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Tuesday, July 14, 2026
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Ex-minister: Caterpillar dealer’s Aviation never ‘financial ruin’ fear on ‘cracked the nut’ $1.3m VAT liability tossed on pilot hacking BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net WARNINGS by the Bahamas-based dealer for Caterpillar construction equipment that it faces “financial ruin” if forced to immediately pay a $1.276m disputed VAT liability yesterday failed to impress the Supreme Court. Acting justice Raynard Rigby KC refused to “stay” the Tax Appeal Commission’s December 9, 2025, verdict that Machinery & Energy Ltd, located on College Avenue in the Oakes Field area, must pay these outstanding taxes to the Department of Inland Revenue despite its ongoing bid to overturn this decision on appeal. He found that the authorised Caterpillar dealer, which supplies vehicles and heavy-duty equipment and machinery to the construction industry, had failed to supply sufficient evidence to justify the Supreme Court temporarily barring payment of the disputed VAT. In particular, acting justice Rigby found the company had provided no financial records to justify its “financial ruin” and hardship claims if it was forced to pay-up now. He instead noted that assertions by the VAT comptroller and Department of Inland Revenue, suggesting Machinery & Energy Ltd generated $7.384m in profit for 2025 and could thus easily pay the contested sum, had gone unchallenged by the
Supreme Court refuses to halt DIR pay-up despite appeal Abillty to raise CIBC guarantee undermines harm claims And $7.4m profit calculation ‘appealing’, shows ‘muscle’ company. Acting justice Rigby said this figure, derived from its VAT returns and other tax filings, “looks appealing” and suggests the Caterpillar dealer has the required “financial ‘muscle’” to make payment without causing it undue distress. Machinery & Energy Ltd, in its Supreme Court submissions, argued that barring payment of the disputed VAT until its challenge to the Tax Appeal Commission verdict is determined was justified on multiple grounds including that it has “reasonable prospects of success”. It also asserted that there was “no risk of prejudice” to the VAT comptroller and government revenues because it had secured the “potential liability” by obtaining a December 30, 2025, guarantee from CIBC Caribbean (Bahamas) to cover
$500m cornerstone triggers Nassau generation reforms
BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
BY FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
REALITY - See Page B5
A $500m liquefied natural gas (LNG) regasification terminal project was yesterday hailed as the cornerstone of The Bahamas’ energy reforms through its ability to deliver lower costs, improved energy reliability and a cleaner baseload fuel source for New Providence.
A FORMER Bahamian aviation minister yesterday revealed he never felt industry regulators had “cracked the nut” in preventing and deterring unauthorised commercial flights by pilots commonly known as ‘hackers’. Dionisio D’Aguilar, who held ministerial responsibility for the industry under the Minnis administration, told Tribune Business he was never satisfied that the Civil Aviation Authority of The Bahamas (CAAB) had deployed sufficient personnel, technology and other resources to get a grip on the known ‘hacking’ challenges at Lynden Pindling International Airport’s (LPIA) general aviation segment. Besides supplying enough qualified inspection and other supervisory personnel to verify whether pilots and their aircraft have the necessary licences, and airworthiness certificates, to enable them to offer commercial flights, he added that Civil Aviation - during his 2017-2021 term - had
CHALLENGE - See Page B4
‘Bahamians don’t feel what Gov’t is selling’ THE Opposition’s finance spokesman yesterday asserted that “what the Government is selling does not match what the Bahamian public are feeling” in relation to the projected $223m Budget surplus for the current 2026-2027 KWASI THOMPSON fiscal and optimistic economic outlook. Kwasi Thompson, the east Grand Bahama MP, told Tribune Business that such a positive fiscal outlook as set out by the Davis administration in its Budget forecasts and documents should show up - and be felt - by improved public services benefiting from increased investment, vendors and suppliers to the Government being paid on time and their arrears wiped out, and civil servants receiving compensation due to them. However, he argued that none of this is happening based on complaints from Bahamian nurses and teachers, the private sector and taxpayers at-large, which suggests a disconnect for many between what the Government is forecasting on paper and the daily reality they see and feel. Mr Thompson, responding to the Government’s just-released 2026-2027 annual borrowing plan, told this newspaper that “the central issue” is “whatever the Government is portraying themselves to be doing, it must translate into better for the Bahamian people. It must translate into better lives, better services for the Bahamian public. These are the things the Bahamian public are interested in. “The challenge the Bahamian public are having is that things are not better. If things are better, as the Government is portraying, then all the vendors providing goods
BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
and underwrite the tax payment if it lost. “ Immediate enforcement of the significant VAT assessment and penalties prior to the adjudication of the applicant's appeal would result in serious financial harm to the applicant and its operations, as the monies expended to satisfy the assessment are unlikely to be immediately recoverable should the applicant succeed on appeal and, in any event, the financial costs of meeting the assessment, which will continue until the recovery of the funds expended to meet the assessment,” Machinery & Energy said. Antonia Benjamin, the Caterpillar dealership’s financial controller, in a January 20, 2026, affidavit doubled down on these fears by alleging the company “will suffer serious and irreparable financial prejudice", and that the "assessment sum of $1.276m, together with the penalty of $30,000 and interest, is substantial and would materially impair the applicant's cash flow, business operations and ability to continue trading in the ordinary course". She also cited delays in the “Government’s payment process” involving VAT refunds as a further concern for Machinery & Energy. She also disclosed the January 14, 2026, letter from CIBC confirming that the $1.276m guarantee to underwrite the tax payment - should the company lose the VAT appeal
The New Providence Gas terminal, a joint venture involving BISX-listed FOCOL and Shell, the multinational energy giant, will be constructed at Clifton Pier and developed in three phases to supply fuel to existing and future power generation facilities while creating what executives described as The Bahamas’ first large-scale LNG import and distribution hub.
BAHAMIAN regulators yesterday declined to state where they stand on the $1,000 one-time “demand” or congestion charge that Elon Musk’s Starlink satellite Internet and communications provider is levying on many New Providence subscribers. The Utilities Regulation and Competition Authority (URCA) declined to respond to Tribune Business inquiries after several persons asked whether it will move to safeguard and protect consumer interests given that Starlink is one of its regulated licensees. One source, who reached out to this newspaper, said on condition of anonymity: “A few people have been trying to get on. I recommended it to one of my friends to get Starlink, and they got it but had to pay a
Sought ‘control points’ for illegal commercial charters Problem still ‘rampant’ but Civil Aviation makes
DIONISIO D’AGUILAR also been working to facilitate the electronic filing of flight plans and passenger manifests. Mr D’Aguilar told this newspaper these would have acted as “control
FLYING - See Page B4
Prime Minister energy security and Philip Davis KC support a more said the project reliable electricity marks "an imporsystem." tant milestone" He added that in efforts to overthe project forms haul an electricity part of the Govsystem that has ernment's wider struggled with strategy to modageing infrastrucernise the country's ture, rising demand JOBETH COLEBYelectricity sector and repeated DAVIS outages. after inheriting "Today repwhat he described as an ageing resents our commitment to and deteriorating network. build an energy future that "When this administration is stronger, cleaner and more came into office in 2021, we reliable for our people," said understood the condition of Mr Davis. "Today's introduction of LNG is a major step the energy sector we inherbecause it allows us to diver- ited," said Mr Davis. sify our fuel supply, strengthen FUEL - See Page B2
Consumer unease on Starlink $1,000 ‘demand surcharge’ BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
D’Aguilar: ‘Didn’t feel sufficient safety and oversight’
$1,000 surcharge. If you are on New Providence and go online to sign-up for a Starlink account, it is there. “If you are geolocated on New Providence, you have to pay a $1,000 surcharge. How does that happen as a regulated entity? Are we protected with a charge, a fee like that by the regulator? An interesting point: If you sign up for a stationary package at $60 per month on New Providence, the surcharge applies. If you sign up for a roaming plan, which provides coverage on New Providence for $175 per month, the $1,000 surcharge does not apply.” Tribune Business was unable to reach Starlink for comment but, by attempting to apply online for an account with the satellite operator, was able to verify what concerned consumers had said. “Demand surcharge in your area. A one-time charge applies to activate Starlink service in your
LEVY - See Page B5