• Darville: ‘Timing’ issue; China loan being finalised
• $6m allocated for site work, owner’s rep in ‘25-’26
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A CABINET minister yesterday revealed “we’re this close” to finalising the $290m financing for New Providence’s new hospital even though this was not included in the 2025-2026 Budget.
Dr Michael Darville, minister of health and wellness, told Tribune Business that the proposed loan facility from the China ExportImport Bank, the state-owned Beijing lender that financed Baha Mar’s construction, was not incorporated into the Davis administration’s spending plans because the details were not completed in
time for the Budget’s presentation.
Affirming that the proposed Perpall Tract healthcare facility will proceed, he asserted that he is “very confident funding is on the way” for a project that he hopes will break ground “in short order” although he declined to give a precise date or timeline.
And, while none of the $2m allocated for “preparatory works” in this year’s Budget had been spent at end-March 2025, the Government is providing $6m for what is described as the Ministry of Health and Wellness’ “equity
contribution” to the New Providence hospital in the upcoming 2025-2026 fiscal year.
Dr Darville told this newspaper that the $6m will finance a combination of site clearance and preparation, which is part of the Government’s obligations in return for receiving the China Export-Import Bank loan, and the hiring of an “owner’s representative” who will act as the Davis administration’s “watchdog” once actual construction work begins. And, unlike previous years, while there was no mention of the $290m New Providence
hospital project in the Government’s recently-released 2025-2026 Budget documents, the minister reassured that this was simply due to “the timing being a bit off” with some details regarding the financing yet to be agreed with the China Export-Import Bank.
“Rest assured that funding from the China Export-Import Bank is on the way,” Dr Darville told Tribune Business in a previous communication. “The details concerning the funding will be discussed during my Budget contribution. There will be a few changes with the funding arrangements that are currently being worked out between my ministry,
By NEIL HARTNELL
EFFORTS to give the National Development Plan a legal footing are moving “not nearly as fast as I would like”, its steering committee chairman conceded yesterday.
Felix Stubbs, the former IBM (Bahamas) chief, told Tribune Business that “government bureaucracy” was responsible for the slow progress despite the Prime Minister repeatedly assuring him he is “very serious” about codifying the initiative in statute law via the proposed National Development Plan Bill.
Confirming that the draft Bill is still with the Attorney General’s Office, he added that the Plan’s steering committee is aiming to meet with officials from that office within the next couple of weeks to advance the progress of legislation that was pledged during the re-opening of Parliament in early October 2023. And, disclosing that staff to run its secretariat are already being recruited, and the necessary office space sought, Mr Stubbs told this newspaper he expects work to update
NIB eyes $32m deficit despite income jump
By FAY SIMMONS
Reporter
A CABINET minister yesterday said the National Insurance Board (NIB) is forecast to suffer a $32m deficit in 2025 despite earning an extra $4m per month in contribution income from last year’s rate rise.
Alfred Sears KC, minister of Immigration and National Insurance, told the House of Assembly that the combined 1.5 percent contribution rate increase that came into effect last July has already generated $4m per month since its implementation but the social security’s deficit “remains significant”.
He added that this is currently estimated at $32m for 2025, with 50 percent of the shortfall caused by the “ongoing gap” in contributions and benefits paid out.
“This policy adjustment has positively impacted the Fund’s revenue position, generating an additional average of $4m per month in contributions. This increase has proven essential in NIB’s ongoing efforts to strengthen the financial sustainability of the Fund,” said Mr Sears.
the original 2016 version - and finish the “20 percent” of the Plan that remains incomplete - to officially begin “within a matter of weeks”.
He added that completing the Plan is critical to prevent The Bahamas’ from developing “haphazardly”, and for the country to fulfill its true economic growth potential, with the Government’s just-released Fiscal Strategy Report placing the initiative at the top of “structural reforms” deemed essential to boosting competitiveness and investment.
“The Government acknowledges that structural reforms and economic policy initiatives are required to increase competitiveness, facilitate business transactions and foster investment,” the Fiscal Strategy Report 2025 affirmed.
Heading the list of such reforms is the need to “institutionalise the National Development planning process”. The Fiscal Strategy Report added: “The Government intends to introduce The Bahamas’ National Development Plan (NDP)
Taxpayer subsidy payouts to hit $526m in four years’ time
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
TAXPAYER subsidies to lossmaking government enterprises are forecast to increase by $75m over the upcoming four fiscal years to hit $525.6m in 2028-2029, it has been revealed.
The Government’s just-released Fiscal Strategy Report 2025 again identifies the likes of the Water & Sewerage Corporation, Bahamasair and the Broadcasting Corporation of The Bahamas (BCB) as a major risk and threat to its forecast 2025-2026 surplus and other fiscal targets as it pledges to continue the “rationalisation” initiative for state-owned enterprises (SOEs).
“State-owned enterprise (SOE) reform remains a key Budget priority with targeted measures aimed at reducing fiscal transfers and managing contingent liabilities. The newly implemented guaranteed policy framework, ‘Bahamas Policy Framework for Guarantees’, will be fully operationalised, including the application of eligibility criteria, credit risk assessments and a
standardized guarantee fee structure,” the report said.
“In addition, SOEs will be required to submit medium-term business plans aligned with fiscal objectives and face tighter controls on hiring, salary increases and unfunded capital spending.
The continued training of SOE directors will improve governance and compliance.
“Sector-specific reforms will continue in the water and healthcare sectors, while major restructuring in the energy sector is projected to reduce direct subventions over the medium term. These reforms are essential to reducing fiscal risks, enhancing service delivery and ensuring the sustainability of public finances.”
The Fiscal Strategy Report pledged that the Government is targeting a reduction in its contingent liabilities, representing borrowing by state-owned enterprises that it has guaranteed on their behalf. While such guarantees are estimated to total $297.2m at end-June 2025, they are forecast to increase by more than $160m to $458.8m by the
By NEIL HARTNELL Tribune Business Editor
THE Government is projecting it will cut its direct debt by $1.883bn over the next four fiscal years and achieve its targeted 50 percent debt-to-gross domestic product (GDP) ratio one year ahead of schedule.
The estimates, unveiled in the Davis administration’s just-released 2025 Fiscal Strategy Report, rely on it achieving its projected fiscal surpluses from the upcoming 2025-2026 Budget year onwards as well as consistent annual growth in economic output (GDP) to keep the various debt, deficit and other fiscal ratios in check.
Revenue performance is heavily linked to GDP growth and economic activity given The Bahamas’ consumption-based tax system. Yet, despite GDP growth slowing - and ultimately flat-lining to The Bahamas’ pre-COVID and Dorian long-run average - the Government is forecasting consistent annual revenue growth to take its income from $3.896bn in 2025-2026 to $4.556bn in 2028-2029.
That represents a 16.9 percent, or $660m, increase
The Government is forecasting that it will achieve a combined $976.3m in fiscal surpluses, measuring by how much revenues exceed its spending, over the four fiscal years through 2028-2029 despite its own forecasts showing that GDP growth will slow from 1.8 percent this year to 1.7 percent in 2026, 1.6 percent in 2027, and then further to 1.5 percent for both 2028 and 2029.
