The Tribune

EDITOR, The Tribune.

KPMG appears to be pandering to the government’s wishes at every corner. They say what they mean but don’t actually mean what they say. All of their reports, including their Review of the Commonwealth of the Bahamas 2014-2015 Mid-Year National Budget, give opinions that are meagre at best and stated in a way not to upset the government. Their predecessors Pricewaterhouse, when asked to give their opinion on the controversial NHI Scheme, seem to be cast aside and threatened when giving their honest opinion which was not in keeping with that of the government and their plans.

KPMG themselves admit in their review of the 2014-2015 budget that the “elephant in the room” was and remains Government expenditure and questioned whether the measures being taken were sufficiently aggressive.” To date the elephant has not yet left the room, but all of a sudden the government can miraculously afford and sustain a National Health programme.

KPMG states that “While it appears that total employment

has increased somewhat, overall unemployment has worsened to 15.7 per cent

in November 2014 from 14.3 per cent in May,

and 15.4 oer cent in November 2013.” There has been no improvement since then. The Minister of Health, Dr Perry Gomez, made it very clear back in 2013 that the “NHI is a contributory scheme and the level of unemployment is very important because the more unemployed there are then the greater the burden on the government to finance it.” Dr Gomez went on to say that “when we did the report 10 years ago the level of unemployment was just under eight per cent. When we came into office (2012) the unemployment rate was 15 per cent, hence their reservation of going forward at that time.” The IMF projected the unemployment rate for 2016 to be 15.6 per cent but the unemployment rates Nationwide according to a recent release from the Department of Statistics is 16.2 per cent, so even higher than projected.

KPMG went on to say that “there are much larger gains to be made

in reducing expenses and increasing transparency and accountability. It is pleasing to note that the Government

has embarked or is embarking on various initiatives to reign in expenditure and achieve more value for money from what it spends money on.” This statement was made in the 2014-2015 report. There has clearly been no reduction in expenses, transparency nor accountability.

KPMG says they “agree with expectations that with the opening of Baha Mar, and a number of other projects around the country, the next 6 months (after their 2104-2015 report) will see a meaningful reduction in unemployment levels. However, it will take significantly more economic growth and diversification, as well as targeted training, to bring unemployment levels down to truly acceptable levels.” As mentioned earlier none of this has ever come to fruition; it has only become worse. KPMG concluded that the country was on the right track and taking many of the right steps, yet nothing they had foreseen has actually happened.

KPMG openly admits again in their 2015 island infrastructure summit that “Infrastructure is critical to the growth of island economies. However, most island markets struggle to bridge the gap between the demand for infrastructure and the available supply of funding, capacity and capability.” All of which our government has failed to provide.

KPMG must realize our economy and unemployment among other things have not improved but yet they continue to pander to the government’s wishes and push through NHI, knowing that our small island nation is in no position to do so at this time.

The government and KPMG alike should heed the words of Winston Churchill who said – “To build may be a slow and laborious task of years. To destroy can be the thoughtless act of a single day”. Please don’t destroy our country on a political promise and your pride. Take the time and “get it right”.

NHI Insider

Nassau,

August 1, 2016.