The Tribune

By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia.net

FREE National Movement Chairman Michael Pintard criticised the government yesterday, saying it was “unacceptable” that Bahamian homeowners were reportedly being evicted from their homes over an inability to pay mortgages, while the politically elite potentially owe millions to the Bank of the Bahamas and are not made to service their loans.

Speaking to The Tribune yesterday, Mr Pintard said it would appear that the same rules did not apply to ordinary Bahamians when compared to the well connected or politicians in this country.

He said The Bahamas cannot be a country where the well connected do not adhere to laws while the common man is made to suffer.

The senator said while there was an “unbelievable” number of homeowners in New Providence who could not pay their mortgages, there was an even more disheartening number of families in Grand Bahama who were either evicted by the courts on the behest of the Bahamas Mortgage Corporation or living under the threat of the same fate.

Last June, Prime Minister Perry Christie told the House of Assembly that his administration was still committed to resurrecting its failed mortgage relief programme. He also revealed at the time that he received a major communication from a clearing bank that put his administration at “a major stage” in the initiative.

However, since then, there has been no word from the government over its mortgage relief plans or what this clearing bank communication recommended.

Mr Pintard said: “The FNM has had an opportunity to meet with families who have been threatened with eviction and have been evicted because there have been special circumstances where they have lost the breadwinner of the family or the down economy has accounted for the delinquency. Hence there is an arrears on their homes.

“Nevertheless a number of them are living under the constant threat of eviction while others have greater anxiety having been ordered by the courts to vacate their homes which they have occupied for years.

“We have sought to intervene in this matter and initially have had private discussions with officials at the Mortgage Corporation with a view of them working out acceptable terms with home owners to see whether they may maintain and become current with any arrears.”

He added: “It has had mixed results. We draw reference to this situation to underscore that there cannot be two different rules, ones for those politically connected or those with influential and powerful friends and a different rule for ordinary Bahamians who don’t have the protection of the political elite.

“So we contend that it is unacceptable that today those persons who have been responsible for the millions potentially lost at BOB are being rewarded.”

In October 2014, Mr Christie announced a plan to help the struggling Bank of the Bahamas by establishing Bahamas Resolve, a new state-owned and controlled company that will assume liability for $100 million of BOB’s non-performing commercial loans.

This move came after BOB incurred losses in the previous two years.

The government believes the establishment of Bahamas Resolve would mitigate against bad credit risks, improve the bank’s revenue prospects and enhance its shareholder value and financial condition.

The government has also said it has “provided liquidity support to BOB through deposits of approximately $65 million.”

The FNM has repeatedly demanded that the government reveal the names of all politicians whose delinquent debts may have contributed to the government’s proposed $100 million bail out of the bank.

The mortgage relief programme was a campaign promise of the PLP that has failed to materialise. When the PLP’s mortgage relief plan was officially introduced in September 2012, there were an estimated 4,000 homeowners in mortgage payment arrears. That year, State Finance Minister Michael Halkitis said that around 1,000 would likely qualify for assistance under the plan. However, it was later revealed that less than 10 people were helped through the plan.