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Wednesday, April 15, 2026
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‘Backwards on accountability’ over election fiscal disclosure BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Opposition’s leader yesterday renewed accusations that “the Government has taken us backwards on accountability” after questions arose over whether its just-released ‘Pre-election economic and fiscal update’ 2026 is fully compliant with the law. Michael Pintard told Tribune Business he and his party are “not at all surprised about the gaps that exist” in the Davis administration’s report which, unlike the 2021 version issued by its Minnis predecessor, did not include a detailed item-byitem breakdown of all unpaid arrears and invoice payables owed and incurred by the Government since the last update in the mid-year Budget.
Rather than follow its predecessor, which produced 17 pages detailing the sums owed to hundreds of vendors while identifying most by name, the Davis administration instead released all-in figures with no breakdown. It pointed to end-December 2025 arrears worth collectively $60.5m, and unpaid invoices equalling $181.4m at the same date - figures that were both disclosed in the mid-year Budget report. The pre-election report, produced by the Ministry of Finance, added that the Government had authorised $260.3m in “new spending commitments” between July and December 2025, a period which represented the 2025-2026 fiscal year’s firsthalf. However, this sum was also not broken down while also excluding spending related to state-owned enterprises (SOEs)
and so-called public-private partnership (PPP) deals, instead representing only direct government obligations. Well-placed financial sources, speaking on condition of anonymity, yesterday challenged whether the Government’s pre-election report has fully complied with the Public Finance Management Act 2023’s third schedule, which governs what this document should contain. In particular, they are querying if the Davis administration’s failure to provide a breakdown of all arrears and unpaid invoices places it in breach of this schedule’s section (viii). This stipulates that the pre-election economic and fiscal report “shall contain the outstanding stock of arrears for all government entities, including showing separately all new
Gov’t guarantees for debt to expand 126% in one year BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net GOVERNMENT debt guarantees on behalf of state-owned enterprises (SOEs) are forecast to expand by 126 percent to $718.1m in just one year if the Grand Bahama Power Company deal and other borrowings rushed through Parliament late in the Davis administration’s term materialise. The Ministry of Finance’s just-unveiled 2026 ‘pre-election fiscal and economic’ report discloses that the value of these taxpayer-backed guarantees, which underwrite borrowings by SOEs, is poised to jump from $317.4m at end-December 2025 to $718.1m - an
increase of some $401.1m - during the upcoming 2026-2027 fiscal year, the Budget for which will be presented next month barely two weeks after the general election. The bulk of this increase comes from the $280m borrowings guaranteed by the Government to finance its GB Power Company acquisition and post-deal working capital for the utility, plus other late borrowings that Parliament has authorised Bahamian taxpayers to underwrite. These include an expanded $34m credit facility to enable the Public Hospitals Authority (PHA) to acquire Doctors Hospital’s Harbourside facility, plus $30m for the Davis administration’s fuel-related energy reform plans.
And the pre-election report, which the Government is mandated to disclose under the Public Finance Management Act, also reveals that “shortterm” advances to SOEs and other public sector agencies have increased by almost $190m to $631.4m during the 21-month period to end-June 2026. This represents a 42.9 percent increase in less than two years, with 70.6 percent or more than two-thirds of the total - some $445.5m - accounted for solely by loans to Bahamas Power & Light (BPL). Combined, government guarantees issued on behalf of SOEs and these short-term loans represent a $1.35bn liability that Bahamian taxpayers are potentially exposed
unpaid invoices since the stock of arrears was last reported”. That would have been in the mid-year Budget, which was unveiled at the end of February, but sources yesterday challenged the end-December 2025 cut-off and why arrears and unpaid invoices that crystallised before Parliament’s April 8 dissolution were not included. This newspaper was told that the pre-election report should have incorporated all such obligations that were incurred during the 2026 first quarter when, based on government announcements, multiple works and construction contracts - including $70m for Eleuthera’s Glass Window Bridge replacement plus numerous clinics, airports and other public facilities - were signed.
