The Tribune

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

INVESTMENTS Minister Khalis Rolle claimed yesterday that US embassy officials interfered in Bahamian government contract bidding and procurement processes by lobbying on behalf of two American companies. Those companies later complained about Bahamian government interference.

Without disclosing the identity of the companies, Mr Rolle said one wishes to take over the Bahamas Electricity Corporation (BEC) while the other wanted to establish a hospital here.

In the US State Department’s report, Mr Rolle said that no mention is made of the fact that the US lobbied on behalf of the companies who later complained about the government’s handling of bids.

The report said: “Over the last year, the Embassy in Nassau has received several complaints from US companies alleging a lack of transparency and undue government interference with the bidding and procurement process.”

Dismissing parts of the US State Department’s 2014 investment report on the Bahamas as “unfair” and “unrealistic”, Mr Rolle said the criticism of the government’s contract and procurement process is not good for the ongoing relationship between the Bahamas and the US because it reflects poorly on the country’s relationship with most foreign investors.

He said: “The only thing I can say about (the report) is the specific claim about government interference with applications has to do with two very specific issues, one the BEC privatisation and reconstruction process where there is an American company that has been lobbying many government ministers ... the other a company wanting to establish a hospital.

“If they want to have a balanced discussion and if you want to talk about undue influence of government,” he said, “US government officials made representations to us on behalf of these companies. Representations and lobbying were made even with BEC.

“There was an American company that came to see us with a representative of the American embassy and we entertained them. They wanted to establish a hospital here and we said we would look at the proposal and determine where to go. I know there was some representation made in the papers about it. When the announcement was made, we got calls and scathing criticism locally, including from Doctors Hospital.”

Mr Rolle said the Christie administration anticipated lobbying efforts by representatives of various companies with respect to BEC, so it distanced itself from the process by initiating the services of the advisory firm KPMG to evaluate proposals by various companies.

“The mere fact that the government has turned the process over to KPMG indicates we didn’t want to get involved or be only influenced by one entity. We wanted an objective partner,” he said, adding that the government wanted to ensure a fair and transparent process to determine BEC’s future.

As for the company that wished to establish a hospital here, he said the government will not sanction its plan. “We have a hospital system in place,” he said.

“You can’t go to any country in the world and tell them what they should do. Why come to the Bahamas and do it? The statement was out of order and it does not reflect the relationship the Bahamas government has with the US government. It’s not good for our ongoing relationship since clearly every foreign direct investor does not have that complaint.”

Mr Rolle also expressed surprise at the US State Department’s assertion that the government does not support its claims of transparency with legislation.

“This is the same regime for many, many years,” said Mr Rolle. “There’s never a complaint about it up until now. In all of their statements on investment climate, under first PLP administration, under FNM administration, never a complaint and we had the same legislative regime and national policy. Therefore, I find it strange and I find it curious that a statement like that would be made given the fact that we have a process that I believe reflects in many instances our desire to do business the right way.”

Mr Rolle said people must respect the fact that various processes require different government responses.

“Brookfield and Atlantis is a major transaction and process and we were able to turn it around in a short period,” he said as an example, adding: “But when you’re liberalising the telecommunications sector or giving control of your national assets, it’s not something you take lightly, you do it strategically and with an aim to protect your natural interests.”

Mr Rolle emphasised that foreign direct investment must be balanced with local investment.

“Every foreign direct investor is not entitled to be given what they want,” he said. “There’s a process. The government will evaluate the process and protect Bahamian businesses. Many Bahamian companies don’t have the same access to financing that American companies have. In many instances we have to ensure that any decision does not put Bahamian businesses at a disadvantage.

“We love foreign direct investment, we appreciate it, but it must be balanced,” Mr Rolle said.