WEDNESDAY, JULY 20, 2016
business@tribunemedia.net
Devaluation issue ‘of when, not if’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Ex-Chamber chief: Nation a ‘rudderless ship’
A former Chamber of Commerce chairman yesterday warned that devaluation of the Bahamian dollar “is not a question of if; it’s a question of when”, describing the country as “a rudderless ship”. Robert Myers, now a principal with the Organisation for Responsible Governance (ORG), a newly-created civil society group, said none of the political parties had shown they have what is needed to steer the Bahamas back on track. He argued that politicians were too focused on “shiny object issues”, such as crime and Baha Mar, and the symptoms of the Bahamas’ current economic
Despairs at politicians’ ‘shiny object’ focus Warns Baha Mar ‘not enough’ to reverse course
Robert Myers
and social malaise, rather than the causes such as poor governance, lack of accountability and an under-performing education system. Turning to the stalled $3.5 billion development at Cable Beach, Mr Myers said that even if it and all ‘pipeline’ foreign direct investment (FDI) projects were to complete in short order, this would still “not be enough” to generate the higher economic growth rates that the
Bahamas so desperately needs. “We’re going to make some recommendations as to what needs to be done,” Mr Myers said of ORG, “but I don’t see these people [politicians] doing it, quite frankly. Emphasising that he was referring to all political parties, not just the Government, he added: “I don’t hear enough from political candidates about the real fundamental issues. “All they’re talking about are crime and Baha Mar. Those are not real issues; they’re shiny object issues. They’re not the real thing. “The only thing that’s going to save us is creating a robust economy, and we’re not hearing anything from the politicians about public sector See pg b4
QC slams ‘mockery’ of Bar ‘wants to be 21st new Freeport consult century self-regulator’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
‘Puzzled’ by extra month given MoU ‘fait accompli’
The further month of consultation on proposed reforms to Freeport’s Hawksbill Creek Agreement has been rendered irrelevant by the “fait accompli” of the Government’s deal with the Grand Bahama Port Authority (GBPA), an outspoken QC argued yesterday. Fred Smith QC, the Callenders & Co attorney and partner, told Tribune Business he was “puzzled” to receive notice that the Government was allowing a further onemonth consultation period on the proposed reforms. A June 30, 2016, letter from Dr Doswell Coakley, the secretary to the Hawksbill Creek Agreement Review Committee, informed him that it was “commencing consultations for a further period of one month” on its proposals. That period, which started on July 1, is set to end on Tuesday, August 2, and Dr Coakley added: “This is to allow the general public and all interested parties time to fully acquaint themselves with the See pg b4
Smith: ‘What is there for us to be consulted on?’
The Government has admitted that project management and execution restrictions are preventing it from following the IMF’s call for greater investment in “growth enhancing infrastructure” developments. The admission is contained in the Fund’s recent Article IV report on the Bahamas, where it calls on the Christie administration to re-purpose its spending from its recurrent (fixed costs) to the capital budget. “To support near-term economic activity, staff sees room for shifting spending away from current spending and towards more productive and growth-friendly infrastructure spending,” the IMF said. “Priorities include efficient investment in information and communication technology, transportation, public utilities, as well as projects that support economic diversification, increase domestic value added in the dominant tourism sector and enhance resilience to natural disasters. “Using responsible public-private partnerships, where relevant, can help reduce the burden of higher investment on government finances.” However, noting the Government’s response, the IMF said the Christie administration admitted that insufficient resources and expertise in project management and implementa-
Eyes certification, licensing, ongoing training
Questions if Govts MoU with Port ‘invalid’
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
FRED SMITH qc
The Bar Association’s president has conceded that the profession is “not properly regulated”, adding: “We want to become a 21st century self-regulatory body.” Elsworth Johnson, in a recent interview with Tribune Business, said there was a need for Bahamian attorneys to gain professional certification and be “licensed every year” if it was to become truly selfregulating. He praised the attorney general, Allyson MaynardGibson, for recognising the need for such reforms,
Govt ‘execution capacity’ inhibits key infrastructure By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
President says attorneys ‘not properly regulated’
IMF notes ‘upward drift’ in public spending Urges cut backs to retain ‘hard won’ VAT benefits Calls on Govt to takes steps towards ‘fiscal rules’ tion would inhibit its ability to increase infrastructure investments. “They argued that room for increasing capital See pg b5
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Elsworth Johnson which would also include ongoing professional training/education requirements. “The Bar at the moment See pg b4
BORCO loses $22m battle on destroyed jetty Tanker owners did not waive liability damages But Privy Council does not declare for $16.995m cap Criticises Court of Appeal in judgment By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Bahamas Oil Refining Company (BORCO) yesterday lost its battle to gain $22 million in damages from the owners of an oil tanker that caused “substantial damage” by crashing into one of its jetties. The Privy Council instead ruled in favour of the Cape Bari’s owners, finding that they had not waived their rights to “limit liability” for any accidents through an agreement signed with BORCO immediately before the ill-fated berthing attempt. The London-based court, the highest in the Bahamian judicial system, found it was “inconceivable” that the tanker’s owners would agree to remove such protection, while there was nothing in the agreement suggesting they had done so. However, the Privy Council declined to rule on whether a September 20, 2012, Supreme Court Order, to create a $16.995 million ‘limitation fund’ should stand, instead implying that the two sides now needed to settle all issues arising from its judgment themselves. The ‘limitation fund’ sum is what the Cape Bari’s owners claim their liability for the jetty damage is capped at. They alleged they were entitled to do this by the Merchant Shipping (Maritime Claims Limitation of Liability) Act 1989, which incorporated into Bahamian law an international convention that limits liability for maritime claims/damages. BORCO, though, having reduced its original damages claim from $26.8 million to $22 million, denied that the Cape Bari’s owners could limit their liability as a result of the contract signed by the vessel’s master just before berthing. “BORCO denies that the owners are entitled to limit their liability, on the ground that they had waived their right to do so under a contract which it was agreed that the parties had made immediately before the berthing operation,” the Privy Council recorded. See pg b4