private sector unions both have issues that remain unresolved, Mr Brooks also recommended that the Industrial Tribunal be given the authority to enforce its own rulings. He said without that power, the Tribunal can rule in a worker’s favour, but an employer does not have to comply with any award because “there was legally nothing that you could do” to enforce it in this forum.
Sherry Benjamin, the National Congress of Trade Unions of The Bahamas (NCTUB) vice-president, who is also the Bahamas Communications and Public Officers Union’s (BCPOU) president, said she sat in on a meeting a few weeks ago aimed at providing feedback on labour reform proposals already submitted via the National Tripartite Council.
She said trade unions are pushing for reforms regarding “living wage in sectors, and increasing minimum wage to those sectors that cannot take [a] livable wage increase”, as well as provisions for maternity, paternity and parental leave.
Noting that mental health leave was a “hot topic”, Ms Benjamin said that while it has been proposed the details still need ironing out. She stressed the importance of mental health days off for workers, especially those in the BCPOU.
“The hot topic was the mental leave,” Ms Benjamin said. “For me, I represent workers who work in the media sector who have to go on these gruesome scenes and [are] exposed to all of
these things, these gruesome sites and events that would happen; the car accidents, the murders and all that stuff. And, of course, it plays on the mental psyche.
“And so we’ve been asking. You see how the suicide rate in The Bahamas has increased tremendously over the past, I would say two years, or at least since COVID. Actually, the suicide rate in this country has just been going up and going up and going up.
“And that is because we believe that, not that people have mental illnesses, it’s just that people need sometimes to just take a reset, to be able to catch themselves and to take that mental break away from work, or even just to be able to go and sit down and talk to someone if they’re having a stressful period, or they’re dealing with a situation that they can’t deal with on their own,” she added.
“They’re able to get that break where they can go and get some help to deal with someone. We’re not saying that people who do that have mental illness, which is something different, but they just need that time to be able to reset, to recalibrate and get back to themselves where they can function properly on the job.”
As for maternity, paternity and parental leave, Ms Benjamin said the unions are hoping for 16 weeks maternity leave as recommended by the International Labour Organisation (ILO), four weeks paternity leave and four weeks parental leave.
“We see that our children are suffering. The young people in this country are suffering because they don’t have that relationship with their parents,” Ms Benjamin added. “That initial relationship with the parents in those formative years, [it] plays a lasting role in the way those children are raised and the way they are reared.
“The Bible tell you to train up a child in the way it should go, and when it is old, it will not depart. And so that is why we’re pushing, and not just for maternity leave and paternity leave. We’re also pushing for parents who may not be able to have children, but taking on responsibility by adopting children, to also have the ability to have that bonding time with the child that they would have adopted by having a leave for them as well.”
Ms Benjamin said COVID-19 taught the importance of having legislation in place for remote work. “COVID taught us all a lesson that that has to be a part of the discussions
Legal Notice NOTICE
Pursuant to the provisions of The International Business Companies Act 2000, as amended, notice is hereby given that Shemara Investment Holdings Limited has been placed in voluntary liquidation and the date of commencement of the liquidation is 14 May 2025.
John Jephson LIQUIDATOR c/o Clairmont Trust Company Limited Pineapple House #4 Lyford Cay P.O. Box SP-64284 Nassau, Bahamas
moving forward,” she said.
“There has to be some consideration for remote work, because very few businesses in this country were prepared for remote work.
“But we see that it could work, and it did work during COVID. And so the fact is, the structure, it was just something done haphazard in most of the business sector. Some places were not even able to move to a work from home because they were not prepared for it, equipment wise, and all of that stuff, and so that conversation needs to be had.
“People need to be ready, because we don’t know when the next pandemic will hit The Bahamas. We don’t know what catastrophe can hit The Bahamas, where we have to resort to a work from home again,” she continued.
“Also, when you look at the work from home, you have to look at also the fact that you could still have accidents at home. So how does the NIB industrial accident fit into it? So there’s a lot of conversations that, again, need to be had, but definitely work from home needs to be structured in our Employment Act so that the basic standards are set for employees who have to work from home.”
Ms Benjamin said livable wage was among the recommendations, noting that she understands “every sector will not be able to realise a livable wage”.
“The Government, the public sector, the private sector, everybody could basically be satisfied if you tailor it based on the sectors,” she said. “ If you set up a livable wage to say $800 per week per person, a ‘Mom and Pop’ store may not be able to afford that. But they would probably be able to afford the increase in the minimum wage and could tailor their profit margins to that increase.
“The discussions are ongoing, and we intend to keep the discussions going so that, at some point in the very near future, the workers in this country are able to actually survive off of whatever they make, without having to live pay cheque to pay cheque or hand to mouth.”
The labour reform ‘white paper’ is currently a working paper, and stakeholders have until June 15 to submit more feedback. Ms Benjamin, who is serving as acting NTCUB president in place of Dwayne Woods, said she will be meeting with the National Congress of Trade Unions Bahamas (TUC) to “flesh out everything that we want to see added”.
“A lot of the recommendations that we had discussed initially we would have already submitted,” Ms Benjamin said. “There are a few more stuff that we’re still trying to flesh out. But, at this particular point, we are all full in Labour Day mode, and so we put that discussion on hold.
“But next [this] week, God’s willing, we will get back in there, and we will definitely have the opportunity to sit down and flesh out everything that we want to see added to what we learned made the cut into the white paper. And what we would like to see added to that White Paper, we will sit down and flesh that out next week before the 15th deadline, and then be able to submit that.”
PRIME Minis-
ter Philip Davis and Deputy Prime Minister Chester Cooper are pictured in the ribbon cutting with Mr. Vincent 'Curly' McDonald.
Photo:Kemuel Stubbs/AP
PM and DPM open new Cat Island hotel
THE Prime Minister and deputy prime minister were both present for the official opening of Curly’s Beach Resort in Bennett’s Harbour, Cat Island, on June 6. Philip Davis and Chester Cooper were joined by Clay
Sweeting, minister of works and Family Island affairs; Jamahl Strachan, parliamentary secretary in the Ministry of Foreign Affairs; Shanta Knowles, commissioner of police, and others.
PM and DPM unveil Cat Island Icon sign
THE Prime Minister and Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, officially unveiled an Icon sign heralding the beauty and mystique of Cat Island.
The signage was created by visual artist, Jamaal Rolle, and situated at the Cultural Village in New Bight. At the ceremony, a prayer was delivered by Bishop Winslow B. Moss, while the national anthem was performed by the Cat Island Community Band. The moderator was Phylicia Thurston Rolle, and chief councillor for the Cat Island district, Linda Bannister, gave the welcome. Photo:Kemuel Stubbs/ BIS
The Prime Minister and Mr Cooper, also minister of tourism, investments and aviation, are pictured in the ribbon cutting with Vincent ‘Curly’ McDonald and family.
UNION LEADER CALLS FOR BETTER GOV’T DIALOGUE
By ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net
A TRADE union leader is calling for better consultation by the Government over proposed labour reforms and actions following the Prime Minister’s revelation of upcoming civil service pay increases.
Deron Brooks, the Bahamas Customs, Immigration and Allied Workers Union (BCIAWU) president, told Tribune Business that the lack of dialogue between the Government and the unions leaves no room for input and access to information.
He cited Philip Davis KC’s disclosure that civil service ‘middle managers’ will receive a pay rise as early as end-June as one example of such lack of consultation, adding that he and the union are unable to advise there members as to who will be included in this.
“I am told that there was an announcement made by the Government as it relates to an increase in salary for middle managers,” Mr Brooks said. “So the question was asked: ‘Who do you consider middle managers?’ And membership was asking, but see... what my definition of a middle manager might be may not be what the Government considers to be a middle manager.
“So even in that regard, as simple as that is, members would ask and we didn’t have a definitive answer, because we don’t know what government deems to be a middle manager. That’s just one example. So it’s just things like that.
“Members would ask us a question based on the statements made by the Government on what they plan to do, and we would have no answers to give them;, no definitive answers, because we were never consulted. So we won’t know what the Government’s plan is... So we’re not against what
they’re trying to do, but we can’t answer our members because we don’t have the information,” Mr Brooks added.
“Here’s the Government’s example of consultation. They contact you and tell you what they’re going to do. So it really doesn’t matter what you think. They just there to tell you what they’re going to do. So it’s not where you have an input in anything. That’s their version of consultation. They just tell you what’s happening, or what’s going to happen.
“It doesn’t matter how you feel about it, or if you have any input in it, and how it would affect anybody. That’s usually their definition of consultation. Sometimes they don’t give you the option for input, or most times you don’t get an option for input. That’s their definition, usually, of consultation. They contact you and tell you what’s going to happen. So it’s not a decision that’s arrived at mutually.”
Noting that public and private sector unions both have issues that remain unresolved, Mr Brooks also recommended that the Industrial Tribunal be given the authority to enforce its own rulings. He said without that power, the Tribunal can rule in a worker’s favour, but an employer does not have to comply with any award because “there was legally nothing that you could do” to enforce it in this forum.
Sherry Benjamin, the National Congress of Trade Unions of The Bahamas (NCTUB) vice-president, who is also the Bahamas Communications and Public Officers Union’s (BCPOU) president, said she sat in on a meeting a few weeks ago aimed at providing feedback on labour reform proposals already submitted via the National Tripartite Council.
She said trade unions are pushing for reforms regarding “living wage in sectors, and increasing minimum wage to those sectors that cannot take [a] livable wage increase”, as well as provisions for maternity, paternity and parental leave.
Noting that mental health leave was a “hot topic”, Ms Benjamin said that while it has been proposed the details still need ironing out. She stressed the importance of mental health days off for workers, especially those in the BCPOU.
“The hot topic was the mental leave,” Ms Benjamin said. “For me, I represent workers who work in the media sector who have to go on these gruesome scenes and [are] exposed to all of
these things, these gruesome sites and events that would happen; the car accidents, the murders and all that stuff. And, of course, it plays on the mental psyche.
“And so we’ve been asking. You see how the suicide rate in The Bahamas has increased tremendously over the past, I would say two years, or at least since COVID. Actually, the suicide rate in this country has just been going up and going up and going up.
“And that is because we believe that, not that people have mental illnesses, it’s just that people need sometimes to just take a reset, to be able to catch themselves and to take that mental break away from work, or even just to be able to go and sit down and talk to someone if they’re having a stressful period, or they’re dealing with a situation that they can’t deal with on their own,” she added.
“They’re able to get that break where they can go and get some help to deal with someone. We’re not saying that people who do that have mental illness, which is something different, but they just need that time to be able to reset, to recalibrate and get back to themselves where they can function properly on the job.”
As for maternity, paternity and parental leave, Ms Benjamin said the unions are hoping for 16 weeks maternity leave as recommended by the International Labour Organisation (ILO), four weeks paternity leave and four weeks parental leave.
“We see that our children are suffering. The young people in this country are suffering because they don’t have that relationship with their parents,” Ms Benjamin added. “That initial relationship with the parents in those formative years, [it] plays a lasting role in the way those children are raised and the way they are reared.
“The Bible tell you to train up a child in the way it should go, and when it is old, it will not depart. And so that is why we’re pushing, and not just for maternity leave and paternity leave. We’re also pushing for parents who may not be able to have children, but taking on responsibility by adopting children, to also have the ability to have that bonding time with the child that they would have adopted by having a leave for them as well.”
Ms Benjamin said COVID-19 taught the importance of having legislation in place for remote work. “COVID taught us all a lesson that that has to be a part of the discussions
Legal Notice NOTICE
Pursuant to the provisions of The International Business Companies Act 2000, as amended, notice is hereby given that Shemara Investment Holdings Limited has been placed in voluntary liquidation and the date of commencement of the liquidation is 14 May 2025.
John Jephson LIQUIDATOR c/o Clairmont Trust Company Limited Pineapple House #4 Lyford Cay P.O. Box SP-64284 Nassau, Bahamas
moving forward,” she said.
“There has to be some consideration for remote work, because very few businesses in this country were prepared for remote work.
“But we see that it could work, and it did work during COVID. And so the fact is, the structure, it was just something done haphazard in most of the business sector. Some places were not even able to move to a work from home because they were not prepared for it, equipment wise, and all of that stuff, and so that conversation needs to be had.
“People need to be ready, because we don’t know when the next pandemic will hit The Bahamas. We don’t know what catastrophe can hit The Bahamas, where we have to resort to a work from home again,” she continued.
“Also, when you look at the work from home, you have to look at also the fact that you could still have accidents at home. So how does the NIB industrial accident fit into it? So there’s a lot of conversations that, again, need to be had, but definitely work from home needs to be structured in our Employment Act so that the basic standards are set for employees who have to work from home.”
