The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Bahamas Electricity Corporation’s (BEC) balance sheet remains in “serious trouble”, its executive chairman yesterday saying more than $125 million in accounts receivables remain outstanding.

Speaking at the Bahamas Society of Engineers’ (BSE) monthly luncheon, Leslie Miller said BEC was in a “serious cash flow problem” and no longer had the capital capacity to borrow money.

“At the present time our accounts receivables is in serious trouble,” he said. “We have more than $125 million outstanding. That’s part of our problem in BEC right now. We have a serious cash flow problem.”

Mr Miller added that one major hotel alone owed BEC some $15 million.

“We have used BEC over the years and totally neglected to live up to our responsibilities,” said Mr Miller, adding: “Over the last several years BEC’s liabilities have surpassed its assets by $123 million.

“BEC should really be closed but the Government can’t shut it down because it’s such a vital entity.”

Mr Miller said some 3,000 customers remained disconnected from the electricity grid.

“BEC doesn’t have the capital capacity as it stands to go out and borrow money. The banks right now have us in a corner,” Mr Miller said.

“We don’t have the capability to go out and borrow about $200 million that is necessary to enable us to put up a new plant. Because of that, and because you want to get rid of your sovereign guarantee, you look for outsiders to come in and take care of your sovereign guarantee.”

Despite BEC’s financial woes, Mr Miller said a turnaround was possible. “We have the answer; we just need to the green light from government to go ahead. If given the go-ahead within 18 months, we could turn BEC around and have us a profitable entity within two years easy,” said Mr Miller.

“We need to put a new management plan in place. We have to make some changes throughout the entire organisation and make people responsible. We have to cut out the wastage, streamline the company and do what normal business people do. There are a lot of avenues at BEC.”