FROM L-R: John Farmer, Co-Owner & Director of Easy Car Sales; Coco Lin, Caribbean Regional Representative, BYD; Her Excellency People’s Republic of China Ambassador to The Bahamas, Ms. Yan Jiarong; Pia Farmer, Co-Owner & Director of Easy Car Sales and The Honourable Zane Lightbourne, Minister of State for the Environment and Member of Parliament for Yamacraw.
ELECTRIC VEHICLE DEALER OPENS MALL SHOWROOM
A BAHAMIAN electric vehicle dealer recently celebrated the opening of its new Mall at Marathon showroom dedicated to the BYD brand it distributes in this nation.
Easy Car Sales, in a statement, said customers, friends and representatives from BYD’s Latin American region joined executives from Bahamian commercial banks, the Bahamas Chamber of Commerce and
Employers’ Confederation (BCCEC), the Small Business Development Centre (SBDC), the Bahamas Development Bank and the Inter-American Development Bank (IDB) at the reception.
Remarks were given by Zane Lightbourne, minister of state for the environment, and Yan Jiarong, ambassador for the People’s Republic of China. Easy Car Sales said the
showroom serves as a flagship for destination BYD in The Bahamas, and marks the first-ever car dealership within the Mall at Marathon.
It added that the space is designed to give Bahamians experience with BYD’s advanced electric vehicles, while making sustainable mobility more accessible than before. “This showroom represents more than just cars; it’s about building
a better future,” said Pia Farmer, co-owner and director at Easy Car Sales. “Electric vehicles are solar ready, powered by cleaner energy, and a perfect partner to our national energy goals. They also radically reduce the cost of vehicle ownership, empowering drivers to ‘dump the pump’. We are excited to continue to lead The Bahamas into the next era of transportation with
world leader BYD as our partner.” The showroom features BYD’s top models and offers customers a location in which to experience electric vehicles (EVs).
Visitors can explore technology-forward models, a boutique shopping area, and a complimentary beverage station.
In-house financing and leasing options are offered on-site, and customers can be picked up for test drives from the Food Court entrance to the mall. Easy Car Sales said it has been the exclusive, authorised BYD distributor and sole warranty provider in The Bahamas since 2017. It added that it has sold more than 1,000 electric vehicles to-date, which has helped to eliminate an estimated 4,500 metric tons of carbon dioxide (CO2) annually.
MINISTER HAILS ‘RECORD’ $123M REVENUES FROM IMMIGRATION
By FAY SIMMONS Tribune Business Reporter
A CABINET minister yesterday said the Immigration Department has
generated “record revenue” of more than $123m during the first ten months of the current 2024-2025 fiscal year.
Alfred Sears, minister of Immigration and National Insurance, said the
Department is now planning to beat the targeted $140m that the Government has budgeted for it to collect in the upcoming 2025-2026 fiscal period from the issuance of residency, entry and work-related permits.
“I can report that the Immigration Department has again surpassed its revenue performance from the previous fiscal period. Revenue collected for
the period 2024-2025 up to May is estimated to be $123.771m,” said Mr Sears.
“This compares to last year’s $97.65m.
“It is also projected that this year coming, the Immigration Department will surpass $140m in revenue for fiscal period 2025-2026.
The Department of Immigration, through follow-up investigations, targeted delinquent accounts and more efficient collection efforts to collect outstanding payments during this period, which has resulted in a record increase revenue for the Government.”
Mr Sears noted that the cost of repatriation is a significant expense for the
Department and a “tremendous burden on the public purse”. These exercises are expected to cost the Government more than $1.8m in the 2025-2026 fiscal year.
“Repatriation expenses for the period 2024-2025 to May were estimated to be $1.551m with other repatriation expenses currently being processed for payment. The 2025-2026 Budget is projecting, and contains, an amount of $1.847m for the repatriation of undocumented immigrants,” he added.
Mr Sears said cruise lines will now be subject to a fee of $3 per day for each foreign ship’s crew employee that disembarks from their
vessel to work at a private island destination. He added that the daily fee will include both an Immigration fee and National Insurance Board contribution, and the cruise lines will only be able to secure the work visa if there are no Bahamians available to work.
“As tourism has changed, currently 78 percent of the tourist arrivals to The Bahamas are cruise visitors, and these cruise operators have established cruise destinations, some of which are cays and some of which are on land. A practice has developed in these cruise destinations, where crew members work on shore, serving food to thousands of cruise passengers,” said Mr Sears.
“The regulation that we have laid makes it mandatory now that the crew of cruise ships who work on land will be subject to securing a work visa, which at the daily fee of $3, is inclusive of the Immigration fee as well as the National Insurance contribution so that the revenue to the Government of persons working on shore would be generated.
“And, of course, this is done within the context only in the case where Bahamians are not readily available to work on the cays, and some of the cays are having difficulty getting the requisite number of Bahamian employees.”
ALFRED SEARS
‘Enemies of transparency’ over Bahamas Moorings
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
THE Opposition’s deputy leader yesterday accused the Davis administration of being “enemies of transparency” as he blasted the now-aborted Bahamas Moorings lease deal.
Shanendon Cartwright, in his Budget debate contribution, told the House of Assembly that the Davis administration was “not diligent” in choosing to lease 4,000 acres of seabed in the Exuma Cays to a company with strong links to government insiders. He also insinuated that the buoys placed earlier this year by Bahamas Moorings are still in the water.
“We remember the moorings deal. Now the Government was not diligent about, not four, not 40, but 4,000 acres of seabed in Exuma until Exumians, FNM and PLP supporters spoke out and challenged it,” said Mr Cartwright.
“When the member for Exuma was asked he pulled the shaggy; he said it wasn’t me, go check OPM (Office of the Prime Minister). The thing is, we still understand that the moorings are still in the water. Enemies of transparency.”
Tribune Business previously revealed that many of those involved in the Bahamas Moorings Company deal have close links to the Office of the Prime Minister and senior persons who work in it. The two principals named in the lease, in particular, both have longstanding ties to Jerome Fitzgerald, the Prime Minister’s senior policy adviser.
Philip A. Kemp II is a long-standing business associate of Mr Fitzgerald, the two having been part of the failed BK Foods to acquire the now-defunct
City Markets supermarket chain. They later participated in the Trans-Island Traders deal that acquired the same business just prior to its collapse, with Mr Kemp becoming its chief financial officer. A City Markets-related e-mail, sent to Tribune Business at that time, was also copied to Philip A. Kemp II. And Raymond Christian Knowles, better known by his middle name, is a boat captain with the ‘Pieces of 8’ tour boat and charter operator, where he is described as “a 30-year veteran on the open waters” who has worked as a commercial fisherman. Mr Fitzgerald, in a 2021 interview with Tribune Business, neither confirmed nor denied when asked whether he had an ownership interest in the company. There are also further connections involving Bahamas Moorings’ address. This newspaper’s own records, plus a VAT registrants list from 2016, reveal that 138 Wulff Road was also once the home of Bahamas Cargo & Logistics (BCL), a company owned by Mr Fitzgerald’s family. Tribune Business previously reported yesterday how a bill of lading, detailing Bahamas Moorings’ importation of anchors and link chains from China, gives the company’s address as Suite No.5, 138 Wulff Road. That is now the address of Cubix Bahamas which, like Bahamas Cargo & Logistics, is also a shipping company and freight forwarder.
