business@tribunemedia.net
Tuesday, June 23, 2026
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Bahamas faces $516m ‘fiscal risk’ from storms BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government faces up to a half-a-billion dollar fiscal blow if The Bahamas is struck by major or multiple hurricanes, the Ministry of Finance is forecasting, as it bids to address “capacity constraints” caused by a shortage of specialist skills among its 205-strong staff. The projected $516m hurricane and tropical storm threat, which would impose a “strain” on the public finances via “recovery expenditure” for disaster relief and rebuilding, was classified as an issue where The Bahamas needs to take action to both reduce the risk and its impact in the ministry’s just-released 2026-2027 annual plan. The report, dated May 27, 2026, also set out other fiscal risks and their likely effect on the Government’s financial projections and Budget targets if they fully materialise over the short to medium-term. An economic slowdown is forecast to both reduce tax revenues by an estimated $143.3m annually and, if it persists and leads to lower growth, higher unemployment and reduced consumer confidence, threatens a $271.1m annual fiscal impact. Further forecasts suggested that excessive spending above Budget
Finance eyes maritime industry tax crackdown Estimates just 60% of foreign charters compliant Ministry’s ‘capacity constraints’ on specialist skills limits, and defaults by state-owned enterprises (SOEs) on borrowings that the Government has guaranteed, could inflict negative fiscal impacts estimated at $127.8m and $637.7m. Both developments, the Ministry of Finance’s 2026-2027 annual plan said, need to be monitored with action taken to reduce the risks and threats posed. The ministry unveiled plans to increase both staff numbers and skills in response to new demands created by the Government’s increasing use of so-called public-private partnerships (PPPs), which the Opposition has criticised as ‘off-the-books loans’, the need for greater oversight of state-owned enterprises and stricter management of the Government’s
Gov’t watchdog targets ‘28 for more ‘autonomy’ BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government’s top financial watchdog is seeking to enact laws that will strengthen its independence by 2028 as it grapples with a lack of specialist skills and personnel that “remain below optimal capacity”. The Auditor General’s Office, in a 20262027 annual plan that sets out the strategic road map for achieving its short and medium-term targets, revealed it is aiming to “restore full national reach” with the re-opening of its Abaco office plus substantially increase the annual briefings it supplies to Parliament’s Public Accounts Committee. The pledge, which came as Michael Pintard, the Opposition’s leader, publicly called on Patricia Deveaux, the House of Assembly speaker, to permit live television coverage of the Committee’s hearings, aims to increase briefings by the Auditor General’s Office on its various investigations into government ministries, agencies and departments from zero last year to seven by 2029. The increase is designed to boost transparency and accountability, and ensure Bahamian taxpayers receive value for money, by “strengthening collaboration” with Parliament and, in particular, a Public Accounts Committee that acts as the latter’s watchdog over government spending and is the only committee that the Opposition controls. The annual plan for the Auditor General’s Office, which accompanies the 2026-2027 Budget, also calls for it to improve its delivery of audit reports “within statutory deadlines” set by law. Last year, 65 percent met this goal, and the annual plan sets a target of increasing this to 90 percent within three years - by 2029. The Government’s internal financial investigator is also seeking to more than triple the number of performance audits it completes annually from three last year to ten by 2029, while also increasing the proportion of such reports “subject to quality assurance review”
CAPACITY - See Page B4
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$34m expansion spend plan from Foreign Affairs Ministry eyes $20m Nassau HQ, $14m London upgrades Annual plan reveals $500,000 conference spend ‘overrun’ ‘High levels of unreported absenteeism’ among some staff
debt. It is also seeking to increase the number of large taxpayers who will pay the 15 percent corporate income tax on profits. “In response to expanding mandates, particularly in public-private partnerships (PPPs), sovereign debt management and oversight of state-owned enterprises (SOEs), the Ministry intends to strengthen staffing levels and skills in selected technical areas over the planning year,” the Ministry of Finance’s 20262027 annual plan affirmed. “These increases will be subject to approved budget allocations, establishment controls and availability of suitably-qualified candidates…. The approved establishment of the Ministry of Finance is 205 positions, distributed across executive management, technical, administrative and support functions. While core units are operational, capacity constraints remain in specialised and emerging areas that require advanced financial, analytical and advisory skills.” Reaffirming its “focus on strengthening fiscal discipline”, the Ministry of Finance unveiled plans to increase maritime industry tax compliance rates to 90 percent “post-intervention” plus expand financial audits and joint enforcement operations in a bid to crack down on delinquent
BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Ministry of Foreign Affairs has unveiled ambitious plans to spend a combined $34m on a new Nassau headquarters building and renovating the High Commission’s property in London with further investment to include two new “protocol houses”. The ministry’s expansion goals are unveiled in its 2026-2027 annual plan, released alongside the Government’s Budget, in which it also discloses the proposed opening of a new consulate general office in Nova Scotia, Canada, plus an increase in passport office locations from 20 to 24 within the next 12 months through additional sites in communities such as Mangrove Cay and Mayaguana.
