THE TRIBUNE
Thursday, February 20, 2025, PAGE 1
business@tribunemedia.net
THURSDAY, FEBRUARY 20, 2025
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Deficit ‘bust’: Half-year red ink close to $400m t 0QQPTJUJPO (PW U ADBO U EJH UIFNTFMWFT PVU PG IPMF t JY NPOUI mTDBM EFmDJU KVNQT PS PWFS N t N TFDPOE IBMG TVSQMVT UP IJU GVMM ZFBS UBSHFU By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net PRIVATE sector executives and the Opposition yesterday argued that the Government will almost certainly “bust” its key fiscal targets after unveiling a near-$395m deficit for the 2024-2025 half-year. Michael Pintard, the Free National Movement (FNM) leader, voiced scepticism that the fiscal year’s traditionally revenue-rich second half will “dig themselves and the Bahamian people out of the hole” created by a deficit which expanded by 52.6 percent or $136.1m compared to the same point in the prior fiscal year. Despite narrowing the December gap between the Government’s revenue and spending to a $38.3m deficit, representing a 42 percent year-over-year decline, the Ministry of Finance’s report for that month still revealed that a total $394.8m worth of ‘red ink’ was incurred during the six-months to year-end December. The half-year deficit, which will be a key focus in next week’s mid-year Budget presentation by Prime Minister Philip Davis KC, is more than five times’ greater than the $69.8m target for the 2024-2025 full-year. The $394.8m, which measures by how much government spending exceeded its revenue income, is also significantly higher than the $258.7m deficit incurred at the 2023-2024 fiscal year’s mid-point. And, while the Davis administration was able to narrow that year’s deficit via the $72m Budget surplus generated during that year’s second half, it will have to generate a sum more than four times’ greater if it is to hit 20242025’s target or come close. To hit it spot on, the Government will need to generate a massive $325m second-half surplus - some $253m higher than the prior year’s achievement. Gowon Bowe, who headed the private sector’s Coalition for Responsible Taxation when VAT was introduced, told Tribune Business that the fiscal numbers presented for the first
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‘Rights infringed’ over BOB banking directive By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government is “infringing on constitutional rights” and consumer choice by directing new civil service hires to bank with an institution it holds an 82 percent majority stake in, a union chief blasted yesterday. Kimsley Ferguson, the Bahamas Public Services Union’s (BPSU) president, told Tribune Business that the directive for public service recruits to open accounts with BISX-listed Bank of The Bahamas appeared to contravene freedoms of choice and
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Hitting out after Gowon Bowe, Fidelity Bank (Bahamas) chief executive, earlier this week revealed that “competition” concerns have arisen over this policy, he voiced concern that it was being driven by the Government who should be setting “a stellar example” to the rest of Bahamian society. Pia Glover-Rolle, minister of labour and the public service, directed Tribune Business to the Ministry of Finance when approached for comment. She also produced an internal government memorandum, dating from almost nine years ago, which suggested the Bank of The
Bahamas policy originated in 2016 soon after the institution had enjoyed its first $100m taxpayer-funded ‘bail out’ rescue over its toxic commercial loans. Simon Wilson, the then acting-financial secretary, in a March 18, 2016, note titled ‘New banking policy in regard to government new hires’, told all permanent secretaries and department heads “In its mid-year Budget statement, reference was made to the Government’s critical public sector reform plan, which included a move to eliminate all government payments
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Royal Caribbean PI IPO to ‘slip’ into third quarter By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ROYAL Caribbean yesterday duelled with a Bahamian entrepreneur over how many foreign construction workers are employed on its Paradise Island project while disclosing that its planned share offering will likely “slip”. Philip Simon, the cruise line’s top Bahamian executive, told Tribune Business the “timeline has slipped a bit to the 2025 third quarter” for the longawaited initial public offering (IPO) to local investors as he pushed back against a widelycirculated video of several foreign construction workers at the Royal Beach Club site. The video, filmed by Toby Smith, who is heading to the London-based Privy Council in his battle with the Government over the Crown Land lease for a site adjacent to the Royal
Beach Club, shows several workers identifying themselves as nationals from countries such as Mexico, Indonesia and Haiti. However, Mr Simon hit back with a photo that purports to show a much larger group of Bahamians working at the project site. Mr Smith, asserting that the cruise line has “built a high wall comparable to [the Great Wall of China]” to mark the boundary between the Royal Beach Club and the Crown Land he is battling for, when contacted by this newspaper asserted: “They have a flock of foreign workers shouting how proud they are to be Mexican, Indonesian, Indian.” Asking where the Bahamian workers were, he added: “The deputy prime minister [Chester Cooper] is touting the number of arrivals for cruise passengers. However, what he is not sharing with the Bahamian public is the
BAHAMIANS working on Paradise Island. Photo:Royal Caribbean
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WORKERS at the Royal Beach Club on Paradise Island. Photo:Toby Smith
Minister says URCA approved BPL non-competitive bidding By NEIL HARTNELL and FAy SIMMONS Tribune Business Reporters A CABINET minister yesterday said the energy sector regulator approved the use of non-competitive bidding for the outsourcing of Bahamas Power & Light’s (BPL) generation and electricity grid functions. Jobeth Coleby-Davis, minister of energy and transport, effectively hid behind the Utilities Regulation and Competition Authority (URCA) when asked by Michael Pintard,
leader of the Opposition, whether the Government plans to use competitive bidding via the issuance of requests for proposal (RFP) in soliciting and awarding contracts related to BPL and wider energy sector reforms. Responding in the House of Assembly to questions posed by the Opposition, the minister said: “The Government of The Bahamas remains committed to transparency and fairness in all procurement activity including those related
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FNM deputy seeks answers on SpaceX’s environmental impact By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net SHANENDON Cartwright, the MP for St Barnabas raised concerns about the SpaceX rocket booster landing in the Bahamas in Parliament yesterday, noting a lack of public information surrounding the environmental assessment for the initiative. Mr Cartwright said there is a “legitimate concern”
about the potential environmental risks of this undertaking and the Davis administration should take them seriously, especially as they promote climate justice internationally. “Bahamians heard about this event that will be happening in the Commonwealth of The Bahamas, and all of the agitations and promotions, of what this would bring to the Commonwealth of The
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