And Mrs Kemp states on her Linkedin page that she has served as “head of marketing communications” for Cubix Bahamas from March 2018 to the “present”. Mr Cartwright, meanwhile, also targeted the Davis administration’s deal with Space X, branding it
a
“failed programme”. He criticised Chester Cooper, deputy prime minister, for indicating that environmental safeguards were in place prior to the first launch but, then, pausing the launches months later pending an environmental impact assessment (EIA) and postlaunch report.
“This failed programme spat in the face of transparency, but it also provided a clear contradiction in the Government’s muchbragged about fight for global climate justice on transparency. The Bahamian people asked for, pleaded for, begged for an environmental impact assessment, as they were concerned about the launches’ impact on the environment, our waters and our people,” Mr Cartwright added.
“But they said, ‘to hell with the EIA, let’s just give them a baseline environmental assessment’. How can you have an EMP [environmental management plan] without an EIA?”
“What was very, very interesting, if you remember, on February 13, all systems go. Deputy prime minister says safeguards in place as Bahamas set for as many as 20 SpaceX rocket landings in 2025. All safeguards are in place,” he added.
“And then April 16, a few months down the road, SpaceX landings in The Bahamas paused pending EIA and postlaunch report. So hold on. I thought they say that the safeguards were in place.”
Mr Cartwright also accused the Davis administration of being secretive about the details of the Grand Lucayan sale.
“The Grand Lucayan deal, while we are hopeful that the Heads of Agreement signing for the redevelopment of the Grand Lucayan deal will
Contractors eye reduced costs with duty changes
By ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net
BAHAMIAN contrac-
tors yesterday voiced hopes they will enjoy reduced costs for critical building materials and supplies as a result of Customs duty cuts in the 2025-2026 Budget.
Patricia Cleare, proprietor of Screws & Fasteners World, backed the decision to remove import duty on factory cement, copper fittings, screws, nuts and bolts even though it came as a surprise. Given that she has to import the bulk of her inventory, eliminated or reduced duties may allow her to pass this on to consumers via price reductions.
“I am happy about it,” Ms Cleare said. “Who wouldn’t be? But what I am happy for is when we can now
reduce prices on a number of things that we get in, and it can cause me to expand even more.
“All of them [materials] are imported. We do not have a factory here. If we have a factory here, that involves bringing in equipment, and that type of equipment is [going to have] electricity problems. We can’t manufacture nothing here like that, because that’s a lot. And then we’ll still be competing with America in a way.
“So I’m glad that he’s [Prime Minister Philip Davis KC] doing it duty free as it can actually encourage us to get more variety, as well as it can cause the prices for a lot of stuff to go down,” Ms Cleare added.
“I was quite surprised he feels that it’s so important, because when you really look at fasteners, at every
aspect of everything you do, every profession needs some fasteners.
“So, I am quite happy because it’s a business that is needed in the country. So I’m quite happy to see that he was willing to actually do that... Sometimes some of the bolts are very, very expensive. One nut is costing about $40.”
Ms Cleare said she can also look at expanding the range of inventory she brings in with the removal of duty.
“There’s more screws that I can bring in that is needed,” she said.
“For instance, I sell a lot of stainless steel 304. There’s also a whole line of stainless steel 316. There’s also a line of left-hand screws.
“There’s all of these stuff that I don’t really bring in because there’s no space,
accrue significant longterm benefits for Grand Bahamians, we just don’t know what they are. It is just crickets from the Government on the Grand Lucayan deal,” he added. Holding up a dollar bill, Mr Cartwright said he had more funds in hand than the Davis administration does for the sale of the resort, and pushed for more details about the development and any concessions Concord Wilshire received.
“This is a $1 bill. I have more money in my hand right now than the Bahamian people can see from this Grand Lucayan deal. They say there’s $120m. We need an explanation. We don’t see any indication of that $120m having been paid. Not a single dollar, and it’s not in the Budget,” said Mr Cartwright.
“What is the impact to the workers? We heard about phases. What is in each phase? What concessions have been given in the name of the Bahamian people, and what then is the long-term impact of whatever concessions have been given. It is not enough for the Government to think that an announcement alone will sustain hope from Grand Bahamians.
“As important as the announcement is, it is the details that will determine the transformational aspect of this venture.”
Opposition deputy slams Budget surplus ‘gimmick’
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
THE Opposition’s deputy leader yesterday said the Davis administration is using projected $75.5m Budget surplus for 2025-2026 to “swing” The Bahamas into believing the economy is prosperous.
Shanendon Cartwright, giving his Budget debate contribution in the House of Assembly, said the Davis administration “has the country in a mess” and has created hardships through increased taxes and excessive spending.
“The Prime Minister said recently they are cleaning up our mess, but it is this government that has the country in a mess. Despite their talks, despite their laughter, despite them banging on the tables, despite what they will spend in this debate, they have created heartache and hardships for the Bahamian people. Bahamians are worse off than they were four years ago. Just ask them,” said Mr Cartwright.
“A recent poll found 65 percent of Bahamians feel things are worse than before in the ‘new day’ economy. Over the past four years, the tax burden
has increased considerably on the Bahamian people, while the Government has increased spending on travel since they came to office. Their travel bill at the end of the fiscal year, 2025-2026, is $73m to the Bahamian people.”
Mr Cartwright voiced doubts that the Government will be able to meet its surplus target as it is currently behind on the 2024-2025 Budget goals.
“The story of the surplus is much more than the fact that the Prime Minister did say in his communication that his government has achieved a Budget surplus. Now, the deputy prime minister came back and said that, you know, budgeted,” said Mr Cartwright.
“While this could only be speculative and a projection, as the Government is running a deficit for the nine months of this fiscal year, they are behind, but yet they are projecting a surplus in a fiscal year that has not started. The Bahamian people only see a surplus of more games, a surplus of more smoke and mirrors.”
Mr Cartwright questioned how the increased revenue to achieve a fiscal surplus will be generated,
Minister: ‘We’re this close’ on $290m hospital funds
the Ministry of Finance and the China Export-Import Bank.
“Unfortunately, the details were not finalised in time for the laying of the Budget.” Speaking to this newspaper yesterday, he added: “The funding by way of the China ExportImport Bank is moving as I expected it to do. I was hoping it would be put in prior to going into the Budget, that it would have been incorporated. That did not happen.
“When the Budget was put together we were hoping to have all the parameters [agreed] to put into it. We are in communication with the Export-Import Bank on a daily basis.” Dr Darville said the Chinese ambassador to The Bahamas had previously gone “on record saying the funding was secured”, which gave himself and the Government confidence that the required financing will be obtained.