Ms Benjamin said livable wage was among the recommendations, noting that she understands “every sector will not be able to realise a livable wage”.
“The Government, the public sector, the private sector, everybody could basically be satisfied if you tailor it based on the sectors,” she said. “ If you set up a livable wage to say $800 per week per person, a ‘Mom and Pop’ store may not be able to afford that. But they would probably be able to afford the increase in the minimum wage and could tailor their profit margins to that increase.
“The discussions are ongoing, and we intend to keep the discussions going so that, at some point in the very near future, the workers in this country are able to actually survive off of whatever they make, without having to live pay cheque to pay cheque or hand to mouth.”
The labour reform ‘white paper’ is currently a working paper, and stakeholders have until June 15 to submit more feedback. Ms Benjamin, who is serving as acting NTCUB president in place of Dwayne Woods, said she will be meeting with the National Congress of Trade Unions Bahamas (TUC) to “flesh out everything that we want to see added”.
“A lot of the recommendations that we had discussed initially we would have already submitted,” Ms Benjamin said. “There are a few more stuff that we’re still trying to flesh out. But, at this particular point, we are all full in Labour Day mode, and so we put that discussion on hold.
“But next [this] week, God’s willing, we will get back in there, and we will definitely have the opportunity to sit down and flesh out everything that we want to see added to what we learned made the cut into the white paper. And what we would like to see added to that White Paper, we will sit down and flesh that out next week before the 15th deadline, and then be able to submit that.”
PRIME Minis-
ter Philip Davis and Deputy Prime Minister Chester Cooper are pictured in the ribbon cutting with Mr. Vincent 'Curly' McDonald.
Photo:Kemuel Stubbs/AP
PM and DPM open new Cat Island hotel
THE Prime Minister and deputy prime minister were both present for the official opening of Curly’s Beach Resort in Bennett’s Harbour, Cat Island, on June 6. Philip Davis and Chester Cooper were joined by Clay
Sweeting, minister of works and Family Island affairs; Jamahl Strachan, parliamentary secretary in the Ministry of Foreign Affairs; Shanta Knowles, commissioner of police, and others.
PM and DPM unveil Cat Island Icon sign
THE Prime Minister and Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, officially unveiled an Icon sign heralding the beauty and mystique of Cat Island.
The signage was created by visual artist, Jamaal Rolle, and situated at the Cultural Village in New Bight. At the ceremony, a prayer was delivered by Bishop Winslow B. Moss, while the national anthem was performed by the Cat Island Community Band. The moderator was Phylicia Thurston Rolle, and chief councillor for the Cat Island district, Linda Bannister, gave the welcome. Photo:Kemuel Stubbs/ BIS
The Prime Minister and Mr Cooper, also minister of tourism, investments and aviation, are pictured in the ribbon cutting with Vincent ‘Curly’ McDonald and family.
UNION LEADER CALLS FOR BETTER GOV’T DIALOGUE
By ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net
A TRADE union leader is calling for better consultation by the Government over proposed labour reforms and actions following the Prime Minister’s revelation of upcoming civil service pay increases.
Deron Brooks, the Bahamas Customs, Immigration and Allied Workers Union (BCIAWU) president, told Tribune Business that the lack of dialogue between the Government and the unions leaves no room for input and access to information.
He cited Philip Davis KC’s disclosure that civil service ‘middle managers’ will receive a pay rise as early as end-June as one example of such lack of consultation, adding that he and the union are unable to advise there members as to who will be included in this.
“I am told that there was an announcement made by the Government as it relates to an increase in salary for middle managers,” Mr Brooks said. “So the question was asked: ‘Who do you consider middle managers?’ And membership was asking, but see... what my definition of a middle manager might be may not be what the Government considers to be a middle manager.
“So even in that regard, as simple as that is, members would ask and we didn’t have a definitive answer, because we don’t know what government deems to be a middle manager. That’s just one example. So it’s just things like that.
“Members would ask us a question based on the statements made by the Government on what they plan to do, and we would have no answers to give them;, no definitive answers, because we were never consulted. So we won’t know what the Government’s plan is... So we’re not against what
they’re trying to do, but we can’t answer our members because we don’t have the information,” Mr Brooks added.
“Here’s the Government’s example of consultation. They contact you and tell you what they’re going to do. So it really doesn’t matter what you think. They just there to tell you what they’re going to do. So it’s not where you have an input in anything. That’s their version of consultation. They just tell you what’s happening, or what’s going to happen.
“It doesn’t matter how you feel about it, or if you have any input in it, and how it would affect anybody. That’s usually their definition of consultation. Sometimes they don’t give you the option for input, or most times you don’t get an option for input. That’s their definition, usually, of consultation. They contact you and tell you what’s going to happen. So it’s not a decision that’s arrived at mutually.”
Noting that public and private sector unions both have issues that remain unresolved, Mr Brooks also recommended that the Industrial Tribunal be given the authority to enforce its own rulings. He said without that power, the Tribunal can rule in a worker’s favour, but an employer does not have to comply with any award because “there was legally nothing that you could do” to enforce it in this forum.
Sherry Benjamin, the National Congress of Trade Unions of The Bahamas (NCTUB) vice-president, who is also the Bahamas Communications and Public Officers Union’s (BCPOU) president, said she sat in on a meeting a few weeks ago aimed at providing feedback on labour reform proposals already submitted via the National Tripartite Council.
She said trade unions are pushing for reforms regarding “living wage in sectors, and increasing minimum wage to those sectors that cannot take [a] livable wage increase”, as well as provisions for maternity, paternity and parental leave.
Noting that mental health leave was a “hot topic”, Ms Benjamin said that while it has been proposed the details still need ironing out. She stressed the importance of mental health days off for workers, especially those in the BCPOU.
“The hot topic was the mental leave,” Ms Benjamin said. “For me, I represent workers who work in the media sector who have to go on these gruesome scenes and [are] exposed to all of
these things, these gruesome sites and events that would happen; the car accidents, the murders and all that stuff. And, of course, it plays on the mental psyche.
“And so we’ve been asking. You see how the suicide rate in The Bahamas has increased tremendously over the past, I would say two years, or at least since COVID. Actually, the suicide rate in this country has just been going up and going up and going up.
“And that is because we believe that, not that people have mental illnesses, it’s just that people need sometimes to just take a reset, to be able to catch themselves and to take that mental break away from work, or even just to be able to go and sit down and talk to someone if they’re having a stressful period, or they’re dealing with a situation that they can’t deal with on their own,” she added.
“They’re able to get that break where they can go and get some help to deal with someone. We’re not saying that people who do that have mental illness, which is something different, but they just need that time to be able to reset, to recalibrate and get back to themselves where they can function properly on the job.”
As for maternity, paternity and parental leave, Ms Benjamin said the unions are hoping for 16 weeks maternity leave as recommended by the International Labour Organisation (ILO), four weeks paternity leave and four weeks parental leave.
“We see that our children are suffering. The young people in this country are suffering because they don’t have that relationship with their parents,” Ms Benjamin added. “That initial relationship with the parents in those formative years, [it] plays a lasting role in the way those children are raised and the way they are reared.
“The Bible tell you to train up a child in the way it should go, and when it is old, it will not depart. And so that is why we’re pushing, and not just for maternity leave and paternity leave. We’re also pushing for parents who may not be able to have children, but taking on responsibility by adopting children, to also have the ability to have that bonding time with the child that they would have adopted by having a leave for them as well.”
Ms Benjamin said COVID-19 taught the importance of having legislation in place for remote work. “COVID taught us all a lesson that that has to be a part of the discussions
Legal Notice NOTICE
Pursuant to the provisions of The International Business Companies Act 2000, as amended, notice is hereby given that Shemara Investment Holdings Limited has been placed in voluntary liquidation and the date of commencement of the liquidation is 14 May 2025.
John Jephson LIQUIDATOR c/o Clairmont Trust Company Limited Pineapple House #4 Lyford Cay P.O. Box SP-64284 Nassau, Bahamas
moving forward,” she said.
“There has to be some consideration for remote work, because very few businesses in this country were prepared for remote work.
“But we see that it could work, and it did work during COVID. And so the fact is, the structure, it was just something done haphazard in most of the business sector. Some places were not even able to move to a work from home because they were not prepared for it, equipment wise, and all of that stuff, and so that conversation needs to be had.
“People need to be ready, because we don’t know when the next pandemic will hit The Bahamas. We don’t know what catastrophe can hit The Bahamas, where we have to resort to a work from home again,” she continued.
“Also, when you look at the work from home, you have to look at also the fact that you could still have accidents at home. So how does the NIB industrial accident fit into it? So there’s a lot of conversations that, again, need to be had, but definitely work from home needs to be structured in our Employment Act so that the basic standards are set for employees who have to work from home.”
Ms Benjamin said livable wage was among the recommendations, noting that she understands “every sector will not be able to realise a livable wage”.
“The Government, the public sector, the private sector, everybody could basically be satisfied if you tailor it based on the sectors,” she said. “ If you set up a livable wage to say $800 per week per person, a ‘Mom and Pop’ store may not be able to afford that. But they would probably be able to afford the increase in the minimum wage and could tailor their profit margins to that increase.
“The discussions are ongoing, and we intend to keep the discussions going so that, at some point in the very near future, the workers in this country are able to actually survive off of whatever they make, without having to live pay cheque to pay cheque or hand to mouth.”
The labour reform ‘white paper’ is currently a working paper, and stakeholders have until June 15 to submit more feedback. Ms Benjamin, who is serving as acting NTCUB president in place of Dwayne Woods, said she will be meeting with the National Congress of Trade Unions Bahamas (TUC) to “flesh out everything that we want to see added”.
“A lot of the recommendations that we had discussed initially we would have already submitted,” Ms Benjamin said. “There are a few more stuff that we’re still trying to flesh out. But, at this particular point, we are all full in Labour Day mode, and so we put that discussion on hold.
“But next [this] week, God’s willing, we will get back in there, and we will definitely have the opportunity to sit down and flesh out everything that we want to see added to what we learned made the cut into the white paper. And what we would like to see added to that White Paper, we will sit down and flesh that out next week before the 15th deadline, and then be able to submit that.”
PRIME Minis-
ter Philip Davis and Deputy Prime Minister Chester Cooper are pictured in the ribbon cutting with Mr. Vincent 'Curly' McDonald.
Photo:Kemuel Stubbs/AP
SHOPPERS ARE WARY OF DIGITAL SHELF LABELS, BUT A STUDY FOUND THEY DON’T LEAD TO PRICE SURGES
By DEE-ANN DURBIN AP Business Writer
DIGITAL price labels, which are rapidly replacing paper shelf tags at U.S. supermarkets, haven't led to demand-based pricing surges, according to a new study that examined five years' worth of prices at one grocery chain.
But some shoppers, consumer advocates and lawmakers remain skeptical about the tiny electronic screens, which let stores change prices instantly from a central computer instead of having workers swap out paper labels by hand.
"It's corporations vs. the humans, and that chasm between us goes further and further," said Dan Gallant, who works in sports media in Edmonton, Canada.
Gallant's local Loblaws supermarket recently switched to digital labels.
Social media is filled with warnings that grocers will use the technology to charge more for ice cream if it's hot outside, hike the price of umbrellas if it's raining or to
gather information about customers.
Democratic U.S. Sens. Elizabeth Warren of Massachusetts and Bob Casey of Pennsylvania fired off a letter to Kroger last fall demanding to know whether it would use its electronic labels as part of a dynamic pricing strategy.
Lawmakers in Rhode Island and Maine have introduced bills to limit the use of digital labels. In
Arizona, Democratic state Rep. Cesar Aguilar recently introduced a bill that would ban them altogether.
The bill hasn't gotten a hearing, but Aguilar said he's determined to start a conversation about digital labels and how stores could abuse them.
"Grocery stores study when people go shopping the most. And so you might be able to see a price go down one day and then go
up another day," Aguilar told The Associated Press. Researchers say those fears are misplaced. A study published in late May found "virtually no surge pricing" before or after electronic shelf labels were adopted. The study was authored by Ioannis Stamatopoulos of the University of Texas, Austin, Robert Evan Sanders of the University of California, San Diego and Robert Bray of Northwestern University
The researchers looked at prices between 2019 and 2024 at an unnamed grocery chain that began using digital labels in October 2022. They found that temporary price increases affected 0.005% of products on any given day before electronic shelf labels were introduced, a share that increased by only 0.0006 percentage points after digital labels were installed.
