Table scraps for foreigners

As of Thursday, March 16, 2017

EDITOR, The Tribune

FOR a week, this journal has been reporting that foreigners who worked at Baha Mar are enraged at getting offered maybe two to four cents on the dollar - or worse, getting no answers whatever to the claims they duly filed months ago - while Bahamians have been made whole.

Surprise, surprise! They should have read my column of September 19 last year.

I quoted Cabinet Minister Jerome Fitzgerald, the garrulous politician always ready with a pungent quote to boost his ambitions. In speaking of the Compensation Committee chaired by James Smith, he had this to say: “The Committee is taking all claims, Bahamian and non-Bahamian. Some of those will not get much; they’re non-Bahamian.” Exactly. Since Mr Fitzgerald is the Prime Minister’s favoured lapdog, this statement of policy must come straight from the top.

The trouble is, while it’s a popular policy, it’s illegal. As I read our own Companies (Winding Up Amendment) Act 2011, it provides that after secured creditors the only priority can be given to claims of Government and employees, all of whom must be treated equally and ratably, without distinction as to nationality.

Of course, Mr Smith assures us that the whole procedure has been removed from the normal liquidation process, so creditors should be grateful for any crumbs they receive from the Chinese EXIM Bank under its “ex gratia” claims offer - as if the Bank were running a charity bazaar. In reality, the Bank only makes these payments under compulsion of an agreement (never disclosed) with Government, which itself ejected the Bahamian liquidators chosen with much publicity less than two years ago.

And in paying and assuming these claims, the Bank will simply turn around and assert them against the mortgage debtor Baha Mar, to be eventually extracted when the new owner pays off the mortgage. Thus Government handles the biggest bankruptcy in our history outside the law.

Foreign creditors may soon be lining up smart lawyers who will punch a hole in this leaky can of worms. In cancelling a court-approved liquidation, they can argue that Government acted ultra vires under our Constitution, justifying financial claims against the State, and possibly against its willing members of the Compensation Committee, including Mr Smith himself.

That unfortunate gentleman, once an independent Central Bank president, now seems lost in powerless confusion, saying “I can’t speak for the Government ... payment is under review by EXIM ... it’s wait and see ... we’re not making the rules.”

Government always has full authority to compensate any category of its citizens for losses beyond their control, whether job claims or hurricane damages.

But that compensation must be made by special subventions from the Treasury authorised by Parliament, not by taking funds from other innocent parties simply because they are non-Bahamian. Otherwise, our nation will suffer profound reputational image for discriminatory treatment and begin a campaign to drive away risk-shy foreign investors who can go elsewhere.

RICHARD COULSON

Nassau,

March 15, 2017.

More like this story

birdiestrachan 7 years, 6 months ago

Lap dog, unfortunate gentleman . Compensate its citizens. should not the Bahamians be paid first? There is the possibilty that there salaries were not very hgh in the first place. It is only your hope that the Bahamas wiill suffer profound reputational damage.

Why is the word "dog"?? used in Mr: Coulson's language whe he refers to human beings. I will take the words of Mr: James Smith any day over Mr: Coulson.

Porcupine 7 years, 6 months ago

birdie, What you "think" doesn't matter if there is a law specifically stating something. Any honest judge would see that. Now, try and find that honest judge. Mr. Coulson brings up some important points here. As for your opinions and comments, it seems most of us here find them foolish and juvenile.

themessenger 7 years, 6 months ago

Hey Bird Shit, would the words lackey or minion be more acceptable language for your sensitive soul? James Smith couldn't find his own ass with both hands and a flashlight.

banker 7 years, 6 months ago

LOL -- funny and true. James Smith's knowledge base can be inscribed on a grain of rice in 72 point font.

banker 7 years, 6 months ago

Birdie, please copiously post your thoughts for the world to see. It is high entertainment. The world wants to see the type of person that gets brain damage from using rough toilet paper. Yes it gives the Bahamas a bad name, that we could raise a person with such limited cognitive abilities. But to be fair to your brain, it is amazing thing. It works 24 hours a day, 365 days a year until the very first moment that you vote PLP. When you join the party, the neurons turn to feces, and that is why you say the things that you do.

But it is high entertainment. Please post more of you mental meanderings. I eagerly look forward to them. I share them on social media. They are priceless.

OMG 7 years, 6 months ago

Christ Birdie you need to travel the world and see what real first world governments do rather than practice national discrimination. You need to wake up and realise that the world doesn't need the Bahamas, and can invest in many more affordable countries. As for the salary differential theory one can only assume that you have been taking drugs..

Porcupine 7 years, 6 months ago

The only thing I disagree with is that risk-shy investors are already steering clear of The Bahamas. Otherwise, it seems as if Bahamian politicians think that the law is there for everyone else.

banker 7 years, 6 months ago

The only thing I disagree with is that risk-shy investors are already steering clear of The Bahamas.

Totally true. They are selling their houses and moving out. The latest Central Bank report documents the exodus of investors. Our wealth management book of business for High Net Worth Individuals is so diminished, that I am transitioning from Wealth Management and Family Office to Funds, Securities and Commodities. Almost finished my employer-sponsored retraining and moving on.

From what I have seen, the exodus of capital under management is in the billions from the Bahamas. Our "financial services" industry is shrinking alarmingly, and the majority of the new customers that we have now, are the type that no one else wants (too much risk) or people who don't qualify for other IFC services.

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