The proposed financing by a Chinese state-owned bank is occurring at a time of heightened tension between Beijing and the Trump administration, with
the latter’s tariffs further intensifying their geo-political rivalry and competition for global influence. However, Dr Darville previously said the Government had been unsuccessful in its efforts to obtain monies from US and other nation’s development banks. Once the China ExportImport Bank funding is secured, he explained that the Government would likely move a House of Assembly resolution seeking Parliament’s agreement to borrow the loan facility. The minister explained that it would work in similar fashion to the midyear Budget borrowing resolution that enabled the Government to access $75m from a syndicated loan put together by CIBC Caribbean. These funds were earmarked for much-needed renovations at Princess Margaret Hospital (PMH) and the Rand Memorial Hospital, and Dr Darville said: “A similar agreement needs to take place for the hospital. The timing [for inclusion in the Budget] was just a bit off. We’re this close.
“We’re going ahead with the project. The parameters for the loan are slightly
different. I’ll speak about it [in the Budget debate], but it doesn’t stop us breaking ground on the project in short order. I’m now in the procurement process for someone to start preparing the land. We have to hand the land over prepared for the bank to get the contractor.
“I’m a little bit behind sorting this issue for me to have it incorporated in the Budget. Once it’s signed off, there will have to be a resolution for funding by the China Export-Import Bank to build this project. It does not affect the Budget. What I’m doing is some small paperwork needed to go forward to meet the legal requirements for it [the loan].”
Asked what his message would be to the Bahamian public about the project’s prospects of moving forward, Dr Darville added: “I can go on record as saying I am very confident funding is on the way for this particular project, and we will break ground in short order... I’m very confident with where I’m at at this particular point in time.”
And, explaining the $6m “equity” allocation in his ministry’s capital spending Budget for 2025-2026,
the minister said: “The $6m equity is for works I’m responsible to do at the site. The contractual agreement, if you look at the feasibility study, the responsibility of the Government is for site preparation.
“The project also has an owner’s representative. We will have a contractual agreement with an owner’s representative, who will be responsible for making sure the contractor does what he’s supposed to do and is the Government’s watchdog. Some of that funding is for that.”
Dr Darville told Tribune Business in May 2024 that the Government was aiming to “break ground” on New Providence’s new $290m hospital by September that year - a deadline that was missed - as the project had already been approved for “concessionary financing” from the Chinese state-owned bank.
He pledged that the 50-acre facility, to be constructed in the Perpall Tract area, will be “a Bahamian hospital” after the China Export-Import Bank agreed to fully fund it via a 20-year loan with an interest rate set at just 2 percent.
Acknowledging that a Chinese company will be
NIB EYES $32M DEFICIT DESPITE INCOME JUMP
“Despite this positive development, NIB’s projected deficit for 2025 remains significant and is currently estimated at approximately $32m, inclusive of the additional income derived from the rate increase. It is important to highlight that a substantial portion of this deficit, $16.85m or 50 percent of the total projected shortfall, arises from the ongoing gap between
contributions collected and benefits paid.”
Mr Sears said NIB will continue to focus on its “robust and proactive collection strategy” to ensure workers continue to receive benefits due.
“In response, we continue to prioritise a robust and proactive collection strategy, aimed at improving compliance and expanding our contribution base. This includes enhanced engagement with employers, targeted audits, and
strengthened enforcement mechanisms,” he added.
Mr Sears said NIB is diversifying its investment plans for its US assets. Investment income was $55.5m in 2025, a $6.1m decrease from $61.6m in 2024.
“Investment risk tolerance for 2025 was conservative, with a focus on income and capital appreciation. With the Fund heavily invested in the Bahamas government and quasi-government entities,
local and private entities and more, the strategy for 2025 was to continue to increase equities and securities and implement the diversification trading plan for US assets,” said Mr Sears.
“In April 2025, NIB’s investments stood at $1.186bn. The yield as of May 2025 was 3.9 percent. In December 2024, NIB’s investment stood at $1.22bn. The investment rate of return during 2024 was 4.7 percent. Investment
GOV’T TARGETS $1.88BN DEBT SLASH OVER FOUR-YEAR CYCLE
FROM PAGE B1
over four years despite relatively sluggish economic growth. While the Government will also be banking on its enhanced compliance and enforcement measures, Kwasi Thompson, the Opposition’s finance spokesman, yesterday asserted that the Davis administration has yet to explain how it will hit its revenue estimates so key to achieving a surplus.
“I agree with some of the commentators that you reported on in terms of the Government not justifying how they will reach their revenue target. They have just not said it,” Mr Thompson told Tribune Business
“It is troubling in that they have projected a huge increase in revenue but not articulated how they will arrive at those numbers.”
And the east Grand Bahama MP also described as “glaring and deeply troubling” the Government’s admission that it owed around $270m in unpaid arrears to Bahamian and other vendors/suppliers at end-2024.
“One glaring and deeply troubling issue the Government cannot ignore is the mountain of unpaid bills it has quietly amassed. According to the report, as of December, government arrears - unpaid obligations to vendors, contractors and public servants - stood at a staggering 1.7 percent of the nation’s 2024 nominal GDP. By our calculation, that amounts to $269m in overdue payments,” he argued.
“It is nothing short of astonishing - even outrageous - that the Government would boast of
NOTICE
NOTICE is hereby given that PETRISHA LOUISSAINT of #8A Dumping Ground Corner, New Providence, 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 11th day of June, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE is hereby given that CLAUDNEE DUFLEURAND of Hawksbill, Bimini Place, Grand Bahama, 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 11th day of June 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
balanced Budgets and fiscal surpluses while sitting on over a quarter-billion dollars in unpaid debts.” The Fiscal Strategy Report, though, said the Government has adopted a new tool provided by the International Monetary Fund (IMF) to produce its debt and fiscal sustainability analysis.
“In 2023, central government debt totalled $11.428bn or 74.8 percent of GDP,” the report said.
“Of this, external debt accounted for 44 percent of the total debt stock and settled at $5.003bn. The balance equated $6.398bn in domestic debt.
“Debt levels rose by 2.8 percent to $11.749bn in 2024 for 74.2 percent of GDP. Domestic debt accounted for $6.625bn (56.4 percent) while external debt comprised
$5.124bn (43.6 percent) of the total debt stock. Central government debt is estimated at $11.305bn for 2025, falling to $10.837bn in 2026, $10.36bn in 2027 and $9.866bn in 2028.”
The final reduction would push the Government’s direct debt below the $10bn mark. Further reductions in the subsequent 2029-2030 and 2030-2031 fiscal years are forecast to help take the debt-to-GDP ratio to 50.3 percent in the former year, and then to 45.2 percent the following year, taking The Bahamas below the Government’s 50 percent target. Much will have to go right for this to occur, including the absence of a major global recession or hit from a Hurricane Dorian strength category five hurricane. The Fiscal Strategy Report conceded that the steady rise in The Bahamas’
NOTICE
NOTICE is hereby given that DAVID JEUNES-GENS of College Gardens, New Providence, 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 4th day of June 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that ELIJAH MCINTOSH of P.O.Box EE15850, Yuma Estates, 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 11th day of June 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
the lead contractor, and that Chinese labour always follows where Beijing’s capital goes, he nevertheless promised that the Government will seek to ensure Bahamians “get the best end of the stick” and that local workers outnumber their foreign counterparts on the project.