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AG’s Office eyes 20% staff churn cut amid ‘low morale’ BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Attorney General’s Office has conceded it is suffering from “low morale” among staff in certain areas as it bids to slash employee turnover by 20 percent within the next two years. The Government’s legal chambers, which are in effect the largest law firm in The Bahamas, revealed in its just-released 2026-2027 annual
plan that it is encountering several human resource and personnel challenges that include a “moderate to high vacancy rate” in key posts that has resulted in increased workloads and service delays. Other issues identified include “limited training opportunities” that are not correctly structured, plus resignations and the posting of staff to other positions in the Bahamian public service that has resulted in a shortage
of “senior conveyancing, commercial, litigation and drafting” attorneys and staff within the Attorney General’s Office. “The Ministry is facing challenges such as staff turnover, low morale in some units and limited opportunities for career progression and succession planning,” the Attorney General’s Office’s annual plan revealed. It is now aiming to reduce staff turnover by 20 percent by employing a
Gas dealer renews calls for cap on VAT BY ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net A GAS station operator yesterday renewed calls for the Government to cap the amount of VAT it earns on gasoline and diesel in a bid to provide some relief to hard-pressed motorists with prices as high as $7 per gallon. Peter Roker, owner and operator of Roker's Gas Station, said the Davis administration should consider limiting the amount of VAT charged on fuel when global oil prices spike rather than collecting winfdall revenue generated by higher fuel costs. "The other thing you must look at, too, is the cost of VAT on fuel now," Mr Roker said. "In most cases I know about, most countries decided to keep their VAT to a certain level. They'll say, 'We cannot use the higher cost of fuel as a windfall for ourselves’."
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His comments come as fuel prices remain elevated following the Middle East that sent costs skyrocketing. Prices at Rubis and Esso are currently $7.34 and $7.07 for a gallon of gasoline, respectively, while at Shell it is $6.89. Mr Roker said that because VAT is calculated as a percentage, government revenues automatically increase when gasoline prices rise. Using a hypothetical example, he explained that a gallon of gasoline selling for $7 leads to 70 cents in VAT at the current 10 percent rate. However, if the Government were to cap the tax at a certain lower level, the final price paid by consumers would fall - albeit moderately. "What would happen then is that the man on the street, the poor man, would then not be paying as much for the fuel as they're paying right now," he
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FRED MITCHELL No specific timeline was provided for the new Ministry of Foreign Affairs building or UK renovations, although the annual plan signalled these are “medium to long-term” projects that will not start construction in the 2026-2027 fiscal year. Nevertheless, the report made clear that “plans are being developed” for both, with the multi-million dollar outlay of taxpayer funds justified on the basis
CONSTRUCT - See Page B2 mixture of employee retention and engagement strategies, including “career development and succession planning frameworks” plus improved performance management systems. However, the 2026-2027 annual plan also revealed: “The Ministry is experiencing a moderate to high vacancy rate across key administrative and technical positions, resulting in increased workload for existing staff and delays in service delivery. Recruitment processes are often prolonged.” To address this, the Attorney General’s Office is seeking to “reduce the vacancy
ACTION - See Page B4