The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Cabinet minister yesterday promised that all Bahamian accounting firms will have “a fair opportunity” to win public sector work after concerns were voiced over alleged government bias.

Michael Halkitis, minister of economic affairs, gave his commitment after Philip Galanis, the former PLP MP and Senator, accused the former Minnis administration of being “blatant” in handing the majority of government work to just one accounting firm he did not name.

The HLB Galanis & Company managing partner, referring to an earlier panel discussion during the Bahamas Institute of Chartered Accountants’ (BICA) Accountants’ week, said it was “critically important” that the Government “not be seen” as favouring companies perceived to be supportive of it politically.

And, referring to the much-publicised FTI Consulting report into the Bahamas Power & Light (BPL) “lipstick and make-up” allegations, he argued that it was “wholly unsatisfactory” that such an exercise was awarded to a foreign firm when there were numerous Bahamian companies available to do the job.

“Yesterday, on one of the panel discussions, one of the panellists made a a very important point that in successive governments there seem to have been preferred accounting firms used by the Government,” Mr Galanis charged.

“This was very blatant in the last administration, when there was only one accounting firm that got much of the work from the Government.” He did not name that company, but Tribune Business heard complaints at the time that EY (Ernst & Young) appeared to be receiving most of the Government engagements, including the Bahamas Power & Light (BPL) and Water & Sewerage probes.

Mr Galanis, though, said the panel discussion raised concerns that something similar was happening under the newly-elected Davis administration as “the last two engagements provided by the Government went to another firm.” This appears to be a reference to Deloitte & Touche’s fiscal and BPL assignments, although again no name was mentioned.

“The panellist made the point that it’s critically important for the Government not to be seen to be encouraging preferred firms or firms that seem to be supportive of the PLP or FNM,” Mr Galanis added.

“The point I made yesterday was it was wholly unsatisfactory for the former administration, in my opinion, to have engaged a foreign consulting firm to investigate the BPL matter, which was a travesty never reported on until the Government changed.”

Boosted by Mr Halkitis’ promise that the Government will hire Bahamian accounting firms, and spread that work around, Mr Galanis asked him: “I’m hoping you will ensure, and I’m sure you will ensure, but I’d like you to reiterate the commitment of the Government to be fair and balanced in its approach to accounting contracts.”

The minister, in response, said: “I can say unequivocally the Government has no preferred firms. Everyone will be given a fair opportunity to get work as we engage firms. Our preference will definitely be Bahamian firms.”