Dr Darville also affirmed then that the necessary feasibility and environmental studies have shown the planned hospital location, situated by the traffic light on the road between the ‘six-legged’ JFK Drive roundabout and Saunders Beach roundabout, is the best and most suitable location capable of “holding a multi-storey structure the size of Baha Mar”.
Acknowledging the “political” sensitivities of accepting financing from a Chinese-government owned bank, the minister said The Bahamas had reached out to the US equivalent - the ExportImport Bank of the US - and other governmentowned development banks and multilateral institutions but there was little to no “appetite” by others to take the hospital project.
He pointed out that multiple other Caribbean nations, such as Barbados,
income totalled $55.5m in 2025 compared to $61.6 m in the previous year, representing a decrease of $6.1m.”
Mr Sears said NIB will recoup the losses through a combined $100m bond extension, renegotiating terms of property financial leases and re-entering the international stock and bond markets.
“NIB will pursue a threepronged strategy in the coming year. First, there was a recent extension of approximately $100m of the Bahamas Mortgage Corporation and the Education Loan Authority bonds,
absolute debt, and debtto-GDP ratios, had been driven by “slow economic growth and persistent fiscal deficits”.
“Average real GDP growth declined from 2.2 percent in the 1990s to just under 1 percent between 2000 and 2018,” it acknowledged, with the latter percentage territory that The Bahamas is seemingly reverting back towards. This was then worsened by the fall-out from Dorian and the COVID-19 pandemic.
Still, the Fiscal Strategy Report added: “Central government debt as a percentage of GDP is expected to converge to 50.3 percent in calendar year 2029, and further down to 45.2 percent in 2030. Overall changes in central government debt over the horizon represent a positive debt sustainability trajectory....
“The projected primary balance is expected to
Trinidad and Guyana, were already exploiting low-cost Chinese loans to finance major healthcare and other infrastructure projects throughout the region so The Bahamas’ decision has not been taken in isolation.
Dr Darville also previously confirmed that 14 acres out of the total 50 are being obtained from Sir Franklyn Wilson and his companies. “We had a negotiation ongoing with him,” Dr Darville said then of talks with the Arawak Homes chair.
“He has agreed in principle that he would allow us to continue the project. Our job is to now finalise the equity: A payment or a land swap. We negotiated that this was the best way to go. He has agreed in principle, and conceded, to allow the project to go forward pending us giving him compensation.”
The new hospital’s total projected cost, $289.399m, was revealed for the first time in documents accompanying the 2023-2024 Budget. Some $2m, and $8m, of that sum was due to be spent on “preparatory works” during the 20232024 and 2024-2025 fiscal years, respectively, with construction projected to ramp up in 2025-2026 with an $160m outlay.
which will result in an additional $2m income each year for the 15-year duration of these bonds,” said Mr Sears. “Second, in 2025-2026, there will be a renegotiation of the terms of the property financial leases with a 2 percent yield, which will add $5m in incremental revenue on almost a $250m balance outstanding. Third, NIB’s re-entry into the international stock and bond markets, about 10 percent of its portfolio, will increase the liquidity and diversification of the portfolio and enhance returns.”
generate improving surpluses over the horizon, reflecting stronger revenue and non-interest expenditure performance. Factors outside the umbrella of policy changes [such as] relative inflation, indicate that The Bahamas is expected to experience lower inflation than trading partners.”
And the report continued: “The Government remains firmly committed to restoring and maintaining fiscal sustainability over the medium term through a fiscal framework and debt management... Central to this commitment is the objective to reduce the debt-to-GDP ratio to no more than 50 percent by fiscal year 2030-2031, thereby strengthening fiscal resilience and creating fiscal space for sustainable development.”
NOTICE
NOTICE is hereby given that DANTE HART of 2361 Venetian West, New Providence, 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 4th day of June 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that ASHLEY LEIGH MALONE of #4 Tower Heights, 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 11th day of June 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
National Development Plan not moving
Bill, which will place the NDP, which was released in 2016, on a statutory footing and provide for an oversight entity to monitor its implementation.
“The NDP, which is aligned with the United Nations (UN) Sustainable Development Goals, outlines a bottom-up, inclusive framework for priority development areas to ensure long-term sustainable growth targets are achieved, and includes recommendations for education, healthcare and economic development, that align with the government’s economic and social policy goals and objectives.”
Outlining the progress made to-date in achieving these objectives, Mr Stubbs told Tribune Business: “The draft legislation is still with the Attorney General’s Office and, as far as the secretariat goes, we are in the process of recruiting staff to run it as well as looking at office space for the secretariat.
“Initially, we’ve already agreed to three people coming on board. Once we get the work started, it depends on how much extra workload there is, but we anticipate at some point in time being able to bring seven-eight people on.”
Asked whether he was satisfied with forward momentum so far, Mr Stubbs replied: “It’s progressing slowly but it’s progressing; not nearly as fast as I’d like it to”.
Pressed on why the initiative was not moving faster, he added: “Government bureaucracy. It appears things tend to move very slowly with government it seems.....
“Every time I speak to the Prime Minister, he gives assurances that he is very serious and committed on this. He gives instructions, but things don’t move as fast as I would like them to.” The former IBM (Bahamas) head, though, asserted that he will see the National Development Plan through to its full completion and enactment into law.
“I don’t believe in failure, so if I’m committed to something I will make sure it comes through to
fruition,” he told this newspaper. Mr Stubbs said he and the steering committee have another meeting planned with the Attorney General’s Office to “answer questions” and address other issues required to move the Bill forward.
“The Attorney General’s Office has been delayed because they’ve had a lot of Bills with the Budget, and now that is behind them they can focus on this legislation again,” he added. “I’m hoping to meet with them this week or next week to sort these things out very quickly.”
Noting that much has changed since the original National Development Plan draft was issued for public consultation in 2016 under the last Christie administration, Mr Stubbs said it both needs to be updated and completed. “The Plan was 80 percent completed then, and we need to do another 20 percent for completion,” he explained. “A lot has happened since 2016; it’s almost ten years ago.
“We have to look at new conditions, and there is more work to be done to the Plan to make it more relevant. We’re just hiring the staff now to get that done. We’ve got to a lot of research, look at some of the assumptions made previously.. Are they holding, because some things have changed.
“Look at government priority changes, other issues that have come forward and were not considered when the original plan was drafted. We have anticipated that this will take six months to complete. Once we get the staff on board, depending on how much effort needs to be put into it, how quickly we get responses to the questions asked, we expect six months to be sufficient to get it completed.”