The study also determined that discounts were slightly more common after digital labels were introduced.
Economists have long wondered why grocery prices don't change more often, according to Stamatopoulos. If bananas are about to expire, for example, it makes sense to lower the price on them. He said the cost of having workers change prices by hand could be one issue.
But there's another reason: Shoppers watch grocery prices closely, and stores don't want to risk angering them.
"Selling groceries is not selling a couch. It's not a one-time transaction and you will never see them again," Stamatopoulos said.
"You want them coming to the store every week."
Electronic price labels aren't new. They've been in use for more than a decade at groceries in Europe and some U.S. retailers, like Kohl's.
But they've been slow to migrate to U.S. grocery stores. Only around 5% to 10% of U.S. supermarkets now have electronic labels, compared to 80% in Europe, said Amanda
Oren, vice president of industry strategy for North American grocery at Relex Solutions, a technology company that helps retailers forecast demand.
Oren said cost is one issue that has slowed the U.S. rollout. The tiny screens cost between $5 and $20, Oren said, but every product a store sells needs one, and the average supermarket has 100,000 or more individual products. Still, the U.S. industry is charging ahead. Walmart, the nation's largest grocer and retailer, hopes to have digital price labels at 2,300 U.S. stores by 2026. Kroger is expanding the use of digital labels this year after testing them at 20 stores. Whole Foods is testing the labels in nearly 50 stores. Companies say electronic price labels have tremendous advantages. Walmart says it used to take employees two days to change paper price labels on the 120,000 items it has in a typical store. With digital tags, it takes a few minutes.
ELECTRONIC grocery labels are displayed at a Kroger grocery store, in Monroe, Ohio, Nov. 13, 2024. Photo:Jeff Dean/AP
SHOPPERS ARE WARY OF DIGITAL SHELF LABELS, BUT A STUDY FOUND THEY DON’T LEAD TO PRICE SURGES
By DEE-ANN DURBIN AP Business Writer
DIGITAL price labels, which are rapidly replacing paper shelf tags at U.S. supermarkets, haven't led to demand-based pricing surges, according to a new study that examined five years' worth of prices at one grocery chain.
But some shoppers, consumer advocates and lawmakers remain skeptical about the tiny electronic screens, which let stores change prices instantly from a central computer instead of having workers swap out paper labels by hand.
"It's corporations vs. the humans, and that chasm between us goes further and further," said Dan Gallant, who works in sports media in Edmonton, Canada.
Gallant's local Loblaws supermarket recently switched to digital labels.
Social media is filled with warnings that grocers will use the technology to charge more for ice cream if it's hot outside, hike the price of umbrellas if it's raining or to
gather information about customers.
Democratic U.S. Sens. Elizabeth Warren of Massachusetts and Bob Casey of Pennsylvania fired off a letter to Kroger last fall demanding to know whether it would use its electronic labels as part of a dynamic pricing strategy.
Lawmakers in Rhode Island and Maine have introduced bills to limit the use of digital labels. In
Arizona, Democratic state Rep. Cesar Aguilar recently introduced a bill that would ban them altogether.
The bill hasn't gotten a hearing, but Aguilar said he's determined to start a conversation about digital labels and how stores could abuse them.
"Grocery stores study when people go shopping the most. And so you might be able to see a price go down one day and then go
up another day," Aguilar told The Associated Press. Researchers say those fears are misplaced. A study published in late May found "virtually no surge pricing" before or after electronic shelf labels were adopted. The study was authored by Ioannis Stamatopoulos of the University of Texas, Austin, Robert Evan Sanders of the University of California, San Diego and Robert Bray of Northwestern University
The researchers looked at prices between 2019 and 2024 at an unnamed grocery chain that began using digital labels in October 2022. They found that temporary price increases affected 0.005% of products on any given day before electronic shelf labels were introduced, a share that increased by only 0.0006 percentage points after digital labels were installed.
The study also determined that discounts were slightly more common after digital labels were introduced.
Economists have long wondered why grocery prices don't change more often, according to Stamatopoulos. If bananas are about to expire, for example, it makes sense to lower the price on them. He said the cost of having workers change prices by hand could be one issue.
But there's another reason: Shoppers watch grocery prices closely, and stores don't want to risk angering them.
"Selling groceries is not selling a couch. It's not a one-time transaction and you will never see them again," Stamatopoulos said.
"You want them coming to the store every week."
Electronic price labels aren't new. They've been in use for more than a decade at groceries in Europe and some U.S. retailers, like Kohl's.
But they've been slow to migrate to U.S. grocery stores. Only around 5% to 10% of U.S. supermarkets now have electronic labels, compared to 80% in Europe, said Amanda
Oren, vice president of industry strategy for North American grocery at Relex Solutions, a technology company that helps retailers forecast demand.
Oren said cost is one issue that has slowed the U.S. rollout. The tiny screens cost between $5 and $20, Oren said, but every product a store sells needs one, and the average supermarket has 100,000 or more individual products. Still, the U.S. industry is charging ahead. Walmart, the nation's largest grocer and retailer, hopes to have digital price labels at 2,300 U.S. stores by 2026. Kroger is expanding the use of digital labels this year after testing them at 20 stores. Whole Foods is testing the labels in nearly 50 stores. Companies say electronic price labels have tremendous advantages. Walmart says it used to take employees two days to change paper price labels on the 120,000 items it has in a typical store. With digital tags, it takes a few minutes.
ELECTRONIC grocery labels are displayed at a Kroger grocery store, in Monroe, Ohio, Nov. 13, 2024. Photo:Jeff Dean/AP
BUDGET DEBATE AWAITING UNFUNDED $4.1BN CIVIL SERVICE PENSION REFORM
non-managerial workers are set for a 2-8 percent increase likely come September.
The Fiscal Strategy Report is also somewhat contradictory as to the pace of civil service pension reform. On page 33, it refers merely to “tabling of the ‘white paper’ in Parliament during the 2025-2026 Budget debate”, while on Page 57 it states: “The public consultation process has concluded, and the Bill is expected to be tabled in Parliament during the upcoming budget exercise for fiscal year 2025-2026.”
Several observers have suggested that, with a general election approaching, civil service pension reform - which will require a significant number of public servants, especially relatively new hires and likely those who have been employed by the Government for eight years or less to contribute a portion of their income to funding their retirement - will be delayed until after the vote.
“Containing long-term pension obligations remains a key priority to ensure fiscal sustainability, improve inter-generational equity, and reduce unfunded contingent liabilities,” the Davis administration’s latest Fiscal Strategy Report states.
“Recurrent expenditure on pensions and gratuities totalled $182.7m in fiscal year 2023-2024, representing 6.2 percent of total recurrent spending. This figure is projected to
increase to $201.6m in fiscal year 2025-2026.” It added that “an operational model for the new contributory scheme” has been designed, and a “phased implementation plan” worked out.
Civil service pension and gratuity payouts, which are presently 100 percent funded by the Bahamian taxpayer, are forecast to hit $189.7m during the present 2024-205 fiscal year with $139.313m of this sum paid out during the nine months to end-March 2025.
Thereafter, these payouts are predicted to accelerate in size, with total pension and gratuity outlays rising to $201.6m in the upcoming 2025-2026 Budget cycle, and followed by further rises to $215.9m in 20262027; $230.2m in 2027-2028; and $238.1m in 2028-2029.
Outlining the basic reform framework proposed by the Government, the Fiscal Strategy Report said: “The Government initiated a public feedback process on the draft Pensions Bill 2023, which aims to reform the public service retirement system to enhance preservation, reduce pension liabilities and ensure equitable employee benefits.
“The Bill proposes establishing a Contributory Public Service Pensions Fund, transitioning from a non-funded, non-contributory scheme to a funded, defined contributory pension plan. The Bill is expected to be tabled in Parliament during the upcoming budget exercise for fiscal year 2025-2026.”
While that has yet to happen, the Fiscal Strategy Report, which was released alongside the Budget, adds: “The Government continues to face a significant fiscal risk arising from its non-contributory defined benefit pension scheme for permanent and pensionable public service officials.
“This scheme operates outside the National Insurance Board’s contributory pension system for the public and is funded entirely from the central government budget. As public servants retire in greater numbers and live longer, the associated pension costs are increasing rapidly.
“According to a feasibility study by KPMG Advisory Services, total pension liabilities are projected to reach up to $4.1bn by 2032, with annual cash outflows rising from approximately $165m to $219m over that period. These outflows include both pensions and gratuities, and represent a growing share of the Government’s mandatory, non-discretionary spending,” the report continued.
“If left unaddressed, these unfunded obligations will exert increasing pressure on the fiscal balance, reduce budgetary flexibility, and crowd out resources for essential public services and investments in growth-enhancing infrastructure.... The new system is expected to stabilise longterm pension costs, limit the growth of unfunded liabilities and enhance fiscal predictability.”
Simon Wilson, the Ministry of Finance’s financial secretary, told Tribune Business in an April 5, 2024, interview that these pension liabilities represent “the top risk” to the stability of the Government’s finances and need to be “dealt with as soon as possible” to reduce the threat that taxpayers will increasingly be called upon to plug this multi-billion dollar hole.
The draft Pensions Bill 2023 is designed to end the present ‘pay-as-you-go’ pension scheme enjoyed by the Government’s near-20,000 existing civil servants through requiring them - for the first timeto contribute to financing their retirement from their own salaries. Civil service pensions are currently 100 percent financed by taxpayers through the annual Budget.
The Bill, if enacted as is, will create a contributory pension scheme called the Public Service Contributory Pensions Fund. Its members will include all new civil service hires after it is passed by Parliament, and becomes law, once they have completed their six-month probation, while all existing public officials who have held pensionable positions for less than eight years will also be transferred to the contributory plan.
Civil servants in pensionable positions for more than eight years can voluntarily choose whether to join the contributory scheme or retain their current arrangements. The mandatory contribution rate has
BREA: VAT reforms ‘unequitable’ in law
FROM PAGE B1
price, once the relevant sale is completed. Ms Sweeting suggested that, by mandating attorneys submit realtor invoices when they pay the due VAT and have the conveyance stamped, the tax authorities will be able to compare the two and determine whether they are collecting the correct amount of tax.
The BREA president, in her June 5, 2025, correspondence to Simon Wilson, the Ministry of Finance’s financial secretary, and Shunda Strachan, the VAT comptroller and Department of Inland Revenue chief, said she was hoping to either meet with or gain a response from them ahead of her Association’s upcoming June 18 annual general meeting (AGM) and the queries likely to be raised by members.
Two key proposed reforms to the VAT Act have aroused realtor fears as they make the profession “jointly and severally liable”, along with attorneys, for covering any unpaid VAT on a real estate transaction from their commission if they have already received it.
And the VAT (Amendment) (No2.) Bill 2025, tabled in the House of Assembly alongside the 2025-2026 Budget, also imposes the requirement that realtors must notify the Department of Inland Revenue of all property-related transactions within 30 days of their closing.
Failure to do so, and/ or meet this deadline, will again see them held “jointly and severally liable” along with the vendor for a fine equal to 3 percent of the sales price. The Bill currently stipulates that this mandate only applies to sales of “newly-constructed dwellings”, or land to be used for such purpose, but the Prime Minister last week said this will be amended to include and cover all real estate deals.
The new measures are part of the Government’s crack down on tax evasion and avoidance related to VAT on real estate sales, which Philip Davis KC told the House of Assembly is estimated to be costing the Public Treasury around $100m per year in lost revenue.
Ms Sweeting, though, told the Government’s top tax officials that, in prior years, the liability to pay the transfer tax - whether VAT or the former Stamp Tax - was shared equally by “persons who had equity in the property”, namely the purchaser
and seller. Many real estate sales are structured where the buyer and seller agree to share the VAT burden 50/50.
And, pointing out that responsibility to declare a property’s sale, pay the due tax and ensure the conveyance was lodged and recorded in the Registry of Record previously lay with the buyer and their attorney, she asked: “How did the real estate agent become involved and liable?”
The BREA president added: “Since 2001, real estate agents no longer accept funds to complete the transaction or accept a deposit due to the liability of CDD (customer due diligence). All funds in a real estate transaction flow through the attorneys. Real estate agents are only compensated upon the completion of the transaction.
“Theoretically, upon the completion of a sale, the listing agent’s and the subagent’s (co-operating agent) contractual relationship ends. So on what residual contractual relationship does the agent have the right or obligation to undertake these new requirements?”
The customer due diligence “liability” refers to the enhances financial services regulatory regime imposed after the 2000 ‘blacklisting’.
