Bank reform is pivotal if we are to grow the Bahamian economy and empower small and medium size businesses. Reported political interference into the daily operations of the Bank of the Bahamas and the Bahamas Development Bank has resulted in substantial financial losses to the Bahamian people. One such example sited is the case of a construction company (in part owned by a former Cabinet Minister and a prominent PLP linked Minister of the gospel recently appointed to a significant post by the government) that received a large government contract. This construction company apparently secured more than $200,000 in order to mobilize its work on one of the dormitories at BAMSI and despite receiving between $2.5-$5 million dollars from the Government of the Bahamas for this work they have refused to service their loan which now stands at approximately $250,000.

As a result legal action is being taken against the company for its refusal to honour its commitment despite having the capacity to pay. The FNM is calling on the Government of The Bahamas to explain the basis on which the loan was granted to the company and on what basis was it paid for the construction project despite being delinquent on their government loan.

Needless to say huge outstanding debts like these are having a critical effect on this institution that is already in need of recapitalization. One would think that after the BOB fiasco the PLP led government would be more attentive and vigilant in proper management and oversight. Instead their actions demonstrate a callous disregard for how fragile our local financial institutions are and how vulnerable our local economy is.

The country’s sovereign credit rating downgrade by S&P to one notch above “junk” status in August of last year should have served as a wake-up call not only for the government, but for all Bahamians. Former Central bank Governor, Wendy Craigg said about the downgrade that for the Bahamas it was more of a concern if the issues that caused the downgrade were not addressed.

The Prime Minister, instead of admitting that the country had a problem it must address, chose to explain away the downgrade, even calling on Bahamians to not be taken aback by the credit rating. Christie and his Government has gone on to not only continue to borrow to the detriment of the economy, but has managed to even increase our debt.

The Christie Administration has made so many promises concerning the need for more focus to be placed on the Development’s Bank effectiveness. In 2012, The Minister of State for Finance Michael Halkitis, in introducing new legislation to Parliament, said the purpose was to make the Development Bank more responsive to the needs of clients in the modern environment. Halkitis told Parliament that the amendments represented “a significant shift in the bank’s operating guidelines”. However, four years later, the Bahamas Development Bank still operates under the PLP “Cronyism” philosophy. This we lay at the PM’s feet and not Halkitis.

Our economy cannot continue to be burdened with so much outstanding debt by a few political benefactors. It becomes a situation where the many suffer because of a few. This is not the way to build a “Stronger Bahamas”.