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Last Updated: Feb 13, 2017 - 1:45:37 AM |
 The DNA has analysed very carefully and deliberately the headline figures outlined in the local dailies with reference to the economic losses incurred by the stalling of the BahaMar Resort.
What we in the DNA request is a full acknowledgement of the report by officials within the Office of The Prime Minister and the Ministry of Finance. Secondly, we wish to have a full and open tabling of the document and all of its contents so we can all effectively make wiser decisions on the content and what it means for The Bahamas.
Without question, if the figures presented are fair and accurate, it represents a chilling side of this entire BahaMar affair and one that we cannot simply run away from because we cannot handle the truth in fine detail.
An info-graphic of the potential losses was highlighted by a Bahamian Civic Action Group and widely circulated via social media as a follow up and supplement to what we have already seen in the public domain from the local media houses. From what we are led to understand, estimates have the $315 million in tax revenue losses to date. Also, $500 million in salaries have been lost to date. In addition, it is estimated that we can lose over $33 billion in GDP over the next 19 years and over $2 billion in GDP currently.
Now we understand that clearly not only does the opening of BahaMar mean quite a significant deal to our survival in dollars and cents, but add to that what international ratings agencies and by extension our international creditors see as our performance, we clearly have a large hole to dig ourselves out of.
This does not let the government off the hook with regard to its other economic messes. Without a doubt BahaMar being opened would have helped tremendously, but we wish to add a bit of caution to the figures presented and not wish to paint this BahaMar opening as a panacea to what truly ails this Bahamian economy- and that is a lack of structural reform, true dynamism in terms of diversification and output, a trained workforce that can handle new challenges, access to capital by the masses in addition to a shady bureaucratic regime that works for a few insiders but not for all.
However, current issues persisting, what we need now is deliberate action to open this stalled BahaMar Resort, either in full or in part. Action must be taken now to ensure that we have a full recovery within the next 2 years, if only a moderate recovery.
We need to step away from the current process we have been steepened into by this current administration. It is our opinion that the PLP’s process on handling this affair is marred with conflicts and personal issues that cannot be reconciled and a full separation from this PLP administration and them in this process is first and absolutely needed. We need to re-start the process of analysing the best and most cost efficient short term solution of getting that major block of Cable Beach open for tourists- either in full or in part.
Secondly, we need to direct the China Import-Export Bank to consider other alternatives that untie themselves from binding constrictions in the original Heads of Agreement with BahaMar and the Government, and also with that very clearly find an amicable arbitration break from the old covenants and set up new ones with new direction. If BahaMar executives on behalf of the original owners need certain compensatory measures put in place to ensure that losses are recovered as a result of this new regime, we need to be accommodating as possible and give assurance to delivery of what we promised primarily over the length of time it takes to honour commitments and when the deliverables are in fact delivered.
Thirdly we need to ensure that this never happens again on Bahamian soil. This certainly means that foreign direct investment deals of this magnitude must be negotiated in public and we must enact laws that prohibit the negotiation or sale of public land in private. We also must enact by law, in the strictest way possible, the prohibition of the private and non-consultative engagement of Bahamian wealth, land, taxpayers’ dollars and financing.
Then and only then can we begin to fix the mess that is BahaMar now, and also find ourselves stopping further abuses from wayward governments whose bellies are too big for their mouths and hands to feed.
Also, this would ensure that all Bahamians and vested stakeholders are not held hostage by a wayward government, and vice versa ensures that investors and Bahamian stakeholders are not left in the dark when critical information needs to be analysed to make proper determinations moving forward.
Youri Kemp
DNA Candidate for Garden Hills
DNA Spokesperson for the Economy and Finance
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