Meanwhile, posing further questions, Ms Sweeting said it was especially unfair to impose the real estate sales reporting requirement on realtors because, once they have put the deal together, their active involvement in the transaction largely ceases. And, as a result, there is often a time lag before they are made aware a sale has closed, which has implications for meeting the 30-day deadline.
“Under the law of conveyancing in The Bahamas, only attorneys can lawfully convey real property. Real estate agents cannot lawfully convey the title of property. Is the conveyancing act going to be changed or amended?” the BREA president asked. “Real estate agents/companies have very limited knowledge or access to the proceedings and process attorneys do or take. In fact some do not communicate at all.
“Banks are more involved and have knowledge of the entire process. I have also confirmed that, where there is a mortgage, the banks are now issuing two cheques at closing, one for fees (real estate and legal) and one for the transfer, and attorneys have to sign a form that states they are not to pay out until and unless the transfer of property is registered and VAT paid.”
Noting that this could help solve the Government’s VAT avoidance fears, Ms Sweeting warned that the time taken to pay the due VAT and record a conveyance in the registry - which can be as long as three months - threatens to create “a huge problem” for realtors by delaying their commission payments. She suggested that invoices by realtors be used as a crosscheck to ensure the correct VAT is paid.
“I have also confirmed that it can take up to three months to get confirmation [of] the payment for VAT and recording at the registry, as both are done on the portals and it is very frustrating. If this is the norm, this is going to be a huge problem for our members when they have done their job and expect to be paid at the closing of the
been set at 3 percent of a plan member’s monthly salary, with the Government making a matching 3 percent payment.
Workers can also choose, on their own accord, to raise the contribution rate for their portion to a maximum 10 percent although this will not be matched by the Government. The Public Service Contributory Pensions Fund will be overseen by a Board, which will appoint an independent investment manager, fund administrator and custodian to manage and safeguard pension plan assets.
Membership in the Public Service Contributory Pensions Fund will not be confined just to central government civil servants. For new and newer employees at state-owned enterprises (SOEs), and what are described as ‘Approved Authorities’ in the Bill, will also participate in the scheme if the legislation is passed as currently laid out, which means thousands will be impacted.
Those who join these ‘Authorities’ after the Bill is passed into law, and becomes an Act, or who have been employed for less than eight years will automatically join the contributory plan. Again, those who have been employed for more than eight years can elect to participate voluntarily, with the ‘Authorities’ involved including the likes of the Central Bank, Bahamasair and the Public Hospitals Authority (PHA).
transaction,” Ms Sweeting said.
“Prior to an attorney issuing a cheque to the real estate company for commissions, we are required to send them a VAT invoice. Why can’t the DIR (Department of Inland Revenue)
require the attorneys to submit the invoices at the time they pay the transfer tax and record it? This way, you will get what we send to you to verify the amounts are the same.
“The proposed amendments make the real estate agent jointly and severally liable for the VAT and real property tax declaration fine. However, the real
The list of ‘Approved Authorities’ features the National Insurance Board (NIB); University of The Bahamas; Bahamas Agricultural and Industrial Corporation (BAIC); Hotel Corporation of The Bahamas; Water and Sewerage Corporation; Bahamas Development Bank; Bahamasair Holdings; the Royal Bahamas Defence Force; Bahamas Maritime Authority; and the Public Hospitals Authority (PHA).
Others named in the Bill include the Hospitals and Health Care Facilities Licensing Board; National Museum of The Bahamas; the Airport Authority; National Art Gallery of The Bahamas; Nassau Airport Development Company (NAD); Bahamas Mortgage Corporation; Insurance Commission of The Bahamas; Utilities Regulation and Competition Authority (URCA); Sports Authority and National Training Agency. Rounding out the list are the Bahamas Public Parks and Beaches Authority the National Health Insurance (NHI) Authority; Bahamas Agricultural Health and Food Safety Authority; Aircraft Accident Investigation Authority; National Crime Intelligence Agency; Civil Aviation Authority; and Bahamas Air Navigation Services Authority.
The two major entities missing from this list are the Bahamas Telecommunications Company (BTC) and Bahamas Power & Light (BPL).
estate agent has no legal right to the property like the seller or buyer,” the BREA president added.
“It appears unequitable in law for the proposed amendments to place joint and several liability on any third party that does not perform the conveyance and/or handle the funds or distribution thereof in a real estate transaction.”
BUDGET DEBATE AWAITING UNFUNDED $4.1BN CIVIL SERVICE PENSION REFORM
non-managerial workers are set for a 2-8 percent increase likely come September.
The Fiscal Strategy Report is also somewhat contradictory as to the pace of civil service pension reform. On page 33, it refers merely to “tabling of the ‘white paper’ in Parliament during the 2025-2026 Budget debate”, while on Page 57 it states: “The public consultation process has concluded, and the Bill is expected to be tabled in Parliament during the upcoming budget exercise for fiscal year 2025-2026.”
Several observers have suggested that, with a general election approaching, civil service pension reform - which will require a significant number of public servants, especially relatively new hires and likely those who have been employed by the Government for eight years or less to contribute a portion of their income to funding their retirement - will be delayed until after the vote.
“Containing long-term pension obligations remains a key priority to ensure fiscal sustainability, improve inter-generational equity, and reduce unfunded contingent liabilities,” the Davis administration’s latest Fiscal Strategy Report states.
“Recurrent expenditure on pensions and gratuities totalled $182.7m in fiscal year 2023-2024, representing 6.2 percent of total recurrent spending. This figure is projected to
increase to $201.6m in fiscal year 2025-2026.” It added that “an operational model for the new contributory scheme” has been designed, and a “phased implementation plan” worked out.
Civil service pension and gratuity payouts, which are presently 100 percent funded by the Bahamian taxpayer, are forecast to hit $189.7m during the present 2024-205 fiscal year with $139.313m of this sum paid out during the nine months to end-March 2025.
Thereafter, these payouts are predicted to accelerate in size, with total pension and gratuity outlays rising to $201.6m in the upcoming 2025-2026 Budget cycle, and followed by further rises to $215.9m in 20262027; $230.2m in 2027-2028; and $238.1m in 2028-2029.
Outlining the basic reform framework proposed by the Government, the Fiscal Strategy Report said: “The Government initiated a public feedback process on the draft Pensions Bill 2023, which aims to reform the public service retirement system to enhance preservation, reduce pension liabilities and ensure equitable employee benefits.
“The Bill proposes establishing a Contributory Public Service Pensions Fund, transitioning from a non-funded, non-contributory scheme to a funded, defined contributory pension plan. The Bill is expected to be tabled in Parliament during the upcoming budget exercise for fiscal year 2025-2026.”
While that has yet to happen, the Fiscal Strategy Report, which was released alongside the Budget, adds: “The Government continues to face a significant fiscal risk arising from its non-contributory defined benefit pension scheme for permanent and pensionable public service officials.
“This scheme operates outside the National Insurance Board’s contributory pension system for the public and is funded entirely from the central government budget. As public servants retire in greater numbers and live longer, the associated pension costs are increasing rapidly.
“According to a feasibility study by KPMG Advisory Services, total pension liabilities are projected to reach up to $4.1bn by 2032, with annual cash outflows rising from approximately $165m to $219m over that period. These outflows include both pensions and gratuities, and represent a growing share of the Government’s mandatory, non-discretionary spending,” the report continued.
“If left unaddressed, these unfunded obligations will exert increasing pressure on the fiscal balance, reduce budgetary flexibility, and crowd out resources for essential public services and investments in growth-enhancing infrastructure.... The new system is expected to stabilise longterm pension costs, limit the growth of unfunded liabilities and enhance fiscal predictability.”
Simon Wilson, the Ministry of Finance’s financial secretary, told Tribune Business in an April 5, 2024, interview that these pension liabilities represent “the top risk” to the stability of the Government’s finances and need to be “dealt with as soon as possible” to reduce the threat that taxpayers will increasingly be called upon to plug this multi-billion dollar hole.
The draft Pensions Bill 2023 is designed to end the present ‘pay-as-you-go’ pension scheme enjoyed by the Government’s near-20,000 existing civil servants through requiring them - for the first timeto contribute to financing their retirement from their own salaries. Civil service pensions are currently 100 percent financed by taxpayers through the annual Budget.
The Bill, if enacted as is, will create a contributory pension scheme called the Public Service Contributory Pensions Fund. Its members will include all new civil service hires after it is passed by Parliament, and becomes law, once they have completed their six-month probation, while all existing public officials who have held pensionable positions for less than eight years will also be transferred to the contributory plan.
Civil servants in pensionable positions for more than eight years can voluntarily choose whether to join the contributory scheme or retain their current arrangements. The mandatory contribution rate has
BREA: VAT reforms ‘unequitable’ in law
FROM PAGE B1
price, once the relevant sale is completed. Ms Sweeting suggested that, by mandating attorneys submit realtor invoices when they pay the due VAT and have the conveyance stamped, the tax authorities will be able to compare the two and determine whether they are collecting the correct amount of tax.
The BREA president, in her June 5, 2025, correspondence to Simon Wilson, the Ministry of Finance’s financial secretary, and Shunda Strachan, the VAT comptroller and Department of Inland Revenue chief, said she was hoping to either meet with or gain a response from them ahead of her Association’s upcoming June 18 annual general meeting (AGM) and the queries likely to be raised by members.
Two key proposed reforms to the VAT Act have aroused realtor fears as they make the profession “jointly and severally liable”, along with attorneys, for covering any unpaid VAT on a real estate transaction from their commission if they have already received it.
And the VAT (Amendment) (No2.) Bill 2025, tabled in the House of Assembly alongside the 2025-2026 Budget, also imposes the requirement that realtors must notify the Department of Inland Revenue of all property-related transactions within 30 days of their closing.
Failure to do so, and/ or meet this deadline, will again see them held “jointly and severally liable” along with the vendor for a fine equal to 3 percent of the sales price. The Bill currently stipulates that this mandate only applies to sales of “newly-constructed dwellings”, or land to be used for such purpose, but the Prime Minister last week said this will be amended to include and cover all real estate deals.
The new measures are part of the Government’s crack down on tax evasion and avoidance related to VAT on real estate sales, which Philip Davis KC told the House of Assembly is estimated to be costing the Public Treasury around $100m per year in lost revenue.
Ms Sweeting, though, told the Government’s top tax officials that, in prior years, the liability to pay the transfer tax - whether VAT or the former Stamp Tax - was shared equally by “persons who had equity in the property”, namely the purchaser
and seller. Many real estate sales are structured where the buyer and seller agree to share the VAT burden 50/50.
And, pointing out that responsibility to declare a property’s sale, pay the due tax and ensure the conveyance was lodged and recorded in the Registry of Record previously lay with the buyer and their attorney, she asked: “How did the real estate agent become involved and liable?”
The BREA president added: “Since 2001, real estate agents no longer accept funds to complete the transaction or accept a deposit due to the liability of CDD (customer due diligence). All funds in a real estate transaction flow through the attorneys. Real estate agents are only compensated upon the completion of the transaction.
“Theoretically, upon the completion of a sale, the listing agent’s and the subagent’s (co-operating agent) contractual relationship ends. So on what residual contractual relationship does the agent have the right or obligation to undertake these new requirements?”
The customer due diligence “liability” refers to the enhances financial services regulatory regime imposed after the 2000 ‘blacklisting’.
Meanwhile, posing further questions, Ms Sweeting said it was especially unfair to impose the real estate sales reporting requirement on realtors because, once they have put the deal together, their active involvement in the transaction largely ceases. And, as a result, there is often a time lag before they are made aware a sale has closed, which has implications for meeting the 30-day deadline.
“Under the law of conveyancing in The Bahamas, only attorneys can lawfully convey real property. Real estate agents cannot lawfully convey the title of property. Is the conveyancing act going to be changed or amended?” the BREA president asked. “Real estate agents/companies have very limited knowledge or access to the proceedings and process attorneys do or take. In fact some do not communicate at all.
“Banks are more involved and have knowledge of the entire process. I have also confirmed that, where there is a mortgage, the banks are now issuing two cheques at closing, one for fees (real estate and legal) and one for the transfer, and attorneys have to sign a form that states they are not to pay out until and unless the transfer of property is registered and VAT paid.”
Noting that this could help solve the Government’s VAT avoidance fears, Ms Sweeting warned that the time taken to pay the due VAT and record a conveyance in the registry - which can be as long as three months - threatens to create “a huge problem” for realtors by delaying their commission payments. She suggested that invoices by realtors be used as a crosscheck to ensure the correct VAT is paid.