Securing necessary office space, and formally hiring staff for the Plan’s secretariat, needs to be completed before this work can begin. “Once these people come on board, the work starts,” Mr Stubbs said.
“We just have to make sure we have the staff, people involved with the plan last time, so that we have that institutional knowledge and do not have
NOTICE ANTONOV LTD.
Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas. Registration number 200464 B (In Voluntary Liquidation)
Notice is hereby given that the above-named Company is in dissolution, commencing on the 10th day of June A.D. 2025.
Articles of Dissolution have been duly registered by the Registrar. The Liquidator is Mr. Antonio Maria Vidigal, whose address is R Espirito Santo 2568 AP 201, Belo Horizonte, MG, CEP: 30160-032, Brazil. Any Persons having a Claim against the above-named Company are required on or before the 11th day of July A.D. 2025 to send their names, addresses and particulars of their debts or claims to the Liquidator of the Company, or in default thereof they may be excluded from the benefit of any distribution made before such claim is proved.
Dated this 10th day of June A.D. 2025.
ANTONIO MARIA VIDIGAL LIQUIDATOR
NOTICE INTERNATIONAL BUSINESS COMPANIES ACT, 2000 Ananda Venture Fund Ltd. (IN VOLUNTARY LIQUIDATION)
NOTICE IS HEREBY GIVEN that in accordance with section 138(6) of the International Business Companies Act, 2000, as amended, the winding up and dissolution of Ananda Venture Fund Ltd. is
L. Michael Dean Sole Liquidator
Address: Equity Trust House Caves Village West Bay Street P.O. Box N-10697 Nassau, Bahamas
to repeat ourselves. It’s just a matter of weeks before we get officially started. We’re pretty close actually.”
The National Development Plan is a key missing tool from The Bahamas’ planning and governance arsenal. “There’s no question that if we have a Plan we can certainly enhance the progress and development of The Bahamas,” Mr Stubbs told Tribune Business. “If you don’t have a Plan you’re kind of hanging on and hoping for growth, but at least with a Plan you van plan how you want your growth to go.
“I think that if we want the economy to grow, we have to have a plan. You just don’t grow haphazardly. If you look at countries that are growing well, it’s because they have a plan and have executed that plan. We need to do the same thing.”
The National Development Plan, which was conceived and put together during the last Christie administration, was intended to be a crossparty, non-partisan and non-political effort to develop a ‘road map’ that would guide the country’s direction and progress The Bahamas towards the kind of nation its citizens desire.
It represented the first ever co-ordinated effort to plan the Bahamas’ development in a systematic manner using empirical data and analyses, and input was sought and obtained from multiple stakeholders including the private sector, civil society groups, non-profits and the general public.
Labelled ‘Vision 2040’, it aimed to break with The Bahamas’ past ad hoc approach to national growth by setting a clear path towards a more sustainable future. Its ‘road map’ was designed to feature measurable goals and objectives for the Bahamas to attain, so that its progress towards achieving its development targets can be judged according to set timelines.
Vision 2040 focused on four main policy pillarsthe economy, governance, social policy and the environment, both natural and built - in its first 400-page draft. However, despite seeking to be non-partisan, the National Development Plan appeared to be shelved under the Minnis administration, with little to no progress made as first Hurricane Dorian, and then the COVID-19 pandemic, dominated its tenure in office.
NOTICE HAPPY LTD.
Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas. Registration number 207619 B (In Voluntary Liquidation)
Notice is hereby given that the above-named Company is in dissolution, commencing on the 10th day of June A.D. 2025.
Articles of Dissolution have been duly registered by the Registrar. The Liquidator is Mr. Marcio Waldman, whose address is Rua Baronesa De Itu, 789 Apto 32, CEP: 01231001, Sao Paulo, SP, Brazil Any Persons having a Claim against the above-named Company are required on or before the 11th day of July A.D. 2025 to send their names, addresses and particulars of their debts or claims to the Liquidator of the Company, or in default thereof they may be excluded from the benefit of any distribution made before such claim is proved.
Dated this 10th day of June A.D. 2025.
MARCIO WALDMAN LIQUIDATOR
like’
However, Philip Davis KC, in his closing 2023 Budget address, promised to fulfill his administration’s election campaign promise to revive the initiative. “In our ‘Blueprint for Change’, we promised the Bahamian people that we would complete and implement the National Development Plan. We have inherited a beautiful country and we have an obligation to protect it for future generations,” he said.
“The best way to do that is through a properly organised National Development Plan. In our prior administration we spent years consulting with Bahamians from every walk of life to create the National Development Plan, a foundational and comprehensive long-term plan for the country’s development and prosperity.
“We specifically promised that we would, relaunch, complete and legislate the National Development Plan. We intend to deliver on that promise. The Government has re-appointed
the National Development Plan committee, appointing a chairman to complete the plan and then prepare an implementation plan. We are currently reviewing recommendations for the steering committee to oversee the work.
“We have included civil society, the business community, labour and religious leadership on the committee,” Mr Davis added.
“Additionally, the Government will appoint a secretariat to support the implementation of the work.
“We already have an initial draft legislation that will create the framework for implementation. We eagerly look forward to having a completed and updated National Development Plan, and implementation plan along with supporting legislation tabled for debate in Parliament.” No timeframe was given for when this will happen, but The Bahamas National Development Plan Bill’s introduction was pledged during the October 4, 2023, ‘Speech from the Throne’ when Parliament re-opened.
TAXPAYER SUBSIDY PAYOUTS TO HIT $526M IN FOUR YEARS’ TIME
close of the 2025-2026 fiscal year before declining again.
“Government guarantees, primarily extended to state-owned enterprises (SOEs), represent a significant source of contingent fiscal risk. If the financial or operational performance of guaranteed entities deteriorates, the Government may be required to assume their debt obligations, leading to unplanned expenditures, higher debt and reduced fiscal space,” the Fiscal Strategy Report warned.
“In the 2025 Fiscal Risk Heat Map, government guarantees are assessed as high impact and of possible likelihood, underscoring their critical importance in fiscal risk management. As of end-June 2025, the value of outstanding government guaranteed liabilities was estimated at $297.2m.
“In the upcoming Budget, fiscal year 2025-2026, total guarantees are estimated at a value of $458.8m.
Over the medium term, the balance is expected to decline to $140.1m by fiscal year 2028-2029, barring the issuance of new guarantees. To proactively manage the risks associated with government guarantees, the Government has
implemented the following key measures.” These include developing “eligibility criteria” for SOE’s seeking government, or taxpayer, guarantees; limits on the amount of guarantees that can be issued annually; credit risk assessments; and the payment of guarantee “fees” to partially reduce the Government’s exposure. Meanwhile the Bahamas Institute of Chartered Accountants (BICA, in its analysis of the 20252026 Budget, described the prospect of a “balanced Budget” or surplus as a “notable milestone” for the country but voiced concern over the “lack of prior consultation” on the proposed VAT and Business Licence reforms.
