business@tribunemedia.net
Thursday, May 7, 2026
$ 6.85 Gov’t makes $682m unbudgeted loans and guarantees in past year BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas’ top fiscal watchdog yesterday revealed that the Davis administration in its final year has entered into $682.2m worth of unbudgeted borrowing and guarantees, including the Chinese loan for the new hospital and underwriting Grand Bahama Power Company’s purchase. The Fiscal Responsibility Council, in its just-released analysis of the Government’s 2025-2026 mid-year Budget that was issued at end-February, said that - while the second New Providence hospital and GB Power’s acquisition fit with its healthcare and energy policy priorities - they and other previously-unplanned financings threaten to “increase the fiscal risk” and “depart” from the target of achieving a 50
percent debt-to-GDP ratio by 2030-2031. Breaking down the $475.9m in recently-approved guarantees that did not form part of the Government’s initial plans for the 2025-2026 fiscal year, the Council said 58.8 percent or more than half of this sum was the $280m to underwrite the acquisition of GB Power and provide working capital for the utility moving forward. A further $160m worth of loan guarantees not budgeted for were to finance the Government’s obligations in the deal to provide liquefied natural gas (LNG) fuelled power for Nassau. Guarantees issued on behalf of the Public Hospitals Authority (PHA) rose from $75m to $109m to help finance the acquisition of the Harbourside complex from Doctors Hospital, while the remaining $1.9m UNDERWRITE - See Page B10
Sands blasts Miller’s $35m ‘offset’ as unfair to taxpayer BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Opposition’s chairman yesterday asserted that “if you are in the inner circle of the PLP you have access to the national ATM” as his party demanded that the Government halt any plans to “offset” Leslie Miller’s combined $35m bank and real property tax debt until full disclosure is provided on the deal’s terms. Dr Duane Sands told Tribune Business that the key issue is “are the Bahamian taxpayers getting a fair deal or not” after this
DR DUANE SANDS newspaper revealed that the ex-Cabinet minister and the Government are in negotiations that could settle
SETTLE - See Page B11
Watchdog: ‘Urgent priority’ for Gov’t accounting switch BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government’s top fiscal watchdog yesterday urged it to switch to accrual-based accounting as an “urgent priority” as this would provide greater transparency and planning insight into The Bahamas’ public finances. The Fiscal Responsibility Council, unveiling its assessment of the 20252026 mid-year Budget that was released at end-February, said moving the
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Fiscal watchdog warns on $130m corporate tax hole BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas’ top fiscal watchdog is warning that the Government’s forecast of a first-ever Budget surplus is in peril because it has not enacted the regulatory framework for collecting $130m in projected revenue from large corporate income taxpayers. The Fiscal Responsibility Council, unveiling its assessment of the 20252026 mid-year Budget that was delivered at end-February, said receipt of this revenue before the fiscal year closes on June 30 “is in doubt” because the Davis administration has yet to put in place mechanisms
Budget surplus in peril because no 15% levy collection mechanism New income source critical for $418m second-half deficit reversal Net $1bn-plus repayment needed for Gov’t to meet its debt target and processes for collecting the 15 percent corporate income tax levy. This is to be paid by Bahamas-domiciled entities that are part of multinational groups with more than 750m euros in annual turnover. Generating the extra income anticipated from the Qualifying Domestic Minimum Top-Up Tax (DMTT), projected to be
equal to around 1 percent of Bahamian gross domestic product (GDP), is critical to helping the Government convert its $342.4m mid-year fiscal deficit into the full-year $75.5m Budget surplus it forecast in May 2025 - a target that the Council fears is now in jeopardy. The Davis administration needs a major second-half
fiscal swing to hit is muchtouted surplus goal, and this will be made even more challenging if the $130m corporate income tax revenue cannot be collected before end-June 2026. While the revenue-rich period between January and April, in particular, traditionally helps governments to narrow first-half deficits, the Council warned that the Davis administration must generate primary and full fiscal surpluses of $746.6m and $417.9m, respectively, to hit its goals. Its report, which has been released at an inconvenient time for the Government less than a week before the May 12 general election, also casts doubt on whether
FINANCES - See Page B7
Union chief cites ‘confusion’ on GB Power job security
Told posts, benefits only guaranteed for 12 months
BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Says workers reacting: ‘We are Gov’t workers now
THE head of the union representing Grand Bahama Power Company’s middle managers yesterday said staff were informed their jobs and benefits are only secure for 12 months in seeming contrast to the blanket assurance given by the Prime Minister. Kendal Culmer, president of the Bahamas Industrial Engineers, Managers & Supervisory Union, told Tribune Business that he and the union were informed by Emera executives in a meeting immediately prior to the ceremony announcing the Government’s acquisition of GB Power that such protection will only last
entire public sector to this accounting standard - which the Government has long promised to do - would give a more complete, accurate and updated picture of its financial position as spending commitments would be recognised immediately when they are made. This stands in contrast to the Government’s current cash-based accounting, which only recognises spending when monies are actually paid out or revenue once it is received. As
REFORM - See Page B6
‘Doesn’t make sense to hurt heads’ until postelection GRAND BAHAMA POWER COMPANY HQ for one year following the takeover’s completion. This appears to contradict the impression given at the acquisition signing by Philip Davis KC who signalled that job and benefits security would be openended and gave no timeline for when this would end. “That is something that needs to be cleared up
with us,” Mr Culmer told this newspaper yesterday. “One thing was said at the ceremony and something different was said to us. “We had a meeting. We were told by Emera executives that the agreement is there will be no terminations or lay-offs within the first year, and all the benefits will be secure for 12
months. That’s where the confusion comes in; for the first year, and we were also told that Emera will be sitting there until the money hits the bank.” Mr Culmer said executives from the Canadian utility giant, which selling 100 percent ownership of GB Power to the Government via the latter’s Grand Bahama Energy
ELECTRIC - See Page B12