“I have also confirmed that it can take up to three months to get confirmation [of] the payment for VAT and recording at the registry, as both are done on the portals and it is very frustrating. If this is the norm, this is going to be a huge problem for our members when they have done their job and expect to be paid at the closing of the
been set at 3 percent of a plan member’s monthly salary, with the Government making a matching 3 percent payment.
Workers can also choose, on their own accord, to raise the contribution rate for their portion to a maximum 10 percent although this will not be matched by the Government. The Public Service Contributory Pensions Fund will be overseen by a Board, which will appoint an independent investment manager, fund administrator and custodian to manage and safeguard pension plan assets.
Membership in the Public Service Contributory Pensions Fund will not be confined just to central government civil servants. For new and newer employees at state-owned enterprises (SOEs), and what are described as ‘Approved Authorities’ in the Bill, will also participate in the scheme if the legislation is passed as currently laid out, which means thousands will be impacted.
Those who join these ‘Authorities’ after the Bill is passed into law, and becomes an Act, or who have been employed for less than eight years will automatically join the contributory plan. Again, those who have been employed for more than eight years can elect to participate voluntarily, with the ‘Authorities’ involved including the likes of the Central Bank, Bahamasair and the Public Hospitals Authority (PHA).
transaction,” Ms Sweeting said.
“Prior to an attorney issuing a cheque to the real estate company for commissions, we are required to send them a VAT invoice. Why can’t the DIR (Department of Inland Revenue)
require the attorneys to submit the invoices at the time they pay the transfer tax and record it? This way, you will get what we send to you to verify the amounts are the same.
“The proposed amendments make the real estate agent jointly and severally liable for the VAT and real property tax declaration fine. However, the real
The list of ‘Approved Authorities’ features the National Insurance Board (NIB); University of The Bahamas; Bahamas Agricultural and Industrial Corporation (BAIC); Hotel Corporation of The Bahamas; Water and Sewerage Corporation; Bahamas Development Bank; Bahamasair Holdings; the Royal Bahamas Defence Force; Bahamas Maritime Authority; and the Public Hospitals Authority (PHA).
Others named in the Bill include the Hospitals and Health Care Facilities Licensing Board; National Museum of The Bahamas; the Airport Authority; National Art Gallery of The Bahamas; Nassau Airport Development Company (NAD); Bahamas Mortgage Corporation; Insurance Commission of The Bahamas; Utilities Regulation and Competition Authority (URCA); Sports Authority and National Training Agency. Rounding out the list are the Bahamas Public Parks and Beaches Authority the National Health Insurance (NHI) Authority; Bahamas Agricultural Health and Food Safety Authority; Aircraft Accident Investigation Authority; National Crime Intelligence Agency; Civil Aviation Authority; and Bahamas Air Navigation Services Authority.
The two major entities missing from this list are the Bahamas Telecommunications Company (BTC) and Bahamas Power & Light (BPL).
estate agent has no legal right to the property like the seller or buyer,” the BREA president added.
“It appears unequitable in law for the proposed amendments to place joint and several liability on any third party that does not perform the conveyance and/or handle the funds or distribution thereof in a real estate transaction.”
Ex-AG’s warning of ‘disastrous consequences’ on law’s reform
measures of a much different nature. Instead of amending the Conveyancing and Law of Property Act’s section 40 to stipulate that “all conveyances of land, or of any interest therein, are void for the purpose of conveying or creating a legal estate unless made by deed and duly registered”, he suggested it instead focus on reforms to the VAT and Stamp Acts.
Mr McWeeney recommended that a transaction be blocked from closing unless the due VAT is “first collected and held” in an escrow account controlled by either of the attorneys representing the buyer and the seller. These taxes must then be paid within either 30 days of closing, 30 days from the Department of Inland Revenue determining the amount of VAT due, or within 30 days of a court or appeal ruling.
And, in addition, he suggested that the Government finally enforce a provision in the Stamp Act which makes it a criminal offence for attorneys to hold on to taxes generated by real estate sales “for their own benefit rather than paying it over to the Government”. These provisions were also thought to be contained in the VAT Act.
Mr McWeeney was said not to be in office when Tribune Business attempted to contact him last Thursday prior to Labour Day, and an e-mail sent to his work address seeking further comment was not responded to before press time. A source familiar with the legal profession, and who confirmed they had seen the e-mail, said it was sent to around 100 attorneys just before the four-day holiday weekend.
However, in his analysis he pointed out that the Bill presently before the House of Assembly is clearly retroactive for three years and stipulates that any post-July 1, 2022, conveyance and transaction will be deemed “void” if not registered in the Registry of Records come July 1, 2025.
“No time limit for registration is stipulated, nor is any grace period given, before the conveyance becomes void. On the contrary, as stated above, if a
conveyance is unregistered after July 1, it’s void,” Mr McWeeney wrote. “Registration will now become a pre-requisite for the validity of a conveyance going forward. Similarly, an unregistered conveyance made in the last three years, although presently valid under the existing law, will automatically become void on July 1 unless it has been registered before that date.....
“It means that your conveyance may be perfectly good and valid right now, on June 5, 2025, but come July 1, when the Bill becomes law, presto! your conveyance - if it hasn’t been registered before then - automatically becomes void.... In real terms, therefore, the only grace period you have is the one you’re in right now which will expire on July 1 when the Bill becomes law.”
The Government’s move is being seen as an attempt to drive purchasers, and their attorneys, to ensure VAT due on real estate acquisitions is paid in a timely manner and in full because they will be unable to register the conveyance - and prevent it from being treated as “void” - without proof they paid the tax.
The reforms have also been backdated, as the Bill mandates that all land and property deals since July 1, 2022, will be treated as “void” and of no effect if the deeds have not been brought forward for recording in the Registry of Records.
Mr McWeeney, though, suggested the Bill and the proposed reforms it contains will unleash multiple unintended consequences for the Bahamian real estate market and its participants, such as attorneys, banks and other lenders, and realtors, it it becomes law on July 1 without any changes.
“If your conveyance is void, can you resurrect it from the dead if you subsequently register it? The Bill is completely silent on this,” he said. “Indeed if your conveyance is void, can the Registry even accept a void document for recording? And, while we’re at it, can Department of Inland Revenue lawfully accept payment of VAT or Stamp duty on a document which the law says is already void?
INTENT TO CHANGE NAME BY DEED POLL
The Public is hereby advised that I, DARVIN SKYE BROWN, of Tucker Road, Big Pong, Nassau, New Providence intend to change my name to DARVIN SKYE SWAIN 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, The Bahamas no later than thirty (30) days after the date of publication of this notice.
Freeport, Grand Bahama is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 3rd day of June 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
“More worryingly, if your conveyance is void because you didn’t register it..., who owns the property? Where does the title go? You don’t own it because the Bill says that the conveyance under which you thought you had obtained title is void. If it’s void, it means you have no legal title. So, who owns it?”
Mr McWeeney said this raised questions as to whether the vendor, or seller, still owns the property’s legal title and whether they are free to sell it to someone else or are merely holding it in trust for the purchaser who has already paid the price that was set.
“And what about mortgage lenders? Where are they left in all this? If the borrower had good title when he mortgaged the property to the lender but will have a void title come July 1 because he hasn’t recorded his conveyance, where does that leave the lender and its mortgage?” he asked.
“Surely the mortgage lender’s own title can be no better than the borrower’s. So, if the borrower’s title becomes void, the mortgage lender’s title must, by extension, become void as well, no?... With all these (and other) questions left unanswered by the Bill, it’s clear that it simply hasn’t been thought through properly.
“It should be abandoned. If it isn’t, come July 1, an extraordinarily complex plethora of title woes and
legal controversies will be visited upon us with disastrous consequences all round.” Mr McWeeney, though, said alternative solutions were available to the Government.
“Understandably and correctly, the Government is anxious to see to it that VAT or Stamp duty, as the case may be, is paid fully and promptly once the relevant transaction closes,” he acknowledged.
Instead, the former attorney general recommended reforming the VAT Act and Stamp Act “to prohibit the parties from paying over the purchase price for land or a business unless the provisional VAT or Stamp Duty (as the case may be) is first collected and held in an escrow account in the names of the vendor’s or purchaser’s attorneys, or both jointly”.
The tax must then be paid depending on which condition is met last - within 30 days of closing, 30 days from the Department of Inland Revenue determining the amount of VAT due, or within 30 days of a court or appeal ruling.
“It bears emphasis that the purchase price is not to be paid over unless such an escrow account is set up and maintained, and it should be made a criminal offence to knowingly breach this requirement,” Mr McWeeney said, while suggesting that it be accompanied be other reforms.
NOTICE
NOTICE is hereby given that MICHAEL JOHN MCCAFFREY of #127 S Ocean Road, Nassau, 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 twenty-eight days from the 10th day of June 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
“Enforce the existing provisions of the Stamp Act, which I believe are now mirrored in the VAT legislation as well, which make it a criminal offence for lawyers etc to hold on to escrowed Stamp Duty for their own benefit rather than paying it over to the Government,” he added.
“I personally conceived and drafted this, and the related loophole-plugging provisions of the Stamp Act under both prime ministers Ingraham and Christie, so I’m extremely familiar with it but, to my knowledge, this particular provision, long ago enacted, has never been enforced. It should be.”
NOTICE
NOTICE is hereby given that EDDY TRAGELUS of Centreville, Nassau, 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 twenty-eight days from the 10th day of June 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
Ex-AG’s warning of ‘disastrous consequences’ on law’s reform
measures of a much different nature. Instead of amending the Conveyancing and Law of Property Act’s section 40 to stipulate that “all conveyances of land, or of any interest therein, are void for the purpose of conveying or creating a legal estate unless made by deed and duly registered”, he suggested it instead focus on reforms to the VAT and Stamp Acts.
Mr McWeeney recommended that a transaction be blocked from closing unless the due VAT is “first collected and held” in an escrow account controlled by either of the attorneys representing the buyer and the seller. These taxes must then be paid within either 30 days of closing, 30 days from the Department of Inland Revenue determining the amount of VAT due, or within 30 days of a court or appeal ruling.
And, in addition, he suggested that the Government finally enforce a provision in the Stamp Act which makes it a criminal offence for attorneys to hold on to taxes generated by real estate sales “for their own benefit rather than paying it over to the Government”. These provisions were also thought to be contained in the VAT Act.
Mr McWeeney was said not to be in office when Tribune Business attempted to contact him last Thursday prior to Labour Day, and an e-mail sent to his work address seeking further comment was not responded to before press time. A source familiar with the legal profession, and who confirmed they had seen the e-mail, said it was sent to around 100 attorneys just before the four-day holiday weekend.
However, in his analysis he pointed out that the Bill presently before the House of Assembly is clearly retroactive for three years and stipulates that any post-July 1, 2022, conveyance and transaction will be deemed “void” if not registered in the Registry of Records come July 1, 2025.
“No time limit for registration is stipulated, nor is any grace period given, before the conveyance becomes void. On the contrary, as stated above, if a
conveyance is unregistered after July 1, it’s void,” Mr McWeeney wrote. “Registration will now become a pre-requisite for the validity of a conveyance going forward. Similarly, an unregistered conveyance made in the last three years, although presently valid under the existing law, will automatically become void on July 1 unless it has been registered before that date.....
“It means that your conveyance may be perfectly good and valid right now, on June 5, 2025, but come July 1, when the Bill becomes law, presto! your conveyance - if it hasn’t been registered before then - automatically becomes void.... In real terms, therefore, the only grace period you have is the one you’re in right now which will expire on July 1 when the Bill becomes law.”
The Government’s move is being seen as an attempt to drive purchasers, and their attorneys, to ensure VAT due on real estate acquisitions is paid in a timely manner and in full because they will be unable to register the conveyance - and prevent it from being treated as “void” - without proof they paid the tax.
The reforms have also been backdated, as the Bill mandates that all land and property deals since July 1, 2022, will be treated as “void” and of no effect if the deeds have not been brought forward for recording in the Registry of Records.
Mr McWeeney, though, suggested the Bill and the proposed reforms it contains will unleash multiple unintended consequences for the Bahamian real estate market and its participants, such as attorneys, banks and other lenders, and realtors, it it becomes law on July 1 without any changes.
“If your conveyance is void, can you resurrect it from the dead if you subsequently register it? The Bill is completely silent on this,” he said. “Indeed if your conveyance is void, can the Registry even accept a void document for recording? And, while we’re at it, can Department of Inland Revenue lawfully accept payment of VAT or Stamp duty on a document which the law says is already void?
INTENT TO CHANGE NAME BY DEED POLL
The Public is hereby advised that I, DARVIN SKYE BROWN, of Tucker Road, Big Pong, Nassau, New Providence intend to change my name to DARVIN SKYE SWAIN 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, The Bahamas no later than thirty (30) days after the date of publication of this notice.