“While supportive of reform, we emphasise the value of stakeholder input, particularly through our existing technical working groups with the Ministry of Finance and the Department of Inland Revenue. While policy reform is necessary, structured engagement through existing technical working groups would improve reform design and compliance outcomes,” BICA added.
Taking a deeper dive into the Budget measures, BICA suggested that the VAT rate cut to 5 percent for medicines, baby diapers and feminine products is unlikely to offset cost of living pressures in other areas.
“The Government’s revenue performance, underpinned by a 12.2 percent increase led by VAT, trade taxes and real property collections, reflects administrative improvements and economic recovery. However, reliance on consumption-based taxes continues to expose the revenue base to external shocks and economic fluctuations,” the Association warned.
“Consideration should be given to gradually diversifying revenue sources to improve resilience and long-term planning. While capital spending allocations prioritise critical sectors such as education, healthcare, energy and digitisation, the success of these investments will depend on improved execution frameworks.
“Delays and inefficiencies in project delivery remain persistent challenges. The establishment of a centralised Public Investment Management Unit (PIMU)
could support more consistent project appraisal, oversight and accountability,” BICA added.
“On the social front, targeted VAT reductions on baby products, hygiene items and medicines offer modest relief. However, they are unlikely to materially offset broader cost of living pressures stemming from energy, food, transportation and housing expenses.
“These concerns are particularly pronounced in the Family Islands, where inflationary impacts and access barriers are more acute. A more robust monitoring mechanism, such as a national Cost of Living Index, could guide more targeted interventions and adaptive social policy responses.”
Casting a wider net, BICA then said: “The introduction of sovereign blue carbon securities and
a $124m debt-for-nature swap represent commendable steps in climate finance. These instruments position The Bahamas among regional leaders in environmental innovation.
“To strengthen these efforts, fiscal planning should incorporate a formal Climate Fiscal Risk Assessment to evaluate the potential financial impact of environmental shocks on public resources. With rising hurricane frequency and sea level threats, it is now imperative that we act.
“Regarding the National Investment Fund, its inter-generational equity
goals are well-conceived, but its governance structure requires further development. Legislative clarity, financial disclosure mandates and independent oversight will be essential to ensure public confidence and effective operation,” it added.
“Its continued legitimacy hinges on governance safeguards, legislative clarity and transparent reporting. BICA recommends enshrining the fund’s framework in law, mandating audited disclosures and incorporating professional and civic oversight to build trust.”
Opposition deputy slams Budget surplus ‘gimmick’
FROM PAGE B3
and pointed out that the Government revised its surplus projections for 2025-2026 from $448.2m in the 2024-2025 budget to now $75.5m.
“Where is the revenue coming from to achieve a surplus? How are you going to get 20 percent growth in revenues for 2025-2026 when you are not likely to meet your projections for 2024-2025? So forgive us and the Bahamian people if we do not believe you. Past experience has shown us, the Bahamian people, that your word is no good and it cannot be trusted,” said Mr Cartwright.
“As a matter of fact, the Bahamian people have not forgotten that this surplus of which they speak and brag about was supposed to be a $448.2m surplus, as projected in the 20242025 Budget, and now it’s $75.5m. They revised it, step back from it, a 83.2 percent reduction.”
Mr Cartwright added that the Davis administration is “drowning in their own promises”, and using the projected surplus to “swing” the public into believing the economy is doing well.
“The Bahamian people don’t believe it. They are drowning in their own promises. They can’t even trust their own word and the Bahamian people definitely don’t trust it. The Bahamian people know what is certain about this government. They make a surplus of promises that they have failed to deliver on,” said Mr Cartwright.
“Even more insulting is that the announcement of this surplus gimmick is being used as a tool to convince the Bahamian people, swing the Bahamian people, into believing that things are so good and so prosperous that we are living in the land of milk and honey, and money is flowing.”
Contractors eye reduced costs with duty changes
FROM PAGE B3
and because you cannot afford to have screws sitting on your shelf. The 316 size. The 316 grade screws are very expensive, and if you are paying duty on it, it can be a pretty penny. People don’t like to pay for that. But if you’re not paying
and now dropping prices to accommodate that need, one of them is the fasteners line that I carry.”
duty on it, all I have to do is just do my small mark-up at that cost, and that’s about it.
“It’ll drop the price, and I’ll be able to expand by bringing in other types of screws, more volume, more types like silicone, bronze. A lot of these are stainless steel screws, and the challenge is to bring them in. They’re very expensive. So I’m happy that he did that, and that can actually reduce the cost of a number of screws that we have on what we want to expand to.
Virley McKinney, project manager at Asphalt Maintenance Paving & Testing Company, said lower and eliminated duties will result in reduced material costs, which will allow him to lower service prices for his customers.
“What they’re doing is okay for me with looking at the need in the country,
How scammers are using AI to steal college financial aid
By SHARON LURYE AP Education Writer
IT was an unusual question coming from a police officer. Heather Brady was napping at home in San Francisco on a Sunday afternoon when the officer knocked on her door to ask: Had she applied to Arizona Western College?
She had not, and as the officer suspected, somebody else had applied to Arizona community colleges in her name to scam the government into paying out financial aid money.
When she checked her student loan servicer account, Brady saw the scammers hadn't stopped there. A loan for over $9,000 had been paid out in her name — but to another person — for coursework at a California college.
"I just can't imagine how many people this is happening to that have no idea," Brady said.
The rise of artificial intelligence and the popularity of online classes have led to an explosion of financial aid fraud. Fake college enrollments have been surging as crime rings deploy "ghost students" — chatbots that join online classrooms and stay just long enough to collect a financial aid check.
In some cases, professors discover almost no one in their class is real. Students get locked out of the classes they need to graduate as bots push courses over their enrollment limits. And victims of identity theft who discover loans fraudulently taken out in their names must go through months of calling colleges, the Federal Student Aid office and loan servicers to try to get the debt erased.
On Friday, the U.S. Education Department introduced a temporary rule requiring students to show colleges a government-issued ID to prove their identity. It will apply only to first-time applicants for federal student aid for the summer term, affecting some 125,000 borrowers. The agency said it is developing more advanced screening for the fall.
"The rate of fraud through stolen identities has reached a level that imperils the federal student aid program," the department said in its guidance to colleges.
Public colleges have lost millions of dollars to fraud
An Associated Press analysis of fraud reports obtained through a public records request shows California colleges in 2024 reported 1.2 million fraudulent applications, which resulted in 223,000 suspected fake enrollments. Other states are affected by the same problem, but with
116 community colleges, California is a particularly large target.
Criminals stole at least $11.1 million in federal, state and local financial aid from California community colleges last year that could not be recovered, according to the reports.
Colleges typically receive a portion of the loans intended for tuition, with the balance going directly to students for other expenses.
Community colleges are targeted in part because their lower tuition means larger percentages of grants and loans go to borrowers.
Scammers frequently use AI chatbots to carry out the fraud, targeting courses that are online and allow students to watch lectures and complete coursework on their own time.
In January, Wayne Chaw started getting emails about a class he never signed up for at De Anza Community College, where he had taken coding classes a decade earlier. Identity thieves had obtained his Social Security number and collected $1,395 in financial aid in his name.