EXPENDITURE - See Page B4
Set to jump by $401m to $718m on GB Power, late borrowings Short-term ‘loans’ to Gov’t entities grow by $190m in 21 months Guarantees, advances represent $1.35bn total taxpayer liability to. Concerns have already been voiced over whether taxpayers will have to service GB Power’s debt repayments, given that the Government’s pledge to cut its tariff rates could plunge the utility into a loss, while the Opposition has argued that the advances are thinly-disguised subsidies to UNDERWRITE - See Page B5
Planning approval given for Hilton brand West Bay hotel BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMIAN planning authorities have granted preliminary site plan approval for an 11-storey, 125-room West Bay Street resort that will join Hilton’s Curio Collection brand when construction finishes and it opens in 2028, it was revealed yesterday. The Town Planning Committee, almost three months after the public hearing on the proposed Paradise Breeze Nassau was held, resolved on October 21, 2025, to grant the initial approval subject to certain conditions being met. These, as is typically the case, included obtaining a certificate
of environmental clearance (CEC) from the Department of Environmental Planning and Protection (DEPP) and Ministry of Works approval for access, drainage and road infrastructure. Referring to the public consultation meeting held on July 24, 2025, the Town Planning Committee said it had considered the application by developer BPG Ltd at its October 21, 2025, meeting. “The Committee has determined that the proposed is a compatible use for the site and therefore grants the necessary height, density and setback variances for the development. Building setbacks
PROJECT - See Page B7
HILTON BRAND WEST BAY HOTEL RENDERING
AML Foods facing $2.5m hit on uncooked food VAT BY FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net AML Foods is predicting it will suffer a $2.5m annual hit from increased costs sparked by the Government’s decision to treat the April 1 elimination of VAT on uncooked foods as ‘exempt’ rather than zero-rated. Gavin Watchorn, AML Foods president and chief executive, said the
distinction between “VATfree” and “VAT-exempt” has significant financial implications for retailers. “The reality of it is, going from VAT-free to exempt are two very different categories,” he explained. “VAT-free, or zero percent VAT, means that retailers can reclaim the VAT on inputs. In fact, VAT-exempt means you cannot.” Mr Watchorn added that, under the revised VAT treatment,
GAVIN WATCHORN food retailers are unable to recover VAT paid on inputs such as imported goods and operating expenses, effectively increasing their cost base. “I think this is going to cost AML $2.5m a
year because you’re not able to reclaim the VAT on your inputs,” said Mr Watchorn. He added that similar concerns have been raised throughout the industry with Super Value indicating it will cost the supermarket chain about $4m a year. The issue has become a key point of contention for food retailers, who argue that as an essential service they should be treated differently and ‘zero-rated’ by the tax regime. “As an essential service, the Retail Grocers Association and retailers, we can’t
POLICY - See Page B7
FNM challenges if economic report complies with law No breakdown of arrears, unpaid bills like 2021 version Davis Gov’t uses accounting that it slammed Minnis for
AML Foods rises from ashes: Sales up 3% despite $40m hit BY FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net AML Foods is forecasting that sales will increase by 3 percent despite losing more than $40m in revenues due to last April’s fire that destroyed both its Old Fire Trail Road stores, the retail group’s top executive disclosed yesterday, as it unveiled a $15m investment in its new Cost Right outlet. The BISX-listed group affirmed it is moving aggressively to rebuild and expand its footprint via a new, larger Cost Right store at the same fire-devastated site. Gavin Watchorn, AML Foods’ president and chief, told the ground-breaking that a 70,000 square foot facility will be built over the next 11 months to increase the outlet’s capacity. “Over the next 11 months, we will invest $15m to create a 70,000 square foot Cost Right store,” said Mr Watchorn. “The new store will be 30 percent larger than the former store, allowing us to offer an even broader assortment across all categories.” The former Solomon’s outlet, meanwhile, will be replaced but at a different location to Old Fire Trail Road. Mr Watchorn said the expanded Cost Right format is expected to
significantly strengthen AM Foods’ wholesale, business-to-business and food service operations, while also boosting its e-commerce capabilities and membership offerings. He added that the fire, and loss of the two stores, cost AML Foods more than $40m in lost revenue but, despite that impact, the group remains on track for top-line growth. “Despite the loss of over $40m in revenues at this site, AML will still record an increase in sales of 3 percent this year,” Mr Watchorn said. He attributed the performance to strong execution across the company’s remaining store network, and also credited staff for helping to offset the disruption, noting that operations were quickly stabilised without layoffs. “Nearly 150 team members were impacted by this fire, and not one of them lost their job that day,” Mr Watchorn added. He said AML Foods’ ability to maintain momentum reflects a broader strategy centred on technology, data and customer experience. The company is now in its 15th consecutive year of growth, driven by increased customer traffic and larger basket sizes.
BLAZE - See Page B5