Freeport, Grand Bahama is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 3rd day of June 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
“More worryingly, if your conveyance is void because you didn’t register it..., who owns the property? Where does the title go? You don’t own it because the Bill says that the conveyance under which you thought you had obtained title is void. If it’s void, it means you have no legal title. So, who owns it?”
Mr McWeeney said this raised questions as to whether the vendor, or seller, still owns the property’s legal title and whether they are free to sell it to someone else or are merely holding it in trust for the purchaser who has already paid the price that was set.
“And what about mortgage lenders? Where are they left in all this? If the borrower had good title when he mortgaged the property to the lender but will have a void title come July 1 because he hasn’t recorded his conveyance, where does that leave the lender and its mortgage?” he asked.
“Surely the mortgage lender’s own title can be no better than the borrower’s. So, if the borrower’s title becomes void, the mortgage lender’s title must, by extension, become void as well, no?... With all these (and other) questions left unanswered by the Bill, it’s clear that it simply hasn’t been thought through properly.
“It should be abandoned. If it isn’t, come July 1, an extraordinarily complex plethora of title woes and
legal controversies will be visited upon us with disastrous consequences all round.” Mr McWeeney, though, said alternative solutions were available to the Government.
“Understandably and correctly, the Government is anxious to see to it that VAT or Stamp duty, as the case may be, is paid fully and promptly once the relevant transaction closes,” he acknowledged.
Instead, the former attorney general recommended reforming the VAT Act and Stamp Act “to prohibit the parties from paying over the purchase price for land or a business unless the provisional VAT or Stamp Duty (as the case may be) is first collected and held in an escrow account in the names of the vendor’s or purchaser’s attorneys, or both jointly”.
The tax must then be paid depending on which condition is met last - within 30 days of closing, 30 days from the Department of Inland Revenue determining the amount of VAT due, or within 30 days of a court or appeal ruling.
“It bears emphasis that the purchase price is not to be paid over unless such an escrow account is set up and maintained, and it should be made a criminal offence to knowingly breach this requirement,” Mr McWeeney said, while suggesting that it be accompanied be other reforms.
NOTICE
NOTICE is hereby given that MICHAEL JOHN MCCAFFREY of #127 S Ocean Road, Nassau, 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 twenty-eight days from the 10th day of June 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
“Enforce the existing provisions of the Stamp Act, which I believe are now mirrored in the VAT legislation as well, which make it a criminal offence for lawyers etc to hold on to escrowed Stamp Duty for their own benefit rather than paying it over to the Government,” he added.
“I personally conceived and drafted this, and the related loophole-plugging provisions of the Stamp Act under both prime ministers Ingraham and Christie, so I’m extremely familiar with it but, to my knowledge, this particular provision, long ago enacted, has never been enforced. It should be.”
NOTICE
NOTICE is hereby given that EDDY TRAGELUS of Centreville, Nassau, 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 twenty-eight days from the 10th day of June 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
GOV’T TOUTING VENDOR ARREARS CUT, EYES ACCOUNTING SWITCH
payables at year-end 2024 and $326.592m for the prior year. This implies a $53m-plus, or 16.4 percent, year-over-year reduction in the size of these arrears.
“In the normal course of government operations, accounts payables or arrears can accumulate due to timing mismatches between expenditure commitments and cash availability,” the Fiscal Strategy report said.
“While short-term fluctuations in accounts payable are expected, persistent or rising arrears can signal underlying fiscal stress, weaken the Government’s creditworthiness, erode supplier confidence and increase the cost of goods
and services due to perceived payment risk.
“As of September 2021, the Government recognised the growing fiscal risk posed by accumulated arrearsincluding unsettled legal claims, outstanding vendor obligations and working capital balances - and took deliberate steps to bring these under control,” the report added. “At the end of 2024, the arrears stood at 1.7 percent of nominal GDP. This is an improvement over the prior year where the arrears accounted for 2.1 percent of nominal GDP.” No figures were provided, and large numbers of Bahamian companies are still thought to be owed significant sums by the Government, with some of these payables dating back months and even years.
The Fiscal Strategy Report also committed the Government to largely switching from its present system of modified cash-based accounting to accrual-based accounting within the next two years. This would give a more complete, and accurate, picture of the Government’s financial health by accounting for spending commitments when they are incurred and not paid out. It will also enable the Government to develop a balance sheet of its multibillion dollar assets and liabilities, such as Crown Land, as the Budget presently only shows the equivalent of its income statement. The promised switch to accrual-based accounting was first made by former FNM finance
asked me to present just
hours earlier.
for the trustee overseeing Mr Mantegazza’s Bohemian Trust negotiated a new $58m deal for Harbour House with George Damianos, the Bahamas Sotheby’s International Realty president and managing broker, who was representing the seller in the deal. One director was headed by Katie Booth, the Bahamas chief for the Oak Group.
While Mrs Holowesko was cut out of what is likely one of The Bahamas’ highest-value private residential sales (excluding private islands), senior justice Fraser found assertions
“she was the effective cause of the sale [are] weakened” by several factors including the fact the promotional material for the property came from Bahamas Sotheby’s International Realty’s website.
And the judge, rejecting Mrs Holowesko’s vehement denials, also found she had “a conflict of interest” because she was representing another potential Harbour House buyer besides Mr Mantegazza even though this
had been disclosed to the Swiss businessman and his representatives.
Mrs Holowesko, in a statement to Tribune Business yesterday, said: “I respect the court’s decision, but I strongly disagree with the outcome. The judge found that there was a limited agency agreement that expired at 10pm on the day in question. I had never agreed to a 10pm deadline.
“My clients provided me with an offer late that afternoon to negotiate with the seller, and they then sent an e-mail that evening stating that I was required to have the deal accepted by 10pm that night - a condition I never agreed to. The Bahamas Real Estate Association rules and code of ethics require me to negotiate through the seller’s agent, and he could not be reached that evening despite my repeated attempts to contact him.”
She added: “The court has ruled that the defendants were entitled to bypass me the very next morning and make a deal that same morning directly with the seller’s agent for $1m more than the offer they had
“This case involves a nuanced and complex interpretation of limited agency law and contractual obligations. I believe important issues remain unresolved, and I look forward to having them fully reviewed and clarified on appeal.”
The Bahamian realtor, in her December 16, 2022, claim for breach of contract over the refusal by Mr Mantegazza and the trustee, Bohemian PTC, to pay the 4 percent commission, alleged that her work resulted in the Harbour House deal.
The Swiss businessman, and the trustee for his trust, countered that Mrs Holowesko was “engaged in a very limited capacity to secure a sale for Harbour House, at a specific price, by a fixed time and on a fixed date”.
“The claimant [Mrs Holowesko] failed to fulfill the agreed terms of her engagement, and the agreement was ended as a result,” they alleged. “It was a condition precedent for payment of the commission to the claimant that the claimant would secure the sale of Harbour House to the first defendant on April 8, 2022, at a purchase price of $57m.
“The claimant, however, failed to secure the sale and purchase of Harbour House by the first defendant on
minister, K Peter Turnquest, who had suggested it would be completed around 2022.
That target was not met, but the latest Fiscal Strategy Report said: “As the Government currently operates under a modified cash basis of accounting in accordance with the International Public Sector Accounting Standards (IPSAS), it is not yet possible to produce estimates of the Government’s net worth.
“In line with the requirements of the Public Financial Management Act, these estimates - both as a share of GDP and in nominal terms - will be disclosed in future reports once they can be reliably determined.”
“The Government is actively progressing toward the adoption of an accrualbased accounting system,”
the agreed terms and within the agreed time limit. In the premises, the events entitling the claimant to a commission, in accordance with the terms of the limited agent agreement, did not arise. Any commission agreed to be paid to the claimant was a performance-based commission only.”
Mr Mantegazza was said to have been alerted to Harbour House by a personal friend, Luc van Hoof, in March 2022, who recommended that he view it. He was then contacted by Mrs Holowesko on April 4, 2022, via an e-mail suggesting he see the house and the “adjacent beachfront property”.
The Swiss businessman toured Harbour House with Mr Damianos, acting as the seller’s agent, the following day and expressed an interest in purchasing it. That same day, April 5, 2022, Mrs Holowesko sent Mr Mantegazza a ‘Letter of Intent’ detailing the costs including her 6 percent realtor’s commission.
Ms Booth, who headed Amber Trust prior to its April 2025 acquisition, whereupon it became the Oak Group’s Bahamas operation and she its most senior local executive, replied in her capacity as director of Peridot Services Ltd, one of the corporate directors
CROSSWORD PUZZLE
the Fiscal Strategy Report continued. “This transition requires building capacity across the public sector, implementing new software and technology, and undertaking necessary legislative reforms.
“As part of this transformation, the Government is also in the process of building a comprehensive balance sheet to support the shift away from the modified cash basis. The establishment of a balance sheet will provide the Government with critical insights into its financial position, including its asset base, inventory, and the value of purchases.
The Fiscal Strategy Report added that accrualbased accounting will also “allow for more accurate accounting of long-term obligations, including
for the trustee overseeing Mr Mantegazza’s Bohemian Trust.
She disclosed on April 8, 2022, that the trustees had agreed to a lower, 4 percent, commission that was “contingent” on Mrs Holowesko securing the $57m deal that very same day. This did not happen and, the following day, Ian Black, another principal of the trustee’s corporate directors, negotiated a new $58m deal for Harbour House with Mr Damianos. A ‘Letter of Intent’ was signed on April 11, 2022.
Mrs Holowesko, in her witness statement, asserted that she found Harbour House was for sale at $42.5m while researching Bahamian real estate websites. She asked Luc van Hoof to identify potential buyers, and he came up with Mr Mantegazza. Mr Damianos, meanwhile, informed her that the adjacent beachfront property was available for $16m, making the total Harbour House package worth $58.5m. She acknowledged reducing her commission to 4 percent in negotiations with Ms Booth, and that its payment hinged on her ability to close the purchase for $57m on that same date of April 8, 2022.
“On April 8, 2022, at 6.37pm she was copied on an e-mail from Ian Black to George Damianos, which conveyed that if the offer was not accepted by 10pm it would be withdrawn,” senior justice Fraser recalled of Mrs Holowesko’s evidence. “She was unable to secure the deal for Fabio before 10pm.
“On 10 April, 2022, George informed her that he had spoken to Ian Black and relayed the seller’s counteroffer of $58m. On 12 April, 2022, George confirmed a Letter of Intent was signed by both the buyer and seller. She was informed by Katie Booth that Fabio and the trustees had determined that she was not entitled to a commission because she had not closed the deal by 10pm on April 8 2022.”
Mr Mantegazza, in his evidence, said he had thought Mr Holowesko was the seller’s real estate agent. Mr Black, meanwhile, confirmed that the negotiations involving Mrs Holowesko “fell through” when the 10pm deadline was missed.
“He explained that on April 9, 2022, he was contacted by George Damianos informing him that the offer was put forward and was not accepted. He testified that during his conversation with George, they negotiated terms for a new agreement, and that Diane was not part of those discussions,” senior justice Fraser wrote.
“Ian clarified that the new agreement with George depended on cancellation of the showing scheduled for April 9, 2022, so as to prevent a potential bidding war with another buyer. When questioned on why Diane was expected to cancel the property viewing before an offer was accepted, he stated that it was a part of the negotiations.”
Ms Booth, too, asserted that the trustees did not want to enter “a bidding war with Diane’s other clients”. Senior justice Fraser said of her evidence: “She stated that Diane had indicated that the vendors did not like to be pressured, and had mentioned that another buyer wanted to look at the property.
“She explained that the trustees felt their offer was not receiving priority and they engaged Diane on a
pension liabilities, which are not currently reflected under the modified cash approach. This transformation is expected to near completion within the next two years, as well as support enhanced transparency, fiscal decision-making and sustainability.
“Addressing the issue of payment arrears also remains a key priority. Currently, the Government does not have a streamlined reporting system for arrears. Improved financial reporting under the accrual framework will enable more accurate identification, classification and monitoring of arrears, thereby enhancing accountability and supporting efforts to clear outstanding obligations in a transparent and strategic manner.”
limited basis making it clear the transaction needed to be closed on Friday. Katie stated that Diane had ample time to close the transaction before 10pm and that the offer was withdrawn at 10pm because they did not want to get into a bidding war. She stated that Diane showing the property to another client was viewed as a conflict of interest.”