The energy management class required students to submit a homework assignment to prove they were real. But someone wrote submissions impersonating Chaw, likely using a chatbot.
"This person is typing as me, saying my first and last name. ... It's very freaky when I saw that," said Chaw. The fraud involved a grant, not loans, so Chaw himself did not lose money. He called the Social Security Administration to report the identity theft, but after five hours on hold, he never got through to a person.
As the Trump administration moves to dismantle the Education Department, federal cuts may make it harder to catch criminals and help victims of identity theft. In March, the Trump administration fired more than 300 people from the Federal Student Aid office, and the department's Office of Inspector General, which investigates fraud, has lost more than 20% of its staff through attrition and retirements since October.
"I'm just nervous that I'm going to be stuck with this," Brady said. "The agency is going to be so broken down and disintegrated that I won't be able to do anything, and I'm just going to be stuck with those $9,000" in loans.
Criminal cases around the country offer a glimpse of the schemes' pervasiveness.
In the past year, investigators indicted a man accused of leading a Texas fraud ring that used stolen
identities to pursue $1.5 million in student aid. Another person in Texas pleaded guilty to using the names of prison inmates to apply for over $650,000 in student aid at colleges across the South and Southwest. And a person in New York recently pleaded guilty to a $450,000 student aid scam that lasted a decade.
Identify fraud victims who never attended college are hit with student debt
Brittnee Nelson of Shreveport, Louisiana, was bringing her daughter to day care two years ago when she received a notification that her credit score had dropped 27 points.
Loans had been taken out in her name for colleges in California and Louisiana, she discovered. She canceled one before it was paid out, but it was too late to stop a loan of over $5,000 for Delgado Community College in New Orleans.
Nelson runs her own housecleaning business and didn't go to college. She already was signed up for identity theft protection and carefully monitored her credit. Still, her debt almost went into collections before the loan was put in forbearance. She recently got the loans taken off her record after two years of effort.
"It's like if someone came into your house and robbed you," she said.
The federal government's efforts to verify borrowers' identity could help, she said.
"If they can make these hurdles a little bit harder and have these verifications more provable, I think that's really, really, really going to protect people in the long run," she said.
Delgado spokesperson Barbara Waiters said responsibility for approving loans ultimately lies with federal agencies.
"This is an unfortunate and serious matter, but it is not the direct or indirect result of Delgado's internal processes," Waiters said.
In San Francisco, the loans taken out in Brady's name are in a grace period, but still on the books. That has not been her only challenge. A few months ago, she was laid off from her job and decided to sign up for a class at City College San Francisco to help her career. But all the classes were full.
After a few weeks, Brady finally was able to sign up for a class. The professor apologized for the delay in spots opening up: The college has been struggling with fraudulent applications.
“That can cause the hardware stores’ prices to go back down to what they typically were,” Mr McKinney said. “So typically, right
now, in terms of cement, in terms of concrete insulation, when we supply and install, we work for about between $7 and $8 a square foot. And I would assume with that reduction, we could probably do between $6 and $7, and take a dollar or two off.
“Just off the top of my head, I can tell you, a reduction in material would usually be like $1 and some change; close to $2 depending on material cost. It’s a change in the right direction. I wouldn’t say
significant, because there are a lot more construction materials that could use a slight reduction.
“And I’d say, probably like the lumber, because we use a lot of wood, too. We buy wood, two by four and two by 12 and two by eight. So I think if we reduce the overall construction cost, bringing it back to some normalcy, then that will require a few more items to be exempt.”
Trump's tax bill could raise taxes on foreign companies, hurting investment from abroad
By JOSH BOAK Associated Press
PRESIDENT Donald Trump likes to say he's bringing in trillions of dollars in investments from foreign countries, but a provision in his tax cuts bill could cause international companies to avoid expanding into the United States.
The House-passed version of the legislation would allow the federal government to impose taxes on foreign-parented companies and investors from countries judged as charging "unfair foreign taxes" on U.S. companies.
Known as Section 899, the measure could cause companies to avoid investing in the the U.S. out of concern they could face steep taxes. The fate of the measure rests with the Senate — setting off a debate about its prospects and impact.
A new analysis by the Global Business Alliance, a trade group representing international companies such as Toyota and Nestlé, estimates that the provision would cost the U.S. 360,000 jobs and $55 billion annually over 10 years in lost gross domestic product. The analysis estimates that the tax could cut a third off the economic growth anticipated from the overall tax cuts by Congress' Joint Committee on Taxation.
"While proponents say this punitive tax hike is intended as a retaliatory measure against foreign governments, this report confirms that the real victims are American workers in states like North Carolina, South Carolina, Indiana, Tennessee and Texas," said Jonathan Samford, president and CEO of the Global Business Alliance.
Republican Rep. Jason Smith of Missouri, chair of the House Ways and Means Committee, has defended the provision as protecting U.S. interests by giving the president a tool that can be used against countries with
tax codes that, in the federal government's opinion, put American companies at a disadvantage.
"If these countries withdraw these taxes and decide to behave, we will have achieved our goal," Smith said in a statement last week. "It's just common sense. I urge my colleagues in the Senate to move quickly to pass this bill and protect Americans from economic bad actors around the world."
House Republicans have been looking into the issue for a long time and the bill provides the flexibility so that a president doesn't have to levy taxes. There were concerns among GOP lawmakers during Joe Biden's presidency that an agreement among countries on corporate tax codes could cause foreign governments to charge U.S. companies more.
The tax gets at a fundamental tension within Trump's policy agenda: a contradiction in the broad strokes of Trump simultaneously trying to tax imports and foreign profits at higher rates while also seeking investments from companies headquartered abroad.
The Republican president said his tendency to impose steep tariffs, then retreat to lower rates, had succeeded.
"We have $14 trillion now invested, committed to investing," Trump said then. "You know we have the hottest country anywhere in the world. I went to Saudi Arabia, the king told me, he said, you got the hottest -we have the hottest country in the world right now."
The Global Business Alliance was among the groups that signed a letter on Monday warning of the consequences of Section 899 to Senate Majority Leader John Thune of South Dakota and Senate Finance Committee Chairman Mike Crapo of Idaho, both Republicans. The Investment Company Institute, representing financial firms, said the provision "could limit foreign investment to the U.S. — a key driver of growth in American capital markets that ultimately benefits American families saving for their futures."
In late May, Trump defended his approach by saying that his tariffs were causing more countries to invest in the U.S. to avoid imports getting taxed. While some countries and companies have made announcements, there is not evidence of the investments pushing up spending on new factories as measured in the government's monthly report on construction spending.
SHANENDON CARTWRIGHT
BRITTNEE NELSON, who runs her own housecleaning business, poses for a portrait in her neighborhood in Shreveport, La., Monday, June 9, 2025.
Photo:Jill Pickett/ AP
PRESIDENT Donald Trump speaks during an “Invest in America” roundtable with business leaders at the White House, Monday, June 9, 2025, in Washington.
