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Last Updated: Feb 13, 2017 - 1:45:37 AM |
Hon. Keith Bell on the Education Loan Authority (Amend.) Bill 2014 and The Bahamas Institute of Chartered Accountants Bill 2014
May 7, 2015 - 2:06:49 PM
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 Nassau, Bahamas - Speaking notes by Senator The Honourable Keith R. Bell Minister of State in The Ministry of National Security on: The Education Loan Authority (Amendment) Bill 2014 and The Bahamas Institute of Chartered Accountants Bill 2014 before The Senate 6th May, 2015:
The Education Loan Authority (Amendment) Bill 2014 and
The Bahamas Institute of Chartered Accountants Bill 2014
Madam President, today I rise to give brief statements in support of the Education Loan Authority (Amendment) Bill, 2014 and The Bahamas Institute of Chartered Accountants Bill, 2014.
Madam President, the story of BICA mirrors that of other professions and the creation of the Bahamian Middle Class. I am advised that upon completion of their professional examinations in London, England, Basil Sands, Maitland Cates and Clifford Culmer began discussions in 1965 to form an Association of Professional Accountants in The Bahamas. Over the next several years after these three individuals returned home, many others including McGregor Robertson, Ronald Atkinson, Franklyn Wilson, Don Britchford, Leslie Cropper and Barry Nottage added to the discussion. These persons eventually became an organized committee.
Using information obtained from other international Institutes and their own professional experiences, this Committee drafted by-laws and rules to govern the Association. These by-laws would form the basis for establishing a framework that would grow into the current structure of The Bahamas Institute of Chartered Accountants[1].
In 1991, the PLP introduced and passed the Public Accountants Act to regulate the practice of public accounting and related purposes. That Act, passed in 1991 remains the regulatory framework of the accounting profession in The Bahamas. Madam President, after existing unchanged and un-amended for over two decades, change must come.
The Financial Services Industry is one of the most significant industries in our Country. The sector has provided and continues to provide a large number of high paying jobs. As we saw with the challenges which the industry has faced over the years, it is important to recognise that the industry is a global one where standardisation is a critical component.
Accountants are the backbone of financial services. When accountants fall down, businesses collapse and whole economies can fail. The Bahamas Institute of Chartered Accountants Bill 2014 (BICA Bill) is the most significant reform to the accounting profession since the passage of the Accountants Act in 1991.
When passed, the BICA Bill will create a new regulatory framework for the local accounting profession in line with international best practices whilst recognising local needs and conditions.
In drafting and preparing this Bill, stakeholders were aware and sought to ensure that its provisions were in-line with BICA’s requirements with the international Federation of Accountants.
Under the Bill, the existing entity known as The Bahamas Institute of Chartered Accountants will continue to exist and be preserved as a body corporate. BICA will continue to have overall responsibility for the profession including matters relative to admission, certification, discipline and licensing of Accountants.
Madam President, this Bill will introduce a number of significant reforms:
· The entry into the profession has been lowered from 21 under the 1991 Act to 18 under this Bill. This is in response to international best practices and will not unduly restrict a gifted young Bahamians from obtaining registration once they meet the academic qualifications.
· It streamlines the Accounting Designations to C.A for Chartered Accountant and F.C.A. as apposed to C.A and P.A. for Public Accountant under the 1991 Act
· It creates the new designation of Fellow Chartered Accountants who can use the initials F.C.A. behind their names
· It creates the new Public Practice Committee which is charged under the Bill to ensure that the high professional standards of the public accounting profession are maintained by members of the Institute who are licensed to engage in such practice.
· It empowers the Public Practice Committee to (with the approval of the Governor General) make regulations for persons carrying out duties under the Bill.
· It classifies failing to obtain the requisite work permit whilst holding a Licence as professional misconduct.
· It streamlines the complaints procedure and process of investigating complaints
· It empowers the Investigations Committee to reprimand or fine individuals or firms and or pay a sum not exceeding $20,000 in costs to the Institute for disciplinary hearings.
Madam President, last week we celebrated the 50th anniversary of Black Tuesday. That event marked a significant turning point in the history of this nation and forever changed the social contract between Bahamians and their government. For those early forefathers, Sir Cecil Wallace Whitfield, Sir Milo Butler and the father of the Nation Sir Lynden, we applaud them for protesting against injustice Could they imagine that 50 years later, we would have been transformed from a Country where you had few Bahamian Accountants to now have a profession which has hundreds of qualified professionals who can hold their own both locally and internationally.
Madam President this Bill represents significant progress for BICA and its members. I congratulate BICA and the stakeholders for all their work in assisting with the preparation of the legislation and I look forward to seeing their organisation move from strength to strength.
Madam President I now turn to the Education Loan Authority (Amendment Bill) 2014. This bill marks another effort to bring reform to the Government Education Loan programme which was started in 2000 with the Education Guarantee Fund Act.
This Act had the noble intention of providing funding to assist Bahamian Students in obtaining college level education.
The Challenges with this programme began at inception and various government ministers including the Hon Carl Bethel QC struggled to reform the programme or recover the tens of millions of dollars which the government invested into the students.
In suspending the programme,Bethel is reported to have indicated that the programme had a61 % default level. Bethel is further quoted:
“Due to this large rate of defaulters, loan-holders who are either unwilling or unable to repay their obligation, and the fact that the guarantee program has reached its statutory limitthe government is left with no alternative but to suspend the program at this time in respect of any new loan applications.”
Madam President, today as then the programme remains challenged by the failure of borrowers to repay. This Bill will introduce several significant reforms which will positively impact the government’s balance sheets and improve the recovery of the outstanding receivables.
Specifically this Bill will:
· Repeal the Educational Guarantee Fund Act as its functions have been subsumed in this Educational Loan Authority Act
· Create a statutory charge for the Authority to manage and recover delinquent loans and receivables
· Establish a Loan Support Unit which is charged with managing the collection efforts of the delinquent loan portfolio
· Provide for the formulation and promulgation of a Education Sector Policy which would detail the aims and plans of the Minister for Educational development in The Bahamas;
Madam President those of us from humble beginnings know and understand the real challenges which finances play in obtaining education. It is unfortunate that in its initial implementation, sufficient planning was not done so as to avoid the significant losses which the programme has experienced over these years.
I would only ask that persons out there who have obtained loans to do the honourable thing and to repay the loans as resources permit.
The reality is that the government is limited by resources and by failing to repay the monies borrowed; funds may not be available for subsequent students to attend university.
Madam President, I support both Bills before this Chamber. I believe that they will bring about beneficial changes to the areas which they impact and are in the interest of The Bahamas and the Bahamian people.
May God continue to bless this great Commonwealth and its people.
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