Gail Lockhart-Charles KC, acting for Mrs Holowesko, argued that her client had played an “essential” role and that she was the “effective cause” of Harbour House’s sale before being excluded from the deal she organised. However, Chizelle Cargill, representing Mr Mantegazza and the defendants, rejected this and asserted that Mrs Holowesko breached her fiduciary duty and Article One of the MLS (Multiple Listing System) rules by representing more than one buyer. This was vehemently disputed by Mrs Lockhart-Charles.
Senior justice Fraser, in her verdict, found: “According to the terms of the agency agreement, the offer had to be accepted by 10pm on April 8, 2022, for commission to be paid. Since the offer was not accepted by the deadline, the claimant failed to satisfy the strict express condition precedent.
“Therefore, the claimant has no right or entitlement to commission. While this may put the claimant in an unfortunate position, the fundamental tenets of contract law requires strict adherence to agreed upon conditions particularly in commission agreements.”
As for the conflict of interest assertions, the judge said the Privy Council had ruled realtors must not place themselves in a position where their obligations to one client conflict with duties to another. “In this instant case, it is clear that the claimant was representing two buyers, although she had informed the defendants about an upcoming viewing by another potential buyer,” senior justice Fraser added.
“The court has to determine whether by her action she had prioritised her own interest over that of the defendants. During crossexamination, the claimant refused to accept that representing two principals with competing interests could create a conflict.
“I agree with the defendants’ submission on this issue and conclude that the claimant’s representation of two principals with competing interests amounts to a conflict of interest.”
Mrs Lockhart-Charles, Mrs Holowesko’s attorney, told Tribune Business: “The court found that a valid contract existed between our client and the purchaser, Fabio Mantegazza, yet ruled that our client was not entitled to a commission despite the purchaser ultimately acquiring the very property she introduced and facilitated negotiations for.
“This case involves not merely a factual dispute but a matter of legal principle with far-reaching implications for real estate and other professionals. The judgment calls into question how agency relationships are formed and construed, the enforceability of performance-based agreements, and the protections afforded to agents who act in good faith. We believe these issues merit appellate review, and we are actively considering an appeal.”
GOV’T TOUTING VENDOR ARREARS CUT, EYES ACCOUNTING SWITCH
payables at year-end 2024 and $326.592m for the prior year. This implies a $53m-plus, or 16.4 percent, year-over-year reduction in the size of these arrears.
“In the normal course of government operations, accounts payables or arrears can accumulate due to timing mismatches between expenditure commitments and cash availability,” the Fiscal Strategy report said.
“While short-term fluctuations in accounts payable are expected, persistent or rising arrears can signal underlying fiscal stress, weaken the Government’s creditworthiness, erode supplier confidence and increase the cost of goods
and services due to perceived payment risk.
“As of September 2021, the Government recognised the growing fiscal risk posed by accumulated arrearsincluding unsettled legal claims, outstanding vendor obligations and working capital balances - and took deliberate steps to bring these under control,” the report added. “At the end of 2024, the arrears stood at 1.7 percent of nominal GDP. This is an improvement over the prior year where the arrears accounted for 2.1 percent of nominal GDP.” No figures were provided, and large numbers of Bahamian companies are still thought to be owed significant sums by the Government, with some of these payables dating back months and even years.
The Fiscal Strategy Report also committed the Government to largely switching from its present system of modified cash-based accounting to accrual-based accounting within the next two years. This would give a more complete, and accurate, picture of the Government’s financial health by accounting for spending commitments when they are incurred and not paid out. It will also enable the Government to develop a balance sheet of its multibillion dollar assets and liabilities, such as Crown Land, as the Budget presently only shows the equivalent of its income statement. The promised switch to accrual-based accounting was first made by former FNM finance
asked me to present just
hours earlier.
for the trustee overseeing Mr Mantegazza’s Bohemian Trust negotiated a new $58m deal for Harbour House with George Damianos, the Bahamas Sotheby’s International Realty president and managing broker, who was representing the seller in the deal. One director was headed by Katie Booth, the Bahamas chief for the Oak Group.
While Mrs Holowesko was cut out of what is likely one of The Bahamas’ highest-value private residential sales (excluding private islands), senior justice Fraser found assertions
“she was the effective cause of the sale [are] weakened” by several factors including the fact the promotional material for the property came from Bahamas Sotheby’s International Realty’s website.
And the judge, rejecting Mrs Holowesko’s vehement denials, also found she had “a conflict of interest” because she was representing another potential Harbour House buyer besides Mr Mantegazza even though this
had been disclosed to the Swiss businessman and his representatives.
Mrs Holowesko, in a statement to Tribune Business yesterday, said: “I respect the court’s decision, but I strongly disagree with the outcome. The judge found that there was a limited agency agreement that expired at 10pm on the day in question. I had never agreed to a 10pm deadline.
“My clients provided me with an offer late that afternoon to negotiate with the seller, and they then sent an e-mail that evening stating that I was required to have the deal accepted by 10pm that night - a condition I never agreed to. The Bahamas Real Estate Association rules and code of ethics require me to negotiate through the seller’s agent, and he could not be reached that evening despite my repeated attempts to contact him.”
She added: “The court has ruled that the defendants were entitled to bypass me the very next morning and make a deal that same morning directly with the seller’s agent for $1m more than the offer they had
“This case involves a nuanced and complex interpretation of limited agency law and contractual obligations. I believe important issues remain unresolved, and I look forward to having them fully reviewed and clarified on appeal.”
The Bahamian realtor, in her December 16, 2022, claim for breach of contract over the refusal by Mr Mantegazza and the trustee, Bohemian PTC, to pay the 4 percent commission, alleged that her work resulted in the Harbour House deal.
The Swiss businessman, and the trustee for his trust, countered that Mrs Holowesko was “engaged in a very limited capacity to secure a sale for Harbour House, at a specific price, by a fixed time and on a fixed date”.
“The claimant [Mrs Holowesko] failed to fulfill the agreed terms of her engagement, and the agreement was ended as a result,” they alleged. “It was a condition precedent for payment of the commission to the claimant that the claimant would secure the sale of Harbour House to the first defendant on April 8, 2022, at a purchase price of $57m.
“The claimant, however, failed to secure the sale and purchase of Harbour House by the first defendant on
minister, K Peter Turnquest, who had suggested it would be completed around 2022.
That target was not met, but the latest Fiscal Strategy Report said: “As the Government currently operates under a modified cash basis of accounting in accordance with the International Public Sector Accounting Standards (IPSAS), it is not yet possible to produce estimates of the Government’s net worth.
“In line with the requirements of the Public Financial Management Act, these estimates - both as a share of GDP and in nominal terms - will be disclosed in future reports once they can be reliably determined.”
“The Government is actively progressing toward the adoption of an accrualbased accounting system,”
the agreed terms and within the agreed time limit. In the premises, the events entitling the claimant to a commission, in accordance with the terms of the limited agent agreement, did not arise. Any commission agreed to be paid to the claimant was a performance-based commission only.”
Mr Mantegazza was said to have been alerted to Harbour House by a personal friend, Luc van Hoof, in March 2022, who recommended that he view it. He was then contacted by Mrs Holowesko on April 4, 2022, via an e-mail suggesting he see the house and the “adjacent beachfront property”.
The Swiss businessman toured Harbour House with Mr Damianos, acting as the seller’s agent, the following day and expressed an interest in purchasing it. That same day, April 5, 2022, Mrs Holowesko sent Mr Mantegazza a ‘Letter of Intent’ detailing the costs including her 6 percent realtor’s commission.
Ms Booth, who headed Amber Trust prior to its April 2025 acquisition, whereupon it became the Oak Group’s Bahamas operation and she its most senior local executive, replied in her capacity as director of Peridot Services Ltd, one of the corporate directors
CROSSWORD PUZZLE
the Fiscal Strategy Report continued. “This transition requires building capacity across the public sector, implementing new software and technology, and undertaking necessary legislative reforms.
“As part of this transformation, the Government is also in the process of building a comprehensive balance sheet to support the shift away from the modified cash basis. The establishment of a balance sheet will provide the Government with critical insights into its financial position, including its asset base, inventory, and the value of purchases.
The Fiscal Strategy Report added that accrualbased accounting will also “allow for more accurate accounting of long-term obligations, including
for the trustee overseeing Mr Mantegazza’s Bohemian Trust.
She disclosed on April 8, 2022, that the trustees had agreed to a lower, 4 percent, commission that was “contingent” on Mrs Holowesko securing the $57m deal that very same day. This did not happen and, the following day, Ian Black, another principal of the trustee’s corporate directors, negotiated a new $58m deal for Harbour House with Mr Damianos. A ‘Letter of Intent’ was signed on April 11, 2022.
Mrs Holowesko, in her witness statement, asserted that she found Harbour House was for sale at $42.5m while researching Bahamian real estate websites. She asked Luc van Hoof to identify potential buyers, and he came up with Mr Mantegazza. Mr Damianos, meanwhile, informed her that the adjacent beachfront property was available for $16m, making the total Harbour House package worth $58.5m. She acknowledged reducing her commission to 4 percent in negotiations with Ms Booth, and that its payment hinged on her ability to close the purchase for $57m on that same date of April 8, 2022.
“On April 8, 2022, at 6.37pm she was copied on an e-mail from Ian Black to George Damianos, which conveyed that if the offer was not accepted by 10pm it would be withdrawn,” senior justice Fraser recalled of Mrs Holowesko’s evidence. “She was unable to secure the deal for Fabio before 10pm.
“On 10 April, 2022, George informed her that he had spoken to Ian Black and relayed the seller’s counteroffer of $58m. On 12 April, 2022, George confirmed a Letter of Intent was signed by both the buyer and seller. She was informed by Katie Booth that Fabio and the trustees had determined that she was not entitled to a commission because she had not closed the deal by 10pm on April 8 2022.”
Mr Mantegazza, in his evidence, said he had thought Mr Holowesko was the seller’s real estate agent. Mr Black, meanwhile, confirmed that the negotiations involving Mrs Holowesko “fell through” when the 10pm deadline was missed.
“He explained that on April 9, 2022, he was contacted by George Damianos informing him that the offer was put forward and was not accepted. He testified that during his conversation with George, they negotiated terms for a new agreement, and that Diane was not part of those discussions,” senior justice Fraser wrote.
“Ian clarified that the new agreement with George depended on cancellation of the showing scheduled for April 9, 2022, so as to prevent a potential bidding war with another buyer. When questioned on why Diane was expected to cancel the property viewing before an offer was accepted, he stated that it was a part of the negotiations.”
Ms Booth, too, asserted that the trustees did not want to enter “a bidding war with Diane’s other clients”. Senior justice Fraser said of her evidence: “She stated that Diane had indicated that the vendors did not like to be pressured, and had mentioned that another buyer wanted to look at the property.
“She explained that the trustees felt their offer was not receiving priority and they engaged Diane on a
pension liabilities, which are not currently reflected under the modified cash approach. This transformation is expected to near completion within the next two years, as well as support enhanced transparency, fiscal decision-making and sustainability.
“Addressing the issue of payment arrears also remains a key priority. Currently, the Government does not have a streamlined reporting system for arrears. Improved financial reporting under the accrual framework will enable more accurate identification, classification and monitoring of arrears, thereby enhancing accountability and supporting efforts to clear outstanding obligations in a transparent and strategic manner.”
limited basis making it clear the transaction needed to be closed on Friday. Katie stated that Diane had ample time to close the transaction before 10pm and that the offer was withdrawn at 10pm because they did not want to get into a bidding war. She stated that Diane showing the property to another client was viewed as a conflict of interest.”
Gail Lockhart-Charles KC, acting for Mrs Holowesko, argued that her client had played an “essential” role and that she was the “effective cause” of Harbour House’s sale before being excluded from the deal she organised. However, Chizelle Cargill, representing Mr Mantegazza and the defendants, rejected this and asserted that Mrs Holowesko breached her fiduciary duty and Article One of the MLS (Multiple Listing System) rules by representing more than one buyer. This was vehemently disputed by Mrs Lockhart-Charles.
Senior justice Fraser, in her verdict, found: “According to the terms of the agency agreement, the offer had to be accepted by 10pm on April 8, 2022, for commission to be paid. Since the offer was not accepted by the deadline, the claimant failed to satisfy the strict express condition precedent.
“Therefore, the claimant has no right or entitlement to commission. While this may put the claimant in an unfortunate position, the fundamental tenets of contract law requires strict adherence to agreed upon conditions particularly in commission agreements.”
As for the conflict of interest assertions, the judge said the Privy Council had ruled realtors must not place themselves in a position where their obligations to one client conflict with duties to another. “In this instant case, it is clear that the claimant was representing two buyers, although she had informed the defendants about an upcoming viewing by another potential buyer,” senior justice Fraser added.
“The court has to determine whether by her action she had prioritised her own interest over that of the defendants. During crossexamination, the claimant refused to accept that representing two principals with competing interests could create a conflict.
“I agree with the defendants’ submission on this issue and conclude that the claimant’s representation of two principals with competing interests amounts to a conflict of interest.”
Mrs Lockhart-Charles, Mrs Holowesko’s attorney, told Tribune Business: “The court found that a valid contract existed between our client and the purchaser, Fabio Mantegazza, yet ruled that our client was not entitled to a commission despite the purchaser ultimately acquiring the very property she introduced and facilitated negotiations for.
“This case involves not merely a factual dispute but a matter of legal principle with far-reaching implications for real estate and other professionals. The judgment calls into question how agency relationships are formed and construed, the enforceability of performance-based agreements, and the protections afforded to agents who act in good faith. We believe these issues merit appellate review, and we are actively considering an appeal.”
GOV’T TOUTING VENDOR ARREARS CUT, EYES ACCOUNTING SWITCH
payables at year-end 2024 and $326.592m for the prior year. This implies a $53m-plus, or 16.4 percent, year-over-year reduction in the size of these arrears.
“In the normal course of government operations, accounts payables or arrears can accumulate due to timing mismatches between expenditure commitments and cash availability,” the Fiscal Strategy report said.
“While short-term fluctuations in accounts payable are expected, persistent or rising arrears can signal underlying fiscal stress, weaken the Government’s creditworthiness, erode supplier confidence and increase the cost of goods
and services due to perceived payment risk.
“As of September 2021, the Government recognised the growing fiscal risk posed by accumulated arrearsincluding unsettled legal claims, outstanding vendor obligations and working capital balances - and took deliberate steps to bring these under control,” the report added. “At the end of 2024, the arrears stood at 1.7 percent of nominal GDP. This is an improvement over the prior year where the arrears accounted for 2.1 percent of nominal GDP.” No figures were provided, and large numbers of Bahamian companies are still thought to be owed significant sums by the Government, with some of these payables dating back months and even years.
The Fiscal Strategy Report also committed the Government to largely switching from its present system of modified cash-based accounting to accrual-based accounting within the next two years. This would give a more complete, and accurate, picture of the Government’s financial health by accounting for spending commitments when they are incurred and not paid out. It will also enable the Government to develop a balance sheet of its multibillion dollar assets and liabilities, such as Crown Land, as the Budget presently only shows the equivalent of its income statement. The promised switch to accrual-based accounting was first made by former FNM finance
asked me to present just
hours earlier.
for the trustee overseeing Mr Mantegazza’s Bohemian Trust negotiated a new $58m deal for Harbour House with George Damianos, the Bahamas Sotheby’s International Realty president and managing broker, who was representing the seller in the deal. One director was headed by Katie Booth, the Bahamas chief for the Oak Group.
While Mrs Holowesko was cut out of what is likely one of The Bahamas’ highest-value private residential sales (excluding private islands), senior justice Fraser found assertions
“she was the effective cause of the sale [are] weakened” by several factors including the fact the promotional material for the property came from Bahamas Sotheby’s International Realty’s website.
And the judge, rejecting Mrs Holowesko’s vehement denials, also found she had “a conflict of interest” because she was representing another potential Harbour House buyer besides Mr Mantegazza even though this
had been disclosed to the Swiss businessman and his representatives.
Mrs Holowesko, in a statement to Tribune Business yesterday, said: “I respect the court’s decision, but I strongly disagree with the outcome. The judge found that there was a limited agency agreement that expired at 10pm on the day in question. I had never agreed to a 10pm deadline.
“My clients provided me with an offer late that afternoon to negotiate with the seller, and they then sent an e-mail that evening stating that I was required to have the deal accepted by 10pm that night - a condition I never agreed to. The Bahamas Real Estate Association rules and code of ethics require me to negotiate through the seller’s agent, and he could not be reached that evening despite my repeated attempts to contact him.”
She added: “The court has ruled that the defendants were entitled to bypass me the very next morning and make a deal that same morning directly with the seller’s agent for $1m more than the offer they had
“This case involves a nuanced and complex interpretation of limited agency law and contractual obligations. I believe important issues remain unresolved, and I look forward to having them fully reviewed and clarified on appeal.”
The Bahamian realtor, in her December 16, 2022, claim for breach of contract over the refusal by Mr Mantegazza and the trustee, Bohemian PTC, to pay the 4 percent commission, alleged that her work resulted in the Harbour House deal.
The Swiss businessman, and the trustee for his trust, countered that Mrs Holowesko was “engaged in a very limited capacity to secure a sale for Harbour House, at a specific price, by a fixed time and on a fixed date”.
“The claimant [Mrs Holowesko] failed to fulfill the agreed terms of her engagement, and the agreement was ended as a result,” they alleged. “It was a condition precedent for payment of the commission to the claimant that the claimant would secure the sale of Harbour House to the first defendant on April 8, 2022, at a purchase price of $57m.
“The claimant, however, failed to secure the sale and purchase of Harbour House by the first defendant on
minister, K Peter Turnquest, who had suggested it would be completed around 2022.
That target was not met, but the latest Fiscal Strategy Report said: “As the Government currently operates under a modified cash basis of accounting in accordance with the International Public Sector Accounting Standards (IPSAS), it is not yet possible to produce estimates of the Government’s net worth.
“In line with the requirements of the Public Financial Management Act, these estimates - both as a share of GDP and in nominal terms - will be disclosed in future reports once they can be reliably determined.”
“The Government is actively progressing toward the adoption of an accrualbased accounting system,”
the agreed terms and within the agreed time limit. In the premises, the events entitling the claimant to a commission, in accordance with the terms of the limited agent agreement, did not arise. Any commission agreed to be paid to the claimant was a performance-based commission only.”
Mr Mantegazza was said to have been alerted to Harbour House by a personal friend, Luc van Hoof, in March 2022, who recommended that he view it. He was then contacted by Mrs Holowesko on April 4, 2022, via an e-mail suggesting he see the house and the “adjacent beachfront property”.
The Swiss businessman toured Harbour House with Mr Damianos, acting as the seller’s agent, the following day and expressed an interest in purchasing it. That same day, April 5, 2022, Mrs Holowesko sent Mr Mantegazza a ‘Letter of Intent’ detailing the costs including her 6 percent realtor’s commission.
Ms Booth, who headed Amber Trust prior to its April 2025 acquisition, whereupon it became the Oak Group’s Bahamas operation and she its most senior local executive, replied in her capacity as director of Peridot Services Ltd, one of the corporate directors
CROSSWORD PUZZLE
the Fiscal Strategy Report continued. “This transition requires building capacity across the public sector, implementing new software and technology, and undertaking necessary legislative reforms.
“As part of this transformation, the Government is also in the process of building a comprehensive balance sheet to support the shift away from the modified cash basis. The establishment of a balance sheet will provide the Government with critical insights into its financial position, including its asset base, inventory, and the value of purchases.
The Fiscal Strategy Report added that accrualbased accounting will also “allow for more accurate accounting of long-term obligations, including
for the trustee overseeing Mr Mantegazza’s Bohemian Trust.
She disclosed on April 8, 2022, that the trustees had agreed to a lower, 4 percent, commission that was “contingent” on Mrs Holowesko securing the $57m deal that very same day. This did not happen and, the following day, Ian Black, another principal of the trustee’s corporate directors, negotiated a new $58m deal for Harbour House with Mr Damianos. A ‘Letter of Intent’ was signed on April 11, 2022.
Mrs Holowesko, in her witness statement, asserted that she found Harbour House was for sale at $42.5m while researching Bahamian real estate websites. She asked Luc van Hoof to identify potential buyers, and he came up with Mr Mantegazza. Mr Damianos, meanwhile, informed her that the adjacent beachfront property was available for $16m, making the total Harbour House package worth $58.5m. She acknowledged reducing her commission to 4 percent in negotiations with Ms Booth, and that its payment hinged on her ability to close the purchase for $57m on that same date of April 8, 2022.
“On April 8, 2022, at 6.37pm she was copied on an e-mail from Ian Black to George Damianos, which conveyed that if the offer was not accepted by 10pm it would be withdrawn,” senior justice Fraser recalled of Mrs Holowesko’s evidence. “She was unable to secure the deal for Fabio before 10pm.
“On 10 April, 2022, George informed her that he had spoken to Ian Black and relayed the seller’s counteroffer of $58m. On 12 April, 2022, George confirmed a Letter of Intent was signed by both the buyer and seller. She was informed by Katie Booth that Fabio and the trustees had determined that she was not entitled to a commission because she had not closed the deal by 10pm on April 8 2022.”
Mr Mantegazza, in his evidence, said he had thought Mr Holowesko was the seller’s real estate agent. Mr Black, meanwhile, confirmed that the negotiations involving Mrs Holowesko “fell through” when the 10pm deadline was missed.
“He explained that on April 9, 2022, he was contacted by George Damianos informing him that the offer was put forward and was not accepted. He testified that during his conversation with George, they negotiated terms for a new agreement, and that Diane was not part of those discussions,” senior justice Fraser wrote.
“Ian clarified that the new agreement with George depended on cancellation of the showing scheduled for April 9, 2022, so as to prevent a potential bidding war with another buyer. When questioned on why Diane was expected to cancel the property viewing before an offer was accepted, he stated that it was a part of the negotiations.”
Ms Booth, too, asserted that the trustees did not want to enter “a bidding war with Diane’s other clients”. Senior justice Fraser said of her evidence: “She stated that Diane had indicated that the vendors did not like to be pressured, and had mentioned that another buyer wanted to look at the property.
“She explained that the trustees felt their offer was not receiving priority and they engaged Diane on a
pension liabilities, which are not currently reflected under the modified cash approach. This transformation is expected to near completion within the next two years, as well as support enhanced transparency, fiscal decision-making and sustainability.
“Addressing the issue of payment arrears also remains a key priority. Currently, the Government does not have a streamlined reporting system for arrears. Improved financial reporting under the accrual framework will enable more accurate identification, classification and monitoring of arrears, thereby enhancing accountability and supporting efforts to clear outstanding obligations in a transparent and strategic manner.”
limited basis making it clear the transaction needed to be closed on Friday. Katie stated that Diane had ample time to close the transaction before 10pm and that the offer was withdrawn at 10pm because they did not want to get into a bidding war. She stated that Diane showing the property to another client was viewed as a conflict of interest.”
Gail Lockhart-Charles KC, acting for Mrs Holowesko, argued that her client had played an “essential” role and that she was the “effective cause” of Harbour House’s sale before being excluded from the deal she organised. However, Chizelle Cargill, representing Mr Mantegazza and the defendants, rejected this and asserted that Mrs Holowesko breached her fiduciary duty and Article One of the MLS (Multiple Listing System) rules by representing more than one buyer. This was vehemently disputed by Mrs Lockhart-Charles.
Senior justice Fraser, in her verdict, found: “According to the terms of the agency agreement, the offer had to be accepted by 10pm on April 8, 2022, for commission to be paid. Since the offer was not accepted by the deadline, the claimant failed to satisfy the strict express condition precedent.
“Therefore, the claimant has no right or entitlement to commission. While this may put the claimant in an unfortunate position, the fundamental tenets of contract law requires strict adherence to agreed upon conditions particularly in commission agreements.”
As for the conflict of interest assertions, the judge said the Privy Council had ruled realtors must not place themselves in a position where their obligations to one client conflict with duties to another. “In this instant case, it is clear that the claimant was representing two buyers, although she had informed the defendants about an upcoming viewing by another potential buyer,” senior justice Fraser added.
“The court has to determine whether by her action she had prioritised her own interest over that of the defendants. During crossexamination, the claimant refused to accept that representing two principals with competing interests could create a conflict.
“I agree with the defendants’ submission on this issue and conclude that the claimant’s representation of two principals with competing interests amounts to a conflict of interest.”
Mrs Lockhart-Charles, Mrs Holowesko’s attorney, told Tribune Business: “The court found that a valid contract existed between our client and the purchaser, Fabio Mantegazza, yet ruled that our client was not entitled to a commission despite the purchaser ultimately acquiring the very property she introduced and facilitated negotiations for.
“This case involves not merely a factual dispute but a matter of legal principle with far-reaching implications for real estate and other professionals. The judgment calls into question how agency relationships are formed and construed, the enforceability of performance-based agreements, and the protections afforded to agents who act in good faith. We believe these issues merit appellate review, and we are actively